Hi Derek,

My example refer’s to every dollar after the 100K mark. Ie John makes 200K. 100K is for normal expenses and the other 100K for investment.

I am trying to keep the case simple. Thankyou Derek. I can see the fruits of negative gear investment and the pitfalls. However I believe a well planned structure will in many case lead to a…[Read more]

Hi,

Thank you for your response. I just trying to understand the possible gains of negative gearing, when income reaches the 48.5% tax bracket.

What to do with 100K at 48.5%.
Say over a 5 year period

Scenario 1.
Interest Only Account:
* 51500×0.054 = 2781pa. Give government another 1400 tax! (No Compounding)
*…[Read more]

Hi,

Thanks for your reply. Sorry the example was not the best but it got the picture

So he would get 32500$ in tax back. So in reality he loses only 67500.

Thanks alot. The reason was asked was to understand when income start going over the 125K mark. And how Negative gearing will make investment a bit more efficient.

For example:

John makes…[Read more]