A common misconception with investment properties is that whatever money is spent and lost on the rental property is what you will receive as a refund in your tax return. This is incorrect as there will be many things that affect what your refund will be, if any.
•Have you completed a tax variation?
•Was it in place for the entire financial year?
•Was the variation accurate?
•Was all expenditure during the year deductible?
•What is your tax rate?
Oversimplified your tax refund will be calculated by taking your total rental income and subtracting your deductible expenses (such as agents fees, rates, body corporate fees, repairs and interest) then multiplying this amount by your tax rate to work out your refund or reduction in your tax liability.
When you have a tax variation in place you will receive the benefit of the tax return or reduction throughout the year and not in a lump sum at tax time.