PPOR Loan & Offset — Your current mortgage balance and offset account balance. Every dollar in offset reduces the loan balance attracting interest daily. PPOR repayments are fixed; a higher offset means more of each payment goes to principal.
Remaining Term — Years left on your mortgage. Determines the monthly P&I repayment shown below the inputs. Changing the term recalculates repayments automatically.
Interest Rates — PPOR and investment rates applied uniformly across all years unless Stress Test is active (+0.5%, +1%, or +2% added to both rates).
CGT Method — Global setting applying to all property and share sales. CPI Indexation (default, post-2027 rules): inflates the cost base by CPI from purchase to sale — only the real gain above inflation is taxed at your marginal rate, subject to a 30% minimum tax floor. 50% Discount: halves the nominal gain before applying your marginal rate — pre-budget system for assets held >12 months. For KDR, land and build costs are indexed separately from their own dates.
Annual P/L Rows
Income − Life Expenses — Your after-tax household income minus day-to-day living costs (groceries, utilities, insurance, transport, entertainment etc). Do not include your home loan repayment — that appears automatically below as PPOR Mortgage, driven by your Loan Settings. Do not include investment contributions — those flow through the shares and investment rows. Enter the gross amount you have available before paying the mortgage. Negative years mean living costs exceeded income for that period (drawn from offset).
PPOR Mortgage — Auto-calculated annual repayment from your Loan Settings (monthly repayment × 12). Updates when you change the interest rate, loan balance, or term. Shown as a negative — this amount leaves the offset each year. When you buy an investment property using equity, the PPOR loan increases and the repayment is recalculated on the new balance for the remaining term — the mortgage row reflects this higher cost from the purchase year onwards. Pre-Budget (already owned) properties do not draw equity and therefore do not increase the mortgage. The interest component reduces with the outstanding balance over time; modelled monthly via the amortisation loop.
Net Surplus (after mortgage) — The combined total of Income − Life Expenses minus all PPOR Mortgage payments over the 11-year period. This is what's left for wealth-building after living costs and the home loan are covered.
Cash to Shares — When shares are enabled, the allocation % is taken from your true net available surplus: Income − Life Expenses − PPOR Mortgage + Investment CF + Tax Impact. This means a negatively geared property reduces what goes to shares (it uses real cash), while a tax refund increases it. Shown as a negative (leaving your cash stream). If the combined net is zero or negative, nothing is diverted — shares are never auto-sold to cover shortfalls.
Dividend Income (gross) — Visible when dividend yield > 0. The raw cash dividend received each year before tax (green). Franking credits are applied at the personal level; see Dividend Tax row below.
Dividend Tax — Annual tax on dividends: (grossed-up dividend × marginal rate) − franking credits. Shown as a negative (red). In DRP mode, dividends are reinvested into the portfolio and this tax cost comes from the offset. In Cash mode, the net dividend (gross minus this tax) flows to offset.
Investment Net Cashflow — Rental income minus loan repayments minus running costs. Negative when the property is negatively geared. In KDR, jumps significantly from the build year as the combined land + build loan repayments kick in.
Investment Tax Impact — Tax refund (positive, green) or bill (negative, red) from the investment. Formula: (netRent − interest − opCosts − renovation depreciation − repair costs) × marginal rate. Renovation depreciation is the annual non-cash deduction (cost ÷ period) spread across the depreciation life. Repair costs are fully deductible in the work year. Negative gearing on: property losses reduce taxable income and generate a refund each year. Negative gearing off: losses quarantined and carried forward, only offsetting future property income.
Total Annual P/L — The actual change in your offset balance for that year. Formula: Income − Life Expenses − PPOR Mortgage − Cash to Shares + Dividend CF + Investment CF + Sale Net + Tax Impact + Manual Share Sales − Share CGT − Purchase Costs. If negative, your offset shrank that year (outflows exceeded inflows). A negative year is normal when income dips, a property is negatively geared, or upfront purchase costs hit. The cumulative effect is shown in Cash Position.
