Dr Cela has a taxable income of $300,000 in the 2022 income year, and it will remain $300,000 for the next 11 years. She has been using negatively geared rental properties to reduce her taxable income for many years.

Year 1:

Rental income: $10,200 (50% of market rate) Interest expense: $17,500

Other rental expenses: $8,200 Net rental loss: $15,500


Year 10:

Rental income: $15,200 (50% of market rate) Interest expense: $17,500

Other rental expenses: $12,200 Net rental loss: $14,500

 

Year 11:

Rental income: $0 (will not charge rent) Interest expense: $17,500

Other rental expenses: $12,500 Net rental loss: $30,000

Using 2022 tax rates, explain to her what her tax payable will be in each of the income years. Assume that she is an Australian resident, without withholding tax, and has no other deductions or offsets.