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  • Negative gearing

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    A rental property is negatively geared when it is purchased with the assistance of borrowed funds, and the net rental income, after deducting other expenses, is less than the interest on borrowings.

    The overall taxation result of a negatively geared property is that a net rental loss arises. In this case, you may be able to claim a deduction for the full amount of rental expenses against your rental and other income-such as salary, wages or business income-when you complete your tax return for the relevant income year.

    Last modified: 28 Jul 2003QC 16187