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Health Regulators Take Action on Complaints About Practitioner-Facilitated Superannuation Access

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Health Regulators Act on Superannuation Complaints as Early Withdrawals Surge

Australian health regulators have taken disciplinary action against several practitioners following complaints about their involvement in patients accessing superannuation savings early for medical procedures. The actions coincide with a significant increase in the amount withdrawn under compassionate grounds rules and official warnings about the long-term financial risks.

Regulatory Actions and Complaints

The Australian Health Practitioner Regulation Agency (AHPRA) received 95 complaints between January 2019 and December 2025 regarding health practitioners involved in patients accessing superannuation early on compassionate grounds.

Following investigations into these complaints:

  • Two medical practitioners were referred to tribunals for alleged professional misconduct.
  • One dentist had conditions imposed on their registration.
  • One doctor received a formal caution.

Tribunal Case: Perth Doctor Suspended

The Western Australia State Administrative Tribunal recently ruled on one of the referred cases. It found a Perth general practitioner engaged in professional misconduct by inappropriately helping a patient access $18,500 from her superannuation to fund a liposuction procedure in 2018.

The Medical Board of Australia had accused the doctor of providing false and misleading information on an early release declaration form.

The Board stated the doctor claimed the patient needed the funds for a life-threatening condition described as obesity, but did not document the patient's weight, body mass index, or a clinical assessment in his notes.

The tribunal suspended the doctor's registration for three months and ordered him to pay $5,000 towards the Medical Board's costs.

Financial Context and Superannuation Rules

Data from the Australian Taxation Office (ATO) provides context for the regulatory focus:

  • Australians withdrew more than $1.4 billion from superannuation on compassionate grounds in the last financial year, with almost all spent on medical costs.
  • Successful applications to use superannuation for dental work increased tenfold compared to the 2018-2019 period.

Under the ATO's compassionate grounds scheme, individuals can apply to access superannuation early for specific expenses, including medical treatment. For early withdrawal on medical grounds, the rules require two medical practitioners to verify in writing that the treatment is necessary to:

  • Treat a life-threatening illness or injury.
  • Alleviate acute or chronic pain.
  • Alleviate an acute or chronic mental illness.

Official Statements and Concerns

Regulators and industry representatives have commented on the issue.

ATO Deputy Commissioner Ben Kelly stated that accessing superannuation early carries long-term financial risks and can reduce retirement savings. Kelly said:

"It is unacceptable for anyone to pressure Australians into accessing their superannuation savings early to pay for overpriced or unnecessary treatments."

He also stated that some practitioners were using "predatory practices" to inappropriately facilitate early access.

Super Members Council CEO Misha Schubert expressed concern about advertising encouraging early superannuation withdrawals for non-essential procedures. Schubert noted the long-term impact on retirement savings, stating that withdrawing $20,000 early could result in being approximately $100,000 poorer by retirement age.

Warning Signs and Public Advice

The ATO has listed potential warning signs for patients considering using superannuation to pay for medical treatment. These include a practitioner who:

  • Uses social media to advertise early superannuation access.
  • Asks for personal details to apply for compassionate release on a patient's behalf.
  • Uses telehealth appointments rather than conducting in-person examinations.
  • Encourages the use of superannuation but does not offer payment plans as an alternative.
  • Requires patients to use a specific third-party provider to submit their application.
  • Charges a fee for submitting the application.

Authorities advise patients to:

  • Consider seeking an additional medical opinion about treatment and costs.
  • Carefully review all documentation from a practitioner for accuracy.
  • Understand the financial impacts, which can include additional tax withheld and potential changes to eligibility for government support payments.

Ongoing Regulatory Measures

AHPRA is trialing the use of artificial intelligence to identify problematic advertising by health practitioners. The trial focuses on advertising that may suggest a practitioner is willing to prioritize financial incentives ahead of patient needs. Several practitioners are already under investigation as part of this initiative.

Individuals with concerns about a health practitioner's conduct regarding superannuation access are urged to notify AHPRA or the ATO.