Can I access my super to pay for dental work?

I’m 57, mortgage-free and have been a full-time carer for many years, living mainly on the carer’s pension. My super is modest – mostly built up in the early ’90s before I had a family, with a few part-time jobs during school years adding to it.

I want to improve my dental health and am exploring ways to fund dental implants. Can I access my super to help pay for it? My husband isn’t working – he’s been building our home – and his super is minimal as he’s been in Australia since 2004.

You can crack into your super for healthcare reasons, but only under a very strict set of rules.Credit: Simon Letch

Yes, it’s possible – but under strict rules. The ATO allows early access to super on compassionate grounds to pay for certain medical treatments, including dental work – but only if it’s to treat a serious or chronic condition or relieve significant pain.

You’ll need two medical reports (one can be from your dentist), a treatment plan and a detailed quote. The application goes through the ATO via your myGov account. If approved, the ATO notifies your super fund and you arrange the release from there.

Just be aware – the payment is taxed like a normal withdrawal. So if you’re approved to receive $10,000, you’ll get that in your hand, but more is taken from your fund to cover the tax.

It’s a suitable option for the right situation – just be sure you meet the medical criteria and have all your paperwork ready.

We are a block of four company-share flats in St Kilda. Three of us are owner-occupiers. We often wonder if there’s a viable alternative to being tied to a strata management company.

More often than not, we reject the tradies and builders they recommend because the quotes are excessive — instead, we source our own people and pay directly. The sticking point is building insurance. That’s tough to arrange independently as it seems the strata managers use brokers who can access deals the rest of us can’t. We’d really appreciate any suggestions for alternatives — maybe retired accountants, or different insurance avenues?

Strata expert Frank Higginson tells me plenty of small blocks feel the same. The truth is, nobody’s really lining up to manage the little ones.

Doing it yourselves might sound good in theory, but it can make life harder, especially when it comes to insurance and tradies. Most insurers prefer dealing with brokers, and many tradespeople are reluctant to take on jobs with small owner-run bodies corporate – it’s often more hassle than it’s worth for them.

And if it’s true company title (rather than strata), that adds another layer of complexity – the compliance is usually even tougher. In short, there are no easy answers here. You can go it alone, but make sure everyone’s ready to carry their share of the load – and the risks.

We’re trying to secure a place for Mum in a dementia-supported aged care facility, with entry costs around $500,000 plus daily fees. Most places are increasing this to at least $650,000 from July 1.

Dad can access up to $350,000 through a reverse mortgage on their $1 million home. He has about $160,000 in super, which should cover the interest for roughly five years. He’s still living independently, so selling the home isn’t practical – downsizing would probably mean moving further out, paying body corporate fees and losing access to family, medical care and support.

Do you know any reputable lenders that might allow access to more than $350,000 against the home to help cover the deposit and make their savings last?

Reverse mortgage specialist Paul Dwyer tells me from the information provided, they have around $160,000 in savings and $24,000 in other assets. If Mum enters care and Dad remains at home, the house is excluded from the assets test.

In this position, Mum would be assessed as partially supported by the government. She wouldn’t pay a means-tested care fee but would pay the standard daily care fee of $63.82. There may be a small additional services fee, and she’d contribute about $14.84 per day for accommodation.

As a partially supported resident, she can’t be asked to pay a RAD or DAP. The main challenge is finding a facility with a concessional room, but based on the details you’ve given, no lump sum is required.

I’m 74 and have nominated my two financially independent siblings as beneficiaries of my account-based pension. I’m worried about the tax they might face when I die. I’ve heard one option is to have my attorney withdraw all my super and put it in my bank account if death is near so it passes through my estate tax-free.

In a recent column, you mentioned a recontribution strategy for those under 75. Should I be looking into that instead? What does it involve and how would I go about it?

A recontribution strategy involves withdrawing money from your super – which contains both taxable and tax-free components – and then recontributing it as a non-concessional (tax-free) contribution. This can reduce the taxable portion of your super and therefore the death tax.

However, it’s subject to age limits and contribution caps, which depend on your total super balance. It’s definitely worth seeking advice, but keep in mind that depending on your super balance, you may be able to reduce but not necessarily eliminate death tax entirely.

Noel Whittaker is the author of Retirement Made Simple and other books on personal finance. Questions to: [e-mail]

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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