Investing is no longer limited to the rich or those with finance degrees. These days, anyone with a bit of patience and a plan can make money for themselves. Even more interesting, there are ways in which you can get actually paid to invest. While this may sound too good to be true, it is achievable with the right approach. In case you are new to investing or are looking to expand your portfolio, this article will show you, step by step, how Australians can earn passive income while investing and capitalize on local opportunities.
What Does “Get Paid to Invest” Mean?
When we talk about getting paid to invest, we mean earning income directly from your investments or finding opportunities where the act of investing rewards you. This could include dividends, interest payments, rental income, government schemes, or even cashback offers. Think of it as building a system where your money creates more money while you sit back and watch your wealth grow over time.
This idea isn’t just theoretical—it’s achievable with careful planning and informed decisions. The key is to find investments that offer returns consistently without requiring constant attention.
Why Should You Consider Earning While Investing?
Investing doesn’t just grow your wealth—it can supplement your income. Here’s why that’s valuable to Australians:
- Supplement Your Paycheck: Whether you’re saving for a house deposit, funding a side hustle, or setting up for financial independence, earning through investments can fast-track your progress.
- Passive Income: Passive income streams free up your time for other priorities. Wouldn’t you rather focus on things you love while your money works for you?
- Stay Ahead of Inflation: The cost of living in Australia is rising. Investing helps you beat inflation, preserving your purchasing power for the future.
- Compounding Power: Investment earnings reinvested grow exponentially. The earlier you start, the greater the benefits over time.
With these goals in mind, here’s how to get started.
1. Dividend-Paying Stocks
Dividend-paying stocks are an excellent way to get paid to invest. When you buy shares in a company, you become part-owner. Many listed companies reward their shareholders by paying dividends—regular cash payments made from the company’s profits.
Why Dividends Work for Australians
Australia has an impressive system called franking credits, designed to avoid the double taxation of corporate profits. When you receive dividends from certain companies, these credits can offset your tax bill, making dividend investing highly tax-effective for Australians.
Here’s an example. Suppose you invest in Commonwealth Bank (CBA) stock. If the stock pays a 5% dividend yield, you could earn $50 annually on every $1,000 invested—even more with franking credits factored in.
Pro Tip
- Look for high-yield stocks but don’t chase unsustainable returns. Research the company to ensure its payouts are reliable.
2. Real Estate Investment Trusts (REITs)
Buying property outright can be expensive, especially in cities like Sydney and Melbourne. If investing in physical property feels unreachable, REITs are your next best option. These are companies that own and manage income-producing real estate (like office buildings, shopping malls, or apartment complexes).
When you invest in a REIT, you essentially own a slice of their property portfolio. The income REITs generate from rent is paid back to investors as distributions.
Benefits for Australians
With Australia’s housing market consistently performing well, REITs allow you to take advantage of the property boom without needing hundreds of thousands of dollars upfront. Some REITs are also listed on the ASX (Australian Securities Exchange), making them easy to access.
Examples of popular Australian REITs include Stockland and Goodman Group.
3. Peer-to-Peer Lending
Peer-to-peer (P2P) lending has become a popular way to earn while investing. P2P platforms like Plenti and RateSetter allow you to lend money directly to individuals or businesses in exchange for interest payments.
Interest rates can range from 4%–15%, depending on the risk level of the loan. You’ll effectively act as the bank, earning interest as borrowers pay back their loans.
Things to Consider
- Risks: With higher returns often come higher risks. If borrowers default, you might lose some of your initial money.
- Diversification: Many platforms allow you to split your funds across several loans to reduce risk.
For Australians looking for shorter-term investments or alternatives to traditional strategies, P2P lending is worth exploring.
4. Cashback and Incentive-Based Investment Apps
Several platforms now offer Australians the chance to earn cashback or rewards when they invest. These schemes are growing in popularity as they provide immediate benefits alongside long-term gains.
- Spaceship: Earn cashback when you refer others or hit savings goals.
- Raiz: Their roundup feature lets you invest your spare change, and some transactions can earn you cashback through partnered businesses.
While these apps aren’t a major income source, they’re an excellent first step into investing for beginners.
5. Rental Income from Investment Properties
If you’re in a position to buy property, renting it out can generate a steady source of income. The Australian rental market remains strong, with high demand in urban and regional hotspots.
Strategies for Success
- Choose High-Demand Areas: Properties close to schools, transport links, and amenities attract reliable tenants.
- Understand Negative Gearing: If the cost of owning your property (including interest) exceeds rental income, you may be able to claim the loss against your taxable income in Australia. This strategy is particularly appealing as it offers tax savings while your property appreciates.
- Think Long-Term: Property investments often require patience to fully realize their potential.
6. Government Schemes and Tax Incentives
The Australian government actively encourages participation in specific investment-related programs. These initiatives help Australians build wealth with added financial benefits.
Superannuation Contributions
While you can’t directly access it until retirement, superannuation is one of the best tools Australians have to get paid to invest for the future. Boosting your super with voluntary contributions comes with potential tax advantages.
For example, if you make a salary-sacrificed contribution, that money is taxed at just 15% instead of your marginal tax rate. These savings compound within your super fund, bolstering your retirement nest egg.
First Home Super Saver Scheme (FHSSS)
Australians buying their first home can take advantage of the FHSSS. It allows you to save for your deposit through superannuation, benefitting from those tax advantages while investing in your future property.
7. ETFs and Managed Funds
Exchange-Traded Funds (ETFs) offer an easy, cost-effective way to invest in a diversified portfolio of stocks, bonds, or other assets. By investing in a single ETF, you gain exposure to multiple industries or geographic regions.
For example, an Australian investor might choose the VAS ETF, which tracks the ASX 300 Index and pays distributions quarterly. These payments give you a regular income while growing your capital over time.
For those who want professional guidance, managed funds are similar, but they come with active management by a fund manager who selects investments on your behalf.
Why These Work for Australians
Platforms like CommSec and SelfWealth make ETF investing simple. They’re ideal for beginners starting with just a few hundred dollars.
8. Bonds and Fixed-Income Investments
If you’re looking for stability, bonds can help. When you buy a bond, you’re basically lending money to a corporation or government. They pay you regular interest until the bond matures, at which point you get your initial investment back.
For Australians, government bonds are considered a safer option, though the returns may be lower than other investments. Corporate bonds, on the other hand, can offer higher yields but come with increased risks.
9. Side Hustle Investments
For many Australians, side hustling provides another way to earn, but why not use that income to invest? Set aside earnings from part-time gigs like freelancing, tutoring, or selling crafts online. Use that money to fund investments in stocks, ETFs, or property.
The trick here isn’t just about working more—it’s about reallocating side hustle income into assets that pay you back.
Final Thoughts
By putting money into something important to you, like a business, the new revenue is a step toward long-term financial security. From dividends and rental to REITs, tax benefits to government-funded programs, Australians have it all.
Ideally, one would begin at a reasonable level and broaden portfolios over time. Every investment whether real estate, stocks, or something else, contributes towards your financial independence. Expanding on these approaches will have you covered if you wish for your money to work for you rather than the other way around.
Take the leap today, and remember, when it comes to investing, time is your greatest ally. The earlier you begin, the more opportunity you’ll have to grow and enjoy the rewards of earning while investing.
