A rental loss can be deducted from your salary income, reducing tax at your marginal rate. Depreciation lowers tax without costing cash. Negative gearing only pays off if the property grows in value more than your after-tax losses.
FAQ
How much tax do I save with a $18,800 rental loss on $120,000?
About $6,016 at the 32% rate (30% + Medicare levy).
Sources (checked 6 November 2026): ATO individual income tax rates 2026-27; Medicare levy; low income tax offset. ATO Rental properties guide 2026.