Negative Gearing Comparison Calculator 2026

Year 1 modelling only • Current benchmark vs proposed post-1 July 2027 rules vs SMSF

Adjust your scenario

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Top marginal rate shown (incl. 2% Medicare)
47.0%
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Employer-equivalent concessional contributions assumed at 12.5% of taxable income
$32,250

Year 1 tax comparison

Current Rules Benchmark
Immediate deduction
Rental loss
-$5,300
Tax saving
$2,431
Proposed Rules Model
Loss carried forward
Rental loss
-$5,300
Tax saving
$0
SMSF
(Current treatment retained)
15% fund tax context
Rental loss
-$9,850
Fund tax saving
$1,478
Additional super contribution benefit
Division 293 estimate
$0
Personal tax saving
$2,640
SMSF Strategy Snapshot
Contributions absorbed by loss
$9,850
Combined tax benefit
$4,118
Research note

This tool is a year 1 model only and separates the property loss, the personal deduction benefit, and the SMSF fund-level tax effect.

Detailed calculations (Year 1)

Scenario Calculation steps Result

Key insights

  • • Under current rules, a year 1 rental loss can reduce personal taxable income immediately.
  • • Under the proposed rules for affected established residential property, the year 1 loss is carried forward instead of offsetting salary income.
  • • In an SMSF, a property loss can reduce fund income, including concessional contributions, creating a fund-level 15% tax saving where contributions are available to absorb the loss.
  • • Additional deductible super contributions may create a separate personal tax benefit, but high-income earners may also trigger Division 293 tax.
Assumptions:
  • • Year 1 model only — no rent growth, expense growth or amortisation schedule yet
  • • Proposed Rules Model assumes an affected established residential property subject to post-1 July 2027 negative gearing restrictions
  • • Rental losses are calculated as rental income less interest and other property expenses
  • • Current Rules Benchmark tax saving is calculated as tax before the rental loss less tax after the rental loss
  • • Proposed Rules Model assumes year 1 rental losses are carried forward, so immediate tax saving is $0
  • • Employer-equivalent concessional contributions are assumed at 12.5% of taxable income by default
  • • Additional deductible super contribution savings are calculated as tax before the contribution less tax after the contribution
  • • Concessional cap warning uses a $32,500 cap from 1 July 2026
  • • Division 293 estimate applies 15% to the lesser of concessional contributions or the excess above the $250,000 threshold
  • • Illustrative only — proposed Budget measure is not yet law

DISCLAIMER: This research tool illustrates how year 1 tax outcomes may differ under current settings, the proposed post-1 July 2027 rules, and SMSF ownership for selected assumptions. The proposed negative gearing changes were announced in the 2026–27 Federal Budget and are not yet law. Seek personalised advice before acting.

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