Negative Gearing
Tax Calculator

This is a practical calculator designed to give you a summary guide of some of the benefits that you could benefit from when purchasing an investment property.

Are you looking for a property?

The BPRE Real Estate Property Portal showcases thousands of properties ranging from houses, apartments, home and land packages, townhouses to exclusive luxury penthouses
listed for sale Australia-wide.

Negative Gearing Tax Calculator

NEGATIVE GEARING TAX SIMULATOR

This simulator allows you to obtain a guide as to the potential tax benefits and cash flow projection of a negatively geared residential investment property.

Simply complete the required information under “Property Purchase Price”, “Proposed Loan Amount” and “State or Territory” of purchase, your “Annual Income” and the “Proposed weekly Rental Income”.

Once all the information has been completed press “Calculate”. You will then be provided with an estimate of tax benefits and cash flow projections for your specific property.

Please refer to the disclaimer herewith prior to using this calculator.

Lender Details
Property Purchase Price or Market Value $
Proposed Loan Amount or Current Loan $
State or Territory of Property Purchase  
Date of Commencement of Construction of Building
Click on appropriate option
This is a property that I am purchasing for investment purposes (purchase costs considered) This is my current investment property (no purchase costs considered)
Your Income
Annual Income $
Proposed weekly Rental Income $
Notes: (*)
  1. Deposit Contribution - is your own cash contribution towards the property purchase. You may reduce your deposit amount by simply increasing your loan amount in the input page.

  2. If the Loan to Value Ratio (LVR) is greater than 90 per cent we have taken the assumption that an additional security property (cross securitisation) will be used as most banks will limit the borrowing to 90 per cent LVR for investment purposes on a single property (the resultant LVR will be 90 per cent or less) hence the Lenders Mortgage Insurance will only apply if total borrowing is between 80 to 90 per cent LVR. No lenders mortgage insurance premium is calculated if the LVR is below 80 per cent or over 90 per cent.

  3. Tax Savings - is a result of offsetting the Total Tax Deductions from your annual income hence, reducing your average tax rate (reducing your tax payable) using a negatively geared property. Please note that your tax payable may actually increase if your property is running in cash flow positive - the pie chart will not appear in the case of a positively geared property. The tax payable shown is based on the 2013/2014 tax scales excluding the Medicare levy.

  4. Depreciable items - these amounts are estimates and will vary for individual properties.

  5. Annual Interest Payment - is based on a fixed rate loan type with interest only payment option. Interest rate shown is a current average market 3 year fixed rate.

  6. Please note that the actual tax benefit and your cash flow position will alter when using an alternative interest mortgage rate other than the one used herewith.

  7. Confidence Rating Risk Scale - is based on the owner weekly contribution as a percentage of the weekly total property funding costs. Green Alert represents a favorable result (within a conservative range of owner cash flow contribution), Orange Alert represents caution (the owner cash flow contribution is regarded to be high), and Red Alert representing the Highest Risk (the owner cash flow contribution is very high which may effect owner surplus income position and jeopardise financial capacity and stability).

  Disclaimer:
  • The tax benefits shown herewith are based on current applicable Federal Government legislation and may be subject to change.

  • The results shown are estimates and should be used as a guide only.

  • The results shown do not take into consideration individual applicant financial needs and circumstances.

  • Solicitor/Conveyancer costs are approximate and should be used as a guide only. These will depend upon the work load that the solicitor/Conveyancer may undertake on your behalf.

  • Applicants should consult with their Solicitor or Accountant to comply with all tax office requirements when lodging their tax returns and whether investing in property meets with their financial needs. Please refer to the Australian Tax Office for further information www.ato.gov.au.

