Assumes a $500,000 remaining loan over 25 years, owner-occupied property, 32% marginal rate including Medicare (the gain at sale is added to $45,001 of other taxable income and taxed through the brackets), 4% dividend yield (70% franked), 0.2% fund fee, 0.1% brokerage — your real numbers may differ. Simplified to 2 of the full calculator's 4 scenarios (no Monte Carlo, no interest-only phase modelled here). Indicative only. Not financial advice.
Share gains use the actual 1 July 2027 CGT reform: the 50% discount on the part of a gain accruing before 1 July 2027 (new residential dwellings and affordable housing keep the discount by default, with a choice of indexation instead), then CPI-indexed cost base plus a 30% minimum tax (enacted law — Acts No. 49 and 50 of 2026: Treasury Laws Amendment (Tax Reform No. 1) Act 2026 and Income Tax Rates Amendment (Tax Reform No. 1) Act 2026, Royal Assent 26 June 2026), split at its estimated 1 July 2027 value automatically by your time horizon. The 1 July 2027 value is estimated from this calculator’s growth assumption, because the value the Act uses is the asset’s market value on that date, which this calculator cannot know. This tool applies the 30% minimum tax in every case; by law it applies to resident individuals and not in a year the person receives the Age Pension or listed income-support payments (s 119-15), so figures for Age Pension recipients are overstated.
Capital gains tax rate: The gain in the sale year is added to $45,001 of other taxable income (the bottom of the bracket of the 32% rate this tool assumes) and taxed through the resident rates for that income year, plus 2% Medicare and the 30% minimum-tax top-up on the part from 1 July 2027. The brackets are held at their legislated values for every future year, so real bracket creep is not modelled. Offsets such as the low income tax offset (LITO) and the seniors and pensioners tax offset (SAPTO) are ignored, and all assets are sold in the final year as one lump. See the worked example.