Australian Property
Negative Gearing Calculator Australia 2026
See your investment property's tax benefits, after-tax cost, and long-term wealth projection.
Property & Mortgage
$
$
$
%
Annual Expenses
$
$
%
$
$
$
Tax & Projection
%
Enter your property details and press Calculate.
How Negative Gearing Works in Australia
Negative gearing occurs when the costs of owning an investment property (mortgage interest, expenses, depreciation) exceed the rental income it generates. The resulting loss can be offset against your other taxable income, reducing your overall tax bill.
- Rental Income: Weekly rent × 52 weeks
- Total Deductions: Mortgage interest + council rates + insurance + property management + maintenance + body corporate + depreciation
- Tax Benefit: If negatively geared, the loss × your marginal tax rate = your tax refund
- After-Tax Cost: The actual annual cost after claiming the tax benefit
- Capital Growth: Property value × (1 + growth rate)years
Australian investors commonly use negative gearing as a long-term wealth strategy, banking on capital growth to outweigh the annual holding costs over time.
Frequently Asked Questions
What is negative gearing in Australia?
Negative gearing occurs when your investment property's expenses (mortgage interest, rates, insurance, maintenance) exceed rental income. The resulting loss can be offset against your other income, reducing your taxable income and tax payable.
Is negative gearing being abolished in Australia?
As of 2026, negative gearing remains available on all investment properties in Australia. Any policy changes would typically be grandfathered for existing investors. Check current government policy for the latest updates.
How much tax do you save with negative gearing?
Your tax saving equals your rental loss multiplied by your marginal tax rate. For example, a $10,000 annual loss at the 32.5% tax bracket saves you $3,250 in tax. Higher income earners save more per dollar of loss.
Can you negatively gear shares in Australia?
Yes. Negative gearing applies to any investment where borrowing costs exceed income, including shares, managed funds and ETFs. The same principle applies — the loss reduces your taxable income.
What expenses can I claim on a negatively geared property?
Deductible expenses include mortgage interest, council rates, insurance, property management fees, repairs and maintenance, depreciation on fixtures, and building write-off (2.5% for properties built after 1985).
Related Calculators
Last updated: April 2026
This calculator is free forever. If it helped you, consider buying us a coffee ☕