 
<% Else Dim pp Dim state Dim depp Dim rate Dim premium Dim stamplevy Dim totalpre Dim ext1 Dim ext2 Dim datecon, annualI, rent, loan, appoption, solicitFee, EstablishmentFee, SearchFees, OtherMisFees //on error resume next pp=CDbl(Request.Form("pprice")) state=Request.Form("state") loan=CDbl(Request.Form("dep")) datecon = CInt(Request.Form("dofc")) annualI = CDbl(Request.Form("annual")) rent = CDbl(Request.Form("rental")) appoption = Request.Form("appoption") solicitFee = 1500 EstablishmentFee = 600 SearchFees = 300 OtherMisFees = 1000 Dim inter inter = loan * 100 rate= inter / pp rate = round(rate) if ( pp <= 500000) then if (rate = 81 or rate = 82) then premium = loan * 0.0060 Else if (rate = 83 or rate = 84) then premium = loan * 0.0088 Else if (rate = 85 or rate = 86) then premium = loan * 0.0110 Else if (rate = 87 or rate = 88) then premium = loan * 0.0130 Else if (rate =89 or rate = 90) then premium = loan * 0.0152 else if (rate < 81 or rate > 90) then premium = 0 End if End if End if End if End if End if Else if (rate = 81 or rate = 82) then premium = loan * 0.0090 Else if (rate = 83 or rate = 84) then premium = loan * 0.0110 Else if (rate = 85 or rate = 86) then premium = loan * 0.0150 Else if (rate = 87 or rate = 88) then premium = loan * 0.0220 Else if (rate =89 or rate = 90) then premium = loan * 0.0250 else if (rate < 81 or rate > 90) then premium = 0 End if End if End if End if End if End if End If if ( state="NSW" or state="QLD-Inv" or state="QLD-Res") then stamplevy = premium * 0.05 else stamplevy = premium * 0.10 end if totalpre = stamplevy + premium Dim stamp Dim inter2, inter3, inter4 if (state="NSW") then if (pp <=14000) then inter = pp/100 stamp = inter * 1.25 else if (pp > 14000 and pp <=30000) then inter = pp - 14000 inter2= inter /100 inter3= inter2 * 1.50 stamp= 175 + inter3 else if (pp > 30000 and pp <=80000) then inter = pp - 30000 inter2= inter /100 inter3= inter2 * 1.75 stamp= 415 + inter3 else if (pp > 80000 and pp <=300000) then inter = pp - 80000 inter2= inter /100 inter3= inter2 * 3.50 stamp= 1290 + inter3 else if (pp > 300000 and pp <=1000000) then inter = pp - 300000 inter2= inter /100 inter3= inter2 * 4.50 stamp= 8990 + inter3 else inter = pp - 1000000 inter2= inter /100 inter3= inter2 * 5.50 stamp= 40490 + inter3 end if end if end if end if end if else if (state="TAS") then if (pp <=1300) then stamp = 20 else if (pp > 1300 and pp <=10000) then inter2= pp /100 stamp= inter2 * 1.50 else if (pp > 10000 and pp <=30000) then inter = pp - 10000 inter2= inter /100 inter3= inter2 * 2.00 stamp= 150 + inter3 else if (pp > 30000 and pp <=75000) then inter = pp - 30000 inter2= inter /100 inter3= inter2 * 2.50 stamp= 550 + inter3 else if (pp > 75000 and pp <=150000) then inter = pp - 75000 inter2= inter /100 inter3= inter2 * 3.00 stamp= 1575 + inter3 else if (pp > 150000 and pp <=225000) then inter = pp - 150000 inter2= inter /100 inter3= inter2 * 3.50 stamp= 3925 + inter3 else inter = pp - 225000 inter2 = inter / 100 inter3 = inter2 * 4.00 stamp = 6550 + inter3 end if end if end if end if end if end if else if (state="VIC") then if (pp <=20000) then inter = pp/100 stamp = inter * 1.40 else if (pp > 20000 and pp <=115000) then inter = pp - 20000 inter2= inter /100 inter3= inter2 * 2.40 stamp= 280 + inter3 else if (pp > 115000 and pp <=870000) then inter = pp - 115000 inter2= inter /100 inter3= inter2 * 6 stamp= 2560 + inter3 else inter = pp / 100 stamp= inter * 5.50 end if end if end if else if (state="NT") then if (pp <=500000) then inter = pp / 1000 inter2=inter * inter inter3= 