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Investment Property Calculator
Estimate the cash flow and tax impact of an investment property under both current Australian tax rules and proposed 2026–27 Federal Budget reforms.
Adjust rent, vacancy, loan type, agent fees, ongoing costs, depreciation, and tax settings to compare pre-tax cash flow, taxable profit/loss, estimated tax impact, carried-forward losses, and after-tax cash flow.
Model investment property scenarios using current tax settings and proposed reforms to better understand your potential after-tax investment position.
Now supports comparison between current tax rules and proposed 2026–27 investment property tax reforms.
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How to read these results
This calculator separates cash flow from tax results.
- Pre-tax cash flow shows how much money you’re actually ahead or behind each year after rent, expenses, and loan payments.
- Taxable profit/loss shows how the property affects your taxable income after deductions and depreciation.
- Estimated tax impact compares your income tax before and after including the property result.
- After-tax cash flow combines your real cash position with the estimated tax impact.
A property can have a negative cash flow but still generate a tax benefit — and a tax benefit alone does not mean the investment is profitable overall.
Important notes
- Calculations are estimates only. Results are based on your inputs and simplified assumptions, and should be treated as planning guides.
- Proposed reforms may change. Proposed 2026–27 settings in this tool are based on publicly announced Federal Budget measures and may change before becoming law.
- Tax outcomes vary by ownership structure and personal circumstances. Individual tax treatment can differ for companies, trusts, SMSFs, or joint ownership arrangements.
- Seek professional tax advice before making decisions. This calculator is educational and does not replace personal tax or financial advice.
- Medicare levy and tax treatment are simplified. Thresholds, offsets, exemptions, and complex policy interactions are not fully modelled.
- From 1 July 2027, announced CGT reforms propose replacing the 50% CGT discount with inflation-based indexation and a minimum 30% tax on gains. New build investors may be able to choose between the existing 50% CGT discount and the new arrangement.
Investment property calculator FAQs
This calculator lets you compare current settings with proposed 2026–27 reform settings. Under the proposed setting for established properties purchased after reform, rental losses may be quarantined to property income first instead of immediately reducing salary taxable income. Remaining loss is shown as carried forward.
Current vs proposed negative gearing rules
Proposed reforms are based on announced Federal Budget measures and may change before becoming law.
2026–27 investment property tax reforms
| Feature | Current tax settings | Proposed reforms |
|---|---|---|
| Immediate salary offset | Yes (modelled estimate) | May be limited for some established properties |
| New builds | Eligible deductions may apply | May remain eligible depending on final rules |
| Existing properties | Allowed in current estimate model | May be restricted in affected scenarios |
1) Negative gearing under current rules
Under the current setting, taxable rental losses are modelled as reducing taxable income immediately in a simplified way. This can improve after-tax cash flow, but does not change the underlying cash cost of owning the property.
2) Proposed 2026–27 tax changes
Under proposed settings for established properties purchased after reform, rental losses may be limited to property-income offsets first. Any remaining amount may be shown as a carried-forward property loss instead of an immediate salary offset.
Carried-forward rental losses explained
A carried-forward loss is an estimated amount not used immediately in the year modelled. It may be available against eligible future residential property income, subject to final legislation and your circumstances.
3) New build negative gearing treatment
The calculator includes a property category selector so users can compare established and eligible new-build scenarios. This helps illustrate how policy treatment can differ by property type and eligibility.
- Eligible new build examples may include a newly constructed apartment bought off the plan, residential construction on previously vacant land, some knock-down rebuilds that add new housing supply, and newly built property first sold within 12 months of occupation.
- Not generally eligible examples may include established property with extensions, a granny flat beside an established property, newly built property occupied for more than 12 months before resale, and one-for-one replacement rebuilds unless final rules state otherwise.
4) Cash flow vs taxable loss
Cash flow measures money in and out. Taxable loss is a tax concept. A scenario can be cash-flow negative while still showing a tax benefit, or show deferred tax value through carried-forward losses.
5) Why depreciation matters
Depreciation is a non-cash deduction. It can improve estimated taxable outcomes without changing rent received or cash expenses paid.
6) How LoanMetric compares both rule sets
Results include side-by-side current-versus-proposed after-tax cash flow and annual differences so users can stress-test scenarios before seeking professional advice.
Proposed reforms are based on publicly announced Federal Budget measures and may change before becoming law.
Some details remain unclear, including how residential property income received indirectly through partnerships, trusts or managed funds may be treated.
Treatment may also be unclear where a property was held before Budget night but was not used as an investment property at that time, such as a former main residence later converted to a rental.
For definitions used in rental modelling, visit the Finance Glossary.
Data Sources & Methodology
Australian resident income tax brackets
This calculator estimates income tax using Australian resident income tax brackets published by the Australian Taxation Office (ATO). Rates and thresholds can change over time.
Rental income & vacancy
Effective annual rent is calculated as weekly rent × (52 − vacancy weeks).
Agent fees
Management fees are calculated as a percentage of rent collected. Letting fees are modelled as weeks of rent and applied once per year for simplicity. Renewal and advertising fees are treated as annual amounts.
Loan costs
Interest-only loans estimate annual interest as loan amount × interest rate.
Principal & interest loans use a standard amortisation formula with monthly repayments. Results represent a Year 1 estimate of interest and principal.
Cash flow vs taxable position
Pre-tax cash flow includes real cash income and expenses.
Taxable profit/loss includes deductible expenses and optional depreciation, but excludes principal repayments.
Tax impact estimation
Tax impact is calculated by comparing tax on your base income versus tax after including the rental net result.
Medicare levy
If enabled, the Medicare levy is estimated as a simplified percentage of taxable income and does not model thresholds or exemptions.
Projection mode
The 5-year view applies user-entered growth assumptions for rent, expenses, and optional property value, while keeping base income and tax brackets constant for simplicity. For P&I loans, we simulate monthly amortisation across 60 months and aggregate each year's interest, principal, and end balance.