‘No comment’ is the best the Treasurer of Australia can offer on an issue where our regulators – and the Government’s five year old financial systems review – have been voicing concern over the risks for years.
The Liberal Government was warned about the risks of limited recourse borrowing arrangements for self-managed superannuation by its own Financial Systems Inquiry (FSI) back in 2014, yet we've now seen borrowings since then nearly double to $32 billion.
These sorts of risks have gone unchecked by the Abbott-Turnbull-Morrison Government. The focus for the Liberal Party is on the Labor Party and not where it should be, which is on the economy and insuring against emerging global and domestic risks.
This is a Government that has been asleep at the wheel when it comes to listening to the advice and managing risks in the economy.
Federal Labor has highlighted the concerns of regulators and the FSI for years and announced we would ban SMSF limited recourse borrowing arrangements two years ago now.
The Liberal Party has continued to recklessly ignore the financial stability risks associated with Australia having the second highest household debt in the OECD for years now.