Rental Property Deduction Estimator

Rental income less deductible expenses and depreciation, showing the negative gearing position and the estimated tax benefit at the owner's marginal rate.

FY 2025–26

FY 2026–27 (current)

Rates & assumptions used in this calculator

Marginal tax rate is drawn from the owner's total taxable income (including the rental result) using the same resident tax brackets as the Income Tax Estimate Calculator — FY2026-27 has the 15% second bracket; FY2025-26 has 16%.
Loan interest on a loan used to purchase or improve an income-producing rental property is generally fully deductible — this tool assumes the loan is used wholly for the rental property, with no private-use apportionment.
Capital works deduction (Div 43) is estimated at a flat 2.5% per year of the construction cost entered, for eligible residential buildings constructed after 15 September 1987 — the standard write-off rate. Earlier-built properties or non-standard cases aren't modelled.
Plant and equipment depreciation is not separately modelled here — since 2017, only original owners of new plant and equipment (not second-hand assets acquired with an established property) can claim this, which needs case-by-case verification.
Assumes the property is genuinely available for rent for the full year, and all expenses entered are actually incurred and deductible — this tool does not test deductibility.
"Negative gearing" here just means the loss reduces other taxable income under current law — it doesn't reflect any potential future policy change to this treatment.

Based on ATO rental property guidance and Div 43 capital works rules as at July 2026. Verify against ato.gov.au and the property's actual construction date and cost before relying on this.

Rental income

$26,000 / year

Annual rental income

Loan interest & expenses

$24,000 interest · $5,500 other

Loan interest paid

Other expenses

Rates, insurance, agent fees, repairs, strata

Capital works depreciation

$300,000 construction cost

Original construction cost

For post-15 Sep 1987 residential buildings, at 2.5%/year

Owner's other income

$110,000

Owner's taxable income excluding this property

Used to determine the marginal rate the rental result is taxed at

Rental income$0

Loan interest−$0

Other expenses−$0

Capital works depreciation2.5% of construction cost−$0

Net rental result$0

Owner's marginal rate0%

Estimated tax impact$0

Claim Every Rental Property Deduction?

Calculate all allowable investment property expenses from interest to maintenance. Our accountants ensure you're claiming maximum deductions while maintaining documentation for ATO scrutiny.

All deductions covered Records organized ATO-defensible

This is a general estimate only, not tax advice. It doesn't verify that expenses are deductible, that the loan is used wholly for income-producing purposes, or the property's actual depreciation entitlement (a quantity surveyor's depreciation schedule gives a far more precise figure than the flat 2.5% estimate used here). Refer to a registered tax agent before relying on this for lodgement or investment decisions.