Most property investors choose a structure once — at purchase — and never revisit the decision. That's often a mistake. The right structure depends on variables that change: your income, your family situation, your hold period, and now, after Budget 2026, whether the property is established or a new build.
PropTime's Structure Optimiser runs all four structures simultaneously and shows you the outcome with your actual numbers. This guide explains how to use it, what inputs matter most, and how to read the results.
The Four Structures Compared in the Tool
The optimiser runs personal name, company, discretionary trust, and SMSF simultaneously. Each has a different tax treatment for:
- Annual rental income
- Negative gearing losses (or absence thereof)
- Depreciation deductions
- Capital gains at sale
The tool handles all of this automatically — you just enter your numbers.
Step 1: Enter Property Details
Purchase price and loan Enter the purchase price and loan amount. The deposit gap determines your equity position and affects stamp duty calculations. A higher LVR means more interest expense, which affects the negatively geared/positively geared status.
Property type: established or new build This is the Budget 2026 trigger. If you select "established" and "after budget night," the calculator applies the new rules — losses are quarantined for personal name and trust. If you select "new build," all structures retain full negative gearing.
State Stamp duty varies significantly by state. NSW and VIC apply the highest rates for investment properties. Queensland and WA are lower. The tool calculates accurate stamp duty including any surcharges for established investment property.
Weekly rent Use realistic market rent. PropTime's Suburb Intelligence tool has median rent data by suburb if you need a reference point.
Interest rate Use your actual rate, or check PropTime's Mortgage Strategy section for current market rates. The interest rate is typically the largest single driver of the cashflow outcome.
Step 2: Enter Investor Details
Annual income This determines your marginal tax rate for personal name calculations. At $45,001–$120,000, your rate is 32.5%. At $120,001–$180,000, it's 37%. Above $180,000, it's 47% (including Medicare levy). The higher your income, the more valuable negative gearing deductions are in personal name — and the more Budget 2026 hurts for restricted properties.
SMSF phase If you're modelling an SMSF purchase, select accumulation (15% tax on income, 10% on gains) or pension (effectively tax-free). Pension phase is dramatically more tax-efficient but requires the fund to have started a pension stream.
Trust beneficiaries Enter the income of up to four beneficiaries who could receive trust distributions. The tool distributes profit to the lowest-income beneficiaries first. A family with one partner on $30,000 and one on $120,000 can save significantly by directing rental profit to the lower earner.
Step 3: Set Assumptions
Capital growth rate This drives the wealth position at sale. Use suburb-specific data from PropTime's Suburb Intelligence if available. A conservative estimate is 4–6% for capital city suburbs, 2–4% for regional markets. The CGT payable changes significantly with growth rate because it affects the size of the gain.
Holding period This is one of the most important inputs. Structures that look good over 5 years can look different over 20. The trust structure (income splitting) often looks better over long hold periods as the property becomes positively geared and you want to minimise income tax. The SMSF looks better over long hold periods because the pension-phase tax rate goes to zero.
Inflation rate This affects the new CGT calculation (30% on inflation-adjusted real gain). Higher inflation means smaller real gains, which means lower tax under the new system.
How to Read the Results
Summary Cards
The four structure cards show the single most important number: weekly after-tax cashflow in the current year. This is what comes out of your pocket (or goes into it) each week to hold the property.
A green number means the property is paying you. A red number means you're subsidising it.
Below the weekly figure, the tool shows whether the structure is exempt or restricted under Budget 2026 — and whether the result would change after 1 July 2027 for restricted structures.
Year-by-Year Cashflow Table
This is the detailed view. Each year shows:
- Rental income (growing with inflation)
- Interest payment
- Expenses
- Depreciation
- Pre-tax cashflow
- Tax effect (benefit or liability)
- After-tax cashflow
Watch for the year the property tips from negatively geared to positively geared. This is the inflection point where a trust (with income-splitting) often becomes more attractive than personal name.
Wealth Position at Sale
This is the most important section for long-term investors. It shows:
- Property value at sale (projected)
- Loan balance remaining
- Gross equity
- CGT payable
- Selling costs (agent fees, legal)
- Net equity (what you walk away with)
- Cumulative cashflow over hold period
- Total wealth position (equity + cashflow)
Compare the total wealth position across structures. The structure with the highest number is the winner for your specific inputs.
Winner Banner
The tool identifies the winning structure and shows the margin of advantage over the runner-up. Small differences may not justify the added complexity of a company or trust structure. Large differences usually do.
Common Patterns
High income, established property, 10-year hold: SMSF often wins (exempt + low tax rate). Company is often second if CGT discount is less relevant. Personal name is worst if restricted.
High income, new build, 7-year hold: Personal name wins because full negative gearing is retained and the 50% CGT discount applies. Trust is second if there are low-income beneficiaries.
Low income investor ($60,000/yr): The negative gearing benefit in personal name was always modest. Personal name is often fine. Trust can still help if there's a lower-income spouse.
Positively geared property: Trust almost always wins due to income splitting. SMSF is a close second.
What the Tool Doesn't Calculate
The tool models the financial outcome. It doesn't account for:
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Setup and ongoing costs of structures: A trust costs $1,500–$3,000 to set up and $2,000–$5,000 to administer annually. An SMSF costs $2,000–$4,000 per year in accounting and compliance. These costs reduce the advantage for smaller portfolios.
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Asset protection benefits of trusts and companies
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Estate planning considerations for SMSF vs personal name
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Borrowing capacity differences: Banks treat trust income differently when assessing serviceability
For a full structural decision, the model output should be taken to a qualified tax adviser who can account for your complete picture.
Starting Point
Run the optimiser with your most likely next purchase:
- Set the property as established, after-budget
- Enter your actual income
- Use a 10-year hold period
- Check the results
Then re-run with a new build and compare. The difference in total wealth position across these two scenarios often clarifies the decision faster than any amount of reading.
Open the Structure Optimiser →
Educational analysis only — not financial or tax advice. Consult a qualified adviser before making structural decisions.