Concerns have emerged regarding health professionals facilitating early access to superannuation for patients seeking various treatments, with nearly 100 complaints lodged against such practitioners. The Australian Taxation Office (ATO) has warned individuals to be cautious of practitioners promoting early superannuation withdrawals through social media, as these withdrawals are strictly regulated and only permitted for specific medical circumstances, including pain management, mental health issues, or life-threatening conditions.
Among the reported cases, a general practitioner in Perth has faced serious allegations after assisting a patient in accessing close to $20,000 from her super for cosmetic liposuction. This incident is one of two cases referred to regulatory tribunals following numerous complaints. Since 2019, the Australian Health Practitioner Regulation Agency (AHPRA) has documented 95 complaints concerning health practitioners’ involvement in the premature withdrawal of superannuation funds.
The WA State Administrative Tribunal recently determined that the Perth doctor acted unprofessionally by aiding a patient in accessing $18,500 for liposuction, despite the absence of proper documentation regarding her medical condition. The Medical Board of Australia claimed that the doctor had provided misleading information, asserting that the withdrawal was for life-threatening obesity without any recorded evidence of the patient’s weight or body mass index.
According to tribunal records, the doctor filled out the early release declaration form in 2018 after the patient expressed a desire for a tummy tuck or liposuction to address excess abdominal fat. However, the doctor’s clinical notes failed to include any relevant assessments, such as the patient’s weight or BMI, and did not reference any life-threatening health issues.
The tribunal has mandated a three-month suspension of the doctor’s medical registration and imposed a $5,000 fine to cover part of the Medical Board’s expenses. ATO data indicates that from January 2019 to December 2025, AHPRA received 95 complaints related to compassionate superannuation releases, with the majority concerning treatment results or payment disagreements.
ATO Deputy Commissioner Ben Kelly remarked that some health practitioners are employing “predatory practices” to improperly facilitate early super access. He emphasized the unacceptability of pressuring Australians into withdrawing their superannuation savings prematurely for unnecessary treatments, highlighting that superannuation is intended as a long-term investment for retirement. Early withdrawals can jeopardize financial stability in retirement.
Last financial year, Australians withdrew over $1.4 billion from their superannuation on compassionate grounds, primarily for medical expenses, including dental procedures. There has been a dramatic surge in successful applications for using superannuation for dental work, increasing tenfold compared to the 2018-2019 period.
Under the ATO’s compassionate grounds provision, individuals may apply to access their superannuation for specific medical or disability-related expenses, provided that two medical professionals confirm the necessity of the withdrawal. Misha Schubert, CEO of Super Members Council, expressed concern over the growing trend of practitioners improperly assisting patients in accessing their superannuation for non-essential medical procedures.
She cautioned that withdrawing significant amounts from superannuation at an early age could result in a substantial financial shortfall by retirement, emphasizing the need for robust protections to safeguard these funds intended for retirement income. Schubert reiterated that superannuation should not serve as a temporary solution for health system gaps.
The ATO has urged Australians to thoroughly consider the immediate and long-term consequences of early super withdrawals, including potential tax implications and impacts on government support eligibility. Patients are encouraged to seek second opinions regarding treatment costs and to carefully review their practitioner’s documentation for accuracy.
Kelly advised individuals to watch for warning signs, such as practitioners using social media to promote early super access or requesting personal information to apply for compassionate releases on their behalf. Additional red flags include reliance on telehealth consultations instead of in-person evaluations, pressure to utilize specific providers for application submissions, and any associated fees for application processing.
Individuals with concerns regarding a practitioner’s conduct are encouraged to report their observations to AHPRA or the ATO. In response to these issues, AHPRA is currently testing the use of artificial intelligence to detect problematic advertising that prioritizes financial gain over patient welfare, with several practitioners already under scrutiny.
