My son is considering accessing his Super for the $10,000 worth of dental work he needs. One dentist and an accounts manager at a different dental surgery have told him that a large percentage of claims are rejected and have advised that he employ the services of an agent, such as ‘Release my Super’ to prepare his claim - at a cost of $800-900. I have seen the government form - it looks relatively straightforward and lists all of the necessaries needed to complete it. It seems to me that the only pivot point might be the question of the work being able to be done by the public dental service. I’m wondering if anyone here has any experience that might explain the high refusal rate if, indeed, that is true. Thank you.
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There are many refusals as they fail to meet the bar as being very necessary. Some applications are about purely lifestyle choices, some are to get access to invest elsewhere, some are just speculative applications to see if the applicant is granted access to the funds. If the need is, dire, helps avoid serious health issues e.g. bariatric surgery for the very obese, is needed for important transport needs, is required to avoid the loss of a home due to mortgage issues, and similar important and life altering issues, then approval is sometimes granted. Every case is assessed on it’s merits and often how the request is framed is also important. My daughter for example has brain cancer, thankfully quiet in it’s effects at the moment, so her request was granted to gain access to her Super.
I don’t know that an advisor is needed or even warranted, as I am not in any way an expert on this issue. I can only speak from my personal experience, and we were told at the beginning no positive outcome was to be expected as the circumstances had to meet the requirements of early access. Access was given and helped deal with the many issues that arose from her diagnosis and treatment. So in the case of your son, making sure the decision makers are aware of all the relevant reasons to meet the requirements for early withdrawal are given, is most important. If they are unsure then a “specialist” in this area may be worth the money spent but I cannot say if that is the step to take.
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Interesting that the $10k required for dental work is exactly the maximum amount the ATO will approve for early release on medical grounds.
A second opinion from another dentist has it that these releases are not often successful as they are more often cosmetic rather than medically urgent.
One could pay a fee to a company that does the paperwork and knows the ATO procedure, but that could just be wasted money if there are no grounds in the first place for super access.
A visit to the ATO site to see what they have to say about early release for super for dental work may be helpful. There are more requirements to be met than dental spruikers will have one believe.
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Thank you for your reply. I think there are some compelling reasons for urgent dental care and the dentist and a GP are willing to attest to such. Some of the imperatives are - he needs 6 emergency extractions and has 4 abscesses and he can’t get a job because his mouth is such a mess (and his confidence, too). Then there’s the chronic pain.
So very sorry to hear about your daughter’s brain cancer. My sincere good wishes to your family.
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Thank you Greg - yes I thought that about the 10k ‘coincidence’. I believe treatment to be medically urgent, so do two dentists and a GP - I think that the only area of debate could hinge around whether or not this could be provided by the public dental system…
By the sounds of this, it is urgent and will be the domain of the public dental facilities. Such as they are.
The release of super money is not for dental procedures that can be done in the public system or covered in some way with private health insurance extras.
It could take months for a release of funds from super to be approved. Action is needed now. Maybe a normal dentist who is willing to accept a payment plan over time.
The two issues you have identified are the cost of the treatment and whether this can be withdrawn from super.
For something that expensive, it is worth checking the possibility of using a public dental service and/or getting multiple quotes from private dentists.
I would be reluctant to automatically accept the original quote, particularly if the suggestion of withdrawing from super was mentioned early on.
Looking at what is required for early release, I agree with your thoughts that it looks fairly straight forward and possibly doesn’t warrant paying an agent to lodge this for you. It would be likely that the majority of rejections relate to non-essential treatments, incomplete applications and applicants having other financial means.
This webpage gives a good outline of the early release process including contacting your super fund to see if they allow early withdrawals for a particular treatment.
Tax is a further consideration if your son does apply for an early release. The withdrawal will not be tax free, so the amount might need to be grossed-up to cover the full costs.
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That is a consideration. The preservation age is 60 years at present for those born after 30 June 1964. Any amounts taken before reaching that age will be a fully taxable lump sum.
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