The two agencies are joining forces to “stamp out” business models where patients are encouraged to apply for compassionate release of superannuation.
The Australian Taxation Office and AHPRA are warning that patient requests to dip into superannuation to pay for medical or dental procedures should only be certified where necessary.
When a patient wants to access their super early for a medical reason, they must have their request signed off by two medical practitioners.
While one of those must be a registered medical specialist in the field of treatment required, the ATO said that “in most cases” patients will turn to their GP for a supporting letter.
Both practitioners must certify that the medical procedure is necessary to alleviate acute or chronic pain, to treat a life-threatening illness or injury or to alleviate acute or chronic mental illness.
According to a joint media statement released on Thursday, the number of applications for compassionate release of super – particularly for dental work – has more than doubled over the last two years.
Around 30% of requests made in the 2024-25 financial year were rejected by the ATO for not meeting requirements.
The ATO is specifically concerned that some health practitioners are inappropriately supporting individuals to access superannuation on compassionate grounds for cosmetic procedures.
“While superannuation can be accessed early under compassionate grounds, this is strictly available in very limited circumstances including for critical medical and dental procedures,” ATO deputy commissioner Emma Rosenzweig said.
“I want to make it 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.”
Ms Rosenzweig said the ATO was seeing practitioners making inaccurate statements in medical reports.
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“The ATO relies on medical and dental professionals to act in the best interests of their patients to prepare accurate reports regarding their diagnoses and the required treatment strategy,” she said.
RACGP president Dr Michael Wright said it was “deeply concerning” that Australians were resorting to loans or dipping into super to “afford essential health services”.
“A key solution lies in boosting Medicare rebates for longer GP consultations,” he said.
“These extended appointments are vital for managing complex health needs and preventing chronic illness. They allow GPs to work closely with patients, keeping them healthier and out of hospital.”
