Yes I did. So far my tax has involved putting down my income and my youth allowance while at Uni. I'm glad there are helpful members here that have cleared up my misconceptions.

Thanks Derek, that seems a very simple way to think about it.

I think I need to do more research on positive cash flow properties. I can understand that you want to make gains on capital which can outdo the negative gearing loss each year. But what if the purpose is to have positive cash flow? Can this be achieved on a slightly negative geared…[Read more]

Thanks for the reply.

You seem confused on my working, so I'll elaborate it a bit more. 
Rent per annum = 275*52 = $14,300
Interest per annum = $11,960
Other costs per annum = $4,500

Cash flow before tax = 14,300-11,960-4500 = -$2160 (so this is my loss before applying tax deductions).

Based on your working, it seems I only apply the tax…[Read more]