Assumptions used
Annualised return (IRR) comparison
Internal Rate of Return accounts for both the magnitude and the timing of every dollar contributed. It is the most rigorous way to compare scenarios with different cash investment schedules.
After-tax net value at end of holding period
How net value grows over time
Final net value, side by side
Sale-time breakdown
Year-by-year cash flows
The underlying year-by-year working — rent, interest, depreciation, after-tax cash flow, and cash invested per year. Switch tabs to compare scenarios.
Methodology — how this calculator works
What it compares
- Leveraged residential property — deposit + stamp + buying costs come from your initial outlay; the rest is interest-only borrowed.
- Unleveraged Australian shares — same initial cash, no borrowing. Both grow on autopilot for the holding period, then sold.
The two CGT regimes
- Old (current) regime: 50% CGT discount on assets held >12 months; negative-gearing losses offset other income at your marginal tax rate; depreciation reduces the CGT cost base at sale.
- New (proposed) regime: initial cost base indexed by CPI; rental losses can't offset other income — they're CPI-indexed and capitalised into the property's CGT cost base; rental profits taxed at MTR each year; no 50% discount; CGT gain has a floor at zero (no synthetic losses).
How the comparison stays fair
- Both scenarios begin with the same initial cash outlay.
- Within each regime, the share scenario receives the same yearly cash inflows as the property scenario, so any difference in final value comes from how each asset class is taxed, not from putting different amounts in.
- The new regime needs more cash invested (no tax refunds from negative gearing). The Verdict uses IRR rather than dollar value, which neutralises this difference automatically.
What it doesn't model
- Land tax, council rates, repairs, insurance, vacancy, property management fees.
- Variable interest rates over time.
- Income tax brackets (uses a single marginal tax rate).
- Dividend reinvestment plans, share buybacks.
- Pre-CGT or primary-residence treatments, capital losses carried from other transactions.
- Tax-law changes within the holding period.
Source
This calculator is a JavaScript port of a public AU CGT spreadsheet model. All math runs client-side — no data is collected or transmitted.