"what type of distributions are deemed to be acceptable to allow for negative gearing"
I understand it that it requires a taxable distribution to be paid, if that distribution is a mix of different taxable income types that’s OK. It just needs a taxable distribution (or likely to be a taxable distribution).
The contra, is borrowing for shares that are not paying any form of distribution, then the borrowing is for capital appreciation and not income, so interest isn’t tax deductable today, but can offset the future capital again.... (Assuming you are an investor not a trader)
