Gross Rent = assessable incomeInterest / other expenses =...

Gross Rent = assessable income

Interest / other expenses = allowable deductions incurred in deriving assessable income.

Interest is an expense and not on the capital account.


This applies to property, business or any other income generating activity. To my knowledge there are no special provisions of the ITAA that deal with negative gearing as such.

I don't think the term 'negative gearing 'is defined in the ITAA.

Interest incurred is a legitimate deduction against the assessable income as is the taxation treatment on many classes of income.

all the best