0.065 * inter2 inter4= 21 * inter stamp = inter4 + inter3 else inter = pp /100 stamp= inter * 5.40 end if else if (state="WA") then if (pp <=80000) then inter = pp/100 stamp = inter * 2.20 else if (pp > 80000 and pp <=100000) then inter = pp - 80000 inter2= inter /100 inter3= inter2 * 3.30 stamp= 1760 + inter3 else if (pp > 100000 and pp <=250000) then inter = pp - 100000 inter2= inter /100 inter3= inter2 * 4.50 stamp= 2420 + inter3 else if (pp > 250000 and pp <=500000) then inter = pp - 250000 inter2= inter /100 inter3= inter2 * 5.60 stamp= 9170 + inter3 else inter = pp - 500000 inter2= inter /100 inter3= inter2 * 6.00 stamp= 23170 + inter3 end if end if end if end if else if (state="ACT") then if (pp <=100000) then inter = pp/100 stamp = inter * 2.00 if stamp < 20 then stamp=20 end if else if (pp > 100000 and pp <=200000) then inter = pp - 100000 inter2= inter /100 inter3= inter2 * 3.50 stamp= 2000 + inter3 else if (pp > 200000 and pp <=300000) then inter = pp - 200000 inter2= inter /100 inter3= inter2 * 4.00 stamp= 5500 + inter3 else if (pp > 300000 and pp <=500000) then inter = pp - 300000 inter2= inter /100 inter3= inter2 * 5.50 stamp= 9500 + inter3 else if (pp > 500000 and pp <=1000000) then inter = pp - 500000 inter2= inter /100 inter3= inter2 * 5.75 stamp= 20500 + inter3 else inter = pp - 1000000 inter2= inter /100 inter3= inter2 * 6.75 stamp= 49250 + inter3 end if end if end if end if end if else if (state="SA") then if (pp <=12000) then inter = pp/100 stamp = inter * 1.00 else if (pp > 12000 and pp <=30000) then inter = pp - 12000 inter2= inter /100 inter3= inter2 * 2.00 stamp= 120 + inter3 else if (pp > 30000 and pp <=50000) then inter = pp - 30000 inter2= inter /100 inter3= inter2 * 3.00 stamp= 480 + inter3 else if (pp > 50000 and pp <=100000) then inter = pp - 50000 inter2= inter /100 inter3= inter2 * 3.50 stamp= 1080 + inter3 else if (pp > 100000 and pp <=200000) then inter = pp - 100000 inter2= inter /100 inter3= inter2 * 4.00 stamp= 2830 + inter3 else if (pp > 200000 and pp <=250000) then inter = pp - 200000 inter2= inter /100 inter3= inter2 * 4.25 stamp= 6830 + inter3 else if (pp > 250000 and pp <=300000) then inter = pp - 250000 inter2= inter /100 inter3= inter2 * 4.75 stamp= 8955 + inter3 else if (pp > 300000 and pp <=500000) then inter = pp - 300000 inter2= inter /100 inter3= inter2 * 5.00 stamp= 11330 + inter3 else inter = pp - 500000 inter2= inter /100 inter3= inter2 * 5.50 stamp= 21330 + inter3 end if end if end if end if end if end if end if end if else if (state="QLD-Inv") then if (pp <=20000) then inter = pp/100 stamp = inter * 1.50 else if (pp > 20000 and pp <=50000) then inter = pp - 20000 inter2= inter /100 inter3= inter2 * 2.25 stamp= 300 + inter3 else if (pp > 50000 and pp <=100000) then inter = pp - 50000 inter2= inter /100 inter3= inter2 * 2.75 stamp= 975 + inter3 else if (pp > 100000 and pp <=250000) then inter = pp - 100000 inter2= inter /100 inter3= inter2 * 3.25 stamp= 2350 + inter3 else if (pp > 250000 and pp <=500000) then inter = pp - 250000 inter2= inter /100 inter3= inter2 * 3.50 stamp= 7225 + inter3 else if (pp > 500000 and pp <=700000) then inter = pp - 500000 inter2= inter /100 inter3= inter2 * 4.00 stamp= 15975 + inter3 else inter = pp - 700000 inter2= inter /100 inter3= inter2 * 4.50 stamp= 23975 + inter3 end if end if end if end if end if end if else if (state="QLD-Res") then if (pp <=300000) then inter = pp/100 stamp = inter * 1.00 else if (pp > 300000 and pp <=500000) then inter = pp - 300000 inter2= inter /100 inter3= inter2 * 3.50 stamp= 3000 + inter3 