Can you access your super for IVF treatment?

According to the ATO, you can access your superannuation early in very limited circumstances. One of these circumstances is on compassionate grounds if you need to cover the expenses of :

• Medical treatment and medical transport for you or a dependant
• Palliative care
• Funeral costs
• Any disability that requires you to modify your home or vehicle to live comfortably
• Loan repayment or pending council rates to prevent losing your home

Keep in mind that early release of super on compassionate grounds is only allowed for unpaid expenses. If you’ve already paid using your credit card or money borrowed from family or friends, you won’t be able to apply for the early release of your super. 

An application for early access to super for IVF treatment may be lodged under the first category of payments for medical treatment. Under this category, you can access your super early to pay for medical treatment for a life-threatening illness, to alleviate severe pain or treat a mental illness. This is generally more straightforward if you need money for surgery, where you can prove the procedure is required to cure a life threatening disease or alleviate pain. However, these criteria do not apply to IVF or other fertility treatments. Therefore, people usually file a claim to access their super early under the mental health umbrella. They cite acute or chronic mental distress for wanting a baby but not being able to afford IVF treatment to help with conceiving.

However, you can’t just claim mental disturbance to gain access to your super without some sort of medical support. The ATO requires you to submit two medical practitioner reports that certify the treatment is necessary to alleviate your mental condition. 

Once you’re ready with the paperwork, you can directly apply for early access on compassionate grounds through the ATO website. However, keep in mind that not all super funds allow early access, and it’s worth checking with your super fund first to see if they’ll allow it.

Adding a new member to your family will increase your monthly expenditures, and it may not be possible for you to afford a personal loan for the treatment. Using your super for IVF can help you afford the treatment without taking any unnecessary loans that could cause undue financial stress. 

However, before you apply for compassionate release of super, it’s important to understand the long-term implications of your decision. 

The purpose of superannuation is to fund your retirement. Accessing your super for IVF treatment or any other purpose will reduce the size of your future retirement benefit, impacting the quality of your life in your golden years. Therefore, it could be worth speaking with a qualified financial expert to understand how accessing your super early will affect your retirement funds before deciding on the right course of action for your situation. There are also tax implications of withdrawing from your super early. You should ensure you understand all obligations before applying.