Negative gearing in Australia
Australian taxation policy
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Negative gearing in Australia refers to the provisions within the Australian income tax system that allow taxpayers to offset net losses from investment activities against other income, a practice commonly known as negative gearing. Negative gearing can occur in several investment contexts; for example, with real estate investments, it occurs when the net rental income is less than the mortgage loan interest payable, and with shares, when net dividend income is less than the interest payable on a margin loan.