else inter = pp - 500000 inter2= inter /100 inter3= inter2 * 3.75 stamp= 10000 + inter3 end if end if end if end if end if end if end if end if end if end if end if Dim stamp1 if (state="NSW") then if (loan <=16000) then stamp1 = 5 else inter2 = loan - 16000 inter3= inter2 /1000 inter4= inter3 * 4 stamp1= 5 + inter4 end if else if (state="VIC" or NT) then stamp1=0 else if (state="ACT") then stamp1=0 else if (state="SA") then if (loan <=400) then stamp1 = 0 else if (loan > 400 and loan <=6000) then stamp1= 10 else inter = loan - 6000 inter2= inter /100 inter3= inter2 * 0.45 stamp1= 10 + inter3 end if end if else if (state="QLD-Inv" or state="QLD-Res") then inter=loan /100 stamp1 = inter * 0.40 else if (state="WA") then inter = loan/100 stamp1= inter * 0.40 else if (state="TAS") then if (loan <=8000) then stamp1 = 20 else if (loan > 8000 and loan <=10000) then inter = loan - 8000 inter2 = inter / 100 inter3= inter2 * 0.25 stamp1= 20 + inter3 else inter = loan - 10000 inter2= inter /100 inter3= inter2 * 0.35 stamp1= 25 + inter3 end if end if end if end if end if end if end if end if end if dim regfee if (state = "NSW") then regfee = 79.00 Else if (state = "NT") then regfee = 90 Else if (state = "TAS") then regfee = 131 Else if (state = "ACT") then regfee = 170 Else if (state= "VIC") then inter = pp /1000 inter2 = 2.46 * inter regfee = round(94.60 + inter2 ) if (regfee > 1325) then regfee = 1325 end if Else if (state="SA") then if (pp <= 5000) then regfee = 104 else if (pp>5000 and pp <=20000) then regfee = 116 else if (pp > 20000 and pp <=40000) then regfee = 130 else if (pp > 40000 and pp <=50000) then regfee = 186 else inter = (pp - 50000) / 10000 inter2 = 57.50 * inter regfee = 186 + inter2 End if End if End if End if Else if (state = "WA") then if (pp <= 85000) then regfee = 79 else if (pp > 85000 and pp <=120000) then regfee = 89 else if (pp > 120000 and pp <=200000) then regfee = 109 else if (pp > 200000 and pp <=300000) then regfee = 129 else if (pp > 300000 and pp <=400000) then regfee = 149 else if (pp > 400000 and pp <=500000) then regfee = 169 else if (pp > 500000 and pp <=600000) then regfee = 189 else if (pp > 600000 and pp <=700000) then regfee = 209 else if (pp > 700000 and pp <=800000) then regfee = 229 else if (pp > 800000 and pp <=900000) then regfee = 249 else if (pp > 900000 and pp <=1000000) then regfee = 269 else if (pp > 1000000 and pp <=1100000) then regfee = 289 else regfee = 309 end if end if end if end if end if end if end if end if end if end if end if end if Else regfee = 0 End if End if End if End if End if End if End if if appoption= "current" then stamp = 0 end if if appoption= "current" then solicitFee = 0 end if if appoption = "current" then EstablishmentFee = 0 end if if appoption = "current" then stamp1 = 0 end if if appoption = "current" then totalpre = 0 end if if appoption = "current" then regfee = 0 end if if appoption = "current" then SearchFees = 0 end if if appoption = "current" then OtherMisFees = 0 end if if appoption = "current" then totalcosts = 0 end if Dim totalcosts totalcosts = stamp + stamp1 + totalpre + EstablishmentFee + regfee + OtherMisFees + solicitFee + SearchFees rent = rent * 52 Dim intonly, rates, body, agent, inspre, totout, short intonly = loan * 0.0490 rates = 1100 body = 2200 agent = rent * 0.07 inspre = 495 totout = intonly + rates + body + agent + inspre short = totout - rent Dim bcost bcost = totalcosts - stamp - 1500 Dim depre1, depre2, depre3, deduct, dx2 depre1 = pp * 0.014 dx2 = pp * 0.63 if ( datecon = 4 ) then depre2 = dx2 * 0 