Cash Position — Running cumulative offset balance: starting offset plus all annual flows (income, minus mortgage, minus shares, plus/minus investment, plus tax, plus dividends, plus sale proceeds, minus purchase costs). Turns red if cumulative flows exhaust the starting balance.
Share Portfolio Value — End-of-year portfolio balance compounding at your capital appreciation rate, plus any reinvested dividends (DRP) and annual surplus allocations.
Share Portfolio
Capital Appreciation vs Total Return — Enter the price growth rate only (e.g., 4%). Add dividend yield separately so the model can correctly calculate franking credits and distinguish cash vs reinvested income. Blended total return is shown automatically.
Dividend Yield — Annual cash dividend as a % of portfolio value. Applied each year to the post-appreciation portfolio balance.
Franking % — Level of corporate tax already paid. At 100% franking, the company has paid 30% tax on the profit distributed. Formula: franking credit = cashDividend × (franking%/100) × (30/70). The grossed-up dividend (cash + credit) is included in your assessable income, then the franking credit offsets the personal tax bill. At a 47% marginal rate, fully franked dividends are taxed at an effective ~24.3% of the cash dividend.
Cash mode — Net dividend (cash dividend minus personal tax net of franking credits) flows to your offset each year. Cost base is unaffected by dividends.
DRP (Dividend Reinvestment Plan) — The gross cash dividend is reinvested: portfolio value and cost base both increase by the cash dividend amount. The personal tax liability (net of franking credits) is paid from your offset. Cost base growing with each reinvestment reduces the CGT bill when you eventually sell.
Allocation from Surplus only — Shares are funded from the true net available surplus (income minus mortgage plus investment CF plus tax), not raw income. The remainder after the allocation % stays in the offset. Negative-net years: nothing allocated, shares never auto-sold.
Debt Recycling — When enabled, the interest equivalent on your share portfolio balance is treated as deductible. The annual tax refund on that interest flows to your offset.
Manual Share Sales — Add specific year + amount sale events. Net proceeds after CGT go to offset. The max available for each year updates after each run. Triggered independently of surplus — can occur in any year.
CGT on Shares — Weighted Average Purchase Year — When you sell shares, the CGT calculation needs a purchase year to index the cost base. Rather than hardcoding the first year, the planner tracks a weighted average purchase year that updates each time shares are added (from surplus allocations or DRP reinvestment). If you start contributing in 2026 and add more in 2030 and 2033, the weighted year reflects when the average dollar was invested — giving a more accurate CPI indexation period than always using 2026.
Investment Property
Pre-Budget Purchase (Already Owned) — Toggle this on when you already own the property before the May 2026 budget. Effect: no deposit equity is drawn from the PPOR, and no stamp duty, renovation or conveyancing costs are deducted from the offset (those were paid in a prior period). Instead you enter the Current Market Value 2026 (property growth starts from here), Current Loan Balance 2026 (investment loan amortises from here), Original Purchase Year (for CGT indexation period), Original Purchase Price and Original Stamp Duty (both added to CGT cost base — not simulation costs). The PPOR mortgage does not increase because no new equity is being drawn. Property type automatically locks to Pre-Budget (Grandfathered) and the purchase year is fixed to 2026 — the year the simulation takes over management of the property. All other fields (rent, growth, running costs, renovations, repairs, sale year, etc.) remain active.
Multiple Investment Properties — Click + Add Investment Property to model a second or third property. Each property runs independently (its own loan, cashflows, loss carry-forward, KDR build schedule) but they share the PPOR loan (deposits are drawn as equity top-ups) and the offset account (all cashflows flow through). The P/L section shows combined Investment Net Cashflow and Tax Impact across all properties, with an "all properties" tag when more than one is active. Each property card shows its individual summary statistics.
Property Mode — Standard Rental: buy-and-hold investment. Knockdown & Rebuild (KDR): purchase an established property, demolish, build townhouses, and rent or sell each one individually.
