Taxation

 
Australia has a pretty lousy reputation when it comes to personal income tax. With marginal income tax rates peaking at 48.5% it is very, very difficult to bring up a family, live a normal life and try to get ahead by building up some savings.
 
So, for most Australians the tax-free status of their home is one of the few chances they have to build up wealth and they try and achieve this whenever they can by paying off their mortgages as soon as possible. And right there, with the best intentions they actually make some expensive mistakes: not using the equity in their home and thinking that their home is an investment.
 
However, the Australian tax code is actually very investor friendly. In fact when it comes to investing in residential real estate it is probably one of the
 
Interest, depreciation and many other expenses are tax deductible.
 
Tax losses can be accumulated
Tax: income tax, capital gains tax
Allowable tax deductibles