The Australian Dental Association (ADA) has released new guidelines for dentists and patients with regard to the early release of superannuation on compassionate grounds in response to ATO concerns over the use of these provisions in the retirement savings framework.
ATO data released last week revealed dental care rated as the second-highest reason for using the compassionate release of superannuation scheme (CRS), with requests for money for dental services doubling in two years.
“The ability to access superannuation early to pay for critical dental treatment is an important part of our health safety net,” ADA president Chris Sanzaro said.
“The scheme has provided welcome financial relief for tens of thousands of people needing urgent dental treatment.”
The new ADA CRS guidelines remind practitioners dentists cannot provide financial guidance to patients regarding withdrawing super to fund treatment. This can only be supplied by the holder of an Australian financial services licence.
The association has also stressed compassionate release can only occur when “there’s a life-threatening injury or illness, acute or chronic pain, or where dental treatment will help with a mental illness and there’s no other way to afford it”.
Like other situations where compassionate release of super for medical reasons is sought, two reports from medical practitioners, one of which must be a specialist or dentist, are required. If a patient is applying for early release to help with a mental illness, a report from a specialist psychiatrist is needed.
“We’re also stressing that as well as reports, patients need a quote from the practitioner about the cost of treatment necessary to treat the acute condition, as well as an indication of future treatment and maintenance costs. That way there’s complete transparency for both sides,” Sanzaro explained.
The ADA has also released guidance for patients outlining important facts they need to know and understand before applying for early access to their superannuation savings. The material includes information from the Superannuation Members Council that highlights the impact a significant withdrawal when young can have on super balances at retirement.
