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Will the new property rules cost you — or set you up?

The 2026 Federal Budget limits negative gearing to new builds and replaces the 50% CGT discount with cost-base CPI indexation plus a 30% minimum tax. Run your own numbers in 60 seconds, then get a personalised PDF report and a free 15-minute strategy call.

Property —

Rental & expenses

Assumptions

5.0%
2.8%
3.0%
2% Medicare levy applied on top.
Indicative national estimate — edit to match your state's exact rate (NSW, VIC, QLD, WA, SA, TAS, ACT, NT).

First home buyer comparison

Opportunity cost: rent you'd pay instead of buying as an owner-occupier.
Every state offers first home buyer concessions or exemptions — thresholds vary. Main residence is CGT-exempt at sale nationwide.
Old rules
Full negative gearing · 50% CGT discount
$0
After-tax wealth at sale
Cumulative cashflow (after tax)—
Sale proceeds (post-loan)—
Capital gain (gross)—
CGT payable—
IRR (annualised)—
New rules From 1 Jul 2027
Loss quarantining · CPI indexation + 30% min tax
$0
After-tax wealth at sale
Cumulative cashflow (after tax)—
Sale proceeds (post-loan)—
Capital gain (real, indexed)—
CGT payable—
IRR (annualised)—
$0
Difference between old and new regime over your holding period.
Cumulative after-tax wealth
Investor (old) · Investor (new) · First home buyer
Investor — old rules Investor — new rules First home buyer
Annual after-tax cashflow
How loss-quarantining changes year-to-year tax outcomes

Break-even analysis

Years to reach a positive cumulative after-tax position (including upfront costs).
Investor — old rules
—
years to positive position
Investor — new rules
—
years to positive position
First home buyer
—
years to overtake renting
How this calculator applies the 2026 budget rules
  • Pre-budget (owned before 12 May 2026): Fully grandfathered for negative gearing. CGT 50% discount on gains to 30 June 2027; gains after use CPI indexation + 30% minimum tax.
  • Post-budget, established property (between 12 May 2026 and 1 Jul 2027): From 1 Jul 2027, rental losses are quarantined — only deductible against future rental income or capital gains, not wages.
  • Post-1 July 2027 established property: No negative gearing; losses quarantined. CGT: indexation + 30% min tax.
  • New builds (post-budget): Retain full negative gearing against wages. At sale, the better of 50% CGT discount or indexation + 30% min tax applies — the calculator auto-selects.
  • 30% minimum tax applies where indexed-gain × marginal rate is below 30% of real gain.
  • First home buyer: Owner-occupier, main-residence CGT exemption, no rental income — equity grows via mortgage paydown plus capital growth, compared to renting at the same weekly rate.
  • Medicare levy (2%) is added to the marginal rate. Depreciation, land tax, and Div 43 capital works deductions are not modelled — relevant for new builds where depreciation is meaningful.
Source: Treasury factsheet — Negative Gearing & CGT Reform (Budget 2026)
Disclaimer. This calculator is for educational purposes only and does not constitute financial, tax, or legal advice. The 2026 Federal Budget rules were announced 12 May 2026 and have not yet passed parliament — details may change. Before making any property or financial decisions, please speak with a qualified accountant and licensed financial advisor and do your own due diligence. Prospera Properties Buyers Agency accepts no liability for decisions made based on this tool.

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