Warning over assisting patients to withdraw superannuation early

gavel and stethescopeA Perth GP was found to have engaged in professional misconduct by assisting a patient to gain early access to their superannuation to pay for a cosmetic liposuction procedure.


The case of GP Dr Bunty Chandra Prasad is one of a number which has prompted the Australian Tax Office (ATO) and Ahpra to remind practitioners that penalties can apply if they make false or misleading statements on medical reports.

The State Administrative Tribunal (SAT) heard on March 19 that Dr Prasad filled out an Early Release of Superannuation Declaration form in 2018 for a female patient. In it he declared the patient should be able to access the funds to have liposuction cosmetic surgery for the โ€œlife threatening illness or injuryโ€ of obesity.

In his clinical assessment he did not document the patientโ€™s weight or BMI, reference that the patient was obese, or have any life-threatening illnesses or injuries.

The patientโ€™s application to access her superannuation early was approved and she received $18,500 to pay for the surgery, which took place later in 2018.

The Tribunal heard Dr Prasad assisted the Board with its investigation, made admissions at the first available opportunity and implemented changes to his clinical practice in response to this matter.

It found Dr Prasad’s actions constituted professional misconduct. He has had his registration suspended for three months and was ordered to pay costs of $5000.

The ATO and Ahpra have issued a warning that some health practitioners and third parties are using predatory practices to get individuals to inappropriately access their super early.

Between 2019 and 2025, Ahpra received 95 complaints about medical and dental practitioners involved in the compassionate release of superannuation.

While most complaints related to treatment outcomes or payment disputes, two practitioners –  both doctors – were referred to tribunals for allegedly providing false documentation to the ATO, while another doctor was given a formal caution.

Ahpra and the Dental and Medical Boards of Australia recently released guidance in response to ongoing concerns of inappropriate conduct.

According to the ATO there had been an increase in applications to access superannuation early to pay for medical and dental treatments and the two bodies are working together to identify concerns about inappropriate conduct.

Penalties can apply to individuals and health practitioners who make false or misleading statements on medical reports to aid access of compassionate release of superannuation.

RELATED: The rise of weight loss drugs and the potential pitfalls

Ahpra chief executive Justin Untersteiner said early release of superannuation must not be used to promote unnecessary or overly-expensive treatments.

โ€œPatients need to be able to trust that their practitioner is recommending treatments based on clinical need, not the prospect of financial gain,โ€ Mr Untersteiner said.

โ€œIf you have concerns about the conduct or performance of a registered practitioner, we want you to notify Ahpra. While most practitioners do the right thing, Ahpra will take action when standards arenโ€™t met.โ€

Ahpra is trialling the use of AI to help identify problematic advertising that may indicate practitioners willing to put financial incentives ahead of patient need, with several practitioners already under investigation.

ATO Deputy Commissioner Ben Kelly said compassionate release of superannuation was an important safety net to help fund necessary healthcare where people cannot otherwise afford it.

โ€œIt should only be considered as a last resort and only when it is really necessary,” he said.

โ€œItโ€™s important to remember there are limited circumstances where someone can access their super early for medical or dental treatments, such as to treat a life-threatening illness or injury, to alleviate acute or chronic pain or acute or chronic mental illness.”

Concerns about a registered health practitionerโ€™s conduct or professional performance can be reported to Ahpra.


Want more news, clinicals, features and guest columns delivered straight to you? Subscribe for free to WAโ€™s only independent magazine for medical practitioners.

Want to submit an article? Email [email protected]