Negative gearing calculator

Model your rental property's cash flow, and how a surplus or shortfall affects your tax.

Property acquisition date

New residential buildNew builds keep unrestricted negative gearing regardless of acquisition date.

Annual rental income

Loan interest

Other deductible expenses

Depreciation estimate

Marginal rate

Other taxable income

Project forward 10 yearsGrows rent and expenses each year at the rates below.

Annual shortfall

$10,000

Tax saved: $3,000

1
Calculated total deductions
Loan interest ($25,000) + other expenses ($6,000) + depreciation ($5,000).
$36,000.00
2
Property is negatively geared
Rental income ($26,000) is less than total deductions — a shortfall you fund out of pocket.
-$10,000.00
3
Estimated tax saved
The rental loss reduces your other taxable income, saving tax at your marginal rate.
$3,000.00
4
Negative gearing fully grandfathered
Acquired before 7:30pm AEST 12 May 2026, so this established dwelling is grandfathered indefinitely — Law from 12 May 2026 (Treasury Laws Amendment (Tax Reform No. 1) Act 2026).

Depreciation is held constant across the projection — in reality Div 40/43 deductions typically decline over time.
Marginal rate is recalculated each year by stacking that year's rental position on top of your other taxable income (assumed constant across the projection).
Assumes the property is held by an individual for the full financial year in each projected year.
"New build" is not yet defined in the Act (pending ATO guidance) — treated here as a user-asserted flag.

How this was calculated