ATO steps up action against improper early super withdrawals
22 Oct 2026
The Australian Taxation Office (ATO) and the Australian Health Practitioner Regulation Agency (Ahpra) are increasing efforts to stop businesses and health practitioners from encouraging people to access their retirement savings inappropriately.
The ATO reported a 5% drop in approved applications for early super withdrawals on compassionate grounds. However, the total amount approved rose by 2% to more than $1.4 billion.
ATO Deputy Commissioner Ben Kelly said the lower number of applications was encouraging, but concerns remained about businesses and practitioners who may pressure people into withdrawing their super for financial gain.
He said superannuation was intended to support people in retirement. Early access for medical treatment is allowed only in limited circumstances, and people should consider it after exhausting other ways to cover eligible expenses.
The ATO is working with Ahpra to identify applications for medical costs that may be inappropriate or take advantage of people in vulnerable situations.
Ahpra CEO Justin Untersteiner warned that registered health practitioners must put patient wellbeing ahead of financial interests. He raised concerns about online advertisements and sales tactics promoting expensive treatments that people may not need or be able to afford.
Early withdrawals can also have financial consequences. Depending on the circumstances, the money received may be taxable and increase a person's reportable income. This could affect access to government payments, including the Family Tax Benefit.
The ATO has increased its compliance work involving practitioners and third-party businesses that encourage people to access super for procedures, including cosmetic dental treatment.
Mr Kelly said some businesses use brief online consultations and standardised forms to make applications easier to process. He warned that these arrangements could pressure people into decisions that affect their retirement savings.
Since 1 July 2025, the ATO has started more than 160 reviews and audits involving suspected false or misleading information in applications or medical reports. It has also issued penalties totalling more than $1.5 million.
The ATO believes its compliance efforts may be contributing to the decline in applications. It says it will continue investigating individuals and businesses suspected of misusing the system.
Ahpra may refer practitioners to the relevant tribunal where there is evidence of false or misleading information being provided to the ATO. One practitioner has already had their registration suspended in a matter involving a patient's cosmetic surgery, while other cases remain before tribunals.
Mr Untersteiner said Ahpra continues to receive reports about practitioners involved in early super withdrawals and also monitors whether practitioners meet their professional responsibilities.
Ahpra and the National Boards have published guidance explaining the professional standards that apply to compassionate release of superannuation. The Dental Board of Australia has also provided information for consumers, while separate guidance addresses financial and commercial conflicts of interest.
Australians can check the eligibility rules for compassionate release through the ATO website before applying.
Case study: practitioner penalised for inaccurate report
The ATO issued an administrative penalty of about $30,000 to a health practitioner who provided false or misleading information in a medical report supporting an early super withdrawal application.
An ATO audit found that clinical details and supporting records were inaccurate, including information about the patient's condition and whether the application met the eligibility requirements.
How to report concerns
People who suspect that a business is promoting inappropriate early access to super, or that a medical report contains inaccurate information, can report their concerns to the ATO.
Concerns about a registered health practitioner's conduct or professional performance can also be reported to Ahpra.
ATO steps up action against improper early super withdrawals
Sources: Australian Taxation Office (ATO) and Australian Health Practitioner Regulation Agency (Ahpra), joint media release, ATO targets promoters of early release of super schemes.