When the changes were introduced in 2007, limited recourse borrowing arrangements were introduced as the way for superfund's to access loans to purchase a property.
About one-third of all direct property investors also used limited recourse borrowing arrangements -- concerns over gearing prompted the financial system inquiry to recommend the practice be banned.
Non-residential property, residential property, listed trusts, limited recourse borrowing arrangements and other managed investments each comprised far less than 10 per cent of the average fund.
The federal government recently rejected recommendations from the financial system inquiry and retained limited recourse borrowing arrangements for the schemes.
The remaining 35% does not just pay for services from school meals to gritting to refuse collection but also for councils' long-term borrowing arrangements.