⚠️ This page explains how the ATO’s compassionate grounds system works — not whether you qualify. Eligibility depends on your individual medical circumstances. Speak with your treating specialist, a registered financial adviser, or contact the ATO on 13 10 20 for your specific situation.
What is compassionate grounds release?
Compassionate grounds release is an ATO-administered process that allows Australians to access their superannuation early to pay for specific expenses they have no other means to cover. For medical treatment, the ATO can approve early release of super to pay for treatment costs and transport to access that treatment. The ATO administers this process directly — you apply through myGov, not through your super fund. The law sets out strict conditions, and the ATO has no discretion to vary them.
What medical situations qualify?
Two eligibility conditions must both be met:
Condition 1 — The treatment must be necessary to treat or alleviate:
- A life-threatening illness or injury
- Acute or chronic pain
- An acute or chronic mental illness
Condition 2 — The treatment must not be readily available through the public health system
This does not mean the public system provides no treatment at all — it means the specific treatment required is not readily available publicly. Both your medical practitioners must certify this in their reports.
Dental treatment is included if medically necessary, with two dental practitioners (one a specialist), or two medical practitioners. Medical treatment overseas can qualify if your practitioners certify the treatment is unavailable in Australia.
⚠️ The two-report requirement — what surprises most people
To access super early for medical treatment, you must provide two separate medical reports with your application. This is one of the most common causes of delayed or rejected applications.
Report 1
Must be from a registered medical specialist treating the relevant condition.
Report 2
Can be from either a registered medical practitioner or a second registered specialist.
Both reports must certify that the treatment is necessary to treat or alleviate the eligible condition, and that the treatment is not readily available through the public health system. Reports must be completed no more than six months before you submit your application.
Exception — palliative care / terminal illness: Only one report is required from the treating registered medical practitioner.
The ATO provides a standard form for medical practitioners: Compassionate release of superannuation — Report by registered medical practitioner (NAT 74927). Ask your specialist to use this form. If reports are incomplete, your application may be delayed or not approved. The ATO may require you to obtain a report from a different practitioner.
What you can claim
✅ Eligible expenses
- Cost of the medical treatment itself
- Transport costs to access the treatment
- Treatment or transport for a dependant
❌ Not eligible
- Income replacement or lost wages
- Day-to-day living expenses
- Ongoing care costs (not treatment)
- Expenses already paid (unless borrowed)
- Cosmetic procedures
Applications must generally be for an unpaid expense. If you have already borrowed money to pay for the treatment, you may still be able to apply — but additional eligibility criteria apply. The ATO recommends waiting for approval before booking treatment.
How to apply
1
Contact your super fund first — confirm they will release super early on compassionate grounds, check there is enough in your account (including tax withheld), and check any fees or insurance implications.
2
Obtain your medical reports — two reports using ATO form NAT 74927. At least one must be from a registered specialist. Reports must be dated within six months of application.
3
Gather supporting documents — invoice or quote for the treatment, proof the expense is unpaid, and evidence you have no other means to pay.
4
Apply via myGov — log in to
myGov, link to ATO online services, then:
Super → Manage → Compassionate release of super. Online applications are processed faster than paper.
5
Wait for the outcome — the ATO typically assesses online applications within 14 days (paper: up to 28 days). Forward the approval letter to your super fund, who then processes the payment.
⚠️ Application forms were updated on 17 November 2025. If applying by paper, use the current version — old paper forms received on or after 17 November 2025 may be cancelled. The ATO does not charge a fee to process applications. If a third party charges you a fee to help submit, they must be a registered tax agent.
Tax implications
Super released on compassionate grounds is taxed as a normal super lump sum. The tax rate depends on your age, your preservation age, and the components of the lump sum. Generally, up to 32% may be withheld — your fund withholds enough so you receive the approved net amount. The taxable amount generally counts as assessable income in your tax return for the year you receive it.
For details, see the ATO’s Tax on super benefits page. Speak with a registered financial adviser or tax agent for advice on your specific situation.
What compassionate grounds does not cover
A common misconception is that compassionate grounds can be used to replace income or cover living expenses during illness. It cannot. The only eligible expenses are the cost of treatment and transport to access treatment.
If you cannot work due to illness or injury, different mechanisms exist:
• Total and Permanent Disability (TPD) insurance — many super accounts include TPD cover. Check your fund’s Product Disclosure Statement.
• Income protection insurance — may be attached to your super or held separately.
• Severe financial hardship — a separate early-release pathway through your super fund directly (different rules apply).
Speak with your super fund or a licensed financial adviser to understand what cover you have and what options apply to your situation.
Common mistakes that delay or prevent approval
✗
Only one medical report — two reports are required for medical treatment (at least one from a specialist). A single report from your GP alone is not sufficient.
✗
Reports older than six months — medical reports must be dated no more than six months before you submit. Old reports will not be accepted.
✗
Reports not using the ATO form — while not mandatory, the ATO strongly recommends form NAT 74927. Incomplete or missing information is the most common reason for delays.
✗
Expense already paid — applications must generally be for unpaid expenses. If you’ve already paid, you may not be eligible unless you borrowed the money (additional criteria apply).
✗
Booking treatment before approval — the ATO recommends waiting for approval before booking or paying for treatment. Approval is not guaranteed.
✗
Not checking with your fund first — your fund must confirm they will release super on compassionate grounds and that you have sufficient balance to cover the amount plus tax withheld.
✗
Using old paper forms — ATO application forms were updated on 17 November 2025. Paper forms dated before this may be cancelled.