else if (datecon = 2 ) then depre2 = dx2 * 0.04 else depre2 = dx2 * 0.025 end if end if depre3 = bcost * 0.2 deduct = depre1 + depre2 + depre3 + short Dim taxrate, tax, tx1, tx2, tx3, tx4, tx5, tx6 if (annualI <= 18200) then taxrate = 0 tax = 0 else if ( annualI > 18200 and annualI < 37001 ) then tx1 = annualI - 18200 tax = tx1 * 0.19 tx2 = tax / annualI taxrate = tx2 * 100 else if ( annualI > 37000 and annualI < 80001 ) then tx1 = annualI - 37000 tx2 = tx1 * 0.325 tx3 = 18800 * 0.19 tax = tx2 + tx3 tx4 = tax / annualI taxrate = tx4 * 100 else if ( annualI > 80000 and annualI < 180001 ) then tx1 = annualI - 80000 tx2 = tx1 * 0.37 tx3 = 43000 * 0.325 tx4 = 18800 * 0.19 tax = tx2 + tx3 + tx4 tx5 = tax / annualI taxrate = tx5 * 100 else if ( annualI > 180000 ) then tx1 = annualI - 180000 tx2 = tx1 * 0.45 tx6 = 100000 * 0.37 tx3 = 43000 * 0.325 tx4 = 18800 * 0.19 tax = tx2 + tx3 + tx4 + tx6 tx5 = tax / annualI taxrate = tx5 * 100 end if end if end if end if end if Dim nannaulI nannualI = annualI - deduct Dim ntaxrate, ntax if (nannualI <= 18200) then ntaxrate = 0 ntax = 0 else if ( nannualI > 18200 and nannualI < 37001 ) then tx1 = nannualI - 18200 ntax = tx1 * 0.19 tx2 = ntax / annualI ntaxrate = tx2 * 100 else if ( nannualI > 37000 and nannualI < 80001 ) then tx1 = nannualI - 37000 tx2 = tx1 * 0.325 tx3 = 18800 * 0.19 ntax = tx2 + tx3 tx4 = ntax / annualI ntaxrate = tx4 * 100 else if ( nannualI > 80000 and nannualI < 180001 ) then tx1 = nannualI - 80000 tx2 = tx1 * 0.37 tx3 = 43000 * 0.325 tx4 = 18800 * 0.19 ntax = tx2 + tx3 + tx4 tx5 = ntax / annualI ntaxrate = tx5 * 100 else if ( nannualI > 180000 ) then tx1 = nannualI - 180000 tx2 = tx1 * 0.45 tx6 = 100000 * 0.37 tx3 = 43000 * 0.325 tx4 = 18800 * 0.19 ntax = tx2 + tx3 + tx4 + tx6 tx5 = ntax / annualI ntaxrate = tx5 * 100 end if end if end if end if end if Dim tsave, tweekcon, ownc, tencon, monrepay tsave = tax - ntax tweekcon = round( tsave / 52 ) tencon = round( rent / 52 ) monrepay = round( totout / 52 ) ownc = monrepay - tweekcon - tencon Dim ptwc, poc, ptc, yy, zz yy = tweekcon / monrepay ptwc = yy * 100 zz = tencon / monrepay ptc = zz * 100 poc = 100 - ptwc - ptc %>  
Negative Gearing Tax Simulator - the estimated taxation benefit and owners funding contribution are as follows:
PROPERTY PURCHASE & FUNDING DETAILS
Property Purchase Price <%=FormatCurrency(pp,2,vbTrue,0,-2)%>
Borrowing & Buying Costs <%=FormatCurrency(totalcosts,2,vbTrue,0,-2)%>
Total Funding Required
<%=FormatCurrency((pp+totalcosts),2,vbTrue,0,-2)%>
Loan Amount <%=FormatCurrency(loan,2,vbTrue,0,-2)%>
Deposit contribution (* 1)
<%=FormatCurrency((pp+totalcosts-loan),2,vbTrue,0,-2)%>
Loan to Value Ratio (* 2) <%=FormatNumber(rate,0,vbTrue,0,-2)%> %
Property Location : STATE <%=state%>
YOUR PERSONAL TAX POSITION
Annual Income <%=FormatCurrency(annualI,2,vbTrue,0,-2)%>
Annual Rental Income <%=FormatCurrency(rent,2,vbTrue,0,-2)%>
Present Annual Tax Payable <%=FormatCurrency(tax,2,vbTrue,0,-2)%>
Present Average Tax Rate <%=FormatNumber(taxrate,2,vbTrue,0,-2)%> %
Total Tax Deductions <%=FormatCurrency((deduct+rent),2,vbTrue,0,-2)%>
New Annual Tax Payable <%=FormatCurrency(ntax,2,vbTrue,0,-2)%>
New Average Tax Rate <%=FormatNumber(ntaxrate,2,vbTrue,0,-2)%> %
Tax Savings (* 3) <%=FormatCurrency((tax-ntax),2,vbTrue,0,-2)%>
WHO PAYS THE BANK LOAN & OTHER EXPENSES?
<% if (poc < 0) then %> This property produces a weekly cash flow positive (Income from the asset is greater than the expenses), that means you are earning $ <%=-(ownc)%> per week. Hence increasing your Taxable Income. <% else %>
 
