Negative Gearing Calculator

The Negative Gearing Calculator allows residential property investors to see the possible tax benefits of owning a negatively geared investment property.

To learn more about the calculator click here.
General Income AND Expenditure
1. What is your annual taxable income from sources other than your investment property?
2. How much interest do you pay each month on your investment property mortgage?
3. What weekly rent do you charge on your investment property?
4. How much did you pay for your investment property?
5. Estimated rental growth per annum:
6. Estimated operating expenses growth per annum:
Cash Operating Costs
7. Provide estimates for the amount you spend, per year, on the following tax deductible
cash operating costs:
Accounting Fees
Bank Charges
Council Rates
Government Charges
Land Tax
Property Management
Repairs AND Maintenance
Water Rates
Non - Cash Operating Costs
8. On what date did construction commence on your investment property?

9. Estimated construction cost of property
10. Provide purchase dates AND price estimates, where applicable, for the following items which form part of your investment property:;

Note: Add the relevent items one at a time by selecting the item, specifying the year of purchase, initial value AND number of items before clicking "Add". You will not loose any data pre - entered in the form.
Add item Purchased in financial year ending
June 30
Initial value * $ Quantity
* Initial value is purchase price, if bought new for property, or estimated value when added to property.
Display results for years, in lots of

About the Negative Gearing Calculator

If your investment property is costing you more money than it is generating, it is negatively geared, and you may be able to claim tax benefits on your losses. This calculator combines the cash operating revenue, rent, and the operating expenses, with the change in the amount of income tax paid to measure the net change in an investor's income due to the investment property.

In other words, you can use your negatively geared property to reduce your income tax by a substantial amount - if you are making $100,000 in annual salary, to use round numbers, and you have a negatively geared property that is costing you $20,000 a year, your taxable income will effectively be $80,000.  This means you will effectively be paying significantly less income tax, as you have been bumped down into a lower tax bracket.

If you are working in a normal job, your employer will be paying the tax on your income every pay period, but they are tax for $100,000 - not paying the effective taxable income of $80,000, which means that you are due for a refund. And that is how you can earn a tax refund through negative gearing.

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