Superannuation for Surgery and Dental

Are you considering surgery but do not have savings or access to medical financing? Or perhaps you have heard of other patients gaining access to their super to pay for surgery?

In this article, we hope to explain the current rules governing Superannuation for surgery and dental. Australia clients only.

Summary

Essentially, Superannuation is accessible when there is a serious medical condition and the patient has no other means to fund the surgery. Patients who have made successful claims include those requiring Bariatric surgery, breast reductions, tummy tucks and lifts, post weight loss surgery, dental needs, and removal of implants for medical need.

The process is currently managed by the Australian Taxation Office and if they approve the release, your Super fund will then consider the grounds and release the funds if appropriate under the rules of your fund.

Accessing your Superannuation is a serious process given it will impact your retirement savings. For that reason, we encourage you to seek financial advice before going down this path.

There are certain criteria to be met if you want early access to your Superannuation on compassionate grounds. You might get access if you need the money:

for medical treatment or medical transport
to treat a life-threatening illness or injury
to alleviate acute or chronic pain
to alleviate acute or chronic mental illness
Flights overseas and hotel bookings for our packages as they are overseas

What is the ATO looking for?

Superannuation can be released on compassionate grounds, but be warned it is challenging. The current criteria are outlined in the ATO website.

They include:

You need surgery or dental for a chronic or acute medical condition: What do ‘chronic’ and ‘acute’ mean? The word acute means there has been a rapid onset or progress of your pain. And means the treatment you require is urgent. The word chronic means longer (usually at least 3 months duration), and the pain may have been stable or had periods where it has flared up and settled back down.
You have no other means to pay for the surgery
The surgery is unpaid (ie, you must apply before the surgery)
The claim is for you or a dependent (i.e. spouse or child – so we have seen spouses access their husband or wife’s Super depending on their circumstances).
The surgery is not easily and readily available through the public system.

What you will need

Review the process on the ATO website

Before you apply to the ATO we recommend you ask if your Superfund will grant you access to your Super under compassionate grounds. If your fund does not permit early release, you may be able to transfer your Super to a different fund that allows for early release on compassionate grounds.

Our surgeons and dentists will prepare the documents needed on their behalf for you to submit.

You will then need to make an appointment with a GP and bring the completed documents and they will complete another form and sign it

But we will walk you through this step by step.

Submitting your application

Once you have gathered and completed your supporting documents, submit your application on the ATO section of the MyGov website – linked from the ATO website here (you will need to link your ATO details to the MyGov site if you have not done this previously). Essentially, you go to the ATO section on MyGov, then choose ‘Super”, then “Manage”, then “Compassionate release of Super”.

Please note the application process at the ATO can take up to six weeks, so we recommend you submit your application after your assessment but before booking your surgery date to avoid any setbacks. Please keep in mind that your full fees will be due four weeks prior to your scheduled procedure.

Do I pay Tax on this amount?

Yes, you will be taxed, and at this point, tax is taken out when the funds are released to you. Any sum taken out of your Superfund will be taxed as it will count towards assessable income.

If you are under 60 years old, this will generally be taxed between 17% and 22%. If you are over 60 years old, you may not be taxed.

You should consider financial advice about this option for funding surgery, especially as the money withdrawn will impact your retirement income in the future.

What Kind of Procedures Could I Get with My Super Fund?

You can claim early Super release for a range of medical conditions.

Unless you are dealing with severe or chronic pain, Super will not cover the surgery.

Here are some of the most popular procedures for which you could claim the Super fund:

Abdominoplasty and Excess Skin Removal after Major Weight Loss
Bariatric Surgery: Gastric Sleeve and Bypass Surgery
Abdominoplasty after Pregnancy
Breast Implant Revision Surgery
Breast Reduction Surgery to relieve back & neck pain
Breast Surgery after major weight loss
Nose Surgery for breathing problems
Arm Lift after major weight loss
Thigh Lift after major weight loss
Dental: a variety of dental and orthodontic treatments including braces, crowns, general dental, implants, orthodontics, periodontics, and many more

A mandatory condition to access Super to pay for plastic surgery is to deal with acute or chronic pain and/or discomfort. Procedures performed for aesthetic reasons only do not qualify.