With recent changes to negative gearing for investment properties, many Australians are starting to ask an important question:
Can you negatively gear shares instead?
The answer is yes — but borrowing to invest in the share market comes with its own risks, responsibilities and opportunities.
In this episode of SugarMamma's Fireplay, financial planner Canna Campbell explains how negative gearing shares works, the two most common ways Australians borrow to invest, and the practical steps you can take to reduce your risk and build wealth more safely.
Whether you're curious about debt recycling, considering a margin loan, or simply want to understand how tax deductions work when investing in shares, this episode will help you make more informed decisions.
In this episode, you'll learn:
✔ What negative gearing actually means
✔ Why negative gearing is a tax outcome, not an investment strategy
✔ The difference between margin loans and debt recycling
✔ How investors use borrowed money to invest in shares
✔ The potential tax benefits and wealth-building opportunities
✔ The risks of borrowing to invest
✔ What a margin call is and how it works
✔ How rising interest rates can affect your strategy
✔ The importance of cash flow and emergency savings
✔ 7 practical ways to reduce risk when negatively gearing shares
My 7 risk-management rules for borrowing to invest:
- Diversify your investments
- Focus on liquid investments
- Have a clear investment goal
- Maintain a strong emergency fund
- Consider reinvesting dividends or using the dividends to service & reduce the investment debt
- Gradually reduce investment debt - consider a P&I loan over a IO loan - with advice
- Review your strategy regularly - e.g. every 6 months
Key takeaway:
Borrowing to invest can accelerate wealth creation, but it can also amplify losses. Before considering a negatively geared share strategy, make sure you understand the risks, have a long-term investment plan and never invest purely for a tax deduction.
The goal isn't to create a tax loss. The goal is to build long-term wealth.
Resources Mentioned
- Debt Recycling Explained
- Margin Loans Explained
- Emergency Fund Calculator
- ETF Investing for Beginners
- LIC Investing Basics
- Diversification Strategies
- Understanding Investment Risk
💡 Work With Me
Want more support on your financial journey? Here’s how we can work together:
- The SugarMamma Budget & Cashflow Academy
Sick of living paycheque to paycheque or feeling overwhelmed by your money?
This course includes aone-on-one appointment with me so I can personally help you.
👉 Enrol here
- Money Mindset & Manifestation Mentorship
Join my program for ongoing support, clarity, and motivation around the way to show up and work on your financial goals and dreams, including attracting the life that you want. Get started here.
📚 My Books
If you’re ready to deepen your financial knowledge, check out my books:
(These are Amazon affiliate links to my own books.)
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⚖️ General Advice Warning
While we discuss financial topics, everything shared here is general information only — never personal, product, or investment advice. Always:
- Do your own research.
- Weigh up the pros, cons, fees, caps, taxes, and risks.
- Seek professional advice before making financial decisions.
📜 Financial Planning License Details
The information in this podcast does not take into account your personal circumstances, goals, or needs. Always read relevant Product Disclosure Statements before acquiring any financial product, and seek independent financial advice where appropriate.
Canna Campbell is an Authorised Representative and Financial Adviser of Links Licensee Services Pty Ltd (AFSL No. 700012 | ABN 97 678 975 589).
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