Gearing (Negative)
When holding an investment costs more than it earns. Loss is tax-deductible.
What is Gearing (Negative)?
Negative gearing is when an investment property costs more to hold (interest, rates, repairs, depreciation) than it generates in rental income — creating a loss. That loss can be offset against your other taxable income, reducing your overall tax bill.
Why it matters for you
Negative gearing effectively subsidises holding a capital-growth investment. High-income professionals benefit most because the tax saving scales with your marginal rate. Budget 2026 is expected to revisit the rules — monitor closely if you're planning new investment purchases.