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  • Negative Gearing

    Negative Gearing is the situation when an investment such as property is purchased with the assistance of borrowed funds and where the rental income after the deduction of expenses (such as interest, bank fees, insurance and strata fees) is less than the interest commitment in the course of a financial year.


    For tax purposes this negative net income can then be offset against any positive income from other sources. This is a very handy tool in minimizing tax.


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