There are two main tax benefits:
- Depreciation savings are highest in the first year where you can claim on the building as well as the fittings and fixtures such as appliances, blinds and carpet.
- Negative gearing is also another big tax break for investors. This is where you have a shortfall where your rent etc. does not cover all your mortgage repayments, so you make up the difference. You can claim this shortfall against your tax return at the end of the year or throughout the year.