Question 1

Should I sell my investment property before 1 July 2027?

Accepted Answer

It depends on your cost base, expected growth, and whether the property is grandfathered. PropPlan's Sell Analyser models your net proceeds both ways — under the current 50% CGT discount and under the new indexation plus 30% floor method after 1 July 2027 — so you can compare the dollar difference side by side, per property. Indicative modelling only, not tax advice. Please confirm with your accountant.

Question 2

How is CGT calculated if I sell after 1 July 2027?

Accepted Answer

From 1 July 2027, the flat 50% CGT discount is replaced by indexation plus a 30% floor: the cost base is indexed to CPI, then a minimum 30% discount is applied to the remaining gain. For assets held before 12 May 2026, PropPlan applies split-gain — the pre-change portion keeps the 50% discount, the post-change portion uses the new method. New builds retain the choice of method. Indicative modelling only, not tax advice.

Question 3

Can my SMSF still buy property after 10 August 2026?

Accepted Answer

Only using existing accumulated savings. From 10 August 2026, SMSFs are banned from entering new Limited Recourse Borrowing Arrangements (LRBAs) to purchase residential real estate. Existing LRBAs and contracts signed before the cutoff are grandfathered. SMSF properties otherwise remain on the 15% flat tax rate and 33.33% CGT discount, and are isolated from personal Freedom Score and negative-gearing calculations. Indicative modelling only, not tax advice.

Question 4

Is my investment property grandfathered from the negative-gearing changes?

Accepted Answer

Established residential properties acquired at or before 7:30pm AEST on 12 May 2026 are grandfathered — rental losses can still offset personal salary after 1 July 2027. Properties acquired after that timestamp have losses quarantined against future rental income from the same property. Brand-new builds are carved out. PropPlan classifies every property automatically. Indicative modelling only, not tax advice.

Question 5

Should I sell my investment property now or hold?

Accepted Answer

It depends on your CGT liability, current equity position, and cashflow. PropPlan's Sell vs Hold simulator shows you net proceeds after CGT today versus projected value in 5 years—so you can compare both paths with real numbers, not guesswork.

Question 6

How do I calculate Capital Gains Tax on my investment property in Australia?

Accepted Answer

PropPlan calculates CGT using ATO rules: cost base (purchase price + stamp duty + improvements), minus the 50% discount if held over 12 months, taxed at your marginal rate. Enter your property details and see your estimated CGT instantly.

Question 7

Can I afford to buy another investment property?

Accepted Answer

PropPlan's Equity Unlock simulator analyses your current portfolio, shows usable equity per property (accounting for 80% LVR limits), and estimates your borrowing capacity. You'll know in 30 seconds if the numbers work.

Question 8

What happens to my investment properties if interest rates rise?

Accepted Answer

Use PropPlan's Rate Stress Test to model +1%, +2%, or custom rate increases. See the exact monthly shortfall across your portfolio and specific strategies to cover any gap—before it happens.

Question 9

How does negative gearing work and am I benefiting from it?

Accepted Answer

Negative gearing occurs when your property expenses exceed rental income, creating a tax-deductible loss. PropPlan tracks your deductions automatically, calculates your net position, and shows your estimated tax refund based on your marginal rate.

Question 10

Is PropPlan free to use?

Accepted Answer

Yes, PropPlan is free to start — no credit card required. Sign up and add unlimited properties to your portfolio.

Question 11

What is PropLevel and how does it work?

Accepted Answer

PropLevel gives you two scores: your Freedom Score (0–100) measures how close your portfolio is to replacing your income with property, while your Readiness Score analyses equity, cashflow, rate exposure, and timing to tell you if conditions are right to make your next move. You can download a one-page Decision Snapshot PDF summarising both scores and share it with your advisor, broker, or accountant.

Question 12

I don't own any investment properties yet — can PropPlan help me?

Accepted Answer

Absolutely. PropPlan's Freedom Plan scenario builder lets you model hypothetical property purchases — set the price, rent, loan, and interest rate — and instantly see how many properties you'd need to reach financial freedom under your assumptions. It's the fastest way to sketch a plan before you buy.

Question 13

How do the Decision Lab, Stress Test, and PropLevel work together?

Accepted Answer

Together they form the complete Decision Engine. The Decision Lab answers tactical questions (sell or hold? buy another? when does this go positive?). The Stress Test checks your portfolio's resilience against rate rises. PropLevel tracks your long-term progress toward financial freedom. Each tool informs the others — stress test results shape your Freedom Plan, and Decision Lab scenarios feed into your PropLevel score.

Question 14

How does the 2026 Federal Budget change negative gearing for Australian property investors?

Accepted Answer

From 1 July 2027, negative gearing losses on established residential properties acquired after 7:30pm (AEST) on 12 May 2026 will be quarantined — they can only offset future rental income from the same property, not personal salary. Existing properties held before that date, and brand-new builds, are carved out. PropPlan classifies every property automatically and models Freedom Score under both the old and new rules.

Question 15

What is the new 2026 CGT indexation plus 30% floor rule, and how does split-gain work?

Accepted Answer

The Budget replaces the flat 50% CGT discount with an indexation method plus a 30% floor: index the cost base to CPI, then apply a minimum 30% discount to the remaining gain. For assets held before 12 May 2026, PropPlan uses split-gain — the pre-change portion keeps the 50% discount, and the post-change portion uses the new method. New builds keep the choice of method. SMSF properties are unaffected.

Question 16

Are new builds affected by the 2026 negative-gearing and CGT changes?

Accepted Answer

No. Brand-new residential builds are explicitly carved out. Negative gearing on new builds continues to offset personal income, and CGT on new builds lets investors choose the more favourable of the old and new methods. PropPlan tags new-build properties so the calculations apply the carve-out automatically.

Question 17

Does the 2026 Budget affect SMSF property investors?

Accepted Answer

No. SMSF properties are unaffected by the negative-gearing quarantining and by the CGT method change. SMSF continues to use the 15% flat tax rate and the 33.33% CGT discount inside super. PropPlan applies the SMSF rules and isolates SMSF properties from personal Freedom Score and negative-gearing calculations.

Question 18

Does PropPlan support Trust and Company-held investment properties?

Accepted Answer

Yes. Trust-held properties have isolated tax (no personal negative gearing), support tax losses carried forward, and include Annual Trust Maintenance as a deductible expense. Company-held properties use a flat 30% income tax and flat 30% CGT (no discount, no indexation), with losses quarantined inside the company. Both are excluded from personal negative gearing and PropLevel calculations.

Question 19

What does the Breakeven Calculator show?

Accepted Answer

The Breakeven Calculator shows the exact combination of rate cuts, rent rises, or years of growth needed to turn a property cashflow-neutral, anchored to the property's real purchase date and current loan. It sits alongside the Next Buy Analyser and Sell Analyser inside the Decision Lab.

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