One Nation has unveiled a new proposal. It seeks to allow Australians to divert part of their superannuation. This would help ease cost-of-living pressures. The plan, championed by leader Pauline Hanson, would permit renters and mortgage holders to access a portion of their super payments. They could divert these funds directly into their take-home pay for up to three years. This aims to provide immediate financial relief.
Under this policy, employers would still pay the full 12 per cent compulsory super contribution. However, participating individuals would receive 3 per cent of this directly from their super fund. These payments would remain subject to the concessional 15 per cent tax rate. Therefore, they avoid the higher personal income tax rate.
Senator Hanson claims this measure offers significant financial breathing room. For instance, an average full-time worker earning $90,500 annually could gain an extra $2,300 each year. This translates to roughly $44 per week. A working couple with a combined income of $168,000 might see about $4,300 annually after tax, or $82 weekly. This money would go back into their family budget.
The proposal for early super access has sparked intense political debate. Labor argues it would disadvantage Australians in retirement. Health Minister Mark Butler called it an “absolutely terrible plan.” He pointed to the Morrison government’s COVID-era experiment with early super access, which he deemed detrimental to long-term retirement security.
Critics also warn of broader economic risks. Nationals MP David Littleproud suggested the plan could worsen inflation. He noted that injecting more money into the economy, when inflation is already high, could lead to further price increases and rising interest rates. The Reserve Bank has already increased interest rates three consecutive times this year to combat inflation.
Deputy Liberal leader Jane Hume dismissed the idea as a mere “headline.” She questioned how the policy would impact individual super balances and concessional caps, demanding further explanation. Meanwhile, Social Services Minister Tanya Plibersek accused One Nation of trying to “raid” Australians’ super. She claims participants would be “thousands of dollars worse off in retirement.”
One Nation MP Barnaby Joyce defended the proposal. He argued that the current system for early super access, which requires proof of hardship, is overly complicated. He believes Australians are competent enough to understand the trade-offs between immediate cash and future superannuation growth. Joyce stressed the urgency of today’s financial struggles. He noted that future retirement benefits mean little if families cannot afford their mortgage or rent now.
