ATO cracks down on early super access

While there are legitimate ways to access super on compassionate grounds, the ATO says some people are stretching the rules or even faking information to get their money early. 

What’s going on? 

The ATO has uncovered worrying trends, including: 

• Fake or altered documents used to make it look like someone qualifies for early release. 
• Promoter schemes where dodgy operators encourage people to withdraw super illegally. 
• Incorrect advice from some health practitioners, including dentists, suggesting that people can use their super for non-critical medical procedures such as cosmetic veneers, elective procedures, or even lifestyle costs such as holidays or investments. 

Simply put, some people are being told they can dip into their retirement savings for reasons that don’t meet the strict criteria. 

The numbers 

In the 2023–24 financial year, Australians accessed about $1.04 billion from super under the Compassionate Release of Super (CRS) program. 

Most applications were for medical treatment and travel expenses, and around 70% were approved. Within that group, dental work (31,780 applications) and weight-loss treatments (17,320 applications) made up over half of all requests. 

While the numbers might sound large, the ATO is reminding people that the rules for early access are very strict. 

When early access is allowed 

The compassionate grounds program is designed to help people facing serious financial or medical hardship, not to cover elective treatments or everyday bills. 

To qualify, you need to show that: 

• You’re dealing with a life-threatening illness, severe pain, or a serious mental illness, and 
• you can’t pay the expense in any other way, such as with savings, loans, or insurance. 

It’s meant to be a last resort, not a shortcut to cash. 

ATO’s message to health practitioners 

The ATO has also sent a clear message to doctors, dentists, and other medical professionals to make sure their advice and reports are accurate. 

When someone applies for compassionate access, the ATO relies heavily on the medical reports provided. If those reports are false or misleading (even unintentionally), both the patient and the practitioner could face serious consequences. 

Some of the red flags the ATO has seen include: 

• Medical professionals signing off on reports for treatments that don’t meet the rules (like cosmetic procedures). 
• Practitioners charging fees to prepare applications even though they’re not registered tax agents. 
• Advising patients to use their super for treatments without having an Australian Financial Services (AFS) licence. 

The ATO says while most practitioners do the right thing, even a few bad actors can cause harm – not just to individuals, but to the integrity of the super system. 

What could happen if you get it wrong 

Accessing your super early when you’re not eligible is against the law. 

The ATO can: 

• Impose penalties for making false or misleading statements 
• Take legal action against people or businesses promoting illegal access schemes, and 
• Pursue civil or criminal penalties, which could include hefty fines or even jail time. 

If you’ve already withdrawn super incorrectly, all is not lost. The ATO encourages people to make a voluntary disclosure, either in writing or by phone. Coming forward early may reduce the penalties or interest that would otherwise apply. 

The bottom line 

The ATO’s message is clear: your super is for your retirement, not for everyday spending or elective treatments. 

Accessing super early is only allowed in very limited situations, mainly for serious medical or financial hardship. 

If you’re unsure about whether you qualify, it’s safest to check the official ATO website and look up “Access on compassionate grounds” or contact us for more information. 



With the ATO keeping a close eye on fraudulent applications and dodgy promoters, staying within the rules will save a lot of stress and potentially, a lot of money down the track.