One Nation Proposes Redirecting Pension Contributions to Raise Take-Home Pay
One Nation's Pension Policy Proposal and Political Reactions
By Renju Jose
Details of the Proposed Pension Contribution Changes
SYDNEY, Sept 7 (Reuters) - Australia's hard-right One Nation party, which has surged in recent polls, on Monday proposed redirecting a portion of people's future pension contributions to take-home pay, a move criticised by the ruling centre-left Labor party.
Eligibility and Mechanism of the Policy
People who pay rent or a mortgage should be able to choose to shift one-quarter of their future compulsory pension contributions to their pay packets for up to three years, with the extra pay taxed under concessional rates instead of the higher personal rate, One Nation leader Pauline Hanson said.
Expected Financial Impact on Workers
"One Nation wants to give people some breathing room ... you get more of your own money in your pocket when you need it," Hanson said in a statement.
A full-time worker earning about A$90,500 ($65,232) in a year would receive around A$2,300 more after tax under One Nation's policy, Hanson said. Employers would continue to make the compulsory 12% contribution.
Political Context and Public Response
Founded in 1997, One Nation was long seen as a fringe party, but Hanson's hard line on immigration has drawn more support in recent polls.
Recent Poll Results
A widely watched Newspoll by The Australian newspaper, released on August 30, showed One Nation's primary vote up 1 point to 30% compared to the previous poll, ahead of Labor at 29% and the opposition Liberal-National Coalition at 19%.
Voter Concerns and Economic Factors
Higher living costs, largely driven by rising fuel prices, have squeezed families, with voters ranking living expenses along with immigration as their top priorities in polls.
Government Criticism and Economic Implications
Treasurer Jim Chalmers called One Nation's policy "a full-frontal attack" on the retirement savings of workers, and said the next national election, expected in 2028, would be a referendum on Australia's pension sector, which is worth about A$4.5 trillion.
Potential Long-Term Effects on Retirement Savings
"(This is) a recipe to make Australian workers tens of thousands of dollars worse off in retirement," he said, adding that the losses from compound interest will outweigh the policy's short-term financial benefits.
($1 = 1.3873 Australian dollars)
(Reporting by Renju Jose in Sydney; Editing by Edwina Gibbs)
