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.
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listed for sale Australia-wide.
Negative Gearing Tax Calculator
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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. Notes: (*)
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| Negative Gearing Tax Simulator - the estimated taxation benefit and owners funding contribution are as follows: |
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CONFIDENCE RATING RISK SCALE: Moderate (* 7) |    |
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CONFIDENCE RATING RISK SCALE: High (* 7) | |
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CONFIDENCE RATING RISK SCALE: Very High (* 7) | |
| BORROWING AND BUYING COSTS | |
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| 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)%> |
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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.
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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.
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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.
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Depreciable items - these amounts are estimates and will vary for individual properties.
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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.
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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.
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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).
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The tax benefits shown herewith are based on current applicable Federal Government legislation and may be subject to change.
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The results shown are estimates and should be used as a guide only.
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The results shown do not take into consideration individual applicant financial needs and circumstances.
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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.
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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.
