Can I Use My Super to Pay for Weight Loss Surgery?
Yes, it may be possible to use your superannuation to cover the out of pocket cost of weight loss surgery, such as a gastric sleeve (from $6,000) or a gastric bypass (from $7,000), through a process called compassionate release of superannuation. You apply through your myGov account, and the ATO, the Australian Taxation Office, assesses whether your situation qualifies.
What You Need to Apply and How the Process Works
To get the process moving, you will need a letter from your surgeon explaining why you need the surgery and confirming it is not readily available in the public system. You will also need a second letter from your GP, or your GP can complete the application form available through your myGov account. Both documents are uploaded through myGov under the compassionate release of superannuation section. The ATO generally responds within one to three weeks, and once approved, your super fund can take a further week to 10 days to release the funds. Because full payment is usually required two weeks before your surgery date, starting the process early matters.
Tax and Your Super Balance Are Both Worth Checking First
Before you apply, it is worth contacting your super fund to confirm you can access your balance early and to find out how they prefer to receive paperwork. Check with the ATO that your balance is sufficient, as claims with inadequate funds are denied. Keep in mind that the amount you withdraw from super is taxed, so factor that into the figure you request. Funds are paid directly into your bank account, and you then pay your out of pocket costs from there. Keep all receipts, as you will need to submit them to the ATO at tax time. If your first claim is denied, it is often worth resubmitting, as a small error on the form is sometimes the only reason for a rejection.
More detail on every step is on our compassionate release of super page. If you are considering your options, call us on (03) 9760 2777 or request an appointment through our website.