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Compassionate release warning issued

The ATO has warned consumers, financial advisers and health practitioners it is aware of dishonest practices being used to access superannuation early for non-critical medical procedures.

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ATO deputy commissioner Emma Rosenzweig issued the warning after the regulator noted concerning behaviour from advice and health practitioners related to early access.

“We have seen an increase in dodgy advice and misconceptions around when individuals can access their super early, and we want to make it clear that Australians should not be considering early access unless they are eligible and it is absolutely necessary for their circumstances,” Rosenzweig noted in an update on the ATO’s website.

 

“Access to super on compassionate grounds is available in very limited circumstances for critical medical procedures and should only be considered as a last resort where all other options of paying for the eligible expenses have been exhausted.”

She added the ATO had been notified some health practitioners were helping patients access their superannuation on compassionate grounds via the production of medical reports that were inaccurate so they could access funds, when they were ineligible, for procedures such as cosmetic surgery.

The ATO pointed out it was also aware reports had been prepared where the practitioner had not performed a comprehensive examination of the patient.

Further the regulator found profits were being emphasised over patient care through the recommendation of higher-cost treatments, premium pricing or over-servicing without providing information on all options.

In addition, it was discovered unqualified advice around accessing super to pay for treatments was being provided, with some health practitioners using patients’ myGov details to submit applications when individuals are required to do this themselves.

Some health practitioners were found to be charging fees to assist patients submit applications without being a registered tax agent as well and advising them to access super without holding an Australian financial services licence.

Rosenzweig confirmed the ATO was working with other regulators, including the Australian Health Practitioner Regulation Agency, to address any inappropriate behaviour, but early access was still viewed as a breach of super rules by the fund member.

“Where a third party acts inappropriately on an individual’s behalf, the individual can still be liable for any consequences, including penalties for making a false or misleading statement,” she stipulated.

ATO figures released in October last year showed there was around a 20 per cent increase in requests for the early release of superannuation savings on compassionate grounds in the previous financial year, with more than half related to dental and weight-loss treatments and for which $776.9 million was released during 2023/24.

 

 

 

 

August 26, 2025
Jason Spits
smsmagazine.com.au


David Forrest Download David's Adviser Profile

David Forrest

Director
BEc (Acc), MBA, CPA, FFin

David has been in the Financial Services Industry for nearly 30 years. He was one of the founding Directors of the successful Financial Planning and Stockbroking Practice, Henderson Gregory Forrest, for a decade. Prior to that, he held senior roles in companies such as ING, KPMG Accountants and AMP. David was previously Chairman of OAMPS Superannuation Trustee Board and currently serves as an independent Board Director for several companies.

David’s extensive experience in all forms of superannuation, including Self Managed Super Funds (SMSF), Defined Benefit Funds, retirement funding through Account Based Pensions, stockbroking with a focus on Direct Share Investment, Taxation/Remuneration Planning, Centrelink, Aged Care and business management, equip him to advise expertly on all aspects of Financial Advice.

Those with a particular interest in superannuation/SMSFs, direct share investment, salary packaging or applying for the Centrelink Pension will find his knowledge and ability in formulating and implementing creative, logical and simple wealth creation strategies a valuable asset.

David maintains a strong personalised client service focus, providing tailored solutions for clients.

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David Forrest is an Authorised Representative of Integrity Financial (SA) Pty Ltd ABN 16 133 921 187 — AFSL No 334846

Michelle Forrest

Michelle Forrest

Business Finance Manager
B Bus (Acc), CPA

Michelle’s career has spanned across the Financial Services, Retirement Living and Aged Care industries working in the private sector, not for profit and more recently with the state government for over 20 years. Her experience extends to many facets of the financial services industry, having worked in superannuation administration, technical support and financial planning practice administration.

Commencing with AMP and subsequently working in commerce and accounting roles with companies such as Brambles, Adelaide Bank Retirement Services, ECH Inc and SA Health and Wellbeing, Michelle returns to financial services after working in practice financial management at Henderson Gregory Forrest. This wide range of experience from senior accounting and management roles has provided Michelle with a strong background in business administration.

With an astute financial acumen and keen interest in business improvement strategies, Michelle ensures the smooth running of the Integrity Financial Advisory practice providing valued management support to our personalised client service focus.

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Darren Chalk Download Darren's Adviser Profile
Natasha Bartlett
Kelly Collins
Jasmine Smith

Jasmine Smith

Client Service Manager

Jasmine has worked in the financial services industry for over 12 years in all areas of client administration, working with David since 2013.

Jasmine has extensive knowledge and experience in client service including implementation of advice, portfolio reporting, assisting with the establishment of Self Managed Super Funds (SMSFs), term deposit management and a long history of helping clients with their enquiries.

Jasmine’s attention to detail, yet gentle approach, means she is able to solve the trickiest of questions for our client community.

Jasmine has gained her Certificate III in Financial Services qualification.

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Merrilyn Smith

Merrilyn Smith

Senior Client Service Manager

Merrilyn has worked in the financial services industry for over 11 years in all areas of client administration, and is a new addition to our client services team, returning from Melbourne to join the team in June 2019.

Merrilyn has extensive knowledge and experience in client service including implementation of advice, managed fund administration, assisting with the establishment of Self Managed Super Funds (SMSFs) and process improvement for the previous practices she has worked with. Merrilyn’s experience with direct shares constitutes the other part of our administrative support for direct equity investments.

Merrilyn’s warm and caring nature continues to endear her to our clients and she has already established herself as a valued member of our team.

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