Barnaby Joyce, One Nation’s Treasury spokesperson, has admitted his party has not modelled the potential impact on retirement incomes and inflation from its plan to give millions of households early access to their super savings, during his second combative interview in two days.
The New England MP, who on Monday told ABC’s 7.30 program that he “was not Jesus Christ” and so could not be expected to know everything, on Tuesday ridiculed suggestions that the proposal should have included economic analysis typically accompanying major policies.
“Is there an implication beyond it being their money? Do you model the money you get paid at the end of the week?” he asked rhetorically.
Joyce dismisses need for guardrails
Speaking to ABC Radio National, Joyce also dismissed concerns about the lack of guardrails determining who could access their super early and for what purpose, arguing “people are not stupid” and would not withdraw funds unless it made financial sense.
“If they believe … that the alternative of getting their money to pay for their rental, to pay for their house payment, would be to leave it where they’re getting a spectacular return in their super … then most people who have a brain between their ears will do precisely the latter and leave it in the investment of superannuation,” he said.
One Nation’s proposal details
Under One Nation’s proposal, Australians paying rent or a mortgage – roughly 9 million households – could divert a portion of their superannuation to take-home pay for up to three years. Employers would still pay the full 12% compulsory super contribution, but 3% could be paid directly to the account holder by their super fund, taxed at the lower 15% rate.
Modelling by the Super Members Council, representing the not-for-profit super sector, suggested the average worker would be $25,000 poorer by retirement under the scheme.
Government criticism intensifies
Prime Minister Anthony Albanese attacked the plan at a Labor caucus meeting, calling it a threat to compulsory super rules. “Once you lose the principle of universality, the policy starts to disappear,” he said. “If you watch [the Joyce interview], it’s clear that the policy has not been thought through.”
Treasurer Jim Chalmers labelled the policy “an absolute shambles”. “They haven’t been able to tell us: what does this mean for pension spending? They haven’t been able to tell us: what are the broader economic implications of this superannuation advice from One Nation? This is a shambles from beginning to end.”
