What’s negative gearing in property means

Negative gearing means you have a property which produces rent lesser than your expenses for example
your rent is around twenty thousand dollars and your expenses is thirty thousand dollars so you are
making a lows in your investment property of ten thousand dollars every year and that and this knowledge you can offset your other income if you have any job and your example for example your job is hundred thousand dollars uh salary so that hundred thousand dollars minus ten thousand dollars loss you made here
which is equal to your annual income will become hundred thousand minus ten thousand which is ninety thousand dollars so you have to pay a tax only for that ninety thousand dollars which makes sense so you have a couple of properties one property one couple of business one business is losing money of ten thousand knowledge other business is uh making money of hundred thousand dollars how much tax you have to pay you have to combine those in and what is your total profit then you have to pay only tax for that so that is in business just like that in property you make some lows here you have a job there and you minus that loss in from your income so you have to pay tax only for that so the more information you get from accountant but this is the basic concept.

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