Glossaryrenters

What is Negative Gearing?

When an investment property's expenses (interest, rates, management, depreciation) exceed its rental income, creating a net loss. This loss can be used to offset other taxable income, reducing the investor's tax bill. Negative gearing is a common strategy in Australia, though the benefit depends on the investor's marginal tax rate.

Go deeper

Renter's rights guide (by state)

Bond, rent increases, repairs, entry, and ending a tenancy.

Take the full guide with you.

The complete guide to buying property in Australia: what you can really spend, the 2026 schemes state by state, how not to overpay, and how the selling side plays you. Free PDF, personalised to your situation, in your inbox in 60 seconds.

Get the free buying guide