Enter your income, the rent, the loan and the costs. You'll see what the property costs you to hold for a year before and after tax, under the rules that apply to when you bought it.
A tax loss is still a loss—
How it adds up
What the calculator follows
Rent collected, less interest, other costs and depreciation, is the property’s net rental result. Where the rules let a loss reduce your other income, tax is worked on your income with and without it, at the 2026–27 resident rates plus the 2% Medicare levy (ATO, resident tax rates). The cash cost is interest and costs less rent; depreciation isn’t cash, so it lowers the tax without adding to the cost. For an established home bought after Budget night, from 1 July 2027 the loss changes nothing this year and is carried forward (Budget 2026–27 tax explainer).
The simplifications, so you can discount them. One owner; no Medicare levy reductions or surcharge; no tax offsets; interest-only on the whole loan; one rate all year; and the 2026–27 rates for every year, including 2027–28. Nothing here assumes rent, prices or rates move. Moneysmart puts the core point plainly: an investment loss is still costing you money. That’s the number in the second box (Moneysmart, investing and tax).
Before you rely on it
This page is general information about how the tax works, not tax or financial advice, and your accountant should confirm the figures that matter. The rental yield calculator compares properties before interest and tax, and our negative gearing guide covers North Shore units against houses and how lenders count the rent. Our investment loans page covers the borrowing.
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The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 is now law. From 1 July 2027, a loss on an established residential property bought after 7:30 pm AEST on 12 May 2026 can only be deducted against residential property income, including capital gains, and any excess is carried forward. Properties held or under contract before then, and new builds, keep the old treatment.
Is negative gearing worth it?
A tax loss is still a loss. For every dollar the property costs you, the tax system hands back your marginal rate, at most 47 cents including Medicare. The rest is yours to carry, and the bet is that the property's value grows by more than you've paid out. This calculator doesn't assume it will.
Where does the depreciation figure come from?
A quantity surveyor's depreciation schedule. Capital works on residential buildings built after 15 September 1987 are generally deductible at 2.5% a year, and most second-hand fittings in a property bought after 9 May 2017 can't be depreciated at all. Enter what the schedule says.
Why is the loan interest-only here?
Only interest is deductible, not principal, so the calculator asks for the loan and the rate and works out a year's interest. If you're paying principal too, your cash outlay is higher than shown, but the tax result is the same.
Does this apply if I own the property with someone else?
The calculator treats one owner. With joint ownership, each owner reports their share of the rent and costs, so run it once each with your share of the figures and your own income.