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    Can We Afford It?

    Investment calculator

    Negative Gearing Calculator

    See your real after-tax holding cost — the tax benefit that makes negative gearing worthwhile for Australian property investors.

    Negative Gearing Calculator

    Uses 2025–26 ATO marginal tax rates including Medicare levy.

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    Typical $6k–$12k/yr depending on property age and fittings. Requires a formal QS depreciation schedule — interest-only loans maximise this benefit.

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    Used to calculate your marginal tax rate (2025–26 incl. Medicare levy).

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    Property management (8% of rent) included automatically. Note: only interest is tax-deductible, not principal repayments.

    Gearing status

    Negatively geared

    Costs exceed income — the ATO subsidises the shortfall via tax deductions.

    Annual rental income
    $31,200
    Interest cost (tax deductible)
    −$38,400
    Depreciation claim (tax deductible)
    −$8,000
    Other costs incl. PM 8% (tax deductible)
    −$5,996
    Taxable rental loss / gain
    -$21,196/yr
    Tax saving (32.0% marginal rate)
    +$6,783/yr
    Net annual cost after tax benefit
    $6,413/yr

    $123/wk true out-of-pocket cost

    Tax brackets used (2025–26): $0–$18.2k: 0% · $18.2k–$45k: 18% · $45k–$135k: 32% · $135k–$190k: 39% · $190k+: 47% (incl. Medicare levy)
    Get a Depreciation Schedule — BMT ↗ Find a Property Tax Agent — H&R Block ↗

    Estimates only — not financial or tax advice. Tax outcomes depend on your individual circumstances. Consult a registered tax agent (Tax Practitioners Board) or financial adviser before making investment decisions.

    How negative gearing works

    Negative gearing occurs when the deductible costs of owning an investment property (interest, depreciation, rates, insurance, and property management) exceed the rental income received.

    The resulting loss is offset against your other income (salary), reducing your taxable income for the year. The ATO effectively subsidises part of your holding cost through the tax system.

    Key deductible expenses: Loan interest (not principal), depreciation (Division 40 & 43), council rates, landlord insurance, property management fees, repairs and maintenance, and accounting/legal fees related to the property.

    Important: The depreciation deduction requires a formal report from a registered Quantity Surveyor (QS) such as BMT. Without this schedule, the ATO may disallow the claim.

    Complete your investment analysis

    Check yield and estimate CGT when you eventually sell.

    Rental Yield CalculatorCapital Gains Tax Estimator

    Landlord insurance sorted?

    Landlord insurance covers loss of rent, tenant damage, and public liability. It is fully tax-deductible as a rental property expense.

    Compare Landlord Insurance ↗

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    General Advice Warning

    The information on this site is general in nature and does not consider your personal circumstances, financial situation, or needs. Before acting on any information, you should consider its appropriateness having regard to your own situation and seek professional advice from a licensed financial adviser, mortgage broker, accountant, or solicitor.