“We see benefits in the creation of an independent panel for the selection and assessment of default super funds,” REST said in a June 29 statement. “It’s important that this panel is representative of the superannuation industry.

The peak body for industry superannuation, the Australian Institute of Superannuation Trustees (AIST), says funds nominated for industrial awards must provide appropriate risk-and-return profiles and insurance.

“Award modernisation must be about protecting members and delivering results, not just helping some funds make more money out of super,” Fiona Reynolds, chief executive of AIST, which represents funds managing about $450 billion, said in a June 29 statement.

The Financial Services Council (FSC), which represents bank-owned super funds that have been largely excluded from industrial awards, says default funds must be chosen in an “open process” and that industry funds’ “monopoly” on default super has restrained competition.

Melanie Evans, head of superannuation at Westpac-owned BT Financial Group, said “employers to choose any MySuper fund as their employees’ default superannuation fund is a sensible approach and one that will encourage greater competition.”