Rental Property Calculator Australia โ FY 2025-26
Calculate the annual profit or loss on your investment property, estimate depreciation deductions (Division 43 and 40), and analyse gross and net rental yield. Includes negative gearing tax benefits at your marginal rate. Updated for FY 2025-26 with Stage 3 tax brackets.
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How to Use This Calculator
Annual P&L tab
Enter your weekly rent, vacancy weeks, and all annual expenses: loan interest, council rates, strata, insurance, property management fee, repairs, depreciation (building + plant), and land tax. Select your marginal tax rate to see the tax benefit from negative gearing or tax liability from positive gearing.
Depreciation tab
Enter the construction year and construction cost of your property. Add any recent renovations you have done. The calculator estimates your Division 43 (building) and Division 40 (plant) depreciation deductions and the resulting tax saving.
Net Yield tab
Enter the purchase price, weekly rent, total annual expenses, and your deposit paid. See gross yield, net yield after expenses, net yield after tax, and cash-on-cash return on your invested deposit.
Share your result
All inputs are encoded in the URL. Click Share to send your exact calculation to your accountant, financial adviser, or property manager.
The Formula
Weekly rent × (52 − vacancy weeks)
Total Deductions:
Interest + Rates + Strata + Insurance + Management + Repairs + Depreciation + Land Tax
Net Rental Income/Loss:
Gross income − Total deductions
Tax Benefit (if negatively geared):
|Net loss| × Marginal tax rate
Division 43 (Building):
Construction cost × 2.5% per year (buildings post-Sep 1987)
Gross Yield:
(Annual rent ÷ Purchase price) × 100
Net Yield:
((Annual rent − Expenses) ÷ Purchase price) × 100
Worked Example
$650,000 unit, rent $550/week, 2 weeks vacancy
Step 1: Gross rental income
Step 2: Total deductions
Step 3: Net loss and tax benefit
Verdict: The property produces a $16,925 tax loss, saving $6,262 in tax. After accounting for the $6,000 non-cash depreciation deduction, the true out-of-pocket cost is approximately $4,663 per year ($90/week) to hold this property while building equity through loan repayments and capital growth.
Key Rates and Thresholds (FY 2025-26)
| Item | Rate / Threshold |
|---|---|
| Division 43 (building) | 2.5% of construction cost p.a. |
| Division 43 eligibility | Buildings constructed after 15 Sep 1987 |
| Division 40 (plant) — diminishing value | 200% ÷ effective life |
| Second-hand Div 40 restriction | Not claimable post-9 May 2017 (residential) |
| Property management fee | Typically 5–10% of rent |
| Land tax | Varies by state and land value |
| SG rate (super guarantee) | 12% (not directly relevant but affects take-home) |
Quantity surveyor depreciation reports
A quantity surveyor (also called a tax depreciation specialist) inspects your property and prepares a detailed depreciation schedule covering both Division 43 and Division 40 items. This is the most accurate way to claim depreciation.
- Cost: $600–$800 (tax-deductible)
- Covers: Remaining life of the building, all claimable plant items
- Typical return: $5,000–$20,000+ in deductions in the first year alone
- Providers: BMT Tax Depreciation, Washington Brown, Duo Tax, MCG Quantity Surveyors
The report cost is fully tax-deductible. Most investors recover the report cost many times over in additional depreciation deductions.
Second-hand Div 40 restriction (post-9 May 2017)
Since 9 May 2017, owners of previously used residential rental properties cannot claim Division 40 (plant and equipment) depreciation on second-hand assets. This means:
- If you bought an existing property after 9 May 2017, you cannot claim depreciation on items like existing carpet, blinds, air conditioning, etc.
- You can still claim Division 43 (building allowance) at 2.5%
- You can claim depreciation on new items you install yourself (you are the original owner)
- The restriction does not apply to commercial properties
Source: Tax Laws Amendment (Housing Tax Integrity) Bill 2017. ATO Taxation Ruling TR 2019/5.
Land tax by state (investment properties)
Land tax is an annual state tax on the unimproved value of land you own (excluding your principal residence). Rates and thresholds vary significantly:
| State | Tax-free Threshold | Rate Above Threshold |
|---|---|---|
| NSW | $1,075,000 | 1.6% – 2% |
| VIC | $50,000 | Progressive to 2.55% |
| QLD | $600,000 | 1% – 2.75% |
| WA | $300,000 | Progressive to 2.67% |
| SA | $450,000 | Progressive to 2.4% |
| TAS | $100,000 | 0.5% – 1.5% |
| ACT | No threshold | Fixed charges apply |
| NT | No land tax | N/A |
Your principal residence is exempt from land tax in all states. Land tax applies to the combined unimproved value of all your non-exempt land in that state.