Negative gearing
When the costs of owning an investment (interest, expenses) exceed its income, and the loss reduces your taxable income.
An investment is negatively geared when the expenses of holding it — typically mortgage interest, rates, repairs and depreciation on a rental property — exceed the income it produces.
In Australia, that net rental loss can be deducted against your other income (salary, dividends), lowering your overall tax bill. The strategy assumes capital growth on the asset will eventually outweigh the running losses.
Negative gearing works best for higher-income investors in long-term growth markets and is risky when prices stagnate or interest rates rise.