From 1 July 2027, rental losses on established investment properties bought after 12 May 2026 can no longer offset wages - new builds keep negative gearing, and earlier purchases are grandfathered (Federal Budget 2026-27). This free calculator models your after-tax cashflow under the old and new rules.
From 1 July 2027, rental losses on established property can no longer offset your wages. They carry forward to offset future rental income, or the eventual capital gain. New builds keep negative gearing. Anything bought before 12 May 2026 is grandfathered on the old rules.
The 50% CGT discount is replaced by cost-base indexation - only your real, inflation-adjusted gain is taxed - with a 30% minimum rate on net gains from 1 July 2027. Gains accrued before that date keep the old 50% discount.
Bought before 12 May 2026 = old rules apply. Anything with a contract date on or before that day is grandfathered for as long as you hold it - your losses keep offsetting wages at your marginal rate, exactly as they do today. No paperwork, no application, it's automatic.
Contract date on or after 12 May 2026 pulls the property into the new regime from 1 July 2027, unless it's a new build. That's the fork in the road: date on the contract, and property type. Everything else in the calculator flows from those two answers.
Same property, same rent, same cashflow before tax - very different after-tax answers once the new rules kick in. Here's the shape of the difference:
Quarantining doesn't destroy your loss - it just parks it. The loss sits in a bucket attached to that property, and it does two things: first, it offsets any future net rental profit from that property (as rents grow and the property tips into positive cashflow, the carried losses shelter that income); second, when you eventually sell, the remaining bucket reduces your capital gain.
The practical impact is a cashflow timing hit, not a permanent loss of value. But timing matters - a $4,000 refund today is worth more than a $4,000 CGT offset in 15 years. That's where holding costs, marginal rate and hold length interact, and it's what the calculator above quantifies for your specific inputs.
Both ways, honestly. Yes - if the property is a genuinely good buy on fundamentals and contract-dating it before 12 May 2026 (already gone) would have grandfathered it. New purchases up to 30 June 2027 still get the old rules for the 2026-27 tax year, so there's a modest window advantage. And supply-side pressure ahead of July 2027 may push new-build stock and established stock in different directions.
No - if you're only buying to beat a deadline. A weak property held for tax treatment is still a weak property; the tax benefit doesn't rescue a growth problem. If a deal isn't standing up on its own, don't let the calendar convince you otherwise. Run it through the cashflow calculator and see the after-tax weekly number both ways.
Our interpretation of announced measures, not final law and not advice - confirm with your accountant.