By Varun Agarwal, co-founder of PropRetire · Published · Law as read · 2 min read
How many landlords make a loss? Every postcode, from the ATO's figures
The rental came out behind again this year, and you wonder whether that is just you. It isn't.
In 2023-24, 2,260,641 Australians declared rent on their tax return, and 1,248,216 of them, 55%, made a loss. Among those who did, the loss averaged $12,000.
How many landlords make a loss?
11 in every 20. The ATO counts each person who declared a net rent figure for the year, the rent less what they claimed for it. 1,248,216 of the 2,260,641 came out below zero.
The figures are the ATO's Taxation Statistics 2023-24, and where loss-making landlords live sets them out by postcode.
What makes a rental a loss?
Its costs for the year come to more than its rent. The ATO's table counts three kinds of cost: loan interest, capital works, a share each year of what the building cost, and the rest, such as rates, repairs and the agent's fees.
Interest, rates and the agent's fees are claimed as they are incurred in earning the rent, under section 8-1 of the Income Tax Assessment Act 1997, which lets them come off "your assessable income", wages included. So a loss lowers the tax on what you earn elsewhere.
Where is the share who make a loss highest?
In 3978, Clyde North, Clyde and Cardinia, 4,235 of 4,787 landlords made a loss, 88%. Of the 20 postcodes with the highest share, 14 are in Melbourne and 6 in Sydney.
The lowest is in 2550, Bega, Tathra and Kalaru, where 440 of 1,410 did, 31%. Both count only the 758 postcodes with 1,000 or more landlords.
Is that where the rentals are?
Not always. The ATO counts each landlord at the home address on their tax return, so a postcode is where the landlord lives. Their rental can be in another suburb, or another state.
Where is the average loss largest?
Where fewer make one. In 2027, Darling Point, Edgecliff and Point Piper, 582 of 1,421 landlords made a loss, 41%, but theirs averaged $39,300, more than three times the national $12,000.
How do the states compare?
The Australian Capital Territory has the highest share, 64%, then Victoria 62%, the Northern Territory 58% and New South Wales 54%. Queensland and Western Australia are 52%, South Australia 51% and Tasmania 43%.
Does a loss still come off wages from 2027-28?
For a home contracted before 7.30 pm Canberra time on 12 May 2026, yes. For one contracted from then, from 2027-28 a loss no longer comes off wages unless it is a new home. It is held for later years instead, under section 26-155 of the Income Tax Assessment Act 1997.
Does the negative gearing change apply to property you own? covers the cutoff and the exceptions.
What should I keep?
Each year's rental schedule from your tax return, with its rent, interest, capital works and other costs, so a year with a loss sits beside the next.
The rental property tax calculator lays one year's rent and costs side by side.
See it for your own rentals
What the year leaves you, after costs and tax.