“This is one of the recommendations out of FSI that I am interested in looking at because superannuation is principally a retirement income stream and if people can leverage up, they run the risk that if there is a major external economic shock, they could be left high and dry,” he said.

“That’s neither in the interests of the superannuant or the government,” he added.

Mr Frydenberg announced late last month that the government intends to openly consult on this recommendation, and will explore options such as banning personal guarantees by SMSFs and improving the standard of advice given to trustees on leveraged investments.

The comments also follow the recent proposal by Treasurer Joe Hockey to open superannuation to first home buyers in light of housing affordability concerns for young investors.

"I get a lot of people approaching me saying that young people should be able to use their superannuation to fund a deposit on a home – on their first home," Mr Hockey said.

"I am concerned about rising house prices and the accessibility to homes and homeownership for younger Australians. But we've got a limited pool of savings – we need to have these conversations."