Help, My Dentist Wants My Super!
Hi Scott,
We have been blessed with seven kids, some of whom have unfortunately not been blessed with straight teeth. Blimey, $7,500 for braces is no walk in the park, especially when you start multiplying it by three, four or more! Apparently, in some cases you can gain early access to your super for compassionate reasons. Do straight teeth fall into this category? Otherwise, unless I sell a kidney, there is no way I can come up with the cash. I’m 40 and have about $265,000 in super. Is it worth accessing my super early?
Dennis
Hi Dennis,
Right now I’ve got my mouth open and I’m saying “aaaah”.
The rules for a compassionate release of super are as follows:
To treat a life-threatening illness or injury, or
Alleviate acute or chronic pain, or
Alleviate an acute or chronic mental illness.
That all seems fair enough, but I don’t know how little Benny’s braces would apply to any of these.
However, I spoke to the ATO (which administers the applications) and they told me that last year 9,700 individuals applied for compassionate release of super for dental treatment expenses, and 82% were approved. Out of those approved, 9% were for a dependent child’s dental treatment, which could include braces.
Uh-huh.
So what are my thoughts?
First, with seven kids you know you’re setting an expensive precedent: if one kid gets a Hollywood smile, they all do, right?
Second, each time you dip into your super, you’re killing off the power of compound interest (plus potentially paying tax on the lump sum). In the end, it’s not going to cost you $7,500, it’s going to be something likely $30,000, or even more.
Finally, this question has given me a serious toothache.
Ultimately it’s your decision, but I’d look at every other option than raiding your super. And if you do, steer clear of these groups that have sprung up to help people access their super. Some of them charge as much as $800 to “help” you apply for the compassionate release of super. Yet it’s a basic friggin’ form that anyone can fill out in the time it takes to floss!
Keep smiling.
Scott