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Negative gearing calculator 2026-27
See your rental loss, the tax it saves and what the property really costs you each week, plus how the negative gearing changes from 1 July 2027 apply to the property you own or plan to buy.
| Bought | Tax saving 2026-27 | From 2027-28 |
|---|---|---|
| Before 12 May 2026 | $5,670 | $5,670 |
| 12 May 2026 to 30 June 2027 | $5,670 | $0, loss carried forward |
| Established, from 1 July 2027 | – | $0, loss carried forward |
| New build, first owner | $5,670 | $5,670 |
In short: With $600 a week rent, 2 vacant weeks, $9,000 of costs, a $560,000 loan at 6.2% and $4,000 of depreciation, the property makes a $17,720 tax loss. On a $120,000 salary that saves about $5,670 a year, so it costs you about $155 a week after tax instead of $264. If you bought an established property after 12 May 2026, that saving stops from 1 July 2027.
How it works
How negative gearing works
When interest and costs are more than the rent, the loss reduces your taxable income, so you pay less tax. You still lose money each year, and the tax saving only softens it. The bet is that capital growth more than makes up for it.
The 1 July 2027 changes
For established homes, rental losses will only offset residential property income, with any unused loss carried forward. Properties held at 7:30pm on 12 May 2026 are grandfathered. New builds, build-to-rent, super funds and commercial property aren't affected.
FAQ
Common questions
What is negative gearing?
A property is negatively geared when the rent is less than the interest and other deductible costs. The loss can be taken off your other income, such as your salary, which reduces the tax you pay.
Is negative gearing being abolished?
Not entirely. From 1 July 2027 it's limited to new builds for residential property bought after 7:30pm AEST on 12 May 2026. Properties held before then keep negative gearing for as long as you own them. Losses that can't be used are carried forward, not lost.
What counts as a new build?
A dwelling built on vacant land, or a knock-down that adds to the number of homes on the site. Only the first investor who buys it qualifies. Knock-down rebuilds that don't add a home, renovations and granny flats don't count.
How much tax will negative gearing save me?
Roughly your loss times your marginal rate plus 2% Medicare. On a $17,720 loss, someone earning $120,000 saves about $5,670 and someone on $200,000 saves about $7,700. The calculator works it out exactly for 2026-27.
Does negative gearing apply to shares and commercial property?
Yes, and the 2027 changes don't touch them. They only apply to residential property, and not to super funds or widely held trusts.
Tax & Accounting
Read before you decide
General information only. These calculators give estimates based on the figures you enter and published rates, and don't consider your objectives, financial situation or needs. They're not a quote, credit assessment or tax advice. Elephant Financial Pty Ltd trading as Elephant Advisory is an authorised credit representative (ACR 487962) of Yellow Brick Road Aggregation Pty Ltd, Australian Credit Licence 390261.
