Positive gearing is when the amount earned is higher than the amount spent on the investment, so there is a profit. On the other hand, negative gearing is when the income you receive from the property is less than the expenses incurred from the investment.
Investors will be able to claim this net loss against their total taxable income at tax time. By doing so, the taxable income will be reduced by the amount of the loss. This ultimately reduces the tax payable, making it an attractive strategy for some.