The Productivity Commission has hinted that default funds under modern awards will not be included into its inquiry into Workplace Relations Framework, much to the chagrin of some financial services lobby groups.

The Financial Services Council (FSC) and even individual finance companies have been lobbying strongly for changes to fight what they see as the undue influence of unions.

But their arguments for changes to the default funds under the modern awards regime will go unheard during the inquiry.

Discussion of the Superannuation Guarantee is specifically ruled-out in the Productivity Commission's issues paper.

“While it may have arisen as an industrial relations trade-off, the Guarantee is now recognised as one of a set of interlocking retirement income policy measures, and consideration of it in any detail would therefore cover many issues not central to this inquiry,” it said.