Demand for credit from self-managed super funds may be curtailed if parliament adopts a government bill intended to deal with a potential loophole for SMSF members to pump borrowed funds into their super funds. If taken to its extreme, it might be possible to circumvent their contribution caps.The draft legislation "will include the use of limited recourse borrowing arrangements (LRBA) in a member's total superannuation balance and transfer balance cap to the transfer balance cap and total superannuation balance," Treasury explained at its website yesterday.The amendments "effectively transfer accumulation growth to retirement phase that is not captured by the transfer balance cap," it said. (The transfer balance cap was set at A$1.6 million for the 2017/18 financial year.)These changes apply only to a self-managed superannuation fund or a complying superannuation fund with less than five members.Interested parties are invited to make a submission by Wednesday 3 May 2017 to superannuation@treasury.gov.auFor enquiries please call Michelle Dowdell +61 2 6263 3071.