Labor has accused the Morrison government of a monumental stuff-up over its planned changes to superannuation.
The government plans to change the way people are charged fees on their super accounts, while setting an annual performance test for funds.
From July next year, super accounts will also follow Australians through their working life, rather than having one set up with each new job.
The government claims the package will save workers $17.9 billion over a decade.
“All of that sounds good at face value but when you dig into the detail it doesn’t stack up,” shadow assistant treasurer Stephen Jones told reporters in Canberra on Monday.
Mr Jones said there are two sorts of fees – investment and administration – but the government is only going to benchmark the investment fee.
The productivity commission has found the difference in administration fees between a high and low-charging fund can be as much as $100,000 lost in retirement savings.
Mr Jones also believes the benchmarking system the government is setting up to test funds could discourage them from directly taking on long term infrastructure investments.
“We are going to have the extraordinary situation where there might be more incentives for a sovereign wealth fund or the pension fund of other countries to invest in Australian infrastructure,” he said.
He hopes workers don’t end up being stapled to a dud super fund for their entire career.
“They are sentencing that worker to poverty in retirement, they must get this right,” Mr Jones said.
“It just seems it is another example of the government making a big announcement but there is nothing in the the follow-through. On the face of it, this is looks like a monumental stuff-up.”