One Nation pushes easier super access for struggling Australians as Labor warns of retirement hit

Barnaby Joyce has declared Australians “aren’t stupid” and should be trusted to decide whether to dip into their superannuation to survive financial hardship, as he clashed with Tanya Plibersek over the controversial proposal.

The One Nation MP used an appearance on Sunrise on Monday to argue Australians doing it tough should have easier access to their retirement savings, particularly if they are struggling to pay rent or at risk of losing their home.

Australians can already access their superannuation early in limited circumstances, including severe financial hardship, but Mr Joyce argued the existing process was “extremely convoluted”.

His proposal would streamline the process and allow eligible Australians to access some of their ongoing super contributions while continuing to receive the compulsory 12 per cent contribution from their employer.

Mr Joyce also took aim at the tax applied when super is released early, arguing struggling Australians should not lose a chunk of money they desperately need.

But Ms Plibersek hit back at the proposal, warning Australians could pay a much bigger price when they eventually retire.

“Well, it’s obvious that One Nation wants you to raid your super instead of getting a pay increase,” she said.

“We support higher wages and better super when you retire.”

Sunrise host Natalie Barr put to Mr Joyce that withdrawing $6900 over three years while in your mid-20s could ultimately leave someone about $80,000 worse off by their 60s.

But Mr Joyce argued Australians were capable of weighing up the immediate and long-term consequences themselves.

“I think people are competent enough to work that out for themselves,” he said.

“People aren’t stupid. We give them credit for more brains than the Labor Party does.”

He argued the financial consequences of losing a home could be far greater than sacrificing some future retirement savings.

“If I lose my house now, I’m going to be hundreds and hundreds of thousands of dollars out,” he said.

Mr Joyce described owning a home as one of the most important assets a person could have heading into retirement.

The fiery exchange became increasingly tangled as the pair debated existing hardship provisions, with Ms Plibersek pointing out Australians could already apply for early access.

Mr Joyce maintained his proposal was about making that process easier and reducing the tax burden.

Ms Plibersek, however, argued super receives favourable tax treatment precisely because it is designed to fund retirement.

“We know that if you raid your super now, you’ll be thousands of dollars worse off in retirement,” she said.

“We want people to retire with dignity.”