The Australian Taxation Office (ATO) is cracking down on “predatory practices” being used to encourage people to seek early access their superannuation.
Since July 2025, it has initiated 160 reviews and audits where it believed misleading statements had been made in applications or medical reports seeking early super release.
So far penalties of over $1.5 million have been applied.
ATO Deputy Commissioner Ben Kelly said applications approved for compassionate release of super had decreased by five percent, but concerns remained.
He said that health practitioners and third-party facilitators were still using predatory practices to encourage people to inappropriately access their super.
“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.
“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 Australian Health Practitioner Regulation Agency (Ahpra) CEO Justin Untersteiner said registered health practitioners should never put profits ahead of patients.
“We are concerned by predatory sales tactics that use social media and internet advertising to attract patients for high-cost treatments they do not need or cannot afford,” Mr Untersteiner said.
The ATO said there were instances of dentists who encouraged individuals to inappropriately access their superannuation to fund cosmetic procedures.
“People should be very cautious of advertisements that promote early access to super,” Mr Kelly 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.”
