Using Your Superannuation to Pay for Plastic Surgery
If you’re considering plastic surgery and are looking for ways to fund your treatment, using your superannuation could be a viable option. Below, we outline the steps involved in accessing your superannuation for surgery and the relevant procedures offered at ME Clinic.
Superannuation for Medical Procedures
Superannuation is a form of retirement savings that is typically only accessible once you reach retirement age. However, the Australian Taxation Office (ATO) allows early release of superannuation funds for medically necessary procedures if you have no other way to fund them. These are procedures that address chronic or acute medical conditions, rather than purely cosmetic purposes.
At ME Clinic, plastic surgeons perform many medically necessary plastic surgeries that may qualify for early superannuation release, including:
- Breast reduction surgery – Often performed to alleviate back, neck, and shoulder pain caused by overly large breasts.
- Breast implant removal or replacement – for health problems related to implants such as rupture or capsular contracture
- Breast surgeries like breast augmentation, breast lift (mastopexy), and breast surgery revision for health issuespurposes.
- Ear surgery (otoplasty) – for prominent ear correction
- Eyelid surgery (Blepharoplasty) – to help improve your vision
- Nose Reshaping Surgery – Rhinoplasty & Septoplasty: Performed to correct breathing difficulties.
- Body contouring surgery – liposculpture/liposuction, tummy tuck (abdominoplasty), belt lipectomy, thigh lift/reduction, arm lift/reduction (brachioplasty) and male breast reduction (gynaecomastia).
- Abdominoplasty (full tummy tuck) for patients suffering from post-pregnancy or post-weightloss health issues
- Excess skin reduction surgeries – for patients who have experienced significant weight loss and are dealing with excess skin that impacts mobility or hygiene.
Importantly, your surgery must be deemed medically necessary and not purely elective or cosmetic purposes.
What are the Compassionate Grounds for Early Super Release?
The ATO outlines specific compassionate grounds under which you can apply for early access to your superannuation. These include:
- Medical conditions: The procedure must address an ongoing or acute medical issue that cannot be delayed.
- No alternative funding options: You must demonstrate that you have no other financial means to cover the costs associated with the surgery.
- Pre-surgery approval: The surgery cannot have already been paid for – approval must be granted before the surgery takes place.
- Dependents: You can apply to use your super for your own surgery or for a dependent (such as a spouse or child).
- Public system availability: The surgery must not be readily accessible through the public healthcare system.
The Funding Application Process: A Step-by-Step Guide
1. Fully Understand the Costs and Procedure
Before beginning the application process, it is crucial to gather detailed information about the surgery you are considering. Review our website information to learn about the procedure you are considering. We encourage you to reach out to our patient coordinators to get an estimation of the procedure fee. We then suggest you research the application process and terms on the ATO website.
2. Check with Your Super Fund
Next, contact your superannuation fund to confirm whether they allow early access on compassionate grounds. Some funds do not permit early withdrawal for medical purposes, in which case you may need to transfer your superannuation balance to another fund that allows for such access.
3. Gather Your Supporting Documentation
Once you’ve confirmed that your super fund allows early release, you’ll need to collect the following documentation:
- A valid Referral from your GP: This is required to support the medical necessity of the surgery and to arrange your initial consultation.
- Arrange your initial consultation with your plastic surgeon to discuss the medical necessity of the procedure and to obtain a cost estimate.
- Obtain your surgery quote from your surgeon: The total cost of the surgery, including out-of-pocket expenses, must be documented and be less than 6 months old when you apply
- Complete your early release forms: Both your Plastic Surgeon and your GP must complete early release forms, which can be found on the ATO website or apply online via your MyGov.
These documents will form the basis of your application, along with your quote for surgery.
4. Submit Your Online Application via MyGov
The next step is to submit your application for early release via the MyGov portal. If you haven’t already done so, link your ATO account to your MyGov account. From there, navigate to the section for early release of super on compassionate grounds. Ensure that all your documentation is uploaded correctly.
5. ATO Review and Approval
Once your application is submitted, the ATO will review your case. If they approve your request for early release, they will notify your superannuation fund, who will then decide whether to release the funds based on their own internal fund rules.
6. Tax Implications
Any money withdrawn from your superannuation is considered assessable income and is subject to personal income tax. The ATO typically withholds tax when the funds are released to you. It’s essential to understand that using your super for surgery will reduce your retirement savings, and you should be fully aware of the current and future tax implications. Seeking professional financial advice at this stage is highly recommended to ensure you are making an informed decision.
Extra Considerations Before Using Your Superannuation for Surgery
– Allow for Future or Unexpected Medical Costs
- Even if your surgery is deemed medically necessary, there may be ongoing costs related to travel, recovery support, follow-up treatments, or potential medical complications. Be sure to factor in these possibilities when planning your super withdrawal and financial future.
– Long-term Financial Implications
- One of the most critical aspects to consider before accessing your superannuation for surgery is the long-term financial impact. By withdrawing funds now, you may be reducing your overall future retirement income.
– Consider Alternatives to Superannuation Withdrawal
- Before deciding to access your superannuation, consider whether there are other ways to finance your surgery. Some patients may be eligible for payment plans offered by (independent) medical finance companies. Always weigh the pros and cons of each financing option, keeping in mind the long-term impact on your financial health. Always seek financial advice.
– Warning! – Use your Withdrawn Super Funds Correctly
- Please note that the ATO insists you use these funds for the correct purpose – your surgery and related expenses – and takes action on people misusing the money for other purposes (like a holiday). Also note that if you cancel your surgery and want to put the money back into your Super Fund – you have already paid tax on it – and don’t get that back.
Is It Worth It? The Importance of Medical Necessity
The decision to access your superannuation early should never be taken lightly. The ATO’s strict criteria are designed to ensure that funds are only released for surgeries that are medically necessary.
Cosmetic surgeries performed purely for aesthetic reasons do not qualify for early release of superannuation. Therefore, it’s essential that your procedure addresses a genuine medical need, such as correcting breathing problems, alleviating pain, or resolving health or psychological issues.
Seek Both Medical & Financial Advice
Accessing your superannuation to pay for plastic surgery is a complex decision that involves careful consideration of the medical, financial, and long-term impacts. While the option exists for those who meet the ATO’s strict criteria, it is not without risks. Patients should ensure that their surgery is deemed medically necessary, gather all the necessary documentation, and follow the ATO’s application process carefully.
Most importantly, you should seek both medical and financial advice to ensure that accessing your superannuation is the best decision for your health and your future financial security.
Using your superannuation for surgery may relieve medical issues, but it is a significant financial commitment. Make sure you are fully informed before proceeding.
Me Clinic can help you with the paperwork
At ME Clinic, we understand that the decision to undergo plastic surgery can be daunting. With over 35 years experience in the field of cosmetic surgery, we offer expert advice and a range of procedures to help our patients achieve the best possible outcomes.
We can help you fill out the SEF – Super Eligibility Form or there are several early super withdrawal services that also do that for a fee.
For More Information about Super for Surgery
If you’re considering using your superannuation for plastic surgery, you can find more detailed information and guidance on the ATO website.
Contact our team to book your consultation and to explore your options for medically necessary surgeries covered under early superannuation access.
Important Note: Superannuation and tax rules change constantly, so please be aware this information may be superseded at any time. This is general information only and we encourage you to do your research and seek professional financial advice.
