Negative gearing
The process whereby a property investor can deduct their property expenses (e.g. the interest on the loan required to buy the property, depreciation costs, land taxes, rates and maintenance costs) from both the income they receive as rent from the property and from other sources of income (e.g. their salary or other non-housing investments), thereby reducing their overall tax liability. The actual purchase cost of the property is not claimable for negative gearing purposes.