Up to $40,000 more of retirement funds was promised on Wednesday to Australian retirees under a proposed upgrade to the country's superannuation scheme. The means a 30-year-old fulltime worker who currently earns about $68,000 yearly would receive $150,000 upon retirement.

Financial Services Minister Bill Shorten unveiled the new retirement package which would include a new administration system, SuperStream, and automatic consolidation of multiple super fund accounts as part of the reforms to the superannuation system.

Mr Shorten said with the changes, Australians would save more for their retirement, which would be achieved by lower fees and greater efficiency.

Member's fees would by reduced by up to 40 per cent while employer contribution would be increased to 12 per cent from 9 per cent of the current employee's salary. Such a move would boost the average retirement balance from the present $110,000 level.

Besides hiking employer contribution, businesses would also be mandated to contribute into a fund that offers a MySuper product if the worker did not select his or her own fund.

The superannuation industry welcomed the reforms expected to boost regulators' powers and streamline administration, transaction and fees. The reforms are expected to boost the industry's funding to $3 trillion by 2020 from the present $1.3 trillion.

John Brogden, chief executive of Financial Services Council - a retail super fund lobby group, said the proposed reforms are "balanced and measured."

Fiona Reynolds, chief executive of the Australian Institute of Superannuation Trustees which is a non-profit lobby group, said the amendments will provide the industry a timetable to get rid of commissions from default super funds.

Fund managers could start to offer the low-cost, low-fee MySuper default funds to replace all existing default from October 2013 until October 2017.