Super early release providers exploiting Aussies for dental
Super Consumers Australia and CHOICE investigation into superannuation early release services shows clear need to prohibit unfair trading in Australia
A recent investigation by CHOICE and Super Consumers Australia has uncovered troubling practices among superannuation early release services, including charging exorbitant fees for connecting people with dental clinics partnered with these services. One such service, My Super Care, even coached our investigator on how to represent their dental treatment needs in order to secure approval to pay for treatments that would likely not qualify under current laws governing early superannuation release.
Super Consumers Australia and CHOICE approached My Super Care and Access My Super posing as potential customers and said our dentists had refused to sign off on our ATO paperwork, but that we didn’t have the funds to pay for the work otherwise.
Under the law, people can access their superannuation before retirement for certain purposes, including medical treatment that alleviates acute or chronic pain, provided the treatment is not readily available through the public health system.
“Dental treatment can sometimes be necessary to alleviate pain, so it’s important that people aren’t prevented from accessing their super when legally allowed,” says Super Consumers CEO Xavier O’Halloran. “However, we’ve now got evidence that superannuation early release services can coach people on how to represent their dental treatment needs in order to access their super. It’s bypassing the clear intent of the rules, all while ripping people off hundreds of dollars and eating into their retirement savings.”
As the cost of living and dental care continue to rise, more Australians are being targeted by businesses offering to help them access their super for procedures like braces and veneers. The number of Australians accessing their super early for medical procedures has surged from 22,700 approved applications in 2018–19 to 47,400 in the last financial year. Withdrawing $23,000 in super for dental treatment could leave people as much as $64,000 worse off at retirement, in today’s dollars.
The Federal Government has flagged its intentions to prohibit unfair trading practices, which could include conduct that distorts, manipulates or undermines consumer choice.
“The need for the Federal Government to prohibit unfair trading practices is clear, so that only those who qualify under the rules are accessing their super for dental, and people struggling to access dental care aren’t taken advantage of by these ticket-clippers,” said O’Halloran.
“The Australian Tax Office and Australian Health Practitioner Regulation Agency need to keep clamping down on dentists and other health practitioners who are knowingly signing off on treatments that may not be permitted under the law.”