How it's calculated
The policy translated into 4 calculation steps you can follow
First determine which rules apply, then work out the holding-period tax impact, then the CGT on disposal, and finally the difference in total net return.
01
1. Work out which rules apply to you
Protected by
grandfathering
Affected by reform
(established property)
New build / BTR
Exception
2026-05-12 19:302027-07-01
Contracts signed before 12 May 19:30 → old rules apply long-term
Established investment property bought after → from Jul 2027 losses can't be offset against wages
New builds / BTR → negative gearing unchanged
02
2. How the annual holding period is calculated
Net rental result = annual rental income − annual holding costs
If the result < 0, you've made a holding loss
03
3. How CGT is calculated on disposal
Old rules:
Taxable capital gain = capital gain × 50%
Taxable capital gain = capital gain × 50%
New rules:
Growth before 1 Jul 2027 keeps the 50% discount;
growth after is treated as "indexed cost base + 30% floor rate".
Growth before 1 Jul 2027 keeps the 50% discount;
growth after is treated as "indexed cost base + 30% floor rate".
3·5
3·5. How the holding-period tax bill is assembled
Deductible during holding = loan interest + other holding costs + depreciation + land tax
04
4. How the total net return ties together
Old vs newSide-by-side comparison
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