Ausccounting

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Investment property cash-flow & negative gearing

See the before- and after-tax weekly cost (or income) of holding a rental property. This is the conversation every landlord should have before June — not after.

$
$
%
$
$
$

Assumptions

  • Interest is estimated as loan balance × rate (interest-only). P&I loans will differ.
  • Depreciation is deductible without cash outflow — a quantity surveyor report often pays for itself.
  • Tax impact estimated at your FY 2026–27 marginal rate plus 2% Medicare levy.
  • Vacancy, land tax and capital growth are not modelled. CGT applies on sale.
Annual rental income
$33,800
Loan interest
− $48,000
Cash expenses
− $8,000
Annual depreciation (if known)
− $6,000
Net rental result (taxable)
-$28,200

Negatively geared — this loss reduces your taxable income.

Estimated tax impact at your marginal rate (32%)
+ $9,024
True after-tax holding cost
$253/wk

General guide only — not tax or investment advice, and not a recommendation to buy property. Outcomes depend on your circumstances; talk to us before acting.

Ask us to review your rental schedule