Have you heard about negative gearing as a bit of a buzz word but not sure how it actually works or how it could help you save tax?
Negative gearing is simply when the expenses of an investment such as a rental property are higher than the income received. You then may be able to offset the loss against other income such as salary and wages or business income.
By reducing your overall taxable income you reduce your amount of tax payable which means more money in your pocket!
Think you can’t afford to fund the investment throughout the year until you receive your refund?
You can reduce the amount of tax taken from your weekly employee earnings by completing an ATO PAYG Income Tax Withholding Variation Application
Based on the variation the ATO will notify your payroll office the amount of tax to be taken from your wages leaving more money in your pocket!