Negative gearing occurs when the costs of owning an investment property exceed the rental income it generates. The resulting pre-tax loss may be deductible against other income, but the rules changed significantly under Australia's 2026 federal budget, which limited negative gearing to new residential construction from July 2027. This estimator shows your simple pre-tax property income or loss position. It does not calculate tax refunds, depreciation, or tax outcomes. Those require a registered tax adviser.
Not tax advice. This estimates your pre-tax property income position only. Tax outcomes from negative gearing depend on your income, ownership structure, deductible expenses, depreciation, and personal circumstances. The 2026 federal budget changed negative gearing rules for existing property. Always consult a registered tax adviser.
What this means: Your annual expenses ($35,600) exceed your annual rent ($26,000) by $9,600 before tax. This pre-tax loss may be deductible against other income under current negative gearing rules, but eligibility changed under the 2026 budget for existing property purchases. Consult a registered tax adviser to understand your actual tax position.
Excludes: depreciation, capital works, principal repayments, tax refund, stamp duty, selling costs. This is a pre-tax income/loss estimate only. Not a tax calculation.
Negative gearing occurs when the deductible costs of owning an investment property (loan interest, management fees, rates, insurance, and repairs) exceed the rental income the property generates. The resulting pre-tax loss may be deductible against your other income, which can reduce your overall tax liability.
Under Australia's 2026 federal budget, negative gearing for existing residential property purchases will be restricted from July 2027. New residential construction retains unlimited negative gearing eligibility. These changes are directional. Verify the current legislative position with a registered tax adviser.
Policy note: SuburbScanner's research screens for markets with cashflow-positive or near-positive profiles that do not rely heavily on negative gearing support, particularly important given the 2026 budget changes. See cashflow-positive suburbs and new build eligible markets.
Enter your annual rental income, annual loan interest, and annual property expenses. The calculator shows your pre-tax property position. A negative result means the property is negatively geared: expenses exceed income. A positive result means the property is generating a pre-tax surplus.
This is not tax advice. Tax outcomes from negative gearing depend on your total income, ownership structure, deductible expenses, depreciation schedule, loan purpose, and personal circumstances. The 2026 federal budget changed negative gearing eligibility for existing property purchases. Always consult a registered tax adviser before making any decision based on negative gearing assumptions.
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