Where should the next dollar go?
Extra super or mortgage offset?
Super can provide an immediate tax advantage. An offset provides a certain after-tax saving and keeps the money accessible. The better destination depends on the job that money needs to do.
What is the real comparison?
Compare the after-tax value of a concessional contribution with the mortgage interest avoided in the offset, then account for access: money in super is preserved, while offset money remains available.
When super often looks stronger
Concessional contributions can replace marginal income tax with contributions tax, subject to the cap and possible Division 293 tax. The long investment horizon may compound that initial advantage.
- ✓You have unused concessional cap room
- ✓Your emergency fund is already adequate
- ✓You do not need the money before preservation age
- ✓Your mortgage rate is lower than the return required to justify the extra risk
When the offset often earns priority
Interest avoided through an offset is effectively tax-free and does not depend on market returns. It also preserves flexibility for a career break, property purchase, or early-retirement bridge.
A split strategy is a real strategy
The decision does not need to be all-or-nothing. A plan can fill part of the concessional cap while directing the rest to an offset or investments outside super. Compare the whole sequence over time.
Test the decision with your numbers.
Start with the focused calculator, then use JettWorth’s full sandbox to see how the decision interacts with tax, super, property and the rest of your plan.
General information only. JettWorth provides scenario estimates, not personal financial advice. Tax, super and social-security rules change and individual circumstances matter.