In Australia you pay roughly 30% on all Australian earnings (I think it is actually 28.5% but I could be wrong - anyway is about 30%). You pay this on all of your Australian taxable income. There is no tax free threshold. Meaning its not until you are earning somewhere over $80k that you are break even (I think).
Add in a few other factors such as no CGT concession, no franking credits, foreign currency exchange risk, and additional cost of managing your tax affairs and some shine comes off investing in Australia as a non-resident.
Blacky
Ok but with an IP that has debt and interested payments, plus rates, insurance etc, say you had a bog standard cash-flow neutral property. Incorporate those costs on the income and you have a net income (rent less expenses) of zero. Doesn't that mean tax free to hold IP's for now? Later on when they become cf+ or are sold for CG then obviously tax starts to bite. But if the job is just for a few yrs then surely its still reasonably attractive to buy a couple and sit on them?