When it comes to financial planning, one of the most significant decisions Australian’s face is whether to pay off their mortgage or invest in their superannuation. Both options have their merits, and the best choice depends on individual circumstances, including age, income, and financial goals.

Australia’s superannuation system has achieved significant growth, with assets increasing from $150 billion in 1992 to over $4 trillion today, and projections estimating it could reach $9 trillion by 2040. This growth has positioned the system as one of the largest pension pools globally. Over the past 20 years, regulatory efforts have encouraged consolidation, reducing the number of funds by 93%. This has led to the emergence of large-scale funds that now dominate the sector, controlling over half of its assets.

Millions of Australians have (or are about to) receive their first pay packet for the 2024-25 financial year, and it should contain some extra cash. Thanks to the federal government’s “Stage 3” changes to individual tax rates and thresholds, all 13.6 million Australian taxpayers will benefit from income tax cuts that started on 1 July 2024.