all this talk of short selling has me interested and whilst i...

all this talk of short selling has me interested and whilst i dont intend to invest that way i would like to read up on it and understand how it works. Has anyone found any good simple education resources?

Trying to understand that if the shares are "borrowed" and then "returned" how are the ato making their cut? my brain likes to work using examples, does it work like this?

Say $1M worth of shares, giving 5M shares in this case are "borrowed" at 5%pa return to the holder (assuming share price of $0.2)
Hold for 6months so simplistically $25k in costs as a tax deduction
Sell all 5M shares but you don’t own them so no capital gain?
Assume share price drops to $0.1
Purchase shares to return to “owner” at a cost of $500k
Cash on hand $475k with $25k in future tax deductions?
No further tax to pay plus you have had $1M for 6 months to invest elsewhere (which would have tax liability but somewhat offset by the $25k in costs due to interest?)