We present XMM-Newton observations of the high redshift z=3.104, radio-loud quasar PKS 0537-286. The EPIC CCD cameras provide the highest signal-to-noise spectrum of a high-z quasar to date. The EPIC observations show that PKS 0537-286 is extremely X-ray luminous (Lx=2x10^47 erg/s), with an unusually hard X-ray spectrum (Gamma=1.27+/-0.02). The flat power-law emission extends over the whole observed energy range; there is no evidence of intrinsic absorption, which has been claimed in PKS 0537-286 and other high z quasars. However, there is evidence for weak Compton reflection. A redshifted iron K line, observed at 1.5 keV - corresponding to 6.15 keV in the quasar rest frame - is detected at 95% confidence. If confirmed, this is the most distant iron K line known. The line equivalent width is small (33eV), consistent with the `X-ray Baldwin effect observed in other luminous quasars. The reflected continuum is also weak (R=0.25). We find the overall spectral energy distribution of PKS 0537-286 is dominated by the X-ray emission, which, together with the flat power-law and weak reflection features, suggests that the X-radiation from PKS 0537-286 is dominated by inverse Compton emission associated with a face-on relativistic jet.