Accessing Superannuation

What is Compassionate Release of Super?

Compassionate release of super allows you to access a portion of your superannuation savings before retirement age to cover specific, essential expenses that you cannot otherwise afford. This provision is managed by the Australian Taxation Office (ATO), which sets strict criteria for approval.

For dental treatment, the core principle is that the treatment must be necessary to alleviate severe pain, prevent a life-threatening illness, or mitigate the worsening of a chronic medical condition. It is not intended for purely cosmetic procedures.


Eligibility for Dental Treatment

To be eligible for compassionate release of super for dental treatment, you must meet all of the following conditions:

  1. You are an Australian citizen or permanent resident.

  2. You do not have the financial capacity to pay for the treatment without accessing your super. This means you must have explored all other financing options (e.g., personal savings, insurance, payment plans, loans) and demonstrate that these are not viable or sufficient.

  3. The dental treatment must be deemed medically necessary by a registered dental specialist or medical practitioner. This is crucial. The ATO will require specific documentation to confirm the severity and necessity of the treatment.

Dental Treatment That May Qualify:

While the ATO assesses each case individually, the following types of dental treatments are commonly considered for compassionate release, provided they meet the "medically necessary" and "financial hardship" criteria:

  • Extensive extractions due to severe infection or trauma.

  • Treatment for severe gum disease (periodontitis) that is impacting overall health.

  • Dental implants where tooth loss significantly impacts nutrition, speech, or is linked to a broader medical condition.

  • Major reconstructive dental surgery following trauma or disease.

  • Orthodontic treatment where severe malocclusion causes significant pain, difficulty eating, or contributes to other medical issues (e.g., TMJ disorders).

  • Treatment for abscesses, cysts, or oral pathology requiring surgical intervention.

Treatments Typically NOT Covered:

  • Purely cosmetic procedures (e.g., teeth whitening, veneers for aesthetic reasons only).

  • Routine check-ups, basic fillings (unless part of a larger, critical treatment plan).

  • Procedures that are not deemed immediately essential for pain relief or health prevention.


The Application Process

Applying for compassionate release of super is a detailed process that requires careful preparation of documentation.

Step-by-Step Guide:

1. Obtain a Quote from Your Dentist:

  • Your dentist or dental specialist will provide a detailed treatment plan, outlining the procedures, the estimated costs, and a clear explanation of why the treatment is medically necessary. This quote must be less than 6 months old.

2. Gather Supporting Medical Documentation:

  • Your dentist or specialist will need to provide a medical report that explicitly states:

    • The nature of your condition.

    • Why the treatment is necessary to:

      • Alleviate severe pain.

      • Prevent an acute or chronic medical condition.

      • Alleviate an existing acute or chronic medical condition.

    • The expected start date of the treatment.

    • That the treatment cannot be reasonably delayed.

3. Demonstrate Financial Incapacity:

  • You will need to provide evidence to the ATO that you cannot afford the treatment without accessing your super. This may include:

    • Bank statements.

    • Evidence of income.

    • Proof of other debts or financial commitments.

    • Statements from your health insurance (if applicable) showing what portion, if any, they will cover.

    • Evidence that you have been refused a loan or other financing.

4. Complete the ATO Application Online:

  • Access the "Early release of super on compassionate grounds" application via your myGov account linked to the ATO.

  • Upload all required documentation (dental quotes, medical reports, financial evidence).

  • Specify the exact amount you wish to withdraw, up to the total cost of the treatment.

5. ATO Assessment and Decision:

  • The ATO will review your application. This process can take several weeks.

  • If approved, the ATO will send you a determination letter and notify your super fund.

  • If denied, the ATO will explain the reasons, and you may have the option to provide further information or appeal the decision.


Important Considerations

  • Taxation: Any amount you withdraw from your super on compassionate grounds is generally taxable. The amount of tax depends on your age and the amount withdrawn. It is highly recommended to seek financial advice to understand the tax implications.

  • Impact on Retirement Savings: Accessing your super early will reduce your retirement savings, potentially impacting your long-term financial security. This decision should not be taken lightly.

  • Super Fund Rules: While the ATO approves the release, your super fund is responsible for making the payment. There might be specific requirements or timelines from your fund.

  • Only for Unpaid Treatment: You can only apply for funds to pay for treatment that has not yet been paid for. You cannot claim for past treatments.


Seeking Assistance

Navigating the compassionate release of super process can be complex. Consider seeking advice from:

  • Your Dental Clinic: They can help you with the necessary medical reports and treatment plans.

  • Financial Advisor: To understand the long-term impact on your super and the tax implications.

  • ATO Website/Helpline: For official guidelines and assistance with the application itself.

Accessing your super can be a lifeline for essential dental treatment, ensuring that critical health needs are met when financial resources are otherwise unavailable. By understanding the criteria and preparing thoroughly, you can increase your chances of a successful application.