Can You Use Your Super to Pay for Dental Treatment?

It comes up at the front desk more than you might think, usually when someone has just been quoted for work they were not expecting: can I use my super to pay for this?

The honest answer is sometimes, but the threshold is a lot higher than most people expect, and it is not our decision to make. Here is how it actually works, what it costs you, and what we would suggest you look at first.

What compassionate release of super actually is

Compassionate release of superannuation (often shortened to CRS) lets you withdraw part of your super before retirement to pay for certain expenses, including some medical and dental treatment.

The important thing to understand up front is that the ATO decides, not your dentist. We can provide a clinical report about your condition and what treatment you need. We cannot approve an application, we cannot promise one will succeed, and we are not permitted to give you financial advice about whether drawing on your super is a good idea for you.

The two conditions

The ATO applies two conditions, and both have to be met:

Condition 1 — you or your dependant require the treatment to either:

• treat a life-threatening illness or injury
• alleviate acute or chronic pain, or
• alleviate an acute or chronic mental illness.

Condition 2 — the treatment is not readily available through the public health system.

Dental treatment can qualify, though the ATO requires additional evidence for dental applications specifically. Two reports are needed, and the ATO sets out exactly who has to complete them.

Where it does not apply

The ATO lists treatments that are generally not eligible, including:

• treatment that is not related to Condition 1
• treatment a practitioner does not consider necessary under Condition 1
• treatment for potential conditions, meaning things you might develop in future but do not currently have
• cosmetic procedures that are not required to treat a life-threatening illness or to alleviate acute or chronic pain or mental illness
• administration fees charged by a third party to help you prepare your application.

That last one is worth reading twice. If a business offers to handle your paperwork for a fee, that fee is not an eligible expense.

On cosmetic work, the ATO is direct about it:

Experiencing pain or distress does not automatically mean you may be eligible for an early release of super. The thresholds set out in condition 1 are serious ones requiring your medical practitioner to apply sound, professional judgment as to whether they have been met.

And where a treatment could be done more than one way, the ATO expects practitioners to certify and quote for only the treatment necessary to treat the eligible condition. Even if you would prefer the higher-cost option with the better cosmetic result, the ATO says it can only approve what is absolutely necessary.

What it costs you

This is the part that gets skipped in a sales conversation.

Money released early from super has tax withheld from it. It is also money that stops being invested, so the cost is not just the amount you withdraw, it is everything that amount would have earned between now and your retirement. Depending on your circumstances, a withdrawal can also affect Centrelink payments or child support.

The ATO’s own guidance is that people should explore other funding options first and understand the short and long-term impacts before applying. The Dental Board of Australia puts it plainly on its patient information page: you can only use your super when there is no other way for you to pay for treatment.

What we will and will not do

So that there is no ambiguity about how we handle this at our clinics in Ingham, Innisfail, Bohle Plains, Townsville, Bowen and Emerald:

• We will examine you properly and talk you through every treatment option, including the cheaper ones and the option of staging work over time.
• We will give you a written quote before anything starts, including what ongoing maintenance the treatment is likely to need.
• We will complete a clinical report honestly if your condition genuinely meets the ATO’s criteria.
• We will not charge you a fee to prepare or submit an application.
• We will never ask for your myGov login. Nobody should.
• We will not tell you that using your super is a good financial decision, because we are not licensed to give you that advice, and saying otherwise would be a breach of our professional obligations.

If you want a second opinion before committing to anything, say so. That is a completely reasonable request and we will give you your x-rays and treatment plan to take with you.

The Queensland option most people miss

Condition 2 above is the one that catches North Queensland patients out. The ATO will not release super for treatment that is readily available through the public health system, and in Queensland that system reaches further than most people assume.

If you hold a Health Care Card, a Pension Concession Card or a Queensland Seniors Card, you are generally eligible for public dental care, and that eligibility extends to dependents named on your card. Many Hospital and Health Services also issue dental vouchers, which let you be treated by a private dentist rather than waiting for a public clinic appointment. Vouchers are issued at each Health Service’s discretion, so the place to ask is your local public dental clinic or 13 HEALTH (13 43 25 84).

We accept Queensland Health vouchers at Emerald, Bohle Plains, Ingham, Innisfail and Townsville.

This matters twice over. It may get your treatment done without touching your super at all. And if you do end up applying, the ATO will want to know you looked.

Distance is not a reason to rush

Patients in Bowen and Emerald sometimes treat a quoted figure as urgent because the drive to a second opinion is long. It is worth resisting that. A dental problem that has developed over years rarely turns on a fortnight, and a decision to draw down retirement savings deserves the same unhurried treatment you would give a mortgage.

Complex surgical work at our clinics is often the trigger for these conversations. Dr Ricky Sandhu visits from the Gold Coast to perform implants, All-on-X, zygomatic and pterygoid implants, sinus lifts and difficult extractions at our Townsville-area clinics. If that is the sort of treatment being discussed, the plan can usually be staged, and staging it changes what you need to fund at once.

Try these first

For most people, most of the time, there is a better route than touching retirement savings:

• A Queensland Health dental voucher, if you hold an eligible concession card.
• Private health extras, claimed on the spot through HICAPS so you only pay the gap on the day.
• The Child Dental Benefits Schedule, which we bulk bill for eligible children aged 0 to 17.
• Interest-free payment plans through Afterpay, ZipPay or humm.
• Staging treatment across several visits, so a large plan is paid in parts rather than at once.

All of these are set out on our payment plans page, and the front desk at any of our six clinics can walk you through what applies to your situation.

Where to get proper advice

We are dentists, not financial advisers. If you are weighing this up, these are free or independent sources:

• ASIC’s Moneysmart has guidance on seeking financial advice, a financial advisers register, and a map for finding a free financial counsellor.
• Centrelink’s Financial Information Service is free and can be reached on 132 300, Monday to Friday.
• The ATO’s compassionate grounds pages explain eligibility and how to apply.

It is also worth knowing what bad practice looks like before you go anywhere. The ATO and Ahpra have published a list of warning signs, and we have gone through them in the red flags regulators want you to know.

If you are worried about the cost of dental treatment, the most useful first step is usually the least dramatic one: come in, get an examination and a written quote, and find out what you are actually dealing with. Plenty of the time it is smaller than the worry.