Industry Super Australia (ISA) has backed the federal government's response to the productivity commission inquiry into public infrastructure after it supported the use of streamlined bid processes.
ISA chief executive David Whiteley said he was happy the government supported the use of the inverted bid model.
"The government has succeeded where many have failed by addressing the two key barriers to increased superannuation investment in greenfield infrastructure: low bid costs and increased deal flow," he said.
"Lower bid costs and increased deal flow prompted by the Australian government's asset recycling initiative will increase the opportunities for superannuation funds to invest."
The initiative is in line with the large exposure to brownfield infrastructure assets with over 20 per cent of funds under management in illiquid investment such as direct infrastructure, ISA said.
But this needs certainty in cash flows to plan out long term investments.
"It is vital there are stable regulatory settings within super — particularly in respect to default contributions. The existing default fund quality filter has provided that certainty by enabling high performing funds to confidently invest for the long term," Whiteley said.
"Relentless lobbying from the banks to remove this safety net and bundle up business banking services and employer default super in workplaces will have significant adverse consequences, including reducing the appetite of funds to invest in infrastructure.
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
Senator Jane Hume will join the speaker lineup at the inaugural Australian Wealth Management Summit.
New research from ART has found less than a third of women feel their superannuation is in a good position, reiterating the importance of opening up the advice arena to super funds.
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