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Barnaby Joyce: One Nation hasn't modelled super policy impact

Created at 8 Sep · 2:26 AM1 source↑ Market-relevant
IN SHORT

Barnaby Joyce, One Nation's Treasury spokesperson, stated the party has not modelled the economic impact of its proposal to allow early access to superannuation savings. He defended the plan, suggesting individuals are capable of making sound financial decisions regarding their retirement funds.

Key Numbers

9 millionhouseholds eligible for super access
3 yearsmaximum duration for super diversion
$25,000potential retirement income loss per worker
12%compulsory super contribution rate
3%portion of super potentially paid to account holder
15%tax rate on diverted super contributions

Who's Involved

Barnaby Joyce
One Nation's Treasury spokesperson and New England MP
Super Members Council
Represents the not-for-profit super sector and modelled the policy's impact
Anthony Albanese
Prime Minister of Australia
Jim Chalmers
Treasurer of Australia

↳ Why This Matters

The proposal by One Nation to allow early access to superannuation savings could significantly impact retirement incomes and broader economic stability, prompting strong criticism from the Prime Minister and Treasurer.

Key facts

  • One Nation's Treasury spokesperson, Barnaby Joyce, admitted the party has not modelled the economic impact of its superannuation policy.
  • The proposal would allow approximately 9 million households to divert a portion of their superannuation contributions to take-home pay for up to three years.
  • Modelling by the Super Members Council suggests the average worker could be $25,000 poorer at retirement if the scheme is implemented.
  • Prime Minister Anthony Albanese and Treasurer Jim Chalmers have criticized the plan, calling it poorly thought-out and a "shambles".

Barnaby Joyce, One Nation's Treasury spokesperson, has acknowledged that the party has not conducted economic modelling on its proposal to allow early access to superannuation savings. In a series of interviews, Joyce defended the plan, suggesting individuals are capable of making sound financial decisions regarding their retirement funds and would not withdraw savings unless it was financially prudent.

One Nation's proposal would permit approximately 9 million households to divert a portion of their compulsory superannuation contributions to their take-home pay for up to three years. While employers would still pay the full 12% contribution, 3% could be paid directly to the account holder, taxed at the lower 15% rate.

Modelling by the Super Members Council, representing the not-for-profit super sector, indicated that the average worker could be $25,000 poorer by retirement if this scheme were implemented. Prime Minister Anthony Albanese has strongly criticized the plan, stating it undermines the principle of universal compulsory superannuation and has not been adequately thought through. Treasurer Jim Chalmers echoed these sentiments, describing the policy as "an absolute shambles" and highlighting the lack of clarity on its implications for pension spending and broader economic effects.

Frequently asked questions

One Nation proposes allowing Australians who pay rent or a mortgage to divert a portion of their compulsory superannuation contributions to their take-home pay for up to three years.

Barnaby Joyce, One Nation's Treasury spokesperson, has stated that the party has not modelled the potential impact on retirement incomes and inflation from this proposal.

Modelling by the Super Members Council suggests the average worker could be $25,000 poorer by retirement if the scheme is implemented.

Prime Minister Anthony Albanese and Treasurer Jim Chalmers have criticized the plan, calling it a threat to compulsory super rules and "an absolute shambles".

What Happens Next

01Further scrutiny of One Nation's superannuation policy by government officials and industry bodies.

How It Developed

Barnaby Joyce stated One Nation has not modelled the economic impact of its superannuation policy.
Joyce defended the proposal, suggesting individuals would make rational choices about accessing their super.
Under the plan, roughly 9 million households could divert a portion of super contributions to take-home pay for up to three years.
The Super Members Council suggested the average worker could be $25,000 poorer at retirement under the scheme.
Prime Minister Anthony Albanese criticized the plan as a threat to compulsory super rules and lacking thought.
Treasurer Jim Chalmers described the policy as "an absolute shambles" due to unaddressed economic implications.

Sources

T1
Barnaby Joyce says he’s not ‘Jesus Christ’ and admits One Nation has not modelled super policy in fiery interviewsThe Guardian

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