Compassionate Release of Superannuation (CRS)
In Australia, some people can get their superannuation (super) money early if they really need it for serious health reasons. This is called Compassionate Release of Super.
You can only get this money early if you have no other way to pay for the help you need.
There are very strict rules about who can access their super, and you must meet one of these important reasons.
- A very serious illness or injury that could be life-threatening
- Really bad dental (tooth) pain that is new or has been there for a long time
- Teeth problems that are linked to mental health issues
You should not be taking money out of your super for elective or cosmetic treatment. Dentists are not supposed to advertise for patients to use their super to pay for dental treatment. This is unethical.
Using Superannuation to pay for Dental Treatment – What You Need to Know
If you're thinking about using superannuation (super) money to help pay for dental treatment, here are some important things to remember:
1. The Dentist’s Report Must Be for Real Health Problems
- The dentist can only write a report if the treatment helps with:
- A life-threatening illness or injury
- Bad pain – new or ongoing
- A mental health problem that affects your teeth
- The dentist can’t write a report just for things like making teeth look nicer e.g. cosmetic work.
- The dentist might charge money to write this report and checking your teeth.
2. There Are No Set Rules About What Dental Work Is Allowed
- There’s no list that says which dental treatments will be approved or not.
- Each case is different and the type or amount of treatment depends on how serious the problem is.
3. Dentists Must Be Honest
- Dentists must tell the truth in their reports.
- If the report is not truthful, dentists can be fined or not allowed to work anymore.
- Dentists should provide advice that is not influenced by how you pay.
4. The Money Must Be for Real Treatment
- You can only use your super money for treatment that helps with pain or mental health.
- You can’t use it for things like fixing your smile just to look better.
- You can’t use the money for non-dental things e.g. a new car.
5. Think Carefully Before Taking Money Out of Super
- Taking money out of your super now might mean you have less money when you're older and can affect your retirement.
- Analysis by Super Members Council shows a person who withdraws $20,000 from super at age 30 can result in $93,000 less at retirement.
- Withdrawing money from your super early can sometimes affect Centrelink payments and child support eligibility.
- Withdrawing money from your super may affect any insurance cover held in your super fund.
- Unless you have a terminal illness, the money you withdraw early from your super is generally taxed.
- It’s a good idea to talk to a money expert first.
- Only people with a special license are allowed to give money advice – Australian Financial Services License.
- Your dentist cannot give you advice about money and super.
6. Free Help Is Available
- You can get free financial advice from:
7. If Mental Health Is Involved
- If your dental problem is linked to mental illness, you’ll also need a report from a psychiatrist (a doctor who specialises in mental health).
If You Take Money Out for Dental Work:
- You can change your mind about the treatment you want.
- You don’t have to tell the dentist who wrote the report if your super application was approved.
- You can get the treatment from any dentist, not just the one who wrote your report.
- You usually don’t have to pay everything upfront. Some dentists might ask for a deposit when they start treatment.
- Always ask about any future costs, like repairs or follow-up treatments.
- You must also think about how you’ll pay for them later and if this is the best scenario for your teeth.