Property Type (Budget 2026) — Reflects May 2026 federal budget rules. Pre-Budget (Grandfathered): existing rules preserved — 50% CGT discount always applies regardless of global CGT setting; negative gearing fully deductible. For properties sold on or after 1 July 2027, the gain is split: pre-July 2027 gain taxed at 50% discount, post-July 2027 gain taxed under CPI indexation (30% floor) — the planner uses the simulated end-of-2026 property value as the transition point. New Build: negative gearing on, CGT method follows your global setting (discount or CPI). Established: negative gearing off (losses quarantined and carried forward), CPI indexation CGT always forced regardless of global setting, 30% minimum tax rate applies. Each type enforces its own CGT method independent of the global selector.
Loan Type — P&I reduces the investment loan balance each year. Interest Only keeps the balance flat — lower repayments but no equity accumulation.
Negative Gearing — On: net property losses deducted against all income, generating a tax refund each year. Off: losses quarantined in a carry-forward balance, consumed only when property income turns positive in later years.
Deposit & Funding — Deposit funded by drawing PPOR equity (PPOR loan increases). Stamp duty, reno, and other purchase costs come directly from the offset account — visible in the Cash Position row at purchase year.
Running Costs — Management fee (% of net rent), vacancy allowance (% of gross rent), and annual maintenance/insurance. Land tax is calculated separately using state-specific rates on the grown property value each year. All costs compound over time as the property and rent grow.
Renovations (Capital Works) — You can add multiple renovation entries, each with a year, cost, and depreciation period. Cash effect: the full cost is deducted from your offset in the year the work is done. Tax effect: the cost is depreciated over the chosen period (default 40 years at 2.5%/yr, matching ATO Division 43 for residential capital works) — each year's deduction reduces taxable rental income and increases your tax refund. CGT effect: all renovation costs are added to the CGT cost base at sale, reducing your taxable gain. Renovations done before the July 2027 transition go into the pre-2027 cost base (reducing the 50% discount portion); renovations done from July 2027 onwards are indexed separately from their completion year and reduce the post-2027 CPI-indexed gain. Period options: 5 yr (20%/yr), 10 yr (10%/yr), 20 yr (5%/yr), 40 yr (2.5%/yr ATO Div 43).
Repairs (Immediately Deductible) — You can add multiple repair entries, each with a year and cost. Unlike renovations, genuine repairs are immediately deductible under ATO rules — the full cost is deducted from your offset and from taxable rental income in the same year (cash outflow + same-year tax refund). Repairs are not added to the CGT cost base because the tax benefit was already fully claimed in the year incurred. Use this for genuine maintenance and repairs, not improvements (which belong under Renovations).
CGT Cost Base — What's Included — The CGT cost base is: original purchase price + stamp duty + upfront renovation (at purchase) + in-simulation renovations + sale fees. Interest and running costs are not included, because they were claimed as tax deductions each year (ATO s110-25 ITAA 1997 only allows costs that were not otherwise deductible). Repairs are excluded for the same reason. For established properties (NG off), quarantined losses accumulate and are automatically applied against the capital gain at sale — effectively reducing CGT even though they never entered the cost base.
Sale Year, Sale Fees & CGT — When a sale year is set, the property sells at the projected value for that year. Sale Fees (default 2.5%) cover agent commission, legal, and marketing — deducted from gross proceeds and added to the CGT cost base (they are ATO-deductible disposal costs, reducing your taxable gain). Net proceeds after fees and CGT flow to offset. CGT method set globally in Loan Settings.
GST on New Residential Property (KDR) — KDR townhouses sold within 5 years of build completion attract 10% GST under ATO rules (you are treated as a property developer making a taxable supply). GST is calculated as 1/11 of the sale price (GST-inclusive) and remitted to the ATO, reducing net proceeds. Sales beyond 5 years from build completion are GST-free. Shown as a separate deduction in the sale summary card.
Land Tax (by state) — Calculated annually on the grown investment property value using the rates for the selected state. Applied automatically — no manual input required. NT has no land tax. ACT uses an approximation based on unimproved capital value (~40% of property value). Thresholds and rates are based on 2024-25 schedules and are indexed annually by each state revenue office.
