Your Details
Enter your current position and the property you're considering.
1
Income & Ownership$
Marginal rate:,
$
Marginal rate:,
Tax benefit flows to the registered owner(s) only.
$
/mo
Groceries, utilities, transport, subscriptions, school fees, excludes mortgage and IP costs.
2
Your Current Home Loan (PPR)$
Available equity:,
$
%
yrs
Current monthly repayment:,
3
The Investment Property$
From 1 July 2027, rental losses on an established property bought now can no longer reduce your salary tax. They carry forward against future rental income or the gain at sale. New builds keep full negative gearing. See the note below the results.
Stamp duty is calculated using the current schedule for the state you select.
20%
Fund deposit & stamp duty from PPR equity
IP + PPR equity release covers 100% of purchase. Interest at investment rate.
Interest-only is standard for investment loans. Rate defaults per loan type; you can override it in Section 4.
$
Gross rent before property management and vacancy.
$
Auto: 20% of annual rent
4.0%
4
IP Loan Rate & Funding
%
Defaults to the benchmark investor rate for your loan type (interest-only 6.39%, principal & interest 6.15%). Type your own rate to override.
Using rate:,
Only applies to interest-only loans. A principal & interest loan amortises over the full 30-year term from day one.
To fund the investment from PPR equity, tick the checkbox in Section 3, The Investment Property.
Calculator Inputs,
Income:
PPR Balance:
PPR Rate:
IP Price:
IP Rate:
Weekly Rent:
Growth:
Funding:
Cashflow Position
Your after-tax take-home, the impact of your home loan, then adding the investment property
Step 1
After-tax take-home pay
Gross income less income tax & Medicare levy
,
per month
Gross income (all earners),
Less: income tax,
Less: Medicare levy,
PPR mortgage
,
▼
Step 2, Without IP
Free cashflow
Take-home less home loan and household expenses
,
per month available
Take-home pay,
Less: PPR repayment,
Less: living expenses,
Net IP cost
,
▼
Step 3, With IP
Free cashflow with investment property
After all obligations, mortgage, living costs, and net IP cost
,
per month remaining
Less: IP repayment,
Plus: rent received,
Plus: tax benefit,
Net change to monthly cashflow by adding the IP
,
,
,
per week
PPR Equity Release, Deductible Investment Debt
,
Monthly interest
(at inv. rate)
(at inv. rate)
,
Balance at
end of Year 1
end of Year 1
,
Balance at
end of Year 5
end of Year 5
,
Calculating…
📊 Full Year 1 Breakdown
▾
Gross annual rent-
Less: annual expenses-
Less: IP interest (annual)-
= Rental loss (pre-tax)-
Effective tax benefit rate-
Tax benefit (annual)-
Net annual cost of IP
-
IP deposit required-
Gross yield on purchase price-
CGT cost base (purchase + stamp duty, indexed by CPI at sale)-
Year-by-Year Projection
Property growth, equity, cashflow and return across key projection years
yrs
% p.a.
From 1 July 2027 the 50% CGT discount is replaced by cost base indexation plus a 30% minimum tax on the real gain. Your cost base is lifted by inflation over the hold, and only the real (above-inflation) gain is taxed, at the higher of your marginal rate or 30%. Hold >12 months assumed. See the note below the results for how this applies to a property you buy now.
Property value
,
at year,
Net proceeds after CGT
,
after debt repaid & tax paid
Total return
,
after all costs, over your holding period
| Year | Property Value | Gross Equity | Cum. Net Cost | CGT Payable | Net Proceeds | Total Return | PPR Equity Loan | ROI on Cash |
|---|
Total return = what you walk away with after selling: the sale proceeds once the IP loan and CGT are paid, less the cash you put in from salary along the way.
ROI on cash = your total return divided by the cash you actually contributed from salary (your deposit, or your ongoing top-ups if you funded through equity). It shows how hard your own money worked.
PPR equity loan = money drawn from your home to cover the deposit and stamp duty. It stays on your home loan and is not taken out of the IP sale proceeds. You can repay it when you sell, or keep it as deductible investment debt.
The CGT cost base includes stamp duty and is lifted by your inflation (CPI) assumption over the hold. The projection assumes rent, rate and expenses stay constant.
How your CGT is worked out: from 1 July 2027 the 50% CGT discount is replaced by cost base indexation plus a 30% minimum tax on the real gain (Treasury Laws Amendment (Tax Reform No. 1) Act 2026, commencing 1 July 2027). Because a property bought now would almost always be sold after that date, this tool uses the new method across the whole hold: your cost base rises with inflation, only the gain above inflation is taxed, at the higher of your marginal rate or 30%. The short pre-2027 period is treated as immaterial and not split out. This is the tool's approach, not personal tax advice; confirm the treatment for your circumstances with your accountant.
How negative gearing is treated: for an established dwelling, rental losses reduce your salary tax only until 30 June 2027. From 1 July 2027 those losses can no longer offset your salary; they carry forward and are used against later rental profit or the capital gain at sale. New builds keep full negative gearing, as they are carved out of the change. New-build status applies only if you are the first owner of a dwelling that adds housing supply; confirm eligibility with your accountant, as the final definition is still subject to a second bill.
The CGT estimate uses your current marginal rate. Your actual liability at sale may differ if your income changes. Negative gearing also depends on your whole tax position, not just this property. Speak with a financial adviser and accountant before making any decision.