"It appears that the legislation has been purposely drafted to deprive advisers of the earnings they receive from existing default option superannuation clients," AFA chief executive Richard Klipin said.
"This represents an acquisition of property rights on unjust terms, which would, in other circumstances, be contrary to the constitution," he said.
Mr Klipin said that despite strong evidence highlighting the problems, the rushed majority PJC report has discounted the consumer disadvantage in the legislation.
"The community's confidence in the superannuation system is at stake and the MySuper bills as they currently stand will further erode this confidence. It is time to get good policy back on track," he said.
The AFA also said that attempts to push through the legislation prematurely causes concern for the mandatory transfer of default accounts by 1 July 2017 and intra-fund advice.
Mr Klipin said the mandatory transfer could result in members losing benefits associated with their existing fund.
"For example, members who are forced into a MySuper option might lose some or all of the life insurance cover they hold in their previous fund.
"Although life insurance cover should be available to them in the MySuper fund, it may be inferior to their existing cover, particularly if they have pre-existing medical conditions," he said.
He also said that although the legislation suggests that intra-fund advice will be limited to simple advice that is not ongoing, the AFA is concerned that the legislation is inconsistent.
"The legislation allows for advice on a pension fund and insurance. Advice on a pension fund is invariably retirement advice and retirement advice is always complex," he said.
