26/09/2026
Are you in the 30% tax bracket? If your taxable income is between $45,001 and $135,000, each extra dollar is taxed at 30%, plus the 2% Medicare levy for most people.
Here's how property deductions can affect your taxable income:
1️⃣ Negative gearing
If your deductible rental costs are more than your rent, the loss can reduce your taxable income. Example: a $10,000 loss could save about $3,200 if your income stays in the 30% bracket.
2️⃣ Depreciation
Homes built after September 1987 can generally claim their construction cost at 2.5% a year for up to 40 years. New builds can also claim fixtures like ovens, carpets and air conditioning. Established homes bought after May 2017 can't claim fixtures that came with the property.
3️⃣ The July 2027 change
From 1 July 2027, losses on established homes bought after 12 May 2026 can't reduce your salary. They're offset against property income or carried forward. Eligible new builds keep the salary offset, and homes held before 12 May 2026 are grandfathered.
📞 Want to know how this applies to you? Call or message Mani on 0405 501 678.
General information only, not tax or financial advice. Speak to your accountant.
