We all work hard for our money, so it's worth spending a bit of time to find out how to use it when we're younger to make life easier when we get older.

How does an investment property affect income tax?
To support property investors, the government allows negative gearing (the deduction of investment property nett losses against your total income). Investment property tax deductions help increase cash-flow and fund investment property repayments. In the long term, the property investor gains equity in their investment property with little or no out of pocket expenses.

Here is an example of how an investment property affects tax paid, based on a gross wage of $100,000…

 Tax Table

…and how it helps create a positive cash flow

Cash Flow Table

By Submitting a Tax Variation/Withholding Declaration with the ATO, all deductions can be claimed on a pro-rata weekly, fortnightly of monthly basis, depending on your pay cycle. In this situation, it would create a positive cash flow of $120 a month. Find out more about Tax Variations by reading our blog...


Using an investment property tax calculator, we can show you how to pay less tax and how to use the extra cash flow it creates to help fund your investment property repayments. To find out more...

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For more reasons to invest in property, check out our "why to invest" page where we explore how paying less tax is not the only benefit of investing in property.

*Information on this page is general and is not an exact representation for each individual circumstance. A thorough finance check is required to equate the benefits for each individual circumstance.

PEB Invest  is part of PEB Property Group; a complete financial planning advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer - Financial Planning · Finance Broking · Property Management · Real Estate Sales · Property Investment · Development.