Tools · Negative gearing from 1 July 2027

Does the negative gearing change affect your property?

From 1 July 2027, losses on some established rental properties can only be offset against residential rental income — not your salary or other income. Check in under a minute.

Law: Schedule 2, Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49 of 2026, assented 26 June 2026).

Your property

Type of dwelling

A new dwelling is generally one that has not been lived in or sold before. Check the ATO definition for your case.

Date you acquired it (contract date) We use the date you signed the contract. Check with your adviser how “acquired” applies to you.

Optional — estimate the tax effect

Rent a year

Loan interest a year

Other costs a year

Rates, insurance, repairs, fees, depreciation.

Net profit from other residential rentals

Your other taxable income

Salary and other income, before this property.

Estimated effect each year, from 2027-28

Simplified estimate using 2027-28 resident tax rates plus the 2% Medicare levy. It does not cover how unused losses are carried forward — check ATO guidance. Not tax or financial advice.

Also check the CGT change → Read the rule change explained

The rule in brief

Affected: established residential dwellings acquired after 7:30pm (AEST) on 12 May 2026 (Federal Budget night).
From 1 July 2027: net rental losses on those properties can only be deducted against income from residential dwellings.
Not affected: dwellings acquired before the cut-off, and new residential dwellings.

Sources: ATO — Act No. 49 of 2026 · Parliament of Australia — Bill page · Baker McKenzie summary (1 Jul 2026). Rules checked 17 Oct 2026.

HRIX Pty Ltd · Estimates only, with simplifying assumptions. Not tax or financial advice.