Chalmers hits out at One Nation over early super proposal

Treasurer Jim Chalmers has warned One Nation’s approach to reforming the superannuation system could jeopardise the retirement savings of millions of Australian workers.

One Nation has signalled a willingness to open the door for cash-strapped Australians to more easily tap into their retirement savings but has not announced an official policy.

Party leader Pauline Hanson told News24 on Sunday: “There’s a lot in that one with compulsory superannuation.

“A lot of Australians are doing it tough now and struggling to pay their mortgages.

“In some ways, I feel that you should give them their money now and let them help them with the cost of living. It is their money; they’ve sacrificed it in lieu of pay.”

But Senator Hanson’s proposal sparked criticism from Mr Chalmers, who said it put the “future of Australia’s world-leading compulsory superannuation system” at risk.

He accused One Nation, alongside the Coalition – which took an early super policy to the last two elections – of harbouring an “anti-worker” and “anti-super” ideology that “would absolutely decimate the economic security” of Australian workers.

“If this plays out after the next election, Australian workers will be much worse off,” he said.

Deputy Liberal leader Jane Hume earlier refused to rule out the Coalition returning to its super policy. “We have an understanding that the best indicator of economic security is not the size of your super balance, it’s whether you own a home … that’s not a slogan, that’s a financial fact,” she said.

“It’s something we will obviously consider as part of our normal processes, (early super access) is not a policy that’s come to shadow cabinet yet, but of course, it’s something we would consider.”

Early access to super on compassionate grounds is granted by the Australian Taxation Office under limited circumstances. This includes medical treatment, help to cover the death and funeral expenses of a dependent or to prevent the foreclosure or forced sale of a home.

Although severe financial hardship is not captured by this definition, Australians can apply on these grounds directly with their super providers.

One Nation MP Barnaby Joyce told Seven’s Sunrise that One Nation wanted to broaden the definition of compassionate grounds.

“I think one of the hardships people have is if they can’t feed themselves because of the cost of living,” Mr Joyce said.