Workers being able to access their superannuation early would destroy their retirement earnings, the treasurer has warned, following calls by Pauline Hanson.
The One Nation leader has called for a relaxation of rules that would allow people to withdraw their super in times of crisis to help with the cost of living, labelling the system as it stands as broken.
Currently, super can only be accessed in limited circumstances, such as stopping the foreclosure of a home, a terminal medical condition or severe financial hardship.
But Treasurer Jim Chalmers said expanding access for when people can dip into their retirement nest eggs would be counterproductive.
“That would absolutely decimate the retirement incomes of millions of Australians workers,” he told Seven’s Sunrise on Tuesday.
“One of the most important features of our superannuation system is … this idea that, with compounding interest over time, Australian workers can access the decent retirement incomes that they need and deserve after a lifetime of work.”
Tax office figures show 67,900 early super releases were approved in 2024/25, amounting to just over $1.4 billion.
Dr Chalmers said One Nation was undermining the concept of superannuation.
“In lots of ways, the next election will be a referendum on the future of superannuation, whether or not Australian workers can continue to rely on the economic security that comes from the superannuation system,” he said.
One Nation MP Barnaby Joyce said early access was needed due to unsubstantiated claims the government would increase taxes on superannuation.
“My evidence is you can’t trust the government. They lie, and when people are liars, it’s very hard to become unliars,” he told ABC Radio.
“Whether it’s the big things or the little things, they’re all the same thing. They’re lies, and therefore you have to be cautious of liars because if they lie once, they’ll lie again.”
The coalition previously sought to expand early super access to help people buy their first home, taking the policy to the last two federal elections.
Deputy Opposition Leader Jane Hume said on Monday maintaining the current system of superannuation was important.
“We also know that the biggest indicator of economic security in retirement isn’t how much superannuation you have, it’s whether you own a home,” she said.
“That’s why it’s so important that we allow Australians the opportunity to get into a home should they want to buy one.”
While members of the coalition has called for superannuation to be protected, Liberal frontbencher Andrew Bragg criticised the compulsory retirement scheme as “one of the biggest public policy failures since federation”.
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