Not a ‘misunderstanding’ of rules: Dental practice searched over illegal $36.4m early super release

The practitioner is also alleged to have used recruiters to attract individuals into the scheme and facilitate fraudulent applications.

Commenting on the allegations and investigations, ATO Acting Deputy Commissioner Pennie Snowden said: “This wasn’t a misunderstanding of the rules. These allegations point to a deliberate attempt to take advantage of a system designed to help Australians in genuine need.”

Snowden said the investigations, which are ongoing, have shown the significant risk posed by facilitators who abuse compassionate release arrangements and put Australians’ retirement savings at risk.

“Compassionate release provisions are intended as a last resort to help Australians to access necessary medical treatment not readily available through the public health system,” she said.

“We are increasingly concerned by reports of health practitioners who are exploiting those arrangements to support ineligible access to superannuation.

“Superannuation is for your retirement, and there are limited situations where people can access their super early to pay for critical medical treatment. Anyone who deliberately cheats the system can expect to be caught and face serious consequences.”

The ATO recently released data which showed that while the number of applications approved for compassionate release of super has decreased by 5 per cent, the total value approved has increased by 2 per cent to over $1.4 billion.

ATO deputy commissioner Ben Kelly said that while the drop in approved applications is promising, he stressed that the ATO is still concerned that health practitioners and third-party facilitators continue to use predatory practices to get individuals to inappropriately use their super for financial gain.

“Australians need to remember that super is there to set you up for retirement and there are strict and limited situations where people need to access their super early to pay for critical medical procedures,” Kelly said.

“Our message to individuals and medical practitioners is clear – compassionate release of super should only be considered as a last resort, where all other options of paying for the eligible expenses have been exhausted.”

The 2025–26 data for compassionate release of super, released jointly by the ATO and the Australian Health Practitioner Regulation Agency (AHPRA), showed that the number of applications received also dropped from 112,400 in 2024–25 to 109,600 in 2025–26.

The ATO said it is continuing to crack down on health practitioners and third-party facilitators, including dentists, who push individuals to inappropriately access their superannuation to fund cosmetic dental procedures.

Kelly said the ATO is concerned by trends it is witnessing of business arrangements that target and pressure people to access their super to pay for certain procedures, including short online consultations and the use of templates designed to streamline the process for people to access their super.

“People should be very cautious of advertisements that promote early access to super,” Kelly said.

“Taking the time to understand the risks and notice the red flags can help avoid decisions that could significantly impact your retirement savings or result in penalties.”

The ATO said it has increased its compliance activities this year, targeting individuals, health practitioners, and third-party facilitators who promote these schemes.

Since 1 July 2025, the ATO has commenced over 160 reviews and audits where it believes false or misleading statements have been made in applications or medical reports, imposing penalties of over $1.5 million.

Australian Health Practitioner Regulation Agency (AHPRA) CEO Justin Untersteiner said registered health practitioners should never put profits ahead of patients.

“We are concerned by predatory sales tactics that use social media and internet advertising to attract patients for high-cost treatments they do not need or cannot afford,” Untersteiner said.

“Practitioners should know that putting profits before patients is not only unsafe – it could cost them their right to practise,” Untersteiner said.

“Most practitioners do the right thing, and we welcome any signs that inappropriate use of superannuation is decreasing.”

Practitioners found to have provided fraudulent or misleading information to the ATO may be referred to the relevant tribunal for alleged professional misconduct, AHPRA said.

One practitioner has already had their registration suspended in relation to a patient’s cosmetic surgery, while others are the subject of ongoing tribunal proceedings, it said.