Compassionate Release of Superannuation

Early access to superannuation to pay for critical dental treatment is an important part of our health safety net.

The right to access savings on ‘compassionate grounds’, including critical health and palliative care, has been written into our superannuation rules since the mid-1990s. 

But the provisions are under closer scrutiny as the number of people applying for this support has risen sharply. Last year, 21,790 people had their applications approved for early access to their super totaling $526.4 million. See Table 7: Dental, ATO reporting

This was never the intention of the Compassionate Release of Superannuation (CRS). It speaks to the lack of support for dental work in the public system, and the growing number of people being priced out of private health insurance, particularly specific dental plans.
 
There is also anecdotal evidence of some unscrupulous practitioners actively advertising that anyone can access super to fund cosmetic work on social media. This is against the spirit and guidelines of the ATO rules for accessing super, and the broader ethics of our profession.

There are legitimate cases where missing teeth or orthodontic conditions have severe impact on someone’s physical and mental wellbeing.  But some of the treatments being marketed such as veneers, teeth whitening and alignments are clearly outside the intended definition of compassionate grounds.
 
The ATO currently doesn’t have the data to ascertain how widespread the problem is, but we can all agree the decision to draw down super should be a health and not a lifestyle decision.

New CRS Guidelines

ADA’s new CRS guidelines and checklist help you ethically inform patients about CRS without promoting it. 

All health practitioners must provide accurate reports for CRS applications, present all treatment options and costs, and encourage patients to seek independent financial advice due to the potential long-term financial impacts of early access to superannuation.  

ADA CRS Guidelines - contents:

• ADA’s recommendations

• Application requirements

• Advising use of CRS

• Eligible dental procedures

• Successful applications

• Dentists’ responsibilities and legal risks

• Patient financial considerations

• Charging for a report

• Related policies and resources