What expenses can an Australian property investor deduct?

Mortgage interest, council rates, water charges, strata fees, landlord insurance, property management fees, repairs, and building depreciation (Div 40/43).

What is non-cash depreciation on an investment property?

Depreciation on the building structure (2.5%/yr over 40 yrs) and plant/equipment items can be deducted without any out-of-pocket cash expense.

AustraliaNegative Gearing & Tax Offset (ATO Property)Finance & Salary

Australia Investment Property Negative Gearing & Tax Refund Calculator

Calculate your net rental cash flow and Australian tax savings from negative gearing (offsetting rental property net tax losses including mortgage interest, property management, council rates, and non-cash building depreciation against your salary income).

Real Estate & Property Investment & Assets Taxes & Duties

Calculator Inputs

Live Real-Time

Annual Gross Rental Income ($600/wk = $31,200) (AUD $)

AUD $

Quick select:

Annual Investment Mortgage Interest (AUD $)

AUD $

Quick select:

Operating Costs (Rates, Insurance, Repairs) + Depreciation (AUD $)

AUD $

Quick select:

Your Marginal Income Tax Rate + Medicare Levy (%)39 %

16 %47 %

Calculated ResultNegative Gearing & Tax Offset (ATO Property)

Annual ATO Tax Refund Generated via Negative Gearing

5,187AUD $

Net Out-of-Pocket Cost to Hold Property ($/week after Tax Refund)

156.02 AUD $

Net Taxable Rental Loss Deducted from Salary

-13,300 AUD $

Detailed Calculation Breakdown

Rental Income

31,200 AUD $

Total Expenses

44,500 AUD $

Tax Refund Generated

5,187 AUD $

Weekly Net Cost

156.02 AUD $

Calculation Methodology

Net Rental Income/Loss = Gross Rent - (Mortgage Interest + Property Operating Costs + Depreciation). Tax Benefit Saved = abs(Rental Loss) * Marginal Tax Rate%. Net Out-of-Pocket Cash Cost = Rental Cash Loss - Tax Refund.

Important Legal & Educational Disclaimer

Under Australian tax law, individual property investors can deduct 100% of net residential rental losses directly against regular employment or business income.

This calculator is designed for educational and informational purposes only based on public statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimations. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

If rental property deductible expenses exceed rental income, the net loss is deducted directly from your salary, generating a substantial tax refund from the ATO.

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Australia

Australia Investment Property Negative Gearing & Tax Refund Calculator

Calculator Inputs

Detailed Calculation Breakdown

Calculation Methodology

Important Legal & Educational Disclaimer

Frequently Asked Questions

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