Medical procedures can often come with hefty price tags, making it challenging for individuals to afford the necessary care. Luckily, for those who have a superannuation fund, there may be an option to utilize these funds to cover certain medical expenses. Superannuation, also known as super, is a way to save for retirement and is compulsory for most working Australians. While accessing your super early is generally not encouraged, there are specific medical procedures for which you may be able to use your super to cover the costs. In this article, we will explore what medical procedures you can potentially use your super for.
Early Release of Super for Medical Treatment
Under certain circumstances, individuals may be eligible to access their super early to cover medical treatment costs. The Australian Taxation Office (ATO) allows for the Early Release of Superannuation for medical treatment or medical transport in some cases. To qualify for early release of super for medical treatment, you must meet specific criteria set out by the ATO.
Qualifying Medical Procedures
Some of the medical procedures that may qualify for Early Release of Superannuation include:
- Plastic or reconstructive surgery deemed medically necessary
- In-vitro fertilization (IVF) and other fertility treatments
- Dental surgery to address a chronic medical condition
- Bariatric surgery for severe obesity with associated health risks
- Major dental procedures necessary to prevent a serious threat to life
Application Process
To apply for early release of super for medical treatment, you will need to submit an application to the ATO along with supporting documentation from your medical practitioner. The ATO will review your application and determine if you meet the eligibility criteria for Early Release of Superannuation funds.
Using Super for Health Insurance Premiums
Another way you may be able to use your super for medical expenses is by paying for health Insurance premiums. While you cannot directly access your super to pay for health Insurance, you can make voluntary contributions to your super fund to cover these costs. By salary sacrificing into your super fund, you can use these contributions to pay for health Insurance premiums, ultimately reducing your taxable income.
Benefits of Using Super for Medical Expenses
Using your super for medical expenses can provide financial relief, especially when facing significant healthcare costs. By accessing your super early or making voluntary contributions to cover medical expenses, you can ensure you receive the necessary care without putting a strain on your finances. Additionally, using your super for medical purposes can help you maintain your health and well-being, ultimately improving your quality of life.
Conclusion
While accessing your super for medical procedures should be considered as a last resort, it can be a valuable option for those facing significant healthcare expenses. By understanding the eligibility criteria and application process for early release of super for medical treatment, you can determine if this is a viable option for covering your medical expenses. Additionally, utilizing your super for health Insurance premiums through voluntary contributions can help alleviate the financial burden of healthcare costs. Remember to consult with a Financial Advisor or tax professional to explore all available options and make informed decisions regarding your superannuation and medical expenses.