ATO and Ahpra Target Promoters of Early Superannuation Release Schemes

The Australian Taxation Office (ATO) and the Australian Health Practitioner Regulation Agency (Ahpra) have announced a crackdown on health practitioners and third-party facilitators promoting early access to superannuation for medical and cosmetic procedures, according to a joint release from the agencies. While the total number of approved compassionate release applications dropped by 5%, the overall value of released funds rose by 2% to more than $1.4 billion.

ATO Deputy Commissioner Ben Kelly stated that superannuation is intended for retirement and that early access on compassionate grounds should only be utilized as a last resort for critical medical expenses. The ATO highlighted concerns over predatory business models, including short online consultations and template medical reports designed to help patients access retirement savings for procedures such as cosmetic dentistry.

Since 1 July 2025, the ATO reported initiating over 160 reviews and audits involving suspected false or misleading statements in applications or medical reports, resulting in more than $1.5 million in penalties. In one case study cited by the ATO, an administrative penalty of approximately $30,000 was imposed on a health practitioner for providing false and misleading clinical statements in a report supporting an early release application.

Ahpra CEO Justin Untersteiner warned registered health practitioners against using aggressive social media and online advertising tactics to market expensive treatments to patients. Untersteiner stated that practitioners who provide fraudulent or misleading information face referral to tribunals for alleged professional misconduct. One practitioner has already been suspended regarding a patient's cosmetic surgery, while others face ongoing tribunal actions.

The ATO also noted that accessing superannuation early carries potential tax consequences, as withdrawn amounts may be taxable and could increase reportable income, potentially affecting eligibility for government assistance such as the Family Tax Benefit. Ahpra and the National Boards have released guidance materials regarding conflicts of interest and compassionate release requirements for practitioners.

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