Australia’s One Nation Proposes Pension Shake-Up to Boost Take-Home Pay

One Nation wants Australians paying rent or a mortgage to divert part of their future retirement savings into their pay packets, offering short-term relief as living costs put pressure on households.

Under the proposal announced on Sept. 7, eligible workers could choose to redirect one-quarter of their compulsory pension contributions 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 compulsory 12% contribution.

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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 policy would give people more room in their budgets. "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. Hanson said a full-time worker earning about A$90,500 a year would receive roughly A$2,300 more after tax under the plan.

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A full-frontal attack

The proposal comes as One Nation has gained ground in recent polling. A Newspoll released by The Australian on Aug. 30 put the party’s primary vote at 30%, up one point from the previous poll. Labor stood at 29%, while the Liberal-National Coalition recorded 19%. Voters have ranked living costs, driven largely by higher fuel prices, alongside immigration as top priorities.

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

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