Super, shares or mortgage: Where should your money go?
Written and accurate as at: Oct 29, 2026 Current Stats & Facts
Extra money – whether it’s the product of good savings habits or a nice little windfall – can give you quite the confidence boost. And if you can resist spending it, putting that money to work now could leave you better off in the years to come.
But where will it do the most good? Paying down your mortgage, investing in shares or boosting your super could all have their merits. We look at the advantages of each to help you weigh up your options.
Shares
Investing in shares can help your money grow while still leaving it accessible if you need it. However, that doesn’t mean you’ll get the price you hoped for. Shares can be volatile, and if the market has dipped just when you need to sell, you could end up with less than you put in.
That means money you might need for a new car six months from now probably shouldn’t be riding the share market roller-coaster. But if you have the stomach for it and your time horizon – that is, how long you plan to hold the investment – spans several years, it’s certainly worth considering.
Super
Super is another way to invest for the future, but the obvious drawback is that your money is off limits until you meet a condition of release (typically turning 60 and retiring).
What sets super apart, however, is it generally comes with tax advantages. In fact, it can be one of the most tax-effective savings vehicles available to Australians.
Any concessional contributions you make – such as by salary sacrificing or making an after-tax contribution and subsequently claiming a deduction – are generally taxed at 15% within the fund, which is lower than the marginal tax rate many Australians pay on their salary.
Mortgage
Unlike shares or super, you don’t stand to earn a return by directing more money towards your mortgage. But every extra dollar you put towards the principal reduces the balance on which interest is calculated, potentially saving you thousands over the life of your loan.
Both money saved and money earned will leave you in a better financial position, but money saved doesn’t require you to pay tax on it.
The trade-off is that once you put extra money into your mortgage, it effectively becomes part of the equity you hold in your home and can be difficult to access again – that is, unless you have a redraw facility or offset account. These can save you interest, while also giving you the flexibility to withdraw the money when you need it.
The role of interest rates, returns and tax
There might be benefits to all three options, but what you ultimately decide to do will depend on your personal circumstances, risk tolerance and – importantly – what’s happening around you.
For example, if you value security and being debt-free before retirement, paying off your mortgage might feel more pressing, especially when interest rates are on the rise. Then again, if your investments are likely to deliver a higher return than the interest you could save on your mortgage, investing might win out as the more appealing option.
Of course, future returns are uncertain, and you'll need to weigh that potential upside against the risk of losses. What’s more, tax can change the outcome completely, so don’t focus on headline returns alone.
Fortunately, you don’t have to put all your eggs in one basket. You might, for example, keep some money in an offset account for flexibility, make additional super contributions when the tax benefits make sense, and invest the remaining amount in shares. The right balance will depend on your goals, but if you’d like some guidance, consider speaking to a financial adviser.