How to invest $7,500 for passive income in superannuation?

Superannuation is a very effective tool to invest in ASX shares for passive income because of the lower tax rate.

The return we should focus on is the after tax return. Its therefore advantageous that superannuation has a lower tax rate than what it would be for a full-time working Australian with their individual tax rate. For people in retirement, the tax rate in superannuation could be zero.

With that in mind, I think the below two ASX shares are very effective options for $7,500 in superannuation.

Future Generation Global Ltd (ASX: FGG)

I imagine plenty of retirees may not have substantial diversification with their assets. There may be a significant focus on Australian businesses and Australian property.

Considering the ASX only makes up around 2% of the global share market, it could be wise to look at investments that give exposure to some of the other 98%.

I believe Future Generation Global is a good option for both diversification and income.

In terms of the diversification, it’s currently invested in the funds of 16 fund managers who invest in global shares. Across those funds, Future Generation Global has exposure to more than 3,700 shares from around the world. It’s invested in shares from North America, the UK, Europe, Asia, other developed markets and emerging markets.

On the income side of things, it has increased its annual dividend per share each year since 2019, meaning it has given investors several years of consecutive dividend growth.

Excluding the special dividend in 2025, it currently has a grossed-up dividend yield of 6.9%, including franking credits, at the time of writing. I think that’s a solid start for superannuation investors.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the other ASX share I want to highlight, it’s an investment house that has been operating for more than 120 years – it’s one of the oldest businesses on the ASX and it has a great track record of longevity.

The business is invested in a variety of sectors such as industrial property, swimming schools, agriculture, water rights, telecommunications, energy, retail and plenty more. I think it’s great that the business is diversified and has the investment flexibility to alter its portfolio over time towards the best opportunities it can see.

Its portfolio has been deliberately positioned to be defensive and generate resilient cash flow, so it’s able to provide reliable and growing dividends over time. It has actually increased its regular annual dividend every year since 1998, meaning there’s a high likelihood it will increase its payout again with the FY26 result.

The company doesn’t have the biggest dividend yield around, but that’s partly because it has a healthy dividend payout ratio, retaining some of its profit each year to invest in more opportunities.

Its latest two dividend payments equate to a grossed-up dividend yield of 3.6%, including franking credits.

The post How to invest $7,500 for passive income in superannuation? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Global and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.