What this calculator answers
- Should this property go in my name, a trust, a company or the SMSF? The comparison table puts all five side by side on the same deal, so the difference is a number rather than a hunch.
- How much does the negative-gearing quarantine actually cost me? It only bites individuals and couples, and only on established residential bought after budget night. The calculator shows whether your deal is caught and what the loss of salary offset is worth.
- Does the company still make sense if I need the cash? Toggle the franked-dividend extraction on and off. The gap between those two numbers is the real cost of getting money out of a company.
The five structures at a glance
| Structure | Rental loss offsets salary? | CGT discount | Tax on income |
|---|---|---|---|
| Individual | Yes, unless quarantined | 50% if held ≥ 12 months | Marginal rates + Medicare |
| Couple | Yes, unless quarantined | 50% each, on their share | Each spouse's own rate stack |
| Discretionary trust | Never — losses trapped | 50% flows to beneficiaries | Beneficiary's marginal rate |
| Company | Never — losses trapped | None | 30% flat, then franked payout |
| SMSF | Never — outside the quarantine | 33⅓% in accumulation | 15% accumulation, 0% pension |
The two reforms this calculator prices
Negative gearing quarantine — from the 2027-28 income year. Rental losses on established residential property contracted after 7:30pm AEST on 12 May 2026 can no longer offset salary and wages. They carry forward against future rental income and capital gains instead. New builds, commercial property and anything owned on budget night are unaffected.
CGT split — sales contracted on or after 1 July 2027. The gain is cut at its 1 July 2027 market value:
Pre-1 Jul 2027 slice old rules — 50% discount (individual, trust)
33⅓% discount (super fund)
Post-1 Jul 2027 slice cost base indexed by CPI
individuals and trusts pay at least 30%
on the indexed gain
New dwellings may elect to keep the 50% discount
on the whole gain instead
Companies sit outside both halves of the CGT change — they never had a discount and are taxed at 30% on the full nominal gain either way.
Why the lowest tax number is not always the right answer
The comparison ranks structures on total federal tax. That is one input to the decision, not the decision:
- SMSF almost always wins on tax and almost always loses on flexibility. The money is preserved until a condition of release, contribution caps limit how much you can get in, and the fund can no longer borrow to buy new residential property.
- Trusts trap losses, so a heavily negatively geared property in a trust can mean years of no deduction at all before the gain arrives.
- Companies look competitive right up until you want the cash out.
- State land tax is not modelled here and frequently reverses the ranking — several states deny trusts the tax-free threshold and apply surcharge rates.
Use this to narrow the field, then take the shortlist to a registered tax agent.
What is out of scope
State land tax, stamp duty and council rates. Division 7A loan ledgers. Section 100A reimbursement agreements. Small-business CGT concessions and the main residence exemption. Multi-property portfolios. Depreciation schedules beyond the two annual inputs. Foreign-resident capital gains withholding mechanics. Trust streaming of franked dividends in detail.
Frequently asked questions
Which ownership structure pays the least tax on an investment property?
It depends entirely on the deal. On a typical negatively geared residential property with a large capital gain, an SMSF usually shows the lowest total federal tax because it is taxed at 15% during accumulation, 0% in pension phase, and keeps a 33⅓% CGT discount. A company often shows the highest once you extract the cash, because it gets no CGT discount and the franked dividend then tops up to your marginal rate. But an SMSF cannot use the losses against your salary and the money is locked up until a condition of release, so the lowest tax number is not automatically the right answer. Run your own figures.
Does a discretionary trust save tax on a rental property?
Not while it is losing money. A trust cannot distribute a loss — rental losses stay trapped in the trust and carry forward against future trust income, so they never reduce your salary. That is the single biggest difference between a trust and holding property in your own name. Trusts come into their own on the way out: the trustee can stream the capital gain to whichever beneficiary has the lowest marginal rate, and the 50% CGT discount flows through to individual beneficiaries.
How does the 2026-27 negative gearing change affect each structure?
From the 2027-28 income year, rental losses on established residential property contracted after 7:30pm AEST on 12 May 2026 are quarantined — they can no longer offset salary and wages, only future rental income and capital gains. Three carve-outs survive: new builds, commercial property, and anything you owned on budget night, which is grandfathered for life. The quarantine only ever mattered to individuals and couples, because trusts, companies and SMSFs never could offset your personal salary in the first place.
What happens to CGT on a sale after 1 July 2027?
The gain is split at its 1 July 2027 market value. The slice that accrued before that date keeps the old rules — 50% discount for individuals and trusts, 33⅓% for super funds. The slice that accrued after is calculated by indexing the cost base for inflation, with individuals and trusts paying at least 30% on the indexed post-reform gain. If you don't supply a 1 July 2027 valuation, this calculator interpolates a straight line between your purchase and sale prices, which is an estimate rather than an exact split.
Can an SMSF still borrow to buy a residential investment property?
Not a new residential one. Limited-recourse borrowing arrangements over new residential property are banned from 10 August 2026. Existing LRBAs are unaffected, and commercial property — including business real property — is not caught. If you switch on the LRBA toggle in this calculator, the SMSF column assumes a cash purchase and shows a banner saying so, because the borrowing itself is no longer available.
Is the 30% discretionary trust minimum tax law?
No. It is announced, not enacted. The calculator includes it as an off-by-default scenario toggle so you can see the shape of the exposure, and it is labelled as not current law wherever it appears. Do not plan around it until it passes.
Why does the company column look so bad?
Two reasons stack up. A company gets no CGT discount at all, so the full nominal gain is taxed at 30%. Then, if you want the money personally, paying it out as a fully franked dividend grosses the amount back up and tops it up to your marginal rate — so a top-bracket shareholder ends up near 47% anyway, just later. If you leave the profits in the company the total tax looks much lower, but the cash is not in your hands. Toggle the extraction switch to see both.
Does this calculator handle land tax and stamp duty?
No. It is federal tax only — income tax, Medicare, CGT and the franking system. State land tax is often the deciding factor between structures, and it is punitive for trusts and companies in several states (NSW and Victoria in particular apply surcharge rates and deny the tax-free threshold to trusts). Get state-specific advice before choosing a structure on the strength of the federal numbers alone.
Is this tax advice?
No. It is a comparison estimate built on a single property, a simplified five-element cost base, and a set of stated assumptions. It is not a tax return and it does not model Division 7A loan ledgers, section 100A, the main residence exemption, small-business CGT concessions, multi-property portfolios or foreign-resident withholding mechanics. Talk to a registered tax agent before acting.
Sources
Last updated: 27 August 2026