Loading…
From the 2027-28 income year, net rental losses on an established dwelling bought after 7:30pm AEST on 12 May 2026 can only offset residential rental income or residential capital gains — not your wages. Three questions tell you whether that applies to you.
Negative gearing changes for some investors from the 2027-28 income year — what changes
Rent minus interest, expenses and depreciation — leave as-is for a rough illustration
This is an established dwelling contracted after 7:30pm AEST on 12 May 2026. From the 2027-28 income year, a net rental loss on it can only offset residential rental income or a residential capital gain — not your wages.
Illustrative effect on this property alone
Today, a $10,000 loss at 32% saves about $3,200 in tax the same year — and it still does this year, because Schedule 2 applies the quarantine to the 2027-28 income year and later. From then none of it offsets your wages: it carries forward, unused, until you have residential rental income or a residential capital gain to use it against.
Quarantined losses pool with your other residential properties per taxpayer, not per property (s26-155(1)) — the full Negative Gearing Calculator models that pooling.
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.
From the 2027-28 income year, a net rental loss on an established residential dwelling contracted after 7:30pm AEST on 12 May 2026 is "quarantined" — it can only offset residential rental income or a residential capital gain, not wages or other income.
Anything owned before that moment keeps full negative gearing, and so do new residential dwellings — the reform targets established-stock purchases going forward, not existing investors or new supply.
What legally counts as a "new residential dwelling" is not yet defined — a Ministerial legislative instrument is still pending. Expected criteria (from explanatory material, not yet law) include genuinely adding to supply, bought from the builder, and not previously occupied for more than 12 months.
It depends on when you contracted to buy, not on whether you own it now. An established dwelling you contracted after 7:30pm AEST on 12 May 2026 is caught from the 2027-28 income year even though you already own it. Anything contracted before that moment is grandfathered and keeps full negative gearing indefinitely, regardless of when you eventually sell it.
No — once quarantined, a loss can only offset residential rental income or a residential capital gain, never wages or other income, for as long as it's carried forward.
New residential dwellings are grandfathered regardless of contract date — the quarantine specifically targets established (previously-occupied) dwellings. The exact legal definition of "new" is still pending a Ministerial instrument.
Yes — the quarantine changes what income a net loss can offset, not what counts as a deductible expense. Depreciation, interest, rates and other costs are still deductible against the property's own rental income and any other residential rental income.
Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.
This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.
What can move this result
This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.