Put simply, gearing means borrowing to invest. The costs and interest payable on your borrowings are tax deductible and may be offset against other taxable income. Negative gearing is where the cost of borrowing is higher than the assessable income earned on the investment. You can negatively gear rental properties, direct shares and some managed funds.
Put simply, gearing means borrowing to invest. The costs and interest payable on your borrowings are tax deductible and may be offset against other taxable income. Negative gearing is where the cost of borrowing is higher than the assessable income earned on the investment. You can negatively gear rental properties, direct shares and some managed funds.