<% end if %> Loan & Other Expenses Weekly Repayment<%=FormatCurrency(monrepay,2,vbTrue,0,-2)%> Rental Income<%=FormatNumber(ptc,2,vbTrue,0,-2)%> % <%=FormatCurrency(tencon,2,vbTrue,0,-2)%> Taxation Benefit<%=FormatNumber(ptwc,2,vbTrue,0,-2)%> % <%=FormatCurrency(tweekcon,2,vbTrue,0,-2)%> Owner Contribution<%=FormatNumber(poc,2,vbTrue,0,-2)%> % <%=FormatCurrency(ownc,2,vbTrue,0,-2)%> <% if poc <= 15 then %>
CONFIDENCE RATING RISK SCALE: Moderate (* 7)   
<% elseif poc > 15 and poc <= 25 then %>
CONFIDENCE RATING RISK SCALE: High (* 7)   
<% else %>
CONFIDENCE RATING RISK SCALE: Very High (* 7)   
<% end if %> LOAN DETAILS Loan TypeFixed Interest Only Loan Amount<%=FormatCurrency(loan,2,vbTrue,0,-2)%> Interest Rate4.90%
BORROWING AND BUYING COSTS
Purchasing Costs
Transfer Property Stamp Duty <%=FormatCurrency(stamp,2,vbTrue,0,-2)%>
Solicitor Fees <%=FormatCurrency(solicitFee,2,vbTrue,0,-2)%>
Borrowing Costs
Bank Establishment Fee <%=FormatCurrency(EstablishmentFee,2,vbTrue,0,-2)%>
Mortgage Stamp Duty <%=FormatCurrency(stamp1,2,vbTrue,0,-2)%>
Lenders Mortgage Insurance (* 2) <%=FormatCurrency(totalpre,2,vbTrue,0,-2)%>
Transfer of Land Registration Fee <%=FormatCurrency(regfee,2,vbTrue,0,-2)%>
Search Fees <%=FormatCurrency(SearchFees,2,vbTrue,0,-2)%>
Other Miscellaneous Costs <%=FormatCurrency(OtherMisFees,2,vbTrue,0,-2)%>
Total Borrowing & Buying Costs
<%=FormatCurrency(totalcosts,2,vbTrue,0,-2)%>
TAX DEDUCTABLE EXPENSES
Property Expenses
Rates & Taxes <%=FormatCurrency(rates,2,vbTrue,0,-2)%>
Body Corporate <%=FormatCurrency(body,2,vbTrue,0,-2)%>
Agent Management Fees <%=FormatCurrency(agent,2,vbTrue,0,-2)%>
Insurance Premiums <%=FormatCurrency(inspre,2,vbTrue,0,-2)%>
Depreciable Items (* 4)
Depreciation of fixtures and fittings <%=FormatCurrency(depre1,2,vbTrue,0,-2)%>
Depreciation building allowance <%=FormatCurrency(depre2,2,vbTrue,0,-2)%>
Borrowing costs Amortisation <%=FormatCurrency(depre3,2,vbTrue,0,-2)%>
Interest on Loan Amount
Annual Interest Payment (* 5) <%=FormatCurrency(intonly,2,vbTrue,0,-2)%>
Total Tax Deductions
<%=FormatCurrency((deduct+rent),2,vbTrue,0,-2)%>
 
