Key highlights

  • The number of applications approved for compassionate release of super fell by 5% in 2025–26, while the total value approved rose 2% to more than $1.4 billion.
  • Since 1 July 2025 the ATO has commenced over 160 reviews and audits and imposed penalties of over $1.5 million where false or misleading statements were considered to have been made.
  • The ATO said it remains concerned about health practitioners and third-party facilitators who encourage inappropriate early access to super, including for cosmetic dental procedures.

The Australian Taxation Office (ATO) has released 2025–26 data on compassionate release of super, showing the number of applications approved decreased by 5%. In a joint media release with the Australian Health Practitioner Regulation Agency (Ahpra) published on 22 October 2026, the ATO said that while application volumes have declined from last year, the total value approved increased by 2% to over $1.4 billion.

ATO Deputy Commissioner Ben Kelly said that while the latest data is promising, the ATO remains concerned that health practitioners and third-party facilitators continue to use predatory practices to get individuals to inappropriately access their super for financial gain.

The ATO’s message on early access

‘Australians need to remember that super is there to set you up for retirement and there are strict and limited situations where people need to access their super early to pay for critical medical procedures,’ Mr Kelly said. ‘Our message to individuals and medical practitioners is clear – compassionate release of super should only be considered as a last resort, where all other options of paying for the eligible expenses have been exhausted.’

The ATO said it has been working with Ahpra to ensure applications to pay for health-related expenses are appropriate and do not take advantage of vulnerable people. Ahpra CEO Justin Untersteiner said registered health practitioners should never put profits ahead of patients, and expressed concern about predatory sales tactics that use social media and internet advertising to attract patients for high-cost treatments they do not need or cannot afford.

Tax consequences of early access

The release said it is important that individuals understand the immediate tax consequences of accessing super early. Approved amounts withdrawn may be taxable and increase reportable income, which could affect eligibility for government payments such as the Family Tax Benefit.

Compliance activity

The ATO said it continues to crack down on health practitioners and third-party facilitators, including dentists, who encourage individuals to inappropriately access their super to fund cosmetic dental procedures. Mr Kelly described a concerning trend of business arrangements that target and pressure people to access their super to pay for certain procedures, including short online consultations and the use of templates designed to streamline the process.

‘People should be very cautious of advertisements that promote early access to super,’ he said. ‘Taking the time to understand the risks and notice the red flags can help avoid decisions that could significantly impact your retirement savings or result in penalties.’

The ATO said it ramped up compliance activities this year, targeting individuals, health practitioners and third-party facilitators who promote these schemes. Since 1 July 2025 it has commenced over 160 reviews and audits where it considers false or misleading statements have been made in applications or medical reports, imposing penalties of over $1.5 million. ‘We believe the decline in applications shows our compliance actions are having an impact,’ Mr Kelly said. ‘Our message is being heard – we will actively hold all individuals and businesses involved in these arrangements to account and deter those who seek to exploit the system.’

Professional standards and a case study

Where Ahpra has evidence of practitioners providing fraudulent or misleading information to the ATO, the individuals may be referred to the relevant tribunal for alleged professional misconduct. The release said this has already resulted in a practitioner having their registration suspended in relation to a patient’s cosmetic surgery, while other practitioners are the subject of ongoing tribunal proceedings. Mr Untersteiner said practitioners should know that putting profits before patients is not only unsafe but could cost them their right to practise, and that most practitioners do the right thing.

The release gave a case study in which the ATO imposed an administrative penalty of around $30,000 on a health practitioner for making false or misleading statements in a medical report used to certify a compassionate release application. During a compliance audit, the clinical information and other supporting records were found to be false and misleading, including the classification of the patient’s condition and the information used to establish eligibility.

Reporting concerns

The ATO encourages anyone who is aware of inappropriate practices, such as social media advertising leading to inappropriate early access of super or health practitioners providing inaccurate medical reports, to make a tip-off or a voluntary disclosure to the ATO. Ahpra and the National Boards have also issued guidance on compassionate release of superannuation and on conflicts of interest for practitioners.