Practices to Avoid Regulatory Scrutiny from ATO and Super Funds
- Receiving direct payments from a superannuation fund, even with patient consent.
- Being listed as a recipient on early release applications or related forms.
Superannuation Early Release Requirements
The Superannuation Industry (Supervision) Regulations 1994 establish specific requirements for the early release of superannuation on compassionate grounds. These requirements are designed to ensure individuals maintain control over their retirement savings.
Early release of superannuation on compassionate grounds should be deposited into the patient's personal account. The patient must then make payments to the clinic.
Why This Regulation Exists
Patient Control: The released amount remains the individual's money, and the individual maintains full control over how it's used.
Multiple Payment Coordination: Individuals may need to coordinate multiple payments or providers for their treatment, requiring them to manage disbursements.
Payment Timing Flexibility: Flexibility in timing the payments may be necessary depending on treatment schedules and financial circumstances.
Treatment Options: There could be situations where patients need to negotiate with providers or seek alternative treatments based on their specific needs.
Seeking Independent Advice
Individuals must retain direct control over their funds. These regulations are designed to uphold the integrity of the superannuation system, deter misuse, and shield individuals from potential financial risks.
For further information, please call the ATO on 13 10 20.
