Australia’s One Nation proposes pension shake-up to boost take-home pay

Australia’s hard-right One Nation party wants workers paying rent or a mortgage to put more money in their pockets now, even if that means diverting part of their future retirement savings.

Under the proposal, people could choose to redirect one-quarter of their compulsory pension contributions into their pay for up to three years. The extra income would be taxed at concessional rates rather than the higher personal rate. Employers would still make the required 12% contribution.

“

One Nation wants to give people some breathing room ... you get more of your own money in your pocket when you need it.

One Nation leader Pauline Hanson said the plan would give households facing high living costs some relief. “One Nation wants to give people some breathing room ... you get more of your own money in your pocket when you need it,” she said in a statement. Hanson said a full-time worker earning about A$90,500 ($65,232) a year would receive around A$2,300 more after tax under the policy.

“

a full-frontal attack

The proposal comes as rising fuel prices and other living costs squeeze families. Polls have placed living expenses and immigration among voters’ leading concerns, while One Nation has gained support after years as a fringe party. A Newspoll released by The Australian on August 30 put the party’s primary vote at 30%, ahead of Labor on 29% and the Liberal-National Coalition on 19%.

Treasurer Jim Chalmers rejected the proposal as “a full-frontal attack” on workers’ retirement savings. He said the next national election, expected in 2028, would become a referendum on the pension sector, which is worth about A$4.5 trillion. Chalmers warned that lost compound interest could outweigh the policy’s short-term benefits and leave Australian workers tens of thousands of dollars poorer in retirement.

“

a recipe to make Australian workers tens of thousands of dollars worse off in retirement