The Turnbull government won't say if it backs a call for it to assume control of billions of dollars in workers' compulsory superannuation contributions now being managed by banks and industry funds.
Former treasurer Peter Costello is critical of the way default funds are being run and wants a new government agency to instead invest the money.
About $2.3 trillion in workers' super is sitting in private accounts as part of the former Keating government's compulsory superannuation system and is expected to earn $23 billion in fees.
"There is a fair argument that these compulsory payments should be allocated to a national safety-net administrator -- let's call it the Super Guarantee Agency," Mr Costello said in a speech in Melbourne, The Australian reported on Friday.
He suggested Canada's Pension Plan Investment Board offered a better model.
Finance Minister Mathias Cormann says it is the first time he has heard such a proposition, but wouldn't say if he supports it.
"I'm not commenting on what Peter Costello has put forward," he told Sky News.
The government is focused on ensuring Australia has a transparent, efficient and competitive industry because people want to ensure their money is safe and investment returns on their retirement savings are maximised, Senator Cormann said.
He says Financial Services Minister Kelly O'Dwyer is pursuing changes to make sure there is strong governance across the system.
"We're also very keen to ensure that there's appropriate competitive tension in the default super system."
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