What are the tax implications?

Q.

I work part-time and pay about $4,500 a year in tax. My rental property has a monthly interest payment of $1,995 and I receive $330 a week rent for the property. What are the tax implications? I understand that this is negative gearing but does the negative gearing carry over to the next year as tax credits or something?

The interest and other outgoings, but not principal repayments on the loan, are deductible, and the income is assessable. You can also claim deductions, such as depreciation, that have a positive effect on your cashflow, as they require no cash outlay on your part. I suggest you talk to a quantity surveyor about having a depreciation report done, which will enable you to maximise your tax deductions.