Australia Negative Gearing Tax Calculator
Calculate the net rental loss on an Australian investment property and the ATO tax refund from offsetting it against salary, including the 2% Medicare levy.
- Medicare Levy
- 2%
- On taxable income
- Top Marginal Rate
- 45%
- Plus levy
- Div 43
- 2.5%
- Capital works
Formula & Statutory Rule
Formula
tax_refund = net_rental_loss × (marginal_rate + 2%)
Statutory Rule
net_rental_loss = (cash_expenses + interest + div43) − gross_rent; medicare_levy = 2%Regional Benchmark Reference
| Jurisdiction / Tier | Rate or Limit | Statutory Note |
|---|---|---|
| Medicare levy | 2% | On income |
| Top rate | 45% | Plus levy |
| Div 43 | 2.5% | Capital works |
Frequently Asked Questions
What is negative gearing?
When rental deductions exceed rental income, the loss offsets other taxable income, reducing overall tax.
What is Division 43 depreciation?
It is the capital works deduction of 2.5% per year on the construction cost of a building.
How does the Medicare levy apply?
The 2% Medicare levy is added to the marginal rate when calculating the tax benefit of a rental loss.
Can the loss offset my salary?
Yes. Negative gearing allows the rental loss to reduce your taxable salary and other income.