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Negative Gearing Visualiser
See how rental income, expenses, and tax deductions affect your investment property cash flow. Full Budget 2026-27 before-and-after comparison built in.
The Budget 2026-27 changed the rules for established properties bought after 12 May 2026. This tool shows three scenarios side-by-side so you can see exactly what your after-tax position looks like under each outcome.
Educational tool only. Not financial or tax advice.
📢 Budget 2026-27: Negative Gearing Restrictions
From 1 July 2027, negative gearing is limited to new builds for properties purchased after Budget night (12 May 2026). Established properties bought after that date can only offset losses against rental income; excess losses carry forward. Full Budget breakdown →
Negative Gearing Visualiser
See how rental income, expenses, and tax deductions affect your cash flow, before and after Budget 2026-27.
Budget 2026-27: When did you buy this property?
In Simple Terms:
Negative gearing means your property costs more than it earns. Because you bought before Budget night, you can still fully deduct those losses from your salary and other income, reducing your tax bill today. The strategy works if your property grows in value faster than the losses add up.
Property & Loan Details
Loan: $560,000 (20% deposit)
Rental Income & Your Tax
Occupied 50 weeks → Annual rent: $30,000
Marginal rate: 30% + 2% Medicare levy = 32%
Annual Expenses
Annual Cash Flow Breakdown
Negatively Geared
$191 /week
after-tax holding cost
Pre-tax cash shortfall
−$14,600/yr
Tax saving
+$4,672/yr
Net annual cost
−$9,928/yr
Full DeductionApplies to you
Restricted (Post-Budget Established)
This property costs you $191/week after tax. The strategy works if the property value grows faster than your net losses.
Simplified calculation for educational purposes. Tax saving calculated using incremental method (ATO 2024-25 brackets + 2% Medicare levy). Budget 2026-27 negative gearing restrictions apply from 1 July 2027 for established properties bought after 12 May 2026. Depreciation estimates require a quantity surveyor report. Actual outcomes depend on your full tax situation and property specifics. Consult a registered tax agent.
The Three Scenarios
The tool models three different situations. Which one applies depends on when you bought your property.
Bought before 12 May 2026
- •Full losses offset against wages and other income
- •Immediate tax saving each year the property is negatively geared
- •No change from current rules
- •Grandfathered for as long as you hold the property
New build bought after 12 May 2026
- •Full losses still offset against wages and other income
- •Same treatment as pre-budget investors
- •Government incentive to encourage new housing supply
- •Applies to residential new builds only
Established property bought after 12 May 2026
- •Losses can only offset rental income, not wages
- •Excess losses carry forward to future years
- •Tax saving is delayed, not eliminated
- •Applies from 1 July 2027 for gains from that date
Frequently Asked Questions
What are the Budget 2026-27 changes to negative gearing in Australia?
From 1 July 2027, negative gearing will be limited to new residential builds for properties purchased after Budget night (12 May 2026). Established properties bought after that date can only offset losses against rental income, not wages or other income. Excess losses carry forward to future years.
Are existing investment properties still negatively geared after the 2026 Budget?
Yes. Properties purchased before 12 May 2026 (Budget night) are fully grandfathered. You can still deduct losses against all income, including wages, for as long as you hold the property.
Can I still negatively gear a new build after Budget 2026?
Yes. New residential builds purchased after Budget night retain full negative gearing deductibility against all income. This is a deliberate government incentive to encourage new housing supply.
What does carry-forward of losses mean for investors?
For established properties bought after Budget night, losses that cannot be offset against rental income in a given year are preserved and carried forward to future years. You can use them against future rental income. The loss is not gone, just deferred.
This calculator is for educational purposes only. Results are illustrative and do not constitute financial, tax, or legal advice. Ripper Wealth is not a licensed financial adviser. Always consult a registered tax agent or financial adviser for advice specific to your situation.
Selling the property too?
Calculate your CGT alongside your rental income position.
Property CGT Calculator →