This calculator allows property investors to explore the possible tax benefits of owning negatively geared investment property(s). For multiple investment loans sum the total of all investment loans and input the average rate of interest. For investment property(s) jointly owned complete a separate calculation for each owner with the liability and rental income divided according to legal interest. The Tax Benefit is the annualised difference between personal income tax without an investment property(s), and the personal income tax while holding an investment property(s).
- Rental Income Utilisation is applied based on user input to reflect common investment property expenses including any depreciation (if applicable).
- Tax is calculated based on currently financial year rates and thresholds, and includes 2% medical levy.
- Interest is calculated by compounding on the monthly repayment. In practice, interest compounding frequency may not be the same as repayment frequency.
- No rounding is done throughout calculation whereas repayments are rounded to at least the nearer cent in practice.