Negative Gearing Calculator
A free tool for Australian property investors
Understanding negative gearing can drastically improve the return on your investment property. Calculate yours today using our free negative gearing calculator.
Negative gearing has helped create many fortunes in Australia. Given its huge tax benefit for property investors, the modest profits that were attained prior to its 1980s introduction were turned into exceptional gains that created intergenerational fortunes.
Want to know how much negative gearing will improve your investment property’s return? Jump straight to our FREE Negative Gearing Calculator.
What is negative gearing?
Negative gearing is a popular investment strategy in Australian property where the cost of owning an investment property (including interest, maintenance and other expenses) exceeds the rental income it generates. This creates a net loss that can be offset against other income for tax purposes.
History of negative gearing in Australia
The concept of negative gearing in Australia has a rich history dating back to the early 1980s. Originally introduced as part of broader tax reforms, it was designed to encourage property investment and increase housing supply.
In 1985, the Hawke government briefly attempted to limit negative gearing, but quickly reversed course after seeing its impact on rental markets.
Benefits for property investors
Negative gearing offers several key advantages for Australian property investors:
- Tax deductions on investment property losses
- Potential for long-term capital growth
- Opportunity to build wealth through property investment
- Flexibility in managing investment income
With tax obligations being one of the major factors in dissolving an investor’s profits—particularly for High Net Worth investors—negative gearing is an exceptional tool at their disposal to limit the profits sent to the taxman.
How negative gearing works
When your investment property expenses exceed rental income, the net loss can be claimed as a tax deduction against your other income. This can potentially reduce your overall tax liability while you benefit from potential property value appreciation.
Try our FREE Negative Gearing Calculator
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Past performance is not indicative of future returns. Any information provided on this website has not considered the objectives, financial situation or needs of any investor; investors should consider whether it is appropriate to them to partake in a commercial property investment prior to investing, in light of their objectives, financial situation or needs. Every investor should obtain and consider the investment’s Information Memorandum before making a decision in relation to the investment.