Featured guide
Negative gearing explained: what it means, what you save
Most investors know they get a tax break on a negatively geared property. Not many can explain how it's calculated. This guide walks through the differential tax method and shows you how to work out your real weekly cost.
Read the guideTax & Deductions
Negative gearing, depreciation, and CGT all affect your real return, sometimes by more than the rent itself. These guides explain each one plainly.
Negative gearing explained: what it means, what you save
Most investors know they get a tax break on a negatively geared property. Not many can explain how it's calculated. This guide walks through the differential tax method and shows you how to work out your real weekly cost.
Division 40 and Division 43: property depreciation explained
How plant and equipment and capital works deductions work, and why most investors leave money on the table by not claiming them properly.
Property Costs
Stamp duty, LMI, and council rates all add to your true cost of entry. Know exactly what you are paying before you exchange contracts.
Investment Strategy
Entity structure and holding period can shift your after-tax outcome significantly. These guides help you model the right approach for your situation.
Buying investment property through a trust: how it works
Trusts offer income flexibility and asset protection, but losses are trapped and land tax can be brutal in NSW and VIC. Here is a straight account of the trade-offs.
Trust, company or SMSF? Choosing the right investment structure
The pros, cons, and tax implications of buying personally, through a discretionary trust, unit trust, company, or self-managed super fund. Side-by-side comparison included.
Quick answers
Common questions about investing in Australian property
Short, direct answers to the questions investors ask most. Click any guide above for the full explanation.
What is negative gearing?
When your investment property costs more to own than it earns in rent, the shortfall is deducted from your other income, reducing the tax you pay. This is negative gearing.
How much stamp duty will I pay?
Stamp duty varies by state and purchase price. On a $750,000 property in NSW it is roughly $29,010; in VIC it is around $40,070. ProfitPie calculates the exact amount for all eight states.
Can I claim depreciation on a second-hand property?
Since July 2017, Division 40 deductions on second-hand residential properties were restricted for individual investors. Division 43 (capital works) can still be claimed on properties built after July 1985.
What is the CGT discount?
Individuals and discretionary trusts selling a property held for more than 12 months pay CGT on only half the gain. SMSFs in accumulation phase receive a one-third discount. Companies receive no discount.
Should I buy in my name or through a trust?
Buying personally lets you offset losses against your salary. A trust offers income flexibility and the CGT discount but traps losses inside. The best answer depends on your tax rate, timeline, and how many properties you plan to own.
What does 'real weekly cost' mean?
The cash you take out of your pocket each week after rent and the tax benefit are factored in. A property with a $600/week mortgage and $450/week rent can cost as little as $95/week after the negative gearing offset at a 37% tax rate.
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