Investor Tools

Federal Budget 2026: Property Scenario Calculator

Model the financial impact of proposed 2026 Federal Budget changes to negative gearing, CGT discounts, and the Help to Buy scheme. Indicative figures only.

Important: These proposals were announced ahead of the May 12, 2026 Federal Budget. Nothing below is law until legislation passes parliament. Treat all figures as indicative modelling only. Speak to a qualified accountant before making any decisions.

Section 1

Negative Gearing Impact Calculator

Currently, losses from investment properties offset any personal income. Two credible models have been reported ahead of the May 12 budget. The first is a two-property cap: losses from a third or more properties quarantined to rental income only. The second is full abolition for new investments from budget night, with existing investments grandfathered. The Crikey and CommBank budget previews (May 2026) treat full abolition as the more likely outcome. New builds may retain negative gearing under either model, consistent with Labor's 2019 policy.

Your details
$
$
Your current position
Total rental income $52,000
Total deductible expenses $74,000
Net position (income minus expenses) -$22,000

Negatively geared

Current law $7,590

Annual tax benefit (full loss offsets personal income)

Net cost: $14,410 / yr
Proposed: 2-property cap $7,590

Tax benefit (losses from 3rd+ property quarantined)

Net cost: $14,410 / yr
Scenario: Full abolition $0

No losses offset personal income at all

Net cost: $22,000 / yr
Impact summary
Under current law: annual tax benefit $7,590
Under 2-property cap: annual tax benefit $7,590
Annual difference (current vs. 2-property cap) $0
Cost increase if gearing fully abolished $7,590 / year more
  • Losses split evenly across properties for the quarantine calculation.
  • The 2-property cap quarantines losses from properties 3 and above. Those losses can still offset future rental profits from those same properties.
  • Marginal rates: 0%, 21% (19%+ML), 34.5% (32.5%+ML), 39% (37%+ML), 47% (45%+ML).
  • Proposed effective date: budget night May 12 or July 2027. No legislation has passed. Two models credibly reported: 2-property cap or full abolition for new investments.
  • New builds may be exempt from changes, consistent with Labor's 2019 election policy. No confirmation either way.
Section 2

Capital Gains Tax Impact Calculator

Currently, assets held more than 12 months attract a 50% CGT discount. Three models have been credibly reported for the May 12 budget. Option A reduces the discount to 25% (Labor's 2016 and 2019 election policy). Option B reduces it to 33%. Option C, flagged by Corrs Chambers Westgarth and CommBank as the leading candidate, replaces the flat discount entirely with inflation indexation: you pay CGT only on the real gain above CPI, not the nominal gain. Gains accrued before budget night are expected to be grandfathered.

Property details
$
$
Capital gain
Total capital gain $350,000
Pre-budget purchase: Because you bought before May 12, 2026, gains accrued up to budget night are expected to be grandfathered at the 50% discount. Gains from budget night forward would be subject to the new, lower discount rate.
Current: 50% discount $175,000

Taxable capital gain

CGT payable: $60,375
Option A: 25% discount $262,500

Taxable capital gain

CGT payable: $90,563
Option B: 33% discount $234,500

Taxable capital gain

CGT payable: $80,903
Option C: Indexation $261,000

Taxable gain (nominal gain minus CPI, assumed 3%/yr)

CGT payable: $90,045
Dollar difference at a glance
CGT payable: current law (50% discount) $60,375
CGT payable: Option A (25% discount) $90,563
Extra tax under Option A vs. current $30,188
CGT payable: Option B (33% discount) $80,903
Extra tax under Option B vs. current $20,528
CGT payable: Option C (inflation indexation, 3%/yr assumed) $90,045
Extra tax under Option C vs. current $29,670
  • For pre-budget purchases, gains are assumed to accrue evenly over the holding period. The grandfathered portion retains the 50% discount. The post-budget portion is subject to the new rate. This is a simplification: your accountant will calculate the exact split based on valuations.
  • Option C (inflation indexation) uses 3% annual CPI, the midpoint of the RBA's 2-3% target band. Your actual result depends on CPI at purchase and sale dates. Indexed cost base = purchase price multiplied by (1.03) to the power of years held.
  • Under indexation there is no flat discount. You pay CGT on the real gain only. If the nominal gain is less than CPI growth, no CGT applies.
  • No main residence exemption modelled. If this is your principal home you may be fully exempt.
  • No state land tax, stamp duty, or selling costs included.
  • No legislation has passed. All three options are credibly reported. Indexation flagged by Corrs Chambers Westgarth and CommBank (May 2026) as the leading candidate.
Section 3

Help to Buy Eligibility Check

The Help to Buy scheme allows the government to co-invest in your property: 40% for new builds, 30% for existing. You need a minimum 2% deposit. The income caps have been officially confirmed for the 2026-27 budget: $100,000 for singles (raised from $90,000) and $160,000 for couples and single parents (raised from $120,000). An additional $800 million has been committed, bringing total scheme funding to $6.3 billion. Property price caps have also been increased and indexed.

Your details
$
$
$
Eligibility result
Likely eligible
Purchase price $650,000
Government equity contribution $195,000 (30%)
Your deposit $20,000
Your loan amount $435,000
Estimated monthly repayment $2,329

P&I, 6% rate, 30-year term, on reduced loan amount

  • Income caps: $100,000 single / $160,000 couple. These are expected to be revised upward before the scheme opens.
  • Government equity: 40% for new builds, 30% for existing properties.
  • Minimum deposit: 2% of purchase price.
  • Repayment estimate uses a 6% annual interest rate over 30 years (P&I). Actual rate will depend on your lender.
  • You will need to repay the government's equity share when you sell or refinance. The government's share grows or shrinks with property values.
  • Around 10,000 places are available each year nationally. Demand is expected to exceed supply.
  • Help to Buy has not yet passed parliament. Treat eligibility checks as indicative only.

Reminder: The negative gearing cap, CGT discount changes, and Help to Buy scheme described above are budget proposals only. Nothing is law until legislation passes both houses of parliament. Figures produced by this calculator are indicative modelling based on publicly available proposal details. They do not constitute financial, tax, or legal advice. Speak to a qualified accountant or financial adviser before making any investment, sale, or purchase decisions.

Want more context? Read the full guide: Capital Gains Tax When Selling Your Brisbane Home →

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