Tapping the compassionate release of super to fund inappropriate cosmetic procedures needs to be stamped out, the tax office and health practitioner regulators say.

The warning comes as ATO data shows a further jump in applicants seeking early superannuation payouts on compassionate grounds.

In 2024/25 a total of $1.4 billion in superannuation funds was released on those grounds, compared with just more than $1 billion in 2023/24.

Of 112,400 applications received in 2024/25, only 67,900 were approved, a large portion being for medical treatment, including dental work, IVF procedures and weight loss treatment.

The tax office and the Australian Health Practitioner Regulation Agency (Ahpra) have joined forces to “stamp out business models” using super to pay for expensive or unnecessary medical treatments.

ATO Deputy Commissioner Emma Rosenzweig said some health practitioners were inappropriately supporting people to access their super for cosmetic procedures not aligned to compassionate release rules.

‘While superannuation can be accessed early under compassionate grounds, this is strictly available in very limited circumstances including for critical medical and dental procedures,” she said in a joint statement.

“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.”

Ahpra chief executive Justin Untersteiner said guidelines issued by Australia’s medical and dental boards emphasised the need for a thorough assessment by a skilled practitioner, prioritising a person’s health.

“I’m stunned to hear that some businesses and practitioners are taking advantage of this process to push overly expensive or unnecessary treatments,” he said.

“Taking advantage of people in need is never acceptable.”

Practitioners have been warned that providing financial advice without a licence can bring severe penalties from the Australian Securities & Investment Commission.

Rosenzweig said some practitioners were making inaccurate statements in medical reports and regulatory action had ranged from cautions and conditions to referral to a tribunal.

The latest ATO data shows in 2024/25 super payouts of $817.6 million for dental care, $255 million for weight loss treatments, $218 million for other medical treatments and $74 million for IVF procedures.

-AAP