If the property costs more than $462,000 (2016) you will be required to pay land tax ($100 + 1.6% up to the premium threshold). However this is deductible and should be taken into account when working out your figures to ensure the property remains positive cashflow.

If it does, then this can be distributed to yourselves personally and may in some way offset some of the negative gearing you already have. If you are undertaking the negative gearing exercise because your personal income thresholds are on a a very high level, then perhaps distributing from a trust to a bucket company (30% or less depending on your circumstance) may be another option.

It depends largely on your personal situation, long term goals, and whether you feel there is risk associated with any of the activities you are either undertaking or already exist in your normal job/life (if you think risk is an issue, consider using a trust).