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| Tax Bracket | Tax Deduction | Tax Benefit | Net Cost |
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Important Disclaimer & Assumptions
Assumptions: Tax calculations are simplified estimates based on current Australian tax brackets. Actual tax benefits depend on your complete tax situation. Depreciation estimates are indicative only — a quantity surveyor's report is needed for accurate depreciation schedules. Tax laws may change.
General Disclaimer: This calculator is provided by Mortgage & Finance Advisory (Credit Representative 575841 of Connective Credit Services Pty Ltd, Australian Credit Licence 389328) for illustrative and educational purposes only. Results are estimates based on the information you provide and the assumptions listed above. They do not constitute financial advice, a loan offer, or a guarantee of any outcome.
Actual loan terms, interest rates, fees, government charges, and eligibility criteria will vary between lenders and depend on your individual circumstances. Interest rates used are for comparison purposes only and may not reflect current market rates.
We recommend seeking independent financial, legal, and tax advice before making any financial decisions. For personalised advice tailored to your situation, please book a free strategy call with our team.
© 2026 Mortgage & Finance Advisory. All rights reserved. ABN: 90 732 203 952 | Credit Representative 575841 of Connective Credit Services Pty Ltd, Australian Credit Licence 389328
Negative gearing occurs when the costs of owning an investment property (loan interest, maintenance, depreciation, etc.) exceed the rental income. The resulting loss can be offset against your other taxable income, reducing your overall tax bill.
Negative gearing can benefit high-income earners in higher tax brackets who can absorb short-term losses while building long-term wealth through capital growth. However, you're still making a loss that tax deductions only partially offset. It works best when strong capital growth is expected.
Deductible expenses include loan interest, property management fees, council rates, insurance, repairs and maintenance, depreciation on the building and fixtures, water charges, body corporate fees, pest control, and travel to inspect the property (limited).
