Workers will no longer be forced into union-linked superannuation funds if the Morrison government succeeds with a new push it says expands choice.
The government wants to follow up a recommendation from the Productivity Commission's January review of superannuation to stop enterprise agreements and work contracts from mandating which funds employees must join.
Senior minister Peter Dutton said superannuation was the only area where people were forced to park their money in a particular institution.
"In any other circumstance, people can make a decision about where they put their term deposit, the bank they take their mortgage out with," he told Nine's Today show on Friday.
"And I think that choice is a powerful thing. It makes the companies more competitive, it will see fees reduced."
The ban would particularly affect the construction, education and retail sectors, where many employees are forced into industry super funds.
Examinations of the superannuation system, including the Productivity Commission report, repeatedly show industry funds perform better than retail funds.
Industry funds are those originally formed to give access to superannuation for a particular industry, and have union representatives on their boards.
The government sees the push on industry funds as another way it can fight Labor's close ties to unions.
"Instinctively, the Labor Party will push back against this, but I think we're fighting for consumers here to get a better outcome," Mr Dutton said.
Opposition Leader Anthony Albanese said the coalition just didn't like industry funds.
"But what we know is that every single study, every figure, shows that industry funds provide lower fees, and better revenues for workers," he said.
"We're pro-choice, but we're not about undermining industry super funds and we will examine any legislation that's put forward in the light, though, of the government's obsession with attacking industry funds."
Australian Associated Press
