The changes, effective from Wednesday, bring South Australia into line with the rest of Australia and federal legislation passed in 2005 by giving public servants portability of funds should they choose to exit the public sector superannuation scheme.

It also allows Super SA – which has previously advised that five to 10 per cent of its members could withdraw their funds once these changes take effect – to conduct a limited public offer to soften the impact of membership withdrawal.

The limited public offer is open to private sector workers who are former public servants with an existing Super SA account.

“Many public sector employees sought the changes and they will now have freedom of choice for their super,” Treasurer Stephen Mullighan said in a statement.

“This is something private sector employees have always had and brings Super SA in line with other funds.”

The former Marshall Government passed amendments to the Southern State Superannuation Act 2009 (Triple S Act) in April 2021 with the support of the then Opposition Labor Party.

The changes had been advocated by SA-Best MLC Connie Bonaros as far back as 2018.

Super SA’s information page on the changes warns that members who exit the fund will not enjoy the same tax-free status on contributions.

The fund is currently exempt from the 15 per cent Commonwealth tax on contributions.

“Any employer contributions or salary sacrifice contributions made to a taxed fund will have tax taken out as soon as the contributions are paid into the fund,” Super SA states.

“This means you’ll have less money going towards your super investment.”

It also states that the size and timing of employer contributions remains governed by the Triple S Act.

Parliamentary debate on the Super SA legislative changes in 2021 raised questions over whether the Commonwealth could revoke the tax-exempt status of the Super SA fund if public servants were allowed to exit.

Former Liberal Treasurer Rob Lucas told the Upper House at the time the changes would have no impact on the state of play.

“There has been … an understanding between both the federal government and the state government that this is not an issue the federal government would act on without the agreement of the state government,” he told parliament on April 5, 2021.

“The federal government already has the power, and it could have done it at any stage, and with or without this particular bill it has the same power.”