Can I pay for Dental Work from my SMSF

It is possible to pay for your dental work from your self-managed super fund (SMSF). However, there are limited circumstances to do this.

You can access super money from your SMSF to pay for dental work if:

• You are 65 years of age or older, as your super money is unrestricted non-preserved, meaning you can access it without restrictions.
• You are 60 years of age, but less than 65, and you stop working after resigning from a job where you were gainfully employed, or permanently retiring from the workforce.
• You are 60 years of age, but less than 65, you are still working and starting a transition to a retirement pension.
• If you are eligible, you can have your SMSF pay for dental treatment under “compassionate grounds”.

Access to your super under the first three points is generally known, and more information about the rules can be found at “Conditions of Release”. The following discussion is about releasing super on compassionate grounds.

What are the key eligibility requirements for paying for dental treatment from my SMSF?

• The dental treatment is required to alleviate acute or chronic pain or treat a life-threatening illness or injury
• There must not be another reasonable way of financing the dental treatment, such as:
  • using your savings
  • selling personal assets
  • redrawing on your mortgage
  • borrowing – if unable to repay the borrowings, you may still be eligible to apply in relation to the outstanding loan
• You must be, or have been, a citizen or permanent resident of Australia or a New Zealand citizen – you will not be eligible if you are a temporary resident
• The expense remains unpaid, or the outstanding amount of a loan used to pay for the expenses
• The treatment is not readily available through our public health system

What are some examples of dental treatment that may be eligible?

The circumstances for each person will determine if the dental treatment is eligible.  However, as a guide, the following treatments may be considered:

• Dental implants
• Dental crowns
• Root canal surgeries
• Periodontics (gum) treatments
• Oral and maxillofacial surgeries
• Orthodontic treatment such as braces

Braces are unlikely to be eligible if the primary indication is cosmetic. However, if the treatment is medically necessary because the underlying condition is causing significant oral health problems, such as difficulty chewing or speaking, it may be eligible.

When can’t I use my super to pay for dental treatment?

Super cannot be released to pay for dental treatment, which is only cosmetic in nature.  You also cannot use your super for the payments until the ATO has granted a compassionate release notice or you have met another condition of release above.

Can I access my super for myself and my dependants?

You may be able to access super to pay for dental treatment for yourself or your dependants. Dependants include:

• your spouse – includes de facto couples and same sex couples
• your child – includes a child under 18 years and can be a biological child, adopted, stepchild, or a child of your spouse
• any other person you are in an interdependent relationship with, meaning you have a close personal relationship, live together, and either provides financial, domestic and personal care for the other
• a person who is substantially financially dependent on you, meaning that person cannot meet their normal living expenses without your financial support

What expenses are eligible?

Dental expenses that remain unpaid can be eligible. A quote must not be more than 6 months old. An unpaid invoice must not be more than 30 days old. If money was borrowed to pay for eligible dental treatment, and you do not have the capacity to repay the loan, whether the loan was from family and friends, credit card debt, a bank or other lending institution, or even ‘pay later’ services, the unpaid amount of the loan may be eligible. There is no timeframe for the invoice or quote if a loan was used to pay for the expense. However, interest and late payment penalties are not eligible.

What documents are required?

• Two medical reports certifying the required dental treatment, which can be either a report from a registered medical practitioner and a report from a registered dental practitioner, or two separate reports from registered dental practitioners.
• A copy of the treatment plan with all stages of the treatment
• An itemised invoice or quote
• When claiming the expenses for a dependant due to being in an interdependent relationship or due to financial dependence, evidence to support that relationship is required and may include a joint bank statement, rates bill, phone bill and a statutory declaration
• If the dental expenses have been paid from borrowings that you are unable to repay, evidence to support the terms and conditions of the loan will be required

Who do I apply to for compassionate release of my super?

You must apply to the ATO for early release of super from an SMSF on compassionate grounds.

Applications can be made online, via myGov, or using the paper “compassionate release of super (CRS)” form, updated on 17 November 2025. You can request a paper form by contacting the ATO on 13 10 20. If your application is successful, the ATO will send you an approval letter, which you must give to your SMSF to request the release of super. Applications are generally assessed within 14 days or within 28 days for paper applications.

What must my SMSF do?

After receiving your request and a copy of the ATO’s approval letter(determination), the trustees must pay the lump sum in accordance with the fund’s trust deed and superannuation rules and regulations. PAYG withholding tax will be withheld, and your SMSF must issue a payment summary to you showing the amount released and the tax withheld.

Do I pay tax on early withdrawal of super?

Super withdrawn early on compassionate grounds is taxed as a normal superannuation lump sum benefit. The amount of tax you pay depends on your age and the tax components of your lump sum payment.

• You do not pay tax on any tax-free component
• 60 or older – no tax applies to the taxed component
• Under 60 – the maximum tax is 22% of the taxed component