Annual: $28,600.00
Rental Income
$28,600.00
Net Position
-$19,700.00
Tax Saving
$6,304.00
Gearing Status
Marginal Rate
30.0%
Rental Property Deductions
You can claim deductions for expenses incurred in earning rental income, including loan interest, council rates, insurance, property management fees, repairs, and depreciation. These are offset against your rental income.
Negative Gearing
When your rental expenses exceed your rental income, the loss reduces your taxable income from other sources (such as your salary). The tax benefit depends on your marginal tax rate -- a higher income means a larger tax saving.
Depreciation
Building depreciation (Division 43) allows 2.5% per year for properties built after September 1987. Plant and equipment (Division 40) covers items like appliances, carpets, and blinds. A quantity surveyor's report is needed to claim depreciation.
Effective Return
Your effective return accounts for the tax benefit of negative gearing. Even if your property runs at a cash loss, the tax saving from offsetting the loss against your personal income can significantly reduce the true cost of holding the investment.
ATO-Aligned: Uses 2025-26 tax rates. Rental income and expenses must be apportioned for periods of private use. Seek professional advice for complex property portfolios.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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