One Nation Wants Australians to Use 3 Percent of Super to Help Pay Rent, Mortgages

Australians should be allowed to divert three percent of their income dedicated to their retirement funds towards paying off rent or mortgage payments, says One Nation leader Pauline Hanson.

The conservative-leaning leader’s new policy was dropped on Sept. 7, and is aimed at reducing current cost of living concerns.

In Australia, employers are required to pay 12 percent of a worker’s wages (on top of their gross wage) into a dedicated superannuation fund, this amount is normally taxed at a lower 15 percent rate to encourage saving for retirement.

How it Works?

Under the One Nation proposal, workers could opt to just invest nine percent of their income into super, and the remaining three percent can be paid direct to the worker.

Additionally, this three percent will be taxed at the lower 15 percent tax rate.

According to One Nation’s modelling, a full-time minimum wage worker would have around an extra $26 in their account each week, while someone earning around $90,500 a year would take home an extra $44 weekly.

Working couples on a combined income of $168,000 would pocket around $82 a week more in their take-home pay.

“People are working hard and still struggling to get ahead,” Hanson said in a statement.

“Interest rates keep rising. Rents keep climbing. Groceries, power bills, petrol and insurance are taking more and more out of the family budget.”

Hanson said it was about giving Australians more control over their money.

“You make the choice directly with your super fund and they will administer the payment,“ she said. “If you want the full 12 percent to stay in super, nothing changes.”

One Nation MP and Treasury spokesperson Barnaby Joyce said support was needed now, not during retirement.

“Labor calls your money in super a ‘national asset,’” he said. “[Treasurer] Jim Chalmers wants to treat it like it is his, when it most definitely is yours.”

Labor, Liberal Criticise Proposal

Labor Health Minister Mark Butler criticised One Nation’s plan as “terrible.”

“Occupational superannuation is one of the great reforms of our country over the last few decades, it will provide security in retirement for millions and millions of Australians who otherwise would not have it,” he told ABC Radio National.

“We had an experiment on this through COVID where people withdrew money from their super at the invitation of the Morrison government—it’s going to make a huge difference, a bad difference to their retirement income decades down the track and we don’t support this.”

Meanwhile, Deputy Opposition Leader Jane Hume told ABC News Breakfast that One Nation’s plan was “nothing more than a headline.”

“It hasn’t really been explained,” she said.

“Does the tax status of your superannuation [15 percent], your discounted tax status, does that remain? Do you get a tax discount for paying your rent? How does it affect your concessional caps? How does it affect your bring–forward provisions, carry–back provisions?

“How does it affect your superannuation balance at the end of the day? Are we turning our superannuation funds into banks? None of these questions have been answered.”

Inflation Crisis Continues

Hanson’s proposal comes as Australian households continue to face rising living costs.

Australian Bureau of Statistics figures show living costs increased across all household types in the June quarter, with employee households recording the largest rise at 1.5 percent.

The increase was largely driven by an 8.2 percent jump in mortgage interest charges, while rents, electricity and food costs also rose.