Hello, I'm wondering whether negative gearing can be utilised by investing into Managed Fund (by margin lending) through Hybrid Trust (HDT). Case: Family (1 high income earner and 1 low income earner) with HDT (originally established to invest into property) has some savings (after purchasing IP) to invest. I can see how it works with investments property where there are other expenses on top of interest bill and distribution to income units holder at the end of year is after the property expenses are taken out. But with no other expenses except (margin loan) interest, wouldn't the entire Managed Fund distribution go to the units holder? And if the distribution is greater than interest bill, the additional income is even getting taxed Wouldn't it be just easier to give (gift) money to the trust and let the trust borrow through margin lending and distribute the profit to lower income earner beneficiary of the trust? Thank you.