Australia's free negative gearing calculator — updated for the May 2026 Federal Budget.
This free property investment cash flow calculator models the true after-tax cost of owning an Australian investment property. It applies the 2025–26 ATO tax brackets, Medicare levy, state-specific stamp duty, Division 43 and Division 40 depreciation, and the negative gearing restrictions introduced in the May 2026 Federal Budget — letting you compare new builds against established properties side by side across a 30-year projection.
The May 12, 2026 budget restricted negative gearing for established properties. Losses from established investment properties can no longer be offset against other income such as wages. New builds remain fully eligible. Properties purchased before the cut-off date are grandfathered under the old rules.
No. For established properties purchased after May 12, 2026, rental losses are quarantined and can only be applied against future rental income or capital gains from the same property — not against your wage or salary income. Toggle between New Build and Established in this calculator to see the after-tax cash flow difference.
Properties already owned before the May 2026 cut-off remain eligible for negative gearing under the old rules. You can continue offsetting rental losses against your income regardless of whether the property is a new build or established. The restriction only applies to established properties purchased after the policy change.
Division 43 (building allowance) allows a straight-line deduction on construction costs — typically 2.5% per year over 40 years on new builds. Division 40 (plant and equipment) covers depreciable fittings such as appliances, carpets and blinds, claimed at a diminishing value rate (commonly 20% per year). Both are non-cash deductions that reduce taxable rental income without affecting your actual cash position.
Deductible expenses include loan interest, property management fees, council rates, water rates, landlord and building insurance, body corporate fees, repairs and maintenance, smoke alarm compliance, depreciation (Division 43 and 40), accounting fees, and land tax. Capital improvements are not immediately deductible but may be added to the cost base for CGT purposes.
Stamp duty varies by state and is calculated on the purchase price (or land value for new builds). Each state uses tiered brackets — a $600,000 property in VIC attracts approximately $31,000 in stamp duty. This calculator applies current rates for all 8 states and territories: VIC, NSW, QLD, WA, SA, TAS, ACT, and NT.
Lenders Mortgage Insurance (LMI) is required when your deposit is less than 20% of the purchase price (LVR above 80%). It protects the lender, not you. On a $600,000 property with a 10% deposit, LMI is typically $10,000–$14,000. This calculator estimates LMI from your LVR and includes it in your total cash required to settle.
An interest-only (IO) loan means you pay only the interest component for a set period — typically 1–5 years — with no principal repayment. This maximises your tax deduction and improves short-term cash flow, but your loan balance does not reduce. After the IO period, repayments switch to principal and interest (P&I) at a higher rate. This calculator models both phases across your full loan term.