Deciding between extra mortgage repayments or extra superannuation contributions has always been a tough decision.

That being said, when mortgage rates sat near 2%, almost any sensible investment in superannuation beat paying down debt.

However, that is no longer the case.

All four major banks now expect the Reserve Bank to lift the cash rate again before the end of the year.

What a rising cash rate does to the mortgage side

The cash rate already sits at 4.35% after three increases in 2026, and the board next meets on 28 and 29 September.

Westpac Banking Corp (ASX: WBC) now expects a rise to 4.60% in November, joining ANZ Group Holdings Ltd (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA), while National Australia Bank Ltd (ASX: NAB) is tipping September as the month that rates rise.

The Reserve Bank’s housing lending statistics put the average new owner-occupier variable loan at roughly 6.25%.

That means that every extra dollar that is paid off that loan earns a guaranteed 6.25%, tax free.

There are very few assets Australia that offers that combination.

What the tax system does for superannuation

However, superannuation contributions can be a more tax-efficient way to invest your money.  

Salary sacrificed contributions are taxed at 15% going in, instead of at your marginal rate.

Investment earnings inside the fund are taxed at 15% during accumulation and are not taxed at all in pension phase.

The concessional contributions cap rose to $32,500 from 1 July 2026. That is $2,500 more room than the previous three financial years allowed.

Why the answer is still not obvious

On the flipside, two things can make paying down your debt more attractive.

The first is access.

Money inside superannuation is locked away until preservation age, which is 60 for anyone born after June 1964.

A mortgage repayment made through an offset account can be withdrawn tomorrow.

The second is certainty.

The mortgage return is guaranteed and the investment return is not.

To illustrate, the Vanguard Australian Shares Index ETF (ASX: VAS) is a reasonable proxy for the Australian portion of most balanced superannuation options.

The fund closed Tuesday at $111.50 and has returned just 0.82% over the past twelve months, which is a useful reminder that share markets do not deliver averages on schedule.

How I would think about superannuation versus the mortgage

The soft answer is that it depends on three things.

Your marginal tax rate decides how large the superannuation head start is.

Your age decides how painful the preservation rules are.

And your loan-to-value ratio decides how much you need the security of a smaller debt.

For someone in their fifties on a high marginal rate, superannuation is very hard to beat.

For someone in their thirties with a large mortgage and no buffer, the extra repayment usually wins on peace of mind alone.

Foolish takeaway

There is no universal right answer.

What has changed this year is that the savings from paying down mortgage side have become competitive at 6.25%.

Superannuation still wins on tax over a long enough horizon, and the higher contributions cap makes that easier to use.

I would make sure the emergency buffer exists first, then let the marginal tax rate decide the split.

The worst outcome is doing neither and letting the cash sit in a transaction account earning nothing at all.

The post Rates are rising again. Should you pay down your mortgage or top up your superannuation? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Vanguard Australian Shares Index ETF (ASX: VAS) is one of the largest exchange-traded funds (ETF) on the ASX, and it’s known for having a sizeable dividend yield.

The VAS ETF allows investors to gain exposure to the S&P/ASX 300 Index (ASX: XKO), which is an index of 300 of the largest businesses on the ASX.

Some of the biggest businesses in the portfolio are BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO) and Woodside Energy Group Ltd (ASX: WDS).

I think it’d be fair to say that every one of the above stocks could be classified as an ASX dividend share with a decent dividend yield.

The Vanguard Australian Shares Index ETF simply passes through the dividends it receives onto owners of VAS ETF units. Therefore, it’s beneficial if the holdings provide a good dividend yield.

Let’s look at what it could take to generate $1,000 of passive income from the fund.

Targeting $1,000 of passive income from Vanguard Australian Shares Index ETF

Every month, Vanguard tells investors about various statistics regarding the fund.

For July, Vanguard reported that the VAS ETF had a dividend yield of 3.1%. That’s not a huge yield, but it’s significantly more than what’s on offer from the international share market or US share market.

It’s not guaranteed to have a 3.1% dividend yield in the coming 12 months, but it’s the best figure we can use for this calculation.

To generate $1,000 of passive income with a 3.1% dividend yield, you’d need an investment of $32,258, so that’d mean buying 286 or 287 VAS ETF units.

The VAS ETF is able to provide a high dividend yield because more than 58% of the portfolio is invested in ASX bank shares and ASX mining shares. Those sectors typically have lower price/earnings (P/E) ratios and relatively generous dividend payout ratio, which both affect the dividend yield.

Other markets, like the international share market or US share market, are focused on other sectors like technology businesses, which usually have a lower dividend payout ratio and a high P/E ratio. That results in a much lower dividend yield.

The VAS ETF isn’t dominated by growth stocks, so I’m not expecting significant capital growth in the coming years, though the dividend yield could remain pleasing.

The post How much must I invest in VAS ETF shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) shares have continued falling further into the red this week.

At the close of the ASX on Tuesday afternoon, the technology stock was down another 3% to $35.25. That means the shares are now down 49% year-to-date and are a huge 63% lower than 12 months ago.

It’s been well-documented that the business has been smashed by a tech-sector wide selloff this year, and an investor rotation into more defensive assets amid global volatility earlier this year.

It hasn’t helped that the company itself has been thrust into the spotlight on a number of occasions, putting pressure on an already depressed share price.

There have been a series of updates and media reports in 2026. This included coverage of investigations into founder Richard White by the Australian Federal Police (AFP) and, more recently, news that the Australian Competition and Consumer Commission (ACCC) had executed a search warrant at the company.

ASIC and the AFP also searched WiseTech Global’s headquarters in late October 2025.

Then, late last month, WiseTech posted its FY26 results. On the surface the earnings result was positive, and earnings were in line with analyst expectations. But its EBITDA figures came in short of market forecasts and investors rushed to sell up.

The question now is, are WiseTech shares still a buy? Or will any investment made today turn into a loss by September 2027?

What’s ahead for the ASX tech shares?

WiseTech shares have had a difficult year so far, but the company continues to hold a competitive advantage in the global logistics market. 

And brokers are bullish that we could see a strong rebound ahead.

Market Index shows that all brokers have a strong buy rating on WiseTech shares. The average $61.19 target price implies a potential 74% upside over the next 12 months, at the time of writing. 

TradingView data also shows that some brokers are even more positive. Out of 17 analysts, 13 have a buy/strong buy rating and the other four rate the shares as a hold.

The average target price is a little lower, at $57.19. This implies a potential 62% upside over the next 12 months, at the time of writing. Some think WiseTech shares could rocket 184% over the next 12 months, to $100.09 each by this time next year.

So, if I buy $5,000 of WiseTech shares today, what could they be worth in 12 months?

Assuming the average target price comes to fruition, that means a $5,000 investment today could be worth around $8,100 to $8,700 in 12 months time.

But if the more bullish expert forecasts hold, a $5,000 investment today could grow to an enormous $14,200 by this time next year.

The post By September 2027, $5,000 invested in WiseTech shares could turn into… appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.