The Australian Securities Exchange holds over $1.6 trillion in market value across more than 2,000 listed companies. For someone with $500 saved, that number can feel like a different world. But the reality is you can start investing in Australian shares with as little as $100 through some brokers, or $1,000 through a professionally managed platform. The barrier to entry is lower than most people realise.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
The same $100 that gets you in the door can disappear into brokerage fees if you’re not careful. Buy $100 worth of shares with a $10 fee and you’ve lost 10% before you even start. That’s the kind of math that matters more than which stock to pick. The question isn’t whether you can afford to start — it’s whether the costs and the structure fit your situation. Here’s what you actually need to know.
Costs, minimums, and what you actually need to start
Before you buy a single share, you need to pick the account structure that holds it. This decision affects your tax bill, your access to the money, and how much you need to begin. The two main paths are superannuation and a non-super investment account.
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| Feature | Superannuation account | Non-super brokerage account |
|---|---|---|
| Access to money | Locked until age 60–67 | Flexible, can sell anytime |
| Tax on earnings | 15% on investment earnings | Marginal tax rate (up to 45%) |
| Minimum to start | Varies by fund (often $500–$1,000) | As low as $100 with some brokers |
| Best for | Long-term retirement savings | Medium-term goals, flexibility |
Where the numbers really bite is on the fee side. A $10 brokerage fee on a $500 purchase is 2% — manageable. The same $10 fee on a $100 purchase is 10%, which means your investment needs to grow by a tenth just to break even. That’s why buying larger amounts less often tends to make more sense than small frequent buys.
One real-world example: a 35-year-old opened their first account with $2,500 and set up automatic contributions of $300 per month. Within a year, the balance grew 9% with professional portfolio management. The key wasn’t picking the right stock — it was starting, staying consistent, and keeping fees low. If you’re unsure about the tax implications of different account structures, getting tailored answers can save you money you’d otherwise lose to the wrong setup.
Mistakes beginners make with Australian shares
The research on beginner investors reveals the same patterns repeating. The mistakes aren’t about picking the wrong company — they’re about the decisions that happen before you even buy anything.
Picking individual stocks before understanding fees
New investors often jump straight to choosing a company without checking what the trade will cost them. A $10 brokerage fee on a $200 trade is a 5% hit. You’d need the share price to rise by more than 5% just to get back to even. Meanwhile, an ETF that tracks the ASX 200 might cost 0.1% per year in management fees, with no individual trade cost beyond the initial brokerage. The math heavily favours the ETF for anyone starting with less than $1,000.
Ignoring the super vs. non-super trade-off
Many beginners invest outside super without realising the tax advantage they’re giving up. Inside super, investment earnings are taxed at 15% instead of your marginal rate. On a $50,000 income, that’s a difference of about 19.5 cents per dollar earned. The catch is you can’t touch that money until you’re 60–67. If you’re investing for a house deposit in five years, a non-super account is the right call. If you’re investing for retirement, super is hard to beat.
Not keeping an emergency fund separate
Money you invest in shares should stay there for at least three to five years. If you need to sell because your car breaks down, you might be forced to sell at a loss. The rule is simple: build an emergency fund of three to six months of expenses in a savings account first, then invest what’s left. A client who followed this approach was able to keep their investments growing through a market dip because they had cash on hand for unexpected costs.
Trying to time the market
The research is consistent: regular contributions over time beat trying to buy at the bottom. The Hudson client who added $300 per month regardless of market conditions saw a 9% gain in a year. That’s the power of dollar-cost averaging — you buy more shares when prices are low and fewer when prices are high, without having to predict anything.
- Set a clear investment goal (retirement, house deposit, education, passive income)
- Build an emergency fund covering 3–6 months of expenses
- Choose between a super or non-super account based on your timeline
- Check brokerage fees and keep trades above $500 where possible
- Start with a diversified ETF, not an individual company
- Set up regular automatic contributions (monthly or quarterly)
How to buy your first Australian shares
Once you’ve decided on the structure and the costs, the actual process of buying shares follows a clear path. Here’s what that looks like in practice.
Set your goal and timeline
Your investment goal determines everything else. If you’re saving for a house deposit in five years, you’ll want a non-super account with flexible access and a mix of shares and bonds to reduce volatility. If you’re building retirement savings over 20 years, superannuation gives you the tax advantage and the long runway you need. The required rate of return — how much growth you need each year to hit your target — tells you how much risk you can afford to take. A wealth-building strategy that matches your timeline is the foundation.
Choose your account type and broker
For a non-super account, you have two main options. A full-service broker like CommSec lets you pick individual shares with a minimum of around $500. A managed platform like Hudson Invest lets you start with $1,000, choose a professionally managed portfolio, and set up automatic contributions of $100–$500 per month. The managed option works well if you don’t want to research individual companies. The brokerage option works well if you want direct control over which shares you own.
Pick your investment
For most beginners, a diversified ETF is the sensible starting point. ETFs trade like shares but hold a basket of dozens or hundreds of companies, which spreads your risk. You can choose an ETF that tracks the ASX 200 (Australia’s top 200 companies), a global shares ETF, or a sector-specific one like healthcare or technology. If you prefer individual shares, the research suggests starting with blue-chip companies — established, reliable businesses that pay steady dividends — rather than growth stocks, which are more volatile and harder to evaluate.
Monitor and rebalance
Once your money is invested, the work isn’t over. Review your portfolio every six to twelve months to check that it still matches your goal. If one type of investment has grown much faster than others, you may be taking more risk than you planned. Rebalancing means selling some of the overperformers and buying more of the underperformers to bring your allocation back to target. This forces you to sell high and buy low, which is the opposite of what most people do emotionally.
Frequently asked questions about investing in Australian shares
Can I start with less than $100? ▾
What’s the difference between a share and an ETF? ▾
Do I need to pay tax on Australian shares? ▾
How long should I keep money invested in shares? ▾
What happens if a company I invest in goes bust? ▾
Can I invest in Australian shares from overseas? ▾
The long game is the only game that works
The research on Australian share investing keeps arriving at the same conclusion: starting early, staying consistent, and keeping costs low matters more than picking the right stock. The $1.6 trillion ASX isn’t a casino — it’s a collection of businesses that, over time, grow in value and pay profits to their owners. The single biggest risk isn’t a market crash. It’s not starting at all, or starting in a way that fees and poor structure eat your returns before they have a chance to compound.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read The Great Australian Property Dream: Alive or Dead? Experts Weigh In.
Sources and Further Reading
Building Wealth in Australia: Time-Tested Strategies for Long-Term Success — A deeper look at how consistent saving and investing habits build wealth over decades.
Investing in the Future: Sustainable and Ethical Finance Options for Aussies — How to align your investments with your values without sacrificing returns.
Hudson Financial Planning (2026). How to Start Investing in Australia: A Beginner’s 2026 Guide. 🔗
Morningstar (2026). Investing in Shares: A Beginner’s Guide. 🔗
Mitrade (2026). How to Invest in Shares in Australia: A 2026 Guide. 🔗
WealthFactory (2026). Investing in Australian Shares. 🔗
