‘Shocked’: Dentists advertise superannuation raids as early withdrawals spike

New Daily
May 16, 2024,


Millions more are being withdrawn for dental work as doctors push it as a service.   



Australians are being warned about the dangers of raiding their superannuation as tax office data shows a surge in people using retirement savings for dental work. 

Approved super withdrawals for dental work have spiked by more than $250 million between 2018 and 2023 – rising by 83 per cent in 2022-23 alone, according to government data reported by AAP.


The Dental Board of Australia is now worried about complaints that dentists are advertising early super withdrawals to clients, with the internet littered with inducements from clinics across the nation.

One firm even advertises helping Australians raid their retirement savings as a service and has partnership deals with dozens of dental clinics for procedures such as root canals, braces and implants.

Financial adviser Dawn Thomas said she was “baffled” by the online advertisements, which present myriad testimonials on web pages that don’t disclose key information about financial risks.

Thomas explained that financial advisers wouldn’t even be allowed to present super withdrawal to clients without telling them in detail the potential to lose tens of thousands in retirement and tax too.

“I’m shocked,” Thomas said of the ads.

“Are they giving financial advice?”



Avenues for accessing superannuation early have existed for years, but are tightly controlled by the Australian Taxation Office (ATO) and can only be granted under strict compassionate grounds.

That’s because it can have immense financial consequences, as demonstrated during Covid-19 when Australians collectively lost billions in potential savings after the Morrison government unlocked accounts before unveiling taxpayer income support.

Modelling by the Super Members Council (SMC) earlier this year estimated up to $85 billion in potential savings was lost from $38 billion in early super withdrawals under the scheme.

Thomas explained that withdrawing super early is damaging because of compound interest; whereby the money put in super savings grows larger over time thanks to funds reinvesting returns.

“If your money is invested in something for the long term, it doesn’t make sense [to take it out],” Thomas said.

“Present you might have a need, but future you also has needs too, and that’s what superannuation is for.”

Huge tax implications
There are also severe tax implications for accessing super early, with Thomas saying that Australians must fork over up to 22 per cent of the money they plan to withdraw in tax, which could be thousands.

“That’s a hefty amount of tax,” Thomas explained.

Thomas said there are legitimate reasons for early super withdrawal, particularly in cases where Australians face life-threatening medical emergencies or financial situations that could make them worse off if they couldn’t access their super early.

But the inappropriate use of compassionate grounds is likely to make it harder for these people, she said, because the government will respond by making it harder to access it.

The tax office manages that application process and the rules around the release of superannuation and has done so since July 2018.

“Accessing super on compassionate grounds is only available in limited circumstances where individuals are unable to pay for eligible expenses using other means,” a spokesman said.

“Accessing superannuation is not ‘free money’, as it will reduce the amount available in retirement.

“Accordingly, as with any major expense item, it is often useful to get a second opinion or quote.”

Why isn't dentistry included in Medicare?

I have top private health insurance, go to the dentist and periodontist twice a year, have 28 of my teeth, one with a crown. My gap payment is about $30-50 a pop on bills of $2-300 a visit.  I have no tattoos, I don't eat fast food, I do not gamble.

Look at people with bad teeth and they seem to have tats, eating shite food and know their way around poker machines.

Sir Spot of Borg wrote on May 20^th, 2024 at 3:41am:



they will destroy your financial ability to  take "personal responsibility ' for your teeth though

aquascoot wrote on May 20^th, 2024 at 5:12am:


Funny you should say that.

I've just taken "personal responsibility" for my teeth by using my "financial ability" to withdraw another $3,000 from my superannuation pension to pay for the $400 check up and clean (with 2 X-rays) plus $2,500 for the removal of decay under the crown on one of my bottom teeth and having a new crown made and fitted.

I have a 'temporary' crown on there at the moment and the new, permanent one will be fitted this Thursday.

And this, plus the other super lump sum withdrawals I've made during the last 12 months also helps with my "financial ability" to ensure I get the age pension later this year after I turn 67 in August instead of living on my super until I reach 68 or beyond.

aquascoot wrote on May 20^th, 2024 at 5:16am:


Blah blah blah blah... no one wants one of your word salads for breakfast today... or any other day for that matter. Thanks.

And, yes... it's way, way past the time for dental to be covered by Medicare.

If you have a health care card dental care is available for free in nsw and Qld ( don’t know about the other states and territories?).

So basically the idea put forward would achieve nothing other than reducing the amount already available for people doing it tough, increase taxes, and be subject to rorts  by dentists who will be delighted to buy another 3 holiday day houses!)

If you want to actually do something worthwhile that worked in the past and is extremely cheap to run, reintroduce dental education in primary school.

This was removed by liberal nsw government and labor Qld government.

A classic stupid decision.

Just as putting dental into Medicare is equally as stupid.

Ffs, you know?

Just brush your teeth properly if you know how!!

Putting teeth into Medicare and bulk billing!!

Over $4000 per year for dental was available through Medicare to those with a chronic disease or pensioners.

The Gillard government killed it in 2011.

Daves2017 wrote on May 20^th, 2024 at 11:54am:


I have private health cover and pay for all of my dental/medical expenses.

I've never taken a cent from the government.

However, many are not as fortunate as I am and they should be given access to free or discounted dental care through Medicare.

And yes, I'm willing to pay more in taxes to fund it.