However, Ms Loane said the amendments, which were previously introduced to Parliament in 2017 and failed to pass both houses, should be updated to start earlier than the proposed date of 1 July 2020.

“It’s unacceptable after nearly 30 years of our compulsory system that workplace agreements are still allowed to force employees into a particular super fund, and prevent employees from having their super guarantee payments made into a fund of their choosing,” she said.

“The prevention of choice under the current arrangements forces many Australians into new funds they did not choose, creating problems for individuals such as those who have an SMSF, made specific investment choices in their existing fund or have chosen insurance levels, effectively forcing these individuals to maintain multiple super accounts.”

Ms Loane pointed out that affected individuals, including SMSF trustees, would be significantly disadvantaged through having to maintain an additional super account because of employer-specific agreements, with Productivity Commission modelling suggesting those retiring with two super accounts were 6 per cent worse off.

“We don’t have laws which force people into particular banks, why does this still exist for super, one of the biggest assets Australians will have?” she said.

“The FSC is a long-standing supporter of choice in super and has consistently advocated for the removal of restrictions on super choice in workplace agreements.”