Thanks everyone for your answers. I guess I will need to contact the tax man so he can resubmit the variation form.

To answer jmielle: The tenant was not happy even paying $5 extra and said that he would move in Feb, after that the Real Estate suggested that we go for $360 per week with the new tenant. So we didn't even ask him to pay that at this stage.

To duckster: If you increase the rent by $5 per week then you need to
decrease your negative gearing loss by $5 * 52 minus real estate agent commission increase)
A whole $260 a year.
Does this mean we get $260 more per year and if we want to stay negative we need to spent it basically on the house? Or put it towards super?
We are on fixed loan for another 8 years.
My next question is can my husband still claim the same depreciation for the house if it becomes positively geared?

Thanks

Wow!!!
You people are great! I didn’t expect such a great response. Thank you Derek, Jo an Terry.
Daniela
PS: I’ll be back.