Time to read : 5 Minutes
To accurately answer the question about whether your superannuation can fund your urgent healthcare, it’s all about the definition of ‘urgent healthcare’.
The government takes your superannuation savings seriously and doesn’t want people withdrawing it early for the wrong reasons. That’s why, if you do further digging into the topic on the ATO website, you’ll see some very strict criteria must be met to apply for early release of your super. There are categories related to health, and the reasons that early super can be released to help you meet the financial burden of dealing with a physical or mental health issue include:
Access on compassionate grounds
including medical treatment and medical transport for you or your dependant
palliative care for you or your dependant
accommodating a disability for you or your dependant.
A terminal medical condition exists if all these conditions are met:
two registered medical practitioners have certified, jointly or separately, that you suffer from an illness or injury that is likely to result in death within 24 months of the date of signing the certificate
at least one of the registered medical practitioners is a specialist practising in an area related to your illness or injury
the 24-month certification period has not ended.
Access due to temporary incapacity
your fund must be satisfied that you have a permanent physical or mental medical condition that is likely to stop you from ever working again in a job you were qualified to do by education, training or experience
if you meet the above criteria, but are undertaking other work, such as light duties in a different position or casual work in a different field, you may still be eligible to withdraw your super early under this category.
Access due to permanent incapacity
if you are temporarily unable to work, or need to work fewer hours because of a physical or mental medical condition, you may be able to access your super under this category.
Can you use your superannuation for plastic or cosmetic surgery?
If you’ve ever considered cosmetic surgery, you may have noticed practitioners promoting that those new breasts you want might be covered by your superannuation fund.
Hmmmmm.
It’s a nice sales pitch but there are a few things to understand before you dip into your retirement savings for tomorrow in the quest of a double-D today.
From the ATO website, the current criteria for accessing super for surgery are:
the patient needs surgery for a chronic medical illness/condition
the patient has no other means to pay for surgery other than super
the patient must apply before the surgery and have a quote for the surgery
the super claim must be made for the patient himself/herself or a dependant spouse or child
the patient cannot access the particular surgery through the public system.
What kind of plastic surgery will your super fund cover?
Surgical treatment related to chronic pain is one reason that early release of superannuation may be possible. But, when it comes to making your breasts bigger, it’s almost certainly a ‘no’. However, if you need a breast reduction to relieve ongoing back/shoulder/neck pain, or have already had breast implant surgery that has now led to complications, you may be covered.
According to the ATO, here the some reasons early release of superannuation may be possible:
complications regarding breast implants
breast reduction surgeries
tummy tuck and excess skin removal after major weight loss or after pregnancy
nose surgery – corrective rhinoplasty or septoplasty
other surgeries that relieve chronic pain.
But remember: to qualify for early release of your super for surgery, you must be experiencing medical conditions such as ongoing pain and discomfort.
And, because there are a few super funds that don’t allow access for early withdrawal under any circumstances, even if you do meet the criteria your only option might be to change super funds before withdrawing early.
Talk to your GP to get a better understanding
If you do fit the criteria for early release, there are official things you need before booking your surgical date.
surgery quote from the surgeon
an early release super form that will be filled by your general practitioner to certify your chronic health condition
an early release super form that will be filled in by the plastic/cosmetic surgeon.
These forms are found on the ATO website.
Can early release of super fund fertility treatments?
An early release application (ERS) can also be made for a variety of women’s health issues and fertility-specific treatments, including:
IVF/ICSI/IUI
donor egg
donor sperm
gynaecology procedures
women’s mental health counselling
endometriosis treatment
breast cancer treatment.
For people who find paperwork confusing, help is at hand – but it will cost you.
Supercare is a private company that fills in necessary application forms and sources the supporting materials you need, to help streamline your request for early super release. You may still get your claim knocked back, but because they know all the boxes that need to be ticked, it may be handy.
How much tax will you pay for early release of super?
If you are granted early release access to some of your superannuation funds, it will be taxed and counted as your assessable income in that financial year. And, depending on the cost of your surgery, that could add up to a lot.
If your surgery is related to some of the ATO criteria mentioned earlier, though (think terminal illness/temporary or permanent incapacity), you may meet some compassionate grounds/financial hardship criteria set by the ATO – and that could mean tax concessions.
The bottom line
Superannuation is savings. Just like you shouldn’t smash your piggy bank to pay for a chocolate bar to satisfy your late-night cravings, you shouldn’t treat your super fund like a bank account that can pay for plastic surgery just because it might make you feel good.
Obviously, some surgery is important, but whether or not you meet the criteria to access early release is up to the ATO and your super fund.
Go deeper: Can I access my superannuation early?
Financial disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
