Negative Gearing Calculator
Find out exactly what your investment property costs per week after the ATO tax benefit — including Medicare levy — and see your full expense breakdown instantly.
Free. No sign-up. Updated for 2026 Australian tax rates.
Property Details
Deposit
$150,000
Loan Amount
$600,000
Interest-only loans maximise deductions
Rental Income
= $28,600/year
Annual Expenses
≈ $2,288/year
Typical: 1–2% of property value/year
Tax Information
Determines your marginal rate — tax benefit is higher for higher earners
Div 43 (building 2.5%/yr) + Div 40 (plant & equipment). Non-cash deduction — increases your tax benefit without reducing cash.
Note: Results are estimates only. Consult a qualified accountant for personalised tax advice.
How the Calculator Works
Enter Your Property
Property price, LVR, interest rate, and rental income in weekly, fortnightly, or monthly terms.
Instant Calculations
We calculate your annual loss, apply your marginal tax rate plus Medicare levy, and show the net weekly cost.
Compare All Brackets
See how the tax benefit changes across every ATO income bracket — useful for joint investors or planning income changes.
What Makes This Calculator Different
- ✓ Medicare Levy Included: Effective rates reflect 2% Medicare levy — top rate is 47%, not 45%
- ✓ Weekly Out-of-Pocket: The headline result is what you actually pay per week — not just an annual figure
- ✓ Flexible Rent Frequency: Enter rent as weekly, fortnightly, or monthly — no manual conversion needed
- ✓ Depreciation Support: Non-cash Div 43 + Div 40 deductions increase your tax benefit without costing cash
- ✓ All Brackets Compared: See how the benefit changes at every income level — helpful for couples and salary changes
Learn More About Negative Gearing
What is Negative Gearing? Complete Guide for Australian Investors
Understand how negative gearing works, who benefits most, and how to use it effectively in your property investment strategy.
Negative Gearing Cap & CGT Discount Changes — What Investors Need to Know
Stay up to date with proposed negative gearing reform debates and how potential CGT changes could affect your investment returns.
Negative Gearing FAQs
What is negative gearing in Australia?▼
Negative gearing occurs when your rental property's total deductible expenses (mortgage interest, council rates, insurance, management fees, depreciation) exceed the rental income. The resulting loss is deductible against your other income — reducing your overall tax bill.
How does the ATO tax benefit from negative gearing work?▼
Your annual rental loss is claimed as a tax deduction. The ATO reduces your taxable income by this amount, so you pay less tax. The saving equals your loss × your marginal tax rate (including 2% Medicare levy). A $15,000 annual loss at a 39% effective rate saves you $5,850 per year.
Why does this calculator show 47% as the top tax rate?▼
The ATO top marginal income tax rate is 45% for incomes above $180,000. The 2% Medicare levy applies on top, bringing the effective top rate to 47%. This matches what you actually pay — and what competitors like DuoTax use — ensuring accurate results.
What is depreciation and how does it boost my tax benefit?▼
Depreciation is a non-cash deduction — you don't spend the money, but you claim it as a deduction. Division 43 allows 2.5% of the building's original construction cost per year. Division 40 covers plant and equipment (appliances, carpets). A depreciation schedule typically adds $3,000–$10,000 to annual deductions without any actual cash outlay.
Is negative gearing worth it?▼
The ATO tax benefit reduces your out-of-pocket cost, but you still have a real cash shortfall each week. The strategy works when capital growth exceeds accumulated losses over time. Higher-income earners benefit more due to their higher marginal rate. Always model the full picture — not just the tax saving.
Related Calculators
Want personalised negative gearing advice?
Our advisors can model real properties and income scenarios to find the optimal strategy for your tax position and investment goals.
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