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Rental Property Calculator — Compare Scenarios & Share Results

Calculate rental income, compare scenarios side-by-side, and share with your accountant

Interactive calculator with scenario comparison, shareable URLs, expense breakdown, and cashflow insights for Australian landlords

How to Use This Calculator

Enter Your Details

  • • Annual rental income received
  • • Your ownership percentage (100% if sole owner)
  • • All annual property expenses

Get Instant Results

  • • Taxable rental income calculation
  • • Total deductible expenses
  • • Cashflow analysis
  • • Tax savings estimate

Rental Income

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Use 50% if jointly owned, 100% if you own it alone

Annual Expenses

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Important Disclaimer

This calculator provides estimates only and is not financial advice. Always consult a qualified tax professional or accountant for your specific circumstances. Results are based on current ATO rules and rates.

Rental Property Tax Deductions Guide

💰 What Rental Property Expenses Can You Claim?

Australian landlords can claim a wide range of expenses related to earning rental income. The key rule: expenses must be directly related to your rental property and properly documented.

✅ Fully Deductible

  • Loan interest on rental property
  • Property management fees
  • Council rates and land tax
  • Building and landlord insurance
  • Repairs and maintenance
  • Advertising for tenants
  • Water charges (if paid by landlord)
  • Strata fees

⚠️ Depreciation Only

  • Building depreciation (2.5% p.a.)
  • Fixtures and fittings
  • Appliances (fridge, washer)
  • Furniture (if furnished rental)
  • Carpets and blinds
  • Hot water system
  • Air conditioning units

💡 Deep Dive: Learn about all rental property tax deductible expenses and landlord tax deductions for 2026.

📉 Understanding Negative Gearing

Negative gearing occurs when your rental property expenses (including loan interest) exceed your rental income. The loss can be offset against your other income, reducing your overall tax.

Example Scenario

Rental Income:$24,000/year
Total Expenses:-$30,000/year
Net Loss:-$6,000

This $6,000 loss reduces your taxable income. At 37% tax rate, that's $2,220 in tax savings.

Key Considerations:

  • Cashflow Impact: You need to cover the shortfall from your salary
  • Long-term Strategy: Banking on capital growth to make profit
  • Risk: Property values can fall; rental income can drop
  • Tax Benefit: Immediate tax deductions lower your tax bill

📖 Full Guide: Read our comprehensive negative gearing guide for Australia to understand the pros, cons, and strategies.

🏠 Property Depreciation — Hidden Deductions

Property depreciation is often the largest missed deduction for landlords. You can claim two types of depreciation:

Building Write-Off (Division 43)

  • 2.5% per year for properties built after 1985
  • Applies to structural components (walls, roof, floors)
  • 40-year depreciation period
  • Example: $400,000 building = $10,000/year

Plant & Equipment (Division 40)

  • Appliances, fixtures, carpets, blinds
  • Hot water systems, air conditioning
  • Faster depreciation rates (5-15 years)
  • Example: $20,000 items = $3,000/year

💡 Pro Tip: Get a quantity surveyor's depreciation schedule to identify all claimable items. Average cost: $500-700 but can uncover $10,000+ in annual deductions.

Use our depreciation calculator to estimate individual asset depreciation, and read our property depreciation guide.

💸 Capital Gains Tax When You Sell

When you sell your rental property, you'll pay Capital Gains Tax (CGT) on the profit. However, there are strategies to minimize this:

  • 50% CGT Discount: If you held the property for 12+ months, you only pay tax on 50% of the capital gain
  • Main Residence Exemption: If you lived in the property as your main residence before renting it out, you may get partial exemption
  • Cost Base Additions: Include purchase costs, improvements, renovations, and selling costs to reduce taxable gain
  • Timing: Consider selling in a lower-income year to reduce CGT impact

CGT Example

Sale Price:$800,000
Purchase Price:-$500,000
Improvements/Costs:-$50,000
Capital Gain:$250,000
50% CGT Discount:-$125,000
Taxable Gain:$125,000

📚 Learn More: Read our detailed guide on capital gains tax for investment properties.

📋 Record Keeping Requirements

The ATO requires you to keep records for 5 years after lodging your tax return. Proper documentation protects you during audits and ensures you don't miss deductions.

✅ Must Keep

  • All receipts for expenses
  • Bank statements showing payments
  • Loan statements (interest paid)
  • Property management statements
  • Rental income records
  • Insurance policies and invoices
  • Depreciation schedules

⚠️ Common Mistakes

  • Not keeping digital backups
  • Missing credit card statements
  • Claiming without receipts
  • Losing contractor invoices
  • Not tracking minor expenses
  • Forgetting travel for property inspections

🚀 Automate Your Record Keeping: ReceiptClaimer automatically scans receipts, categorizes expenses, and stores them securely for 7+ years.

Learn about ATO receipt requirements and how to organize receipts for tax time.

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