Finance Hub and Networks
ACL 573164 · Finance Hub and Networks
V4 Audit-Corrected · Standard-Grounded Personal & Asset Tax Measures

Will the tax reform help or hurt your property?

Modelled exactly against Budget Paper No. 1 Statement 4 (12 May 2026), true progressive brackets, absolute Medicare calculations, and full Division 43 recapture constraints.

Quick-start scenarios
Net cash impact over your hold period
$0

Adjust your scenario below. The result updates live.

How the reform treats you
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Current tax over hold
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Reform tax over hold
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Effective tax rate change
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Hold period
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1
You & ownership structure
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%
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Used to compute spouse's tax at their own marginal rate
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%
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Dividends, interest, business profit in trust
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If YES, the 30% CGT minimum tax doesn't apply to you. Source: Treasury NG/CGT explainer p2.
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The property & acquisition
Defaults to contract date if blank
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$
Added to cost base — reduces CGT
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%
3
Annual cash flow & depreciation
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%
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Rates, insurance, mgmt, repairs, body corp
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Pure deduction — doesn't change tax at sale
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⚠ Reduces your purchase-price for tax-at-sale
4
Sale assumptions
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A
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Auto-detected from contract date, property type and ownership structure.

The detail

📚 New to property investing? Quick glossary of terms used below
Capital gain — The profit when you sell (sale price minus what you paid)
CGT — Capital Gains Tax: the tax you pay on that profit
Negative gearing — When your rental property costs more than the rent. The loss reduces your income tax
Positive gearing — When rent exceeds costs. You pay tax on the extra income
Cost base — Everything you paid: purchase price + stamp duty + legal fees + improvements
Marginal rate — Your highest income tax rate (depends on your total income)
CPI / Inflation — How much the cost of living rises each year (~2.5%)
Depreciation — Claiming wear-and-tear on the building as a yearly tax deduction
Quarantined losses — Under reform, rental losses on existing properties are "locked up" and can only be used when you sell
30% minimum rate — Under reform, even low-income earners pay at least 30% tax on their property profit
Today's rules
Current law

When you sell, the government halves your profit before taxing it. While you hold, any rental losses reduce your income tax bill each year — no limits.

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Tax refunds while you rent it out
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Tax when you sell
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Net tax position
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Cash you walk away with after all tax
From 1 July 2027
Reform

When you sell, inflation is stripped out of your profit first — you only pay tax on your real gain. But there's a 30% minimum tax rate on that gain. While you hold, rental loss deductions are limited to new-build properties only.

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Tax refunds while you rent it out
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Tax when you sell
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Net tax position
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Cash you walk away with after all tax
What you actually get taxed on when you sell

The tax office takes your sale price, subtracts what you really paid (purchase + buying costs + selling costs), then subtracts back any building depreciation you claimed over the years (this part catches a lot of investors out). The result is your capital gain. (Tax-code reference: "cost base". Source: ATO CGT Guide p122.)

Your running tax position over the years
📈 Line going up = you're getting tax refunds each year from rental losses. 📉 Big drop at the end = that's the tax bill when you sell. A steeper drop means more tax on the sale.
Current law Reform

📊 Current Law vs Reform — At a Glance

🟢 Green = money you keep. 🔴 Red = money the taxman takes. Taller green bars = better outcome for you.

Annual rental P&L (rent − expenses − interest − depreciation)
📊 Bars below zero = your property costs more than the rent (negative gearing — you get a tax refund). Above zero = the rent covers everything (positive gearing — you pay extra tax).

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Walk through your portfolio, properties, structure and timing — what to hold, what to consider restructuring before deadlines.

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