Ripper Wealth

Foundations

Before you invest, get your house in order. Set goals, track cash flow, and build emergency reserves.

What To Own

Understanding asset classes and their roles in a balanced portfolio.

Why It Works

Historical context, wealth cycles, and the economic principles that drive markets.

AI-Powered Education

Cycle-aware tools backed by institutional-grade research

How To Execute

Profile-specific strategies. Content varies based on your persona (PAYG, Business Owner, Property/Crypto/Stock Investor, etc.).

When To Adjust

Timing and signals. Know when to buy, sell, or hold based on market cycles.

More

Learn about us, get help, share feedback.

TAX ESSENTIALS FOR PROPERTY • STEP 3 OF 4

Try It: Your Property Tax Calculators

Ninety percent of all millionaires become so through owning real estate.

Andrew Carnegie

Use our interactive calculators to model your property's cash flow and calculate capital gains tax when you sell.

Your Learning Journey

GET READY

SEE IT

TRY IT

CHECK IT

This Step Takes: 20 minutes

Use two calculators to model your property's annual cash flow and calculate CGT when you sell.

What You'll Do

Model cash flow and calculate CGT with 50% discount.

Property Cash Flow Calculator

Model your rental property's income, expenses, and see how negative gearing reduces your tax.

Budget 2026-27: When did you buy this property?

Property & Loan

Total cost base: $730,000

Loan: $560,000

Rental Income & Your Tax

Annual: $30,000

Gross Yield

4.46%

Net Yield (ex-interest)

2.91%

Annual Expenses

% = $2,400/yr

Annual Cash Flow Breakdown

Income
Rental Income (50 wks):$30,000
Expenses
Interest:$35,000
Council Rates:$2,200
Water Rates:$1,200
Insurance:$1,800
Management (8%):$2,400
Repairs & Maintenance:$2,000
Total Deductible:$44,600
Pre-tax cash flow (cash only): −$14,600/yr

Negatively Geared

$191 /week

after-tax holding cost

Pre-tax cash shortfall

−$14,600/yr

Tax saving

+$4,672/yr

Net annual cost

−$9,928/yr

Full DeductionApplies to you
Taxable loss:−$14,600
Deductible against wages:✓ All $14,600
Tax saving (across brackets + Medicare):+$4,672
Bracket breakdown
$105,401 – $120,000 @ 30%save $4,380
Medicare levy (2%)save $292
Total saving$4,672
Net weekly cost:−$191/wk
Ring-Fenced (Post-Budget Established)
Taxable loss:−$14,600
Deductible against wages:$0 (ring-fenced)
Carried forward to future years:$14,600
Year tax saving:$0 (deferred)
Net weekly cost:−$281/wk

This property costs you $191/week after tax. The strategy works if the property value grows faster than your net losses.

Educational purposes only. Tax saving calculated using incremental bracket-stacking (ATO 2024-25 brackets + 2% Medicare levy), not a flat marginal rate. Budget 2026-27 negative gearing restrictions apply from 1 July 2027 for established properties bought after 12 May 2026. Transition relief applies if purchased before 1 July 2027. Pro-rata days-based apportionment for assets straddling the cutoff follows ATO draft guidance. Actual outcomes depend on your full tax situation. Consult a registered tax agent.

Why Negative Gearing Works

Most Australian investment properties lose money on paper (rent doesn't cover all expenses). That's okay! The loss reduces your taxable income, saving you thousands in tax each year. The goal is for property value to grow faster than your accumulated losses over 7-10+ years.

Capital Gains Tax Calculator

Calculate CGT when you sell and see how the 50% discount saves you thousands.

Open full Property CGT Calculator →|Open full Negative Gearing Calculator →

Property CGT Calculator

Calculate capital gains tax on your investment property sale. Enter what you paid, what you sold for, and when you bought. The regime is determined automatically.

Property Type

Purchase Details

Sale Details

Holding period: 12 years (auto-calculated)

CGT treatment: Sale on/after 1 July 2027 with pre-2027 purchase: gain splits at market value at 1 July 2027.

Market Value at 1 July 2027

Advanced settings(inflation: ABS CPI + projection: 3.0%/yr)

Inflation / CPI Assumption

Special Circumstances

Apportioned CGT: split at market value at 1 July 2027

Pre-2027 Slice: 50% Discount
Cost base:$675,000
MV at 1 Jul 2027:$1,009,036
Pre-cutoff gain:$334,036
50% discount:−$167,018
Taxable gain:$167,018
Tax on pre-2027 slice:−$68,848
Bracket breakdown
Lower brackets already used by $100,000 income
$0 – $18,200 @ 0%—
$18,201 – $45,000 @ 16%—
$45,001 – $135,000 @ 30%$10,500
$135,001 – $190,000 @ 37%$20,350
>$190,000 @ 45%$34,659
Medicare levy (2%)$3,340
Total$68,848
Post-2027 Slice: Indexed + 30% Min
Cost base (MV at 1 Jul 2027):$1,009,036 ↑
Indexed cost base$1,101,827
Real gain (post-2027):$98,173

Marginal rate (exceeds 30% floor)

Tax on post-2027 slice:−$46,141
Bracket breakdown
Lower brackets already used by $100,000 income + $167,018 pre-2027 gain
$0 – $18,200 @ 0%—
$18,201 – $45,000 @ 16%—
$45,001 – $135,000 @ 30%—
$135,001 – $190,000 @ 37%—
>$190,000 @ 45%$44,178
Medicare levy (2%)$1,963
Total$48,105

Your Estimated Net Profit After Tax

$410,010

CGT payable: $114,990

For reference: under the legacy 50% discount only: $411,275 net profit (~$113,725 CGT, +$1,265 difference)

⚖️ Value-based apportionment: gain split at market value at 1 July 2027.

General information only. Not personal financial advice. Tax calculations use 2024-25 Australian income tax brackets including 2% Medicare levy. CPI indexation uses ABS 6401.0 quarterly data (All Groups, weighted average eight capital cities). Value-based apportionment at 1 July 2027 per Treasury Statement 4. Final apportionment formula pending Exposure Draft. Consult a registered tax agent for advice specific to your situation.

The 12-Month Rule

Selling before 12 months means NO 50% CGT discount. On a $200k profit at 37% tax rate, that's the difference between $37k tax (with discount) and $74k tax (without). Always aim to hold investment property for at least 12 months!

Key Takeaways

Negative Gearing Math

Property loss of $10k/year at 37% tax rate saves you $3,700 in tax. Real cost: only $6,300/year while the property (hopefully) grows in value.

The 50% Discount Is Huge

On a $300k property profit, the 50% CGT discount saves you $55k+ in tax (at 37% bracket). Worth waiting for!

Don't Forget Cost Base

Add improvements (kitchen renos, extensions) and selling costs to your cost base. This reduces your capital gain and saves you tax. Keep all receipts!

Tax-101 for Property - Try It: Complete

  • Negative gearing works if property value grows faster than accumulated losses over 7-10+ years
  • The 50% CGT discount (12+ month hold) can save you $20-50k+ in tax on a typical property sale
  • Your cost base includes purchase price + improvements + selling costs. Track everything!

Homework

Reflect

If you own investment property, have you calculated your actual after-tax cash flow? Are you tracking all expenses for CGT cost base?

Action

Create a property expense spreadsheet today. Columns: Date, Category (interest, rates, insurance, repairs, etc.), Amount, Receipt. Update monthly. Come sale time, you'll have everything ready.

What's Next?

5 minutes

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