How much money do I need to start investing?

Not much. Your first purchase of a share or ETF on the ASX usually has to be at least $500, plus brokerage, and micro-investing apps let you start with less. Clear expensive debt and build an emergency fund first.

What are franking credits?

Credits for the tax an Australian company has already paid on its profits. They come with franked dividends, count towards the tax on that income, and if they’re more than the tax you owe, the ATO refunds the difference.

Should I invest or pay off my home loan?

Money in an offset account earns your loan rate, with no risk and no tax. At a 6.2% loan rate and a 32% tax rate, that’s like earning about 9% before tax. Investing may earn more over many years, but it goes up and down.

Should I choose a growth option in my super?

Growth options hold more shares and property, so they rise and fall more but have grown faster over long periods. They often suit people with decades until retirement. Check your fund’s options and fees on Moneysmart or the ATO’s YourSuper tool.

Investing basics: super, ETFs and getting started

Saving vs investing

Savings are safe but grow slowly. Investments go up and down, sometimes a lot, but over long periods they’ve grown much faster than prices. Investing suits retirement and goals years away; savings suit your emergency fund and near-term plans.

Shares, bonds and ETFs

What	You own	Typical behaviour
Shares	A small part of a company	Highest long-run growth, big ups and downs
Bonds	A loan to a government or company	Steadier, lower long-run growth
Index ETF	A slice of every company in an index	The market’s return, minus a small fee

Australian shares often pay franked dividends, which come with credits for the company tax already paid. If you hold an investment for more than 12 months before selling, only half the gain is taxed. A change to that discount has been announced from July 2027: see capital gains tax explained.

Try it: how investing growsMove the sliders to see what regular investing adds up to.

Each month$300

Years30

Yearly return6%

After 30 years you’d have

$301,355

You put in$108,000
Growth$193,355

Start ten years later and you’d have $138,612: $162,742 less, though you’d only put in $36,000 less.

Returns aren’t guaranteed and vary from year to year. This assumes the same return every year, before fees and tax.

Start with your super

Your employer pays 12% of your ordinary earnings into super. Check three things:

Fees: a 1% higher fee can cost tens of thousands of dollars by retirement. Compare funds with the ATO’s YourSuper comparison tool.
Investment option: younger members are often better in a growth option.
Extra contributions: salary sacrifice is taxed at 15% going in, up to the $32,500 concessional cap in 2026–27.

Investing outside super

Super is locked away until you retire, usually from 60. For goals before then, such as a house deposit in more than five years or financial independence, invest outside it:

Pay off expensive debt, and have an emergency fund.
Open an account with a low-cost broker or micro-investing app. On the ASX, your first purchase of a share or ETF usually has to be at least $500.
Choose a broad Australian or global index ETF, or a diversified ETF that holds both.
Invest a set amount regularly, and leave it alone.

If you have a home loan, compare investing with paying into your offset account, which earns your loan’s rate, risk-free and tax-free.

Risk and staying the course

Markets have fallen 20% or more many times and recovered from all of those falls so far, though sometimes over years. The biggest risk is selling in a panic. Spreading your money across Australian and global shares, and adding to it regularly, smooths the ride. To compare index funds with picking stocks, see index funds vs stock picking.