'Market Value Rent' for Negative Gearing

This isn't financial advice. I'm not a tax expert in the slightest. Just relaying what I found out, and the decision I made.

So, a while back, I asked about negative gearing a property and someone pointed out that if a property/part of a property is being rented out at 'less than market value', you can't negatively gear it. I rent out half of my home to a tenant, but I rent it out at nowhere near market rent.

I spoke to my tax agent and the ATO, and got a vague, undefined answer about how they define it. Essentially, though, it comes down to whether or not you're trying to make money/cover expenses. They'll ask questions such as whether you're renting to a close friend or family member, how you came up with the amount you charge, how your rent compares to the market, what your goals in renting out the property are, etcetera. They don't have a hard and fast rule.

Basically, the question is: are you intentionally renting at below market rates because it benefits you in some way? If so, you're not at market value rent, and your property can't be negatively geared. If you're just trying to preserve a good tenant or not trying to profit from a crisis, you're fine.

While I didn't get an answer, my tax agent says that he's pretty confident I'm good based on our chats and his research. For reference, I'm charging 60-70% what I could be, which happens to cover half of all my ownership expenses while also leaving me with a little gravy.

I know a lot of people on /r/AusFinance believe in maximizing returns, but hopefully this information helps out leftists who find themselves in the unfortunate position of being a landlord.