One Nation leader Pauline Hanson has proposed loosening superannuation rules for renters and mortgage holders.
Under the proposal, renters and mortgage holders could choose to have a quarter of their super contributions paid to them instead.
The proposal has been criticised as a “full-frontal attack on superannuation” by Federal Treasurer Jim Chalmers.
Here’s what you need to know.
One Nation
One Nation is a political party in Australia, led by Pauline Hanson, that currently holds four seats in the Senate and one seat in the House of Representatives.
Its policies include significantly reducing immigration, scrapping ‘net zero’ climate policies, and embracing Australia’s coal industry.
Since the last election, One Nation has consistently performed well in polls.
In state politics, it recently won its first ever seat in Western Australia’s lower house.
Superannuation
Since 1992, employers have been required to set aside a percentage of employees’ pay into a retirement fund.
Today, the percentage is 12%.
The system is known as superannuation (or ‘super’) and the payments are called compulsory super contributions.
Money in the fund is invested and grows over time, so people typically take out more in retirement than was put in.
Up to a certain level, super contributions are taxed at 15%, which is less than what many pay in income tax.
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On Monday, One Nation announced it wants renters and mortgage holders to be able to access a quarter of their compulsory super contributions (3% of their wages).
This would mean your employer still pays your super, but if you're a renter or mortgage holder, you could choose for a quarter of it to go into your bank account instead.
Existing money in super funds would not be touched.
The policy would allow you to opt in for up to three years.
One Nation says a worker earning $90,500 a year would have an extra $44 per week in their take-home pay.
The proposal is a policy announcement, meaning it would be introduced by One Nation if it won government at the next Federal Election, which is due by 2028.
It would then need to be legislated to take effect.
Govt response
Treasurer Jim Chalmers argues that One Nation’s proposal “will make Australians worse off, not better off, in retirement.”
Chalmers labelled the proposal as a “full-frontal attack on superannuation” and described One Nation as “anti-super” and “anti-worker”.
TDA reached out to the Treasurer for further comment, who referred to a finding by Super Members Council stating that One Nation’s proposal would make Australians $25,000 poorer by retirement.
Opposition
Opposition Leader Angus Taylor responded to the announcement by confirming the Coalition’s support for the current superannuation system.
Taylor said One Nation’s proposal lacked specifics on how it would work.
He added: “What we see with these policy announcements constantly is no detail – and the detail really matters.”
