There is a lot of hype around negative gearing and how it will benefit you.
In your tax return, if your rental property makes a loss (negatively geared) then you are entitled to offset this loss against your other taxable income. This is one major benefit as you will usually receive some tax as a refund due to your taxable income being reduced.
Negatively gearing a property is essentially losing money on the property, however investors usually have the view that they will make a profit when selling the property and this will be a much better benefit than the loss made due to negative gearing.
Therefore, in order for your negative gearing to be beneficial you need to ensure the investment property is in an area with growing value. Also it is much more beneficial to negatively gear a property when you are on a higher tax bracket.