Knockdown & Rebuild (KDR)
Pre-Build Weekly Rent — In KDR mode this field is relabeled from "Weekly Rent" and represents the rental income from the original house during the holding period before demolition. The simulation uses this rent (grown by Rent Growth % each year) for every year from purchase up to the build year. Once the build starts, this pre-build rent ceases and is replaced by per-townhouse rent from the following year.
Build Start Year — Construction begins. The original property is demolished; the pre-build rent ceases in this year. Rent from new townhouses starts the following year (one full construction year assumed). The combined land + build loan replaces the pre-build loan from this year.
Build Loan & Repayments — Build costs (indexed from 2026 at build cost inflation) are added to the investment loan in the build year. The monthly repayment is then recalculated on the combined land + build balance — this is typically a significant jump (e.g., $55k/yr land-only rising to $184k/yr combined). Reflected immediately in the Investment Net Cashflow and Cash Position rows.
Per-Townhouse Settings — Each townhouse has weekly rent, a sale price (in 2026 dollars, compounded at property growth rate to sale year), and a sale year. Set sale year to 0 to hold indefinitely.
Flip — Sale year = build year + 1 marks a townhouse as an immediate flip: no rent earned, sold the year after completion.
KDR CGT — Land and build costs are CPI-indexed separately: land from the original purchase year, build costs from the build year. This prevents over-indexation (indexing build costs from 2026 rather than 2033 would inflate the cost base by ~$230k per townhouse and dramatically understate CGT).
KDR + Established Property Type — Pre-build years use established rules (losses carry forward). From build year onwards, new build rules apply (negative gearing on). CGT on townhouse sales uses the global method — 50% discount is available for new builds.
Key Concepts
Franking Credits — Represent corporate tax already paid (30%) on company profits. Offset personal tax on grossed-up dividends. At 47% marginal rate, net tax on fully franked dividends = (grossedUp × 47%) − frankingCredit ≈ 24.3% effective on the cash dividend. At rates below 30%, excess franking credits are refunded by the ATO.
CPI Indexation (default) — Introduced May 2026 budget, effective 1 July 2027. Taxable gain = sale price minus (cost base × CPI factor). Full marginal rate on indexed gain, minimum 30% tax floor. Only the gain above inflation is taxed.
50% CGT Discount — Pre-budget system. Halves the nominal gain before tax. Effective rate at 47% = 23.5% of total gain. Still available for assets held >12 months under pre-budget and new build rules.
Land Tax (by state) — Calculated annually on the grown investment property value using the rates for the selected state. Applied automatically — no manual input required. NT has no land tax. ACT uses an approximation based on unimproved capital value (~40% of property value). Thresholds and rates are 2024-25 schedules and are indexed annually by each state revenue office.
Net Position — Total assets (offset + shares + property values) minus total debt (PPOR + investment loans), with an estimated after-CGT position if everything were sold in 2036.
Starting Balances, Rates & Portfolio
Loan Settings
PPOR Starting Loan PPOR
$
Starting Offset
$
PPOR Remaining Term PPOR
yrs
PPOR Interest Rate PPOR
%
Investment Rate INV
%
Marginal Tax Rate TAX
PPOR Current Value PPOR
$
PPOR Growth Rate PPOR
%
Rate Stress Test +x% on both loans
CGT Method
50% discount on gain — applies to property & shares
Annual CPI
%
used to index cost base from purchase to sale date
PPOR Monthly Repayment—/monthauto-calculated
Offset Account Inputs
Annual Profit / Loss
Income − Life Expensesuser-editable · income after tax, minus living costs · excludes mortgage & investments
Income − Life Expenses total—
PPOR Mortgageauto · annual repayment from offset · adjusts with loan settings
Net Surplus (after mortgage)—
Cash to Sharesauto · surplus × allocation % · diverted from offset to portfolio
Dividend Income (gross)auto · cash dividend before tax · franking credits applied
Net proceeds (after CGT) go to offset · CGT method set in Loan Settings
No manual sales scheduled — add one above
📈 Positive surplus years: 75% of surplus cashflow invested in shares.
Capital appreciates at 7% p.a. · blended total return: 7%.
Negative surplus years: offset covers shortfall — shares not sold automatically.
Dividends: not modelled (yield = 0%).