The Australian Health Practitioner Regulation Agency (Ahpra) and the Australian Taxation Office (ATO) have issued a joint warning against inappropriate access to superannuation to pay for overly expensive or unnecessary medical treatments.
New data released by the ATO yesterday shows significant growth in applications for compassionate release of super, particularly for dental services with the number of requests having more than doubled in two years.
To be approved, the services need to be certified by two practitioners as necessary to alleviate acute or chronic pain, to treat a life-threatening illness or injury or alleviate acute or chronic mental illness.
Some health practitioners and registered agents were inappropriately supporting individuals to access their superannuation on compassionate grounds, particularly for cosmetic procedures not aligned to compassionate release requirements, according to the ATO.
‘While superannuation can be accessed early under compassionate grounds, this is strictly available in very limited circumstances including for critical medical and dental procedures,” said ATO Deputy Commissioner Emma Rosenzweig.
Compassionate release of super should only be considered as a last resort, where all other options of paying for the eligible expenses had been exhausted, she said.
New guidance on compassionate release of super
Ahpra and the Dental and Medical Boards of Australia have released new guidance for doctors and dentists in response to ongoing concerns of inappropriate conduct.
The guidance emphasised the need for a thorough assessment by an appropriately skilled practitioner that prioritised a person’s health, said Ahpra Chief Executive Officer Justin Untersteiner.
“Any advice on what procedure is necessary should be based on the patients’ best interest and not influenced by financial gain or incentives.”
The guidance reiterates Ahpra’s position statement released in May, that any treatments recommended by practitioners should only be certified if they are necessary.
It also includes a warning for practitioners it could also result in severe penalties from Australian Securities & Investment Commission (ASIC).
In 2024-25, a significant portion of superannuation released early on compassionate grounds was for dental, IVF and weight loss treatment, with 30% of those rejected by the ATO for not meeting the requirements on compassionate grounds.
‘We are seeing practitioners making inaccurate statements in medical reports. The ATO relies on medical and dental professionals to act in the best interests of their patients to prepare accurate reports regarding their diagnoses and the required treatment strategy,’ said Deputy Commissioner Rosenzweig.
Regulatory action and penalties
Complaints to Ahpra generally related to treatment already provided and funded through early access to super. Regulatory action has ranged from cautions and conditions to referral to a tribunal.
Other penalties apply to individuals, health practitioners or registered agents who help to prepare or submit an application for health treatments that are not necessary, as this would be considered making a false or misleading statement to the Commissioner.
Ahpra and the ATO continue to work together to monitor recent growth in applications and identify any concerns about inappropriate conduct.
The ATO has developed a video for practitioners that details a number of concerning behaviours the ATO has observed and to educate them on the ATO’s expectations when supporting individuals to access their super on compassionate grounds.
The ATO encourages anyone who is aware of inappropriate practices such as social media advertisements leading to inappropriate early access of superannuation, or health practitioners providing inaccurate medical reports, to make a tip off to the ATO.
If you have a concern about an individual registered health practitioner’s professional performance or conduct, you can notify Ahpra.
For the full breakdown of the latest ATO data on compassionate release of super, visit Compassionate release of super.
For more information, read the Separating fact from fiction on accessing your super early factsheet
