One Nation proposes allowing Australians to divert 3% of super to take-home pay for up to three years

Australians with a mortgage or paying rent would be given a choice to divert a portion of their superannuation to their take-home pay for up to three years under a One Nation proposal.

Under the policy, the full 12 per cent compulsory super contribution would still be paid by employers, but 3 per cent would be paid directly to a person by the super fund if they opt in.

The payments would also remain subject to the concessional tax rate of 15 per cent, rather than the higher personal income tax rate.

One Nation leader Pauline Hanson said the average full-time worker earning about $90,500 would get an extra $2,300 in their pocket each year.

That works out to about $44 a week, which Senator Hanson said would provide "breathing room".

"For a working couple earning $168,000 between them, it is about $4,300 a year after tax, or $82 a week, back in the family budget," she said.

Australians are already allowed to access their superannuation before retirement for several reasons, including financial or medical hardship.

Health Minister Mark Butler said changing those settings would be an "absolutely terrible plan" and pointed to the Morrison government's experiment with allowing people to access more of their super during the COVID pandemic.

"It's going to make a huge difference, a bad difference to their retirement decades down the track," he said.

"Occupational superannuation is one of the great reforms of our country over the last few decades. It will provide security in retirement to millions and millions of Australians who otherwise would not have it."

Plan could make inflation worse

Deputy Liberal leader Jane Hume dismissed the proposal as nothing more than a "headline" and said One Nation had questions to answer about how the policy would interact with a person's super balance or their concessional caps.

"This so far is nothing more than a headline. It hasn't really been explained," she said.

Nationals MP David Littleproud said there was a serious risk of "unintended consequences" of the proposal, including the potential for higher inflation.

"When you've got inflation out of control at the moment, and you fuel that with putting more money into the economy, the unintended consequence is that inflation will go up and interest rates will go up," he said.

The Reserve Bank has increased interest rates three consecutive times this year in an attempt to curb inflation.

One Nation MP Barnaby Joyce defended the policy and claimed the current system for early access, where the person must prove they are experiencing hardship, was "incredibly convoluted".

Asked whether One Nation should spell out to people that taking money out of their super now would affect their balance in the future, Mr Joyce said, "people are competent enough to work that out for themselves".

"People aren't stupid," he said.

"There's no point telling a family they'll be better off in retirement if they can't afford the mortgage or their rent payment today," he said.

Minister for Social Services Tanya Plibersek said One Nation was attempting to "raid" Australians' super instead of facilitating a real pay increase.

She said people who opted in to the plan would be "thousands of dollars worse off in retirement".