Our main focus is to provide our business clients with a "road map" for the future.
Read more...

KW Grimes & Associates Pty Ltd is uniquely positioned to provide you with total financial care.

Read more...


Make a time to come in and discuss your accounting needs.

Make an appointment



View and download forms to complete before your visit.

Download forms

MORTGAGE OR SUPER

Which should come first, mortgage or super?

Paying off your home loan signals an important landmark in your financial life. However, it is always important to consider alternative investment strategies. Sometimes the best strategy may not be the most obvious.

Super contributions caps

When considering any super strategy, it's important to assess how much you are contributing to super in any one year. The government has set annual limits – known as contributions caps. Contributions over these caps are taxed at a hefty rate.

What you need to know

Most people still believe that they are better off putting surplus money into their mortgage before investing elsewhere. However depending on your circumstances it may be more beneficial to salary sacrifice rather than make additional payments to your mortgage.

Salary sacrifice allows you to make contributions to your super directly from your pre-tax pay. You do not pay income tax on salary sacrifice contributions which can represent a significant tax saving particularly if you are on the highest marginal tax rate. And when you pay less tax, you have more money to invest which gives you the potential to increase your returns.

Getting started

Both the mortgage interest rate and earning rate within super are important variables to consider in any comparison between reducing debt and making before tax super contributions. It is important to be aware of how the outcome would change if the mortgage interest rate and/or the earning rate within super changed.

Count on us

A Count adviser can help you:

  • Work out the most effective strategy for you
  • Boost your super using smart super strategies

<< Back to Pre Retiree








Copyright KW Grimes & Associates Pty Ltd © | Disclaimer | Site Map

Online software for accountants by Wolters Kluwer

KW Grimes & Associates Pty Ltd is an Authorised Representative of Count Financial Limited  Count Financial Limited ABN 19 001 974 625 AFSL No. 227232 which is 85% owned by CountPlus Limited ABN 111 26 990 832 (CountPlus) of Level 8, 1 Chifley Square, Sydney 2000 NSW and 15% owned by Count Member Firm Pty Ltd ACN 633 983 490 of Level 8, 1 Chifley Square, Sydney 2000 NSW. CountPlus is listed on the Australian Stock Exchange. Count Member Firm Pty Ltd is owned by Count Member Firm DT Pty Ltd ACN 633 956 073 which holds the assets under a discretionary trust for certain beneficiaries including potentially some corporate authorised representatives of Count Financial Ltd. The information on this web page is not advice and  is intended to provide general information only. It does not account of your individual needs, objectives, or personal circumstances.





  

Information on this website is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this information, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on information within.
Information on this website is based on current regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this information, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on information within.