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🇦🇺 Australia /Economy & Trade

One Nation proposes early super access for renters and mortgage holders

From ABC Australia · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • One Nation proposed allowing Australians who rent or hold mortgages to divert 3% of their compulsory superannuation contributions into take-home pay for up to three years.
  • The party said the plan would give an average full-time worker earning about A$90,500 an extra A$2,300 a year, while government ministers and Liberals warned it could reduce retirement savings.
  • The proposal comes as interest rates have risen three consecutive times this year and households face pressure from housing costs.

One Nation wants Australians paying rent or a mortgage to draw part of their retirement savings before retirement, offering what it calls immediate breathing room for household budgets.

Under the proposal, employers would still pay the full compulsory superannuation contribution of 12%. But workers who opt in would receive 3% directly from their super fund for up to three years. The payment would be taxed at the concessional rate of 15%, rather than at the person's higher income-tax rate.

breathing room

· Pauline HansonHanson described the weekly income increase she said the proposal would provide to workers.

One Nation leader Pauline Hanson said a full-time worker earning about A$90,500 would receive an additional A$2,300 a year, or roughly A$44 a week. For a working couple with a combined income of A$168,000, she put the figure at about A$4,300 a year after tax, or A$82 a week.

Australians can already access superannuation early in cases including financial or medical hardship. Health Minister Mark Butler called the proposal an "absolutely terrible plan" and pointed to the Morrison government's decision during the COVID pandemic to allow broader early access. He said the policy would make a "huge difference, a bad difference" to retirement savings decades later.

absolutely terrible plan

· Mark ButlerAustralia's health minister criticized the proposal and warned about its long-term retirement impact.

Deputy Liberal leader Jane Hume dismissed the proposal as merely a "headline" and said One Nation had not explained how it would affect super balances or concessional caps. She also questioned whether the money would move from super funds into banks.

People are competent enough to work that out for themselves.

· Barnaby JoyceThe One Nation MP responded to questions about workers understanding the effect on future super balances.

One Nation MP Barnaby Joyce defended the plan, describing the current hardship-access process as "incredibly convoluted." Asked whether voters should be told that early withdrawals would reduce future balances, he said, "People are competent enough to work that out for themselves." He added, "There's no point telling a family they'll be better off in retirement if they can't afford the mortgage or their rent payment today. A good retirement starts with keeping a roof over your head."

Social Services Minister Tanya Plibersek said One Nation was trying to "raid" Australians' super instead of helping deliver a genuine pay increase. She said people who opted in would be "thousands of dollars worse off in retirement."

A good retirement starts with keeping a roof over your head.

· Barnaby JoyceJoyce defended allowing households to access part of their super to meet current housing costs.
About this summary

Originally published by ABC Australia in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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