Health practitioners face hefty fines and possible loss of registration as regulators target misleading medical reports used to unlock patients’ superannuation funds.
The Australian Taxation Office has launched more than 160 reviews and audits and imposed over $1.5 million in penalties in a crackdown on health practitioners and businesses encouraging patients to raid their superannuation to pay for medical and cosmetic procedures.
In a joint warning issued today, the ATO and AHPRA said practitioners who provided false or misleading information to support applications for compassionate release of superannuation risked financial penalties and disciplinary action, including suspension of their registration.
The crackdown has already seen one health practitioner fined about $30,000 for providing false or misleading information in a medical report supporting a patient’s application for early access to super.
An ATO audit found the practitioner had signed a report containing inaccurate clinical information, including misrepresentations about the patient’s condition and information used to establish eligibility for compassionate release.
The ATO said it had started more than 160 reviews and audits since 1 July 2025 involving suspected false or misleading statements in applications or medical reports.
ATO deputy commissioner Ben Kelly said regulators were particularly concerned about business arrangements that pressured patients into accessing their retirement savings to fund procedures.
“A concerning trend we’re seeing are business arrangements that target and pressure people to access their super to pay for certain procedures,” Mr Kelly said.
“These arrangements include short online consultations and the use of templates designed to streamline the process for people to access their super.”
The ATO has specifically targeted health practitioners and third-party facilitators, including dentists, who encourage patients to access superannuation inappropriately to fund cosmetic dental procedures.
AHPRA CEO Justin Untersteiner warned that practitioners involved in such schemes could face serious professional consequences.
“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,” he said.
“Practitioners should know that putting profits before patients is not only unsafe – it could cost them their right to practise.”
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AHPRA said practitioners suspected of providing fraudulent or misleading information to the ATO could be referred to the relevant tribunal for alleged professional misconduct.
One practitioner has already had their registration suspended in connection with a patient’s cosmetic surgery, while others face ongoing tribunal proceedings.
The regulator said it continued to receive notifications about practitioners involved in early superannuation release arrangements and was proactively monitoring compliance with professional obligations.
The warnings came as new ATO figures showed the number of approved applications for compassionate release of superannuation had fallen by 5% compared with the previous year.
However, the total value of approved withdrawals has risen by 2% to more than $1.4 billion.
Mr Kelly said the decline in applications suggested the ATO’s compliance activities were having an impact but warned that enforcement would continue.
“We will actively hold all individuals and businesses involved in these arrangements to account and deter those who seek to exploit the system,” he said.
He stressed that compassionate release of superannuation should only be considered when all other options for meeting eligible medical expenses had been exhausted.
“Our message to individuals and medical practitioners is clear – compassionate release of super should only be considered as a last resort,” he said.
The regulators also warned that patients could face significant financial consequences from early withdrawals, including tax liabilities, reduced retirement savings and changes to their eligibility for government benefits such as the Family Tax Benefit.
AHPRA and the National Boards have issued guidance on compassionate release of superannuation and conflicts of interest, while the Dental Board of Australia has developed resources to help consumers understand the risks.
Mr Untersteiner acknowledged that most practitioners complied with their obligations but said regulators would continue pursuing those who exploited vulnerable patients.
“Most practitioners do the right thing, and we welcome any signs that inappropriate use of superannuation is decreasing,” he said.
