By Paul Feeney
Investing outside of super is one of the most common things Australians search for when they start thinking seriously about building wealth. Super is powerful — but it's locked away until you meet a condition of release like reaching age 65, which for many people is 20, 30 or even 40 years from now. So what do you do with money you want to grow in the meantime?
This guide to investing outside super in Australia covers what it actually means, how it works, and what to think about before you get started.
What does investing outside of super mean?
Investing outside of super means putting money into assets like shares, exchange-traded funds (ETFs), bonds or property — held in your own name, outside the superannuation system. Unlike super, you can access this money at any time. There's no condition of release. That flexibility makes personal investing useful for goals that sit between right now and retirement.
It's one of the key differences when you look at investing vs super: super wins on tax efficiency, personal investing wins on flexibility.
Why do Australians invest outside of super?
People turn to personal investing for all kinds of reasons. Some are saving for a home deposit. Some want to build a financial buffer they can actually access. Some are earning more than their super contributions alone can compound effectively. Others simply want to start investing and learn how it works.
The common thread in good investing advice for Australians at this stage is that super and personal investing aren't competing — they're complementary. Getting the balance right is the question.
What can you invest in outside super?
Shares
Buying shares means owning a piece of a company listed on the ASX or another stock exchange. Shares can grow in value over time and may pay dividends. The risk is that you're exposed to the fortunes of individual companies.
ETFs (exchange-traded funds)
An ETF is a basket of investments that trades on the share market like a single share. A single ASX-listed ETF might hold the 200 largest Australian companies, giving you instant diversification at low cost. For many people starting out with investing in Australia, ETFs are the natural first step.
Managed funds
Managed funds pool investors’ money and are professionally managed. Many managed funds are not listed on a stock exchange and are instead bought and sold directly with the fund issuer or through an investment platform. This means they can have different application, withdrawal and unit-pricing arrangements, which may make access less flexible than exchange-traded products. They may suit investors who prefer a more hands-off approach.
Property
Residential and commercial property are familiar to Australian investors, though they require significant upfront capital and carry their own costs and complexities.
How is investing outside super taxed in Australia?
Tax is one of the most important things to understand when comparing investing outside super vs super. Inside super, investment earnings in growth phase are generally taxed at up to 15% (30% for higher income earners and large super balances), and capital gains on assets held for more than 12 months are effectively taxed at up to 10%.
Outside super, investment income like dividends, interest and distributions, is generally taxed at your marginal income tax rate, which for many working Australians is significantly higher.
Capital gains made when you sell an investment are generally taxable in your own name, though individuals who hold an asset for more than 12 months may be eligible for a 50% CGT discount. This is why good personal investing advice in Australia always considers tax alongside investment strategy.
Is investing outside super worth it?
For most people, the answer is yes — alongside super, not instead of it. Super's tax advantages are real and significant, especially over long timeframes. But locking all your wealth inside super until you satisfy a condition of release leaves you without financial flexibility for the decades in between.
Personal investing advice tends to suggest building both: contributing to super for the tax benefits, while also building accessible wealth outside super for goals and flexibility. The right balance depends on your age, income, goals and existing balances.
What should you think about before starting to invest?
What's your goal — wealth growth, a specific milestone, or income?
What's your investment timeframe — years or decades?
How would you feel if your investment dropped 20% in value?
Do you understand what you're investing in?
Have you considered the tax implications?
A how to start investing approach that skips these questions tends to lead to poor decisions. Getting personalised investing advice in Australia before you commit a dollar is worth the time.
Can Otivo help with investing advice?
Otivo provides licensed personal advice on ETF investing outside of super. It's not general information — it's advice specific to your circumstances, delivered under an Australian Financial Services Licence. If you're thinking about how to start investing outside super, it's a good place to begin.
The information in this communication is current as at April 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.