Notes: (*)
  1. Deposit Contribution - is your own cash contribution towards the property purchase. You may reduce your deposit amount by simply increasing your loan amount in the input page.

  2. If the Loan to Value Ratio (LVR) is greater than 90 per cent we have taken the assumption that an additional security property (cross securitisation) will be used as most banks will limit the borrowing to 90 per cent LVR for investment purposes on a single property (the resultant LVR will be 90 per cent or less) hence the Lenders Mortgage Insurance will only apply if total borrowing is between 80 to 90 per cent LVR. No lenders mortgage insurance premium is calculated if the LVR is below 80 per cent or over 90 per cent.

  3. Tax Savings - is a result of offsetting the Total Tax Deductions from your annual income hence, reducing your average tax rate (reducing your tax payable) using a negatively geared property. Please note that your tax payable may actually increase if your property is running in cash flow positive - the pie chart will not appear in the case of a positively geared property. The tax payable shown is based on the 2013/2014 tax scales excluding the Medicare levy.

  4. Depreciable items - these amounts are estimates and will vary for individual properties.

  5. Annual Interest Payment - is based on a fixed rate loan type with interest only payment option. Interest rate shown is a current average market 3 year fixed rate.

  6. Please note that the actual tax benefit and your cash flow position will alter when using an alternative interest mortgage rate other than the one used herewith.

  7. Confidence Rating Risk Scale - is based on the owner weekly contribution as a percentage of the weekly total property funding costs. Green Alert represents a favorable result (within a conservative range of owner cash flow contribution), Orange Alert represents caution (the owner cash flow contribution is regarded to be high), and Red Alert representing the Highest Risk (the owner cash flow contribution is very high which may effect owner surplus income position and jeopardise financial capacity and stability).

 
Disclaimer:
  • The tax benefits shown herewith are based on current applicable Federal Government legislation and may be subject to change.

  • The results shown are estimates and should be used as a guide only.

  • The results shown do not take into consideration individual applicant financial needs and circumstances.

  • Solicitor/Conveyancer costs are approximate and should be used as a guide only. These will depend upon the work load that the solicitor/Conveyancer may undertake on your behalf.

  • Applicants should consult with their Solicitor or Accountant to comply with all tax office requirements when lodging their tax returns and whether investing in property meets with their financial needs. Please refer to the Australian Tax Office for further information www.ato.gov.au.

 
Scroll to Top