Australian stocks and super
Investing in Australian shares through your super
If you are thinking of investing in the Australian stock market there are 2 main ways to do so:
- Buy shares personally through a stock broker or platform
- Buy shares through your superannuation fund
Super has tax benefits
When you sell shares in your personal portfolio and make a profit, it is likely you’ll be required to pay Capital Gains Tax (CGT) at your marginal income tax rate, which could be as high as 45%. Check your tax bracket here.
However, profits made on Australian stocks invested through your super will be taxed at up to 15% tax on capital gains. If you remain invested in your super fund's Australian share portfolio until retirement, you may end up well ahead.
Many Industry SuperFunds have investment options that invest in Australian shares, and some may have several, possibly including ones that focus on specific types of shares such as environmentally sustainable businesses and industries. Your fund might even offer a way for you to directly invest in Australian-listed shares that you choose yourself.
However, remember that all investment decisions carry their own level of investment and market risk.
What if I know nothing about the Australian Share Market?
Don’t worry. If you choose a pre-mixed share investment option, your super fund’s investment managers work through stock market data, values, trends, forecasts, outlooks, strategies, returns and research reports to try and create the best share investments for you and your retirement.
All you need to do is decide how much of your super you want invested in the Australian share market and choose an investment option at your Industry SuperFund that matches what you want.