The amendments will mean that the borrowing amount of the loan is added to an individual’s total superannuation balance for certain SMSFs.

Despite the Cooper Review in 2010 coming to the conclusion that a review of LRBAs should be conducted, Ms Westover said, the government has never actually conducted a comprehensive review of borrowing in super.

“It has been pushed back and pushed back. So, the government never really had a good look at them and whether they are appropriate in the system,” she said.

“My view is that they need to decide whether they’re in or they’re out, and if they’re in, then let’s get some proper legislation around them and put the rules in place that actually make them practical for people to use.”

She questioned some of the current requirements currently in place for LRBAs including the need to have a bare trust set-up.

“I don’t see why we need to have this bare trust. Now I’m not a lawyer, but I don’t see why there needs to be this structure around the assets being held on trust for the fund,” she said.

“Why can’t the fund just own them directly? Wouldn’t that make them a lot simpler?”

The government needs to make a decision on whether it wants to keep LRBAs or not and have a good look at the rules around them, she explained.

“If they don’t want to allow them, then let’s just get rid of them and be done with it, instead of this constant analysis and people getting caught out on technical issues with LRBAs,” she said.