Australian Property Tax Guide

Key rules, deductions, and calculators for property investors

What is Negative Gearing?

When your investment property expenses exceed your rental income, the loss can be deducted from your other taxable income (wages), reducing your overall tax bill. This is a key strategy for Australian property investors.

Scenario Inputs

$
$
%
$
$
%
$
%

Results

Annual Rental Income$31,200
Annual Interest-$26,000
Council Rates-$2,500
Insurance-$2,000
Management Fees-$2,496
Maintenance-$2,000
Total Expenses$34,996
Net Rental Income-$3,796
Tax Saving (negative gearing)$1,405
Depreciation Tax Saving$5,920
Actual After-Tax Cost-$3,529/yr
-$68/week out of pocket

Deductible Expenses for Investment Properties

- Loan interest (not principal)

- Council rates

- Water rates

- Landlord insurance

- Property management fees

- Repairs and maintenance

- Pest control

- Advertising for tenants

- Body corporate fees

- Cleaning

- Gardening / lawn mowing

- Legal fees (evictions, lease prep)

- Tax depreciation (building + fixtures)

- Travel to property (limited)

This is general information only, not financial advice. Tax laws change — consult a qualified accountant or financial adviser for advice specific to your situation.