Fancy a 10 per cent wage rise? There is a catch and it could cost you later down the track.

Key points: A NSW senator said superannuation should be voluntary for people earning under $50,000

A NSW senator said superannuation should be voluntary for people earning under $50,000 He joined a growing number of Liberal MPs questioning the effectiveness of the superannuation system

He joined a growing number of Liberal MPs questioning the effectiveness of the superannuation system The Council of the Aging said it was concerned about anything that affected the integrity of the super system

A newly elected Liberal parliamentarian has proposed a drastic re-work of Australia's bipartisan retirement strategy.

New South Wales senator Andrew Bragg used his maiden speech to outline why he thinks the compulsory element of superannuation needs to be removed from the system.

"I do not believe the system is working for Australians," he told Parliament.

"Super is making home ownership so much harder for lower-income Australians."

While the senator is a new politician, he is no stranger to politics or finance, having been the acting federal director of the Liberal Party in 2017 and spent several years working in and around superannuation.

He wants people to take charge of where their money goes, by offering some workers the choice of either pocketing the extra cash now, or saving it for retirement.

"I would change direction: superannuation should be made voluntary for Australians earning under $50,000," he told Parliament.

Senator Bragg said it could be as simple as Australians ticking a box to get a refund when filling out their tax return.

He also argued the change would not just benefit workers but the Federal Government as well, because if Australians kept the cash, they would be taxed at a higher rate rather than the lower superannuation rate.

"I commissioned modelling from Rice Warner Actuaries which estimates a saving to government of $1.8 billion in the first year alone," he said.

The proposal is likely to anger the Prime Minister, who told his colleagues earlier this week not to go public on issues they wanted to explore.

Scott Morrison urged MPs to go through the "usual internal party processes" which include talking to relevant ministers or starting discussions in party room meetings.

"If you go outside of those processes it is showing disrespect to those sitting next to you, it is showing disrespect to your other colleagues," he said.

Other Liberals also have super questions

Senator Bragg is among a growing list of Liberal MPs to question the effectiveness of the superannuation system.

Some, including Tim Wilson and Craig Kelly, want a discussion about whether the planned super rate rise to 12 per cent by 2025 should instead be handed to workers as a wage increase.

Treasurer Josh Frydenberg congratulates Andrew Bragg on his first speech. ( ABC News: Ian Cutmore )

Earlier this week, Finance Minister Mathias Cormann ruled out changes to the timetable for the legislated increases to superannuation.

A spokesman for Treasurer Josh Frydenberg said the Government would not consider Senator Bragg's decision.

But with the number of Liberals voicing ideas about super rising, Shadow Treasurer Jim Chalmers said it would be a test of Government unity.

"Who prevails in this cage fight in the Liberal Party really matters to the future of Australian workers and their retirement," he said.

"We can't have the extremists on the backbencher prevail over Frydenberg once again."

Warning against making super voluntary

The Council of the Aging (COTA) chief executive Ian Yates urged against making any part of the superannuation system voluntary.

"We are concerned about anything that affects the integrity of the super system, particularly things that don't encourage younger people to put money into super," he told AM.

A similar position is held by the chief executive of the Association of Superannuation Funds of Australia, Martin Fahy.

"Superannuation is a group collective concept, we pool money and we get a herd effect," he said.

"It's like vaccinating everybody in the population against poverty and retirement funding — you start carving people out of that and you lose the herd effect."

So what happens next?

The Government has promised to launch a detailed review of Australia's retirement income system following a recommendation from the Productivity Commission.

Mr Yates supports the review and has urged politicians to keep quiet until it begins so that the public does not become alarmed.

"People do get disquieted, people do get disturbed, when every second week there is a new suggestion about how we ought to change it," he said.

"If they [the politicians] think they [their ideas] are well considered, they can put them to that review.

"We want a really considered, rational, objective, expert lead review that will deliver a long-term retirement income policy."

It is expected that the age pension, superannuation and other savings will be examined during the inquiry, but the exact details, such as the terms of reference, are yet to be finalised.