Using Super for Dental Treatment

Between 2022 and 2023, Australians accessed over $313 million from their superannuation funds to pay for dental care. Just 2 years earlier, the total was $108.2 million, illustrating an increasing reliance on early superannuation withdrawal to finance essential dental treatments.

You can apply for an early superannuation release on compassionate grounds if they meet certain criteria, with the Australian Taxation Office (ATO) managing the process. Contact Ageless Smiles Dental Care today and let us walk you through every step of the process!

What is Superannuation?

Superannuation, often called “super”, is Australia’s retirement savings system. It involves mandatory contributions from your employer, which are invested and saved for your future. The ultimate goal is to provide financial security when you retire from work.

How Superannuation Works

When you start working in Australia, your employer is legally required to contribute a percentage of your earnings to your super fund. This is known as the Superannuation Guarantee (SG). As of 2023, the SG rate is 11% and will gradually increase to 12% by 2025. These contributions are made in addition to your regular wages and are invested by your super fund to grow over time.

Types of Super Funds

Australia has several types of super funds, including industry funds, retail funds, and self-managed super funds (SMSFs). Industry funds are not-for-profit and are managed by boards representing industry stakeholders.

Retail funds are for-profit and are typically managed by financial institutions. SMSFs allow individuals to manage their own super investments, but require significant time and financial knowledge.

What is Early Release of Superannuation for Dental Treatment?

The Early Release of Superannuation (ERS) for dental treatment is a program that allows Australians to access their superannuation funds before reaching retirement age to cover necessary dental treatments.

This scheme is particularly beneficial for individuals who cannot afford urgent or essential dental care, such as dental implants, crowns, braces, and root canal surgeries.

How can you use your Super for Dental Treatment?

In Australia, you can use your superannuation for dental treatments under specific conditions through the ERS program. You will need to satisfy specific criteria set by the ATO. Access to your super is typically allowed on compassionate grounds, particularly if the dental treatment is assessed as medically necessary. To be eligible, you must:

1. Be an Australian or New Zealand citizen or a permanent resident
2. Meet specific compassionate grounds criteria, like treating a life-threatening illness, alleviating acute or chronic pain, or managing an acute or chronic mental illness exacerbated by dental issues
3. Provide a report from a qualified dental practitioner confirming the necessity of the treatment, a full treatment plan, and recent quotes or unpaid invoices
4. Submit evidence of financial hardship, demonstrating that you cannot afford the treatment through other means such as savings, loans, or health insurance

You can apply for early release by completing the appropriate form through the ATO or by seeking assistance from a third-party service provider like SuperCare, which can streamline the application process for a fee.

What Types of Dental Treatments Are Covered?

The ERS program covers a number of dental procedures and treatments if deemed medically necessary. Some of the dental treatments that can be funded through superannuation include:

• Dental Implants: Essential for replacing missing teeth and supporting dental prosthetics
• Dentures: Both full and partial dentures to replace missing teeth and restore oral function
• Root Canals: Required to treat severe dental pain and prevent the spread of infection
• Crowns: Used to restore the shape, function, and appearance of damaged teeth
• Orthodontics: Includes treatments like braces and clear aligners, if they address severe misalignments impacting dental health
• Periodontal Therapy: Necessary treatments for gum disease to maintain oral health
• Oral and Maxillofacial Surgery: Complex surgeries involving the mouth, jaw, and face

How to Apply for Early Release of Super for Dental Treatment

You can apply on your own, through the ATO website. But it’s easier and more likely to get a fast, positive response if you allow us to apply for you.

Steps to Apply for ERS

1. Ageless Smiles Dental Care will send a referral form to SuperCare, detailing your case and the need for compassionate release.
2. You’ll be contacted by a SuperCare consultant to discuss whether you’re eligible for ERS.
3. If you’re eligible, we’ll send SuperCare a quote and verification letters to support your claim.
4. They will review your application and provide feedback within 14 days.

Required Documents

• Identification: Valid ID such as a driver’s licence or passport
• Medical Evidence: A detailed letter or report from a qualified dental practitioner detailing the required treatment and its necessity
• Treatment Plan: A detailed treatment plan from your dentist, including the stages and expected costs of the treatment
• Quotes or Invoices: Recent quotes (no older than 30 days) or unpaid invoices (no older than 60 days) for the dental treatment
• Financial Evidence: Documents showing your financial situation, such as evidence of government income support or a letter indicating financial hardship

Withdrawal Details

Once your application is approved by the ATO, your super fund will release the approved amount. The funds will be transferred to your nominated bank account, enabling you to proceed with your dental treatment. It’s important to note that accessing your super early may impact your retirement savings, as the amount withdrawn won’t continue to accrue interest within your super fund.

What are the Benefits of Using Super for Dental Treatment?

Using your superannuation for dental treatment offers several advantages, particularly for those facing urgent dental needs without the immediate financial means to cover the costs. Key benefits include:

1. Access to Essential Care: Superannuation funds can be used for dental procedures including implants, root canals, and oral surgeries, which might otherwise be unaffordable.
2. Access to Exceptional Care: You’re able to get dental treatment at private facilities with highly trained dental staff. This also means you won’t have to wait months to get access to care.
3. Immediate Relief: By accessing your super, you can avoid prolonged pain and prevent complications from untreated dental issues. This is especially handy for treatments necessary to alleviate acute or chronic pain.
4. Financial Flexibility: Using super funds can circumvent the need for high-interest loans or depleting other savings, helping maintain overall financial stability while addressing urgent health needs. Also, you won’t need a credit check.
5. Improved Quality of Life: Proper dental treatment can enhance your overall well-being, boosting confidence and potentially improving mental health by eliminating dental discomfort, enhancing your smile, and improving your self-confidence.

What are the Potential Drawbacks?

While accessing super for dental work offers significant benefits, there are also potential drawbacks to consider:

• Reduced Retirement Savings: Withdrawing from super early reduces the amount available at retirement, potentially impacting long-term financial security. For example, a $20,000 withdrawal today could result in a $100,000 reduction in retirement savings due to lost interest and compounding growth.
• Potential Tax Implications: Early super withdrawals might have tax consequences, which can reduce the net amount received and further affect financial planning.
• Insurance Loss: Some super funds include insurance cover, which might be affected or lost when funds are withdrawn early. This can reduce future financial protection against other health issues or life events.
• Application Complexity: The application process for early super release involves detailed documentation and approval from the ATO, which can be time-consuming and stressful, especially if extra information or corrections are requested.

Using Super for Dental Treatment FAQs

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