Negative gearing · FY 2025-26· ATO aligned
Negative gearing on a $80,000 income
On a $80,000 salary, a $10,000 rental loss saves you about $3,200 in tax. Here is the saving at other loss amounts, using current ATO FY 2025-26 rates.
| Annual rental loss | Tax saved | Net cost after tax |
|---|---|---|
| $5,000 | $1,600 | $3,400 |
| $10,000 | $3,200 | $6,800 |
| $15,000 | $4,825 | $10,175 |
| $20,000 | $6,500 | $13,500 |
Your marginal rate is 30% (30% bracket ($45,001 - $135,000)), or 32% with the Medicare Levy. Every $1 you deduct saves you 32c in tax at your marginal rate. The loss only reduces your tax, it does not erase it - a $10,000 loss still costs about $6,800 out of pocket.
See your real number, not a sample.
Vestly works your negative gearing out from your actual rent, interest and depreciation, then keeps it current all year so nothing slips past June 30.
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Negative gearing at other incomes
Common questions
How much does negative gearing save on a $80,000 income?
On a $80,000 salary your marginal rate is 30% (30% bracket ($45,001 - $135,000)). A $10,000 net rental loss reduces your tax by about $3,200 at ATO FY 2025-26 rates, because the loss is deducted from your taxable income. The saving scales with the loss: see the table above for $5,000 to $20,000.
Is negative gearing worth it at $80,000?
Negative gearing reduces the cost of a loss-making property, it does not turn it into a profit. At $80,000 you get back roughly 32c of every $1 you lose, so a $10,000 loss still costs you about $6,800 out of pocket after the tax saving. It can make sense if you expect capital growth to outweigh that holding cost, but that is a decision to model property by property.
Does a higher income mean a bigger negative gearing benefit?
Yes. The higher your marginal tax rate, the more each deducted dollar saves you. Every $1 you deduct saves you 32c in tax at your marginal rate. A top-bracket investor saves 47c per $1; a lower-bracket investor saves less. That is why the same rental loss is worth more to a higher earner.
Is this the actual amount I will get back?
It is an estimate using your salary and a sample rental loss against the published ATO FY 2025-26 brackets, Medicare Levy and LITO. Your real figure depends on your actual rent, interest, depreciation and other deductions across the full year. Vestly calculates it live from your real numbers, and a registered tax agent confirms it at lodgement.