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Spare-money optimiser

Mortgage, extra super, or shares?

The classic Australian money question. Because super is taxed at just 15% going in, the right answer depends on your tax rate, your time horizon and how soon you need the money — so let's run the numbers.

Mortgage, extra super, or ETFs?
You've got spare income. We'll show which one leaves you wealthiest — after tax — in the long run.

= $8,160/yr after tax in hand

Over 20 years, the winner is

Extra super

$390,695 — about $90,525 more than the next best option.

Extra super
$390,695
Pay off mortgage
$300,170
Invest in ETFs
$288,801
Winner

Extra super

$390,695

from $204,000 invested

Salary-sacrificed — taxed at just 15% going in, but locked until 60.

Pay off mortgage

$300,170

from $163,200 invested

A guaranteed, risk-free, tax-free return equal to your loan rate.

Invest in ETFs

$288,801

from $163,200 invested

Stays fully accessible; taxed on dividends, plus CGT when you sell.

Why? At your 32% marginal tax rate, salary-sacrificing into super is taxed at only 15% going in — a head start the after-tax options can't match. The trade-off: it's locked away until age 60.

Nominal returns; same pre-tax income compared each way. Super assumes salary sacrifice within the $30,000 concessional cap and access from 60. ETFs assume the 50% CGT discount and ignore franking credits (which would help them a little). Paying down a mortgage assumes the balance absorbs the extra. A guide, not financial advice.