What is the deductibility of interest on loans used to purchase income-producing shares?

 Author: Brownguide1989(Newbie)Newbie

12 May 2026

Hi everyone, I am looking for clarification on whether the principles of negative gearing apply to share investments.

If I take out a loan (such as a margin loan or an investment loan) specifically to purchase shares that are expected to pay dividends, and the interest on that loan exceeds the dividend income received during the financial year, can I claim the net loss as a deduction against my other assessable income (e.g., salary/wages)? As of today after the new budget was announced it is unclear

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