If you're a self-managed super fund (SMSF) trustee or investor with significant superannuation assets, staying compliant with ATO regulations is essential—especially when it comes to early access to your super.

The Australian Taxation Office (ATO), in collaboration with the Australian Health Practitioner Regulation Agency (Ahpra), has recently issued a warning about the misuse of compassionate release of superannuation, particularly for medical and dental treatments that fall outside the approved criteria.

Early Release of Super: What's Allowed and What's Not

Under current legislation, superannuation can only be accessed early in very limited circumstances, such as:

• Treatment for life-threatening medical conditions
• Alleviation of acute or chronic pain
• Management of severe mental illness

However, the ATO has identified a sharp increase in applications for procedures that do not meet these requirements—especially cosmetic dental treatments. This has led to stricter oversight and updated guidance for medical professionals and registered agents involved in the process.

Why This Matters for SMSF Trustees

If you manage your own super fund, it's your responsibility to ensure that any early release of funds is fully compliant with ATO rules. Misuse—whether intentional or due to poor advice—can result in:

• Significant penalties for false or misleading statements
• Regulatory action against involved practitioners or agents
• Increased audit risk for your SMSF

The ATO has also reminded practitioners that offering financial advice without a proper licence may breach ASIC regulations, adding another layer of complexity for trustees relying on external advice.

Protect Your SMSF with Expert Guidance

At WSC Group, we provide expert SMSF accounting and tax advisory services tailored for high net wealth individuals. Our clients—often entrepreneurs and investors with over $1 million in super—trust us to deliver strategic advice that ensures ATO compliance, helps them better understand the structure and value of their SMSF assets, and supports long-term wealth growth through their self-managed super funds.

Book a consultation with WSC Group's SMSF specialists today to ensure your fund is compliant, protected, and aligned with your financial goals.

Disclaimer: This article is intended to provide general information only and does not constitute financial advice. It is based on publicly available guidance from the Australian Taxation Office (ATO) and other regulatory bodies. Before making any decisions regarding your superannuation or SMSF, we recommend seeking advice from a licensed financial adviser or SMSF specialist who understands your individual circumstances.