Taxpayers to foot Age Pension if super turned into ATM: SMC

New modelling by the Super Members Council (SMC) has shown One Nation's superannuation policy could leave taxpayers on the hook to pay up to double the amount taken out.

One Nation is proposing to give Australians paying rent or a mortgage the choice to take one quarter of their future compulsory super contributions as a tax-advantaged 3% pay boost for up to three years.

If Australians opt-in to the boost, 9% of their super will still go into their funds, and they can receive 3% of it directly for up to three years.

However, research by SMC showed taxpayers would have to fund an extra $14,000 in lifetime Age Pension payments for every median full-time worker aged 25 for three years under One Nation's policy.

Additionally, a median full-time worker in the same condition would be $25,000 poorer by retirement. For a couple it would be around $50,000 worse off.

"One Nation's policy will not only make Australians poorer and fuel inflation, quickly wiping out the value of any super you withdraw. Now we can see it will also leave taxpayers on the hook for up to double the amount of super that's taken out," SMC chief executive Misha Schubert said.

"And that higher bill to taxpayers in Age Pension costs will make it harder to fund the services struggling Australians rely on - hospitals, medicines, schools, roads, and drought and flood relief."

Australia is on track to have the lowest pension spending in the OECD, but that trend could be reversed if the policy became law, SMC said.

"With other nations threatening to be sunk by rising pension costs due to ageing populations, it makes no sense for Australia to follow them down that costly path," Schubert said.

"The policy would also mean more of people's super would need to be shifted into short-term liquid investment options that generate lower returns, further weakening people's super."