At a parliamentary joint committee session, ASIC said considering a ban on limited recourse borrowing arrangements (LRBAs) – which facilitates SMSF borrowing – could work to protect consumers against unscrupulous operators.
For some, like director at Heffron SMSF Solutions Meg Heffron, the persistent tinkering is unfairly targeting investors who are abiding by current day law.
“I don’t think it’s unreasonable to leverage your superannuation as a valid wealth creation strategy, but I suspect the government feels it is. So to them, every LRBA that doesn’t go ahead is good news,” she said earlier this year.
“There’s plenty of reasons to attack on policy grounds – such as that [borrowing in super] potentially fuels heated housing markets. If that was being advanced as a reason, I might get it. But evidence of people blowing up their superannuation with LRBAs? I don’t believe that exists.
“If the government is going to persist with this, I wish they’d just ban it.”