Australia’s right-wing One Nation party proposes pension shake-up to boost take-home pay

Australia's far-right One Nation party has proposed redirecting a portion of future pension contributions to boost take-home pay, a plan criticized by the governing center-left Labor party. Under the proposed policy, individuals who pay rent or a mortgage could choose to shift a quarter of their mandatory pension contributions to their paychecks for up to three years, with the additional income taxed at lower rates.

One Nation leader Pauline Hanson argued the policy would give people more money in their pockets when needed most. A full-time worker earning around A$90,500 annually would receive approximately A$2,300 more after taxes, according to Hanson. Employers would still contribute the mandatory 12% to pensions. Founded in 1997, One Nation has seen a surge in popularity due to Hanson's hard stance on immigration, with a recent Newspoll showing the party's primary vote at 30%, ahead of Labor at 29% and the opposition Liberal-National Coalition at 19%.

The proposal has been widely criticized, with Treasurer Jim Chalmers calling it a direct assault on workers' retirement savings and warning that the policy would make Australian workers thousands of dollars worse off in retirement, despite any short-term financial benefits.