Concerns Raised Over Accessing Super for Dental Treatment
The Dental Board of Australia has raised concerns about increasing reports of dental practitioners encouraging patients to access their superannuation to fund dental care.
Access to superannuation under compassionate grounds is administered by the ATO in accordance with specific regulatory conditions. There are five main grounds for eligibility under the compassionate release of superannuation program, one of which relates to medical treatment.
Compassionate Release of Super for Medical Treatment
Under the law, superannuation may be released on medical grounds only where the treatment is necessary to:
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Treat a life-threatening illness or injury
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Alleviate acute or chronic pain
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Alleviate acute or chronic mental illness
Applications made on the basis of medical treatment must be supported by two medical reports. At least one report must be provided by a treating specialist. These reports must confirm that the treatment is necessary to address one of the qualifying conditions and that the treatment is not readily available through the public health system.
Rise in Dental Treatment Applications
ATO statistics for the 2022–23 financial year show a significant increase in applications for the compassionate release of super for dental treatment when compared with other medical subcategories such as IVF, weight loss and other practitioner-recommended treatments.
In the 2022–23 financial year, applications for super release for dental treatment approved by the ATO totalled $313.4 million. This represents a substantial increase from $171.3 million in the previous financial year and from $66.4 million in the 2018–19 financial year.
Regulatory Concerns From the Dental Board
Dr Murray Thomas, Chair of the Dental Board of Australia, has noted that the Australian Health Practitioner Regulation Agency (Ahpra) has received a small number of notifications relating to patients accessing super to fund dental treatment.
Nature of Reported Issues
These notifications include concerns about:
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Practitioners recommending or advertising to patients that they access their super to pay for dental services
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Instances where practitioners have refused to assist patients seeking to access their super
Dr Thomas expressed concern that, given the rapid growth in the number of patients accessing super for dental treatment, further complaints may arise.
Practitioner Obligations and Advertising Rules
The Dental Board has indicated it is acting proactively to reduce potential complaints by reminding practitioners of their obligations.
Patient Rights and Advertising Compliance
Practitioners are reminded of patients’ rights to necessary, appropriate and beneficial healthcare. They must also comply with legal advertising requirements when promoting or discussing the compassionate release of superannuation for treatment.
Accuracy and Integrity of Medical Reports
Medical practitioners preparing reports to support compassionate release applications must comply with the Board’s Code of Conduct. This includes providing accurate and honest information to the ATO.
Providing misleading or false information to support a patient’s request to access super may result in disciplinary action by the Dental Board, in addition to any action taken by the ATO.
Advice for Patients Considering Early Super Access
If you are facing expensive dental or other medical treatment and are advised to fund it by accessing your super early, whether through a direct ATO application or via a third-party service that facilitates applications for a fee, it is important to proceed with caution.
You should consider:
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Seeking a second medical opinion on the necessity and cost of the treatment
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Speaking with a financial adviser to fully understand the process and implications
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Carefully weighing the long-term consequences of accessing your superannuation early
Early access to super can have lasting impacts on your retirement savings, and independent medical and financial advice can help you make an informed decision.
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