Labor accused of manufacturing super debate to distract from melongate controversy

Superannuation has emerged as a new battleground between the Albanese government and both the Coalition and One Nation , with Labor being accused of manufacturing a debate to divert attention after weeks of criticism over the Prime Minister’s podcast interview .

The political fight erupted after One Nation demanded those being crushed by the cost of living, facing homelessness or big medical bills, should be able to withdraw their superannuation early.

“It’s their money and we should give a little bit more respect about what they can do with their own money,” One Nation MP Barnaby Joyce told Sunrise.

But Social Services Minister Tanya Plibersek pointed out Australians already can access their super early in hardship circumstances.

“If they need to get their super to hang on to their house, if they get sick, if they’re dying,” she said.

Treasurer Jim Chalmers has declared the next election partly a referendum on super and the future of the 12 per cent super guarantee, with half of Australia’s total household wealth — $4.4 trillion — invested in superannuation.

“The Liberals, the Nationals and One Nation would end compulsory superannuation as we know it,” Chalmers said.

But the Coalition says the government is simply stirring the pot after a difficult week dominated by the so-called melongate controversy.

“I think the Treasurer has taken a leaf out of the Mad Men Don Draper book. If you don’t like what they’re saying about you, change the conversation,” deputy opposition leader Jane Hume said.

Opposition Leader Angus Taylor said the Coalition strongly supports superannuation but also supports investment flexibility.

Hume insisted the super guarantee is here to stay, despite Coalition spokesman on super Senator Andrew Bragg previously declaring it one of the biggest public policy failures.

“Can I make it very clear? The super guarantee is here to stay and the Treasurer is simply making things up,” Hume said.

Super debates are often seen as a go-to for Labor in times of political trouble, providing an opportunity to position themselves as defenders of workers’ retirement assets while playing to Labor’s union base. Most of the big industry funds are run by unions with hundreds of billions of dollars under management.

The Coalition promised at the last two elections to allow first home buyers to draw down up to $50,000 from their super for a deposit. After losing both elections, that policy is now officially under review.