Ms Gillard praised the MySuper scheme, saying it will lower fees of up to 30 per cent and would boost retirement savings for a 30 year old full time worker by $40,000.
“It’s not like you get a monthly bill,” she said.
“Those charges eat away at your super savings and make a real difference as to how much money you’re going to have to retire on in the future.”
Earlier, Treasurer Wayne Swan said the scheme was a key recommendation of the Cooper review of Australia’s superannuation regime.
The new product will have no unnecessary fees or charges.
Super fees more than mobile bills: Swan
“Australians currently pay around $85 a month in superannuation fees, which is more than the average person’s monthly mobile phone bill,” Mr Swan said in a statement.
The government will insist that My Super providers not charge entry fees, and limit exit fees to cost recovery.
There will be a ban on commissions, a feature of retail funds.
Labor previously announced a phased-in hike to the superannuation guarantee, taking it from nine per cent now to 12 per cent by 2020.
Taken with MySuper, the measures would add almost $150,000 to the retirement superannuation balance of an average 30-year-old worker, Mr Swan said.
Abbott tight lipped on super
Meanwhile Opposition Leader Tony Abbott would not commit a coalition government to the MySuper plan, but nor did he rule out support.
“What we’ve said is we will carefully consider those (Cooper review) recommendations,” he told the Nine Network, adding the coalition had yet to provide a formal response to the review.
Earlier, the Opposition Leader said he didn’t apologise for changing his old fashioned views on some issues.
In the past year the opposition leader has changed his stance on climate change, paid parental leave, immigration and industrial relations.
Mr Abbbott’s told the Nine Network he doesn’t apologise for moving to positions which better reflect coalition values and he’ll leave it to the public to judge him.