Using Superannuation for Weight Loss Surgery: What You Need to Know

TL;DR

• You may be able to use your superannuation to pay for weight loss surgery through the Australian Taxation Office's (ATO) compassionate grounds process.
• Eligible expenses may include surgeon, anaesthetist and hospital fees, as well as certain associated treatment costs.
• You'll need medical supporting documentation, treatment quotes and approval from the ATO before your superannuation fund can release the money.
• Approval isn't guaranteed, and withdrawing super early can affect your tax obligations and retirement savings.
• Brisbane Bariatric Centre can help you understand your surgical options and prepare the medical documentation needed for your application.

Weight loss surgery can be a significant financial commitment. In Australia, bariatric procedures might cost around $20,000 to $30,000 for self-funded patients, and not everyone has private health insurance that covers their procedure.

For patients exploring weight loss surgery, superannuation may offer another way to cover the cost through the ATO's compassionate release process.

At Brisbane Bariatric Centre, Dr Justin Greenslade has performed more than 4,000 weight loss surgeries, and our team regularly supports patients exploring this option.

Here's how the application process works, what costs may be covered and what to consider before accessing your retirement savings.

Can You Use Your Super for Weight Loss Surgery?

Yes, in some circumstances. The Australian Taxation Office (ATO) might approve the early release of superannuation for weight loss surgery on compassionate grounds.

To qualify, your treatment must meet specific medical criteria, such as treating a life-threatening illness or injury, or alleviating acute or chronic pain or mental illness. The treatment must also not be readily available through the public health system, and you must be unable to pay through other means.

Some patients with obesity-related health problems may meet these requirements, particularly where timely treatment isn't available publicly. However, being eligible for bariatric surgery doesn't automatically mean you'll qualify for compassionate release.

The ATO assesses each application, and approval isn't guaranteed. Withdrawn funds may also be subject to tax, so it's important to understand the financial implications before applying.

What Costs Can Superannuation Cover?

If approved, superannuation for weight loss surgery might help cover eligible, unpaid medical expenses directly associated with your procedure.

These may include:

• Surgeon's fees
• Anaesthetist's fees
• Assistant surgeon's fees
• Hospital and theatre fees
• Eligible pre-operative and post-operative treatment costs

The total cost will vary depending on whether you're having a sleeve gastrectomy, Roux-en-Y gastric bypass or single anastomosis gastric bypass.

Some patients apply to cover the full cost of surgery, while others use their superannuation to pay out-of-pocket expenses not covered by private health insurance.

You can review our pricing information and check your health fund's coverage for relevant Medicare item numbers, including 31575 for sleeve gastrectomy and 31572, 31581 or 31584 for gastric bypass procedures, where applicable.

How the Application Process Works

The bariatric surgery superannuation application process involves several steps. Here's what to expect.

1. Book your initial consultation. Meet with Dr Greenslade to discuss your health history, previous weight loss options, including lifestyle changes or medications, and whether surgery is suitable. You'll need a confirmed treatment plan before applying.

2. Obtain your quotes. Gather written quotes or invoices for the surgeon, anaesthetist, assistant surgeon and hospital fees. Your application must relate to expenses that haven't already been paid.

3. Get your medical supporting evidence. You'll generally need reports from two registered medical practitioners, including a relevant specialist. Our team can assist with coordinating the required documentation.

4. Check with your superannuation fund. Contact your super fund to confirm it permits compassionate release and that you have enough superannuation to cover the approved expenses and applicable tax. This is particularly important for self-managed funds or defined benefit schemes.

5. Apply through myGov. Sign in to your myGov account, access your linked ATO account and complete the online application form. Upload your medical reports, quotes and other supporting documentation. You can find guidance on the ATO website.

6. Wait for the outcome. Processing can take several weeks, depending on the application and documentation. If approved, you'll receive an approval letter through your myGov inbox, and the ATO will notify your nominated superannuation fund. Your fund then processes the payment.

7. Pay and schedule your surgery. Once the funds arrive, you can finalise payment arrangements and confirm your surgery date with our clinic.

We suggest starting early, as collecting reports and waiting for approval can take longer than expected.

“We strongly encourage patients to take advantage of SuperCare's services to ensure the application process is smooth and efficient, with less chance of rejection. We've noticed that patients trying to manage their applications themselves tend to get knocked back far more regularly. They're not always explained as to why,” says Dr Justin Greenslade

SuperCare offers application assistance for a fee, although you can also apply independently through myGov.

What to Think About Before You Apply

Accessing superannuation for medical treatment is a significant financial decision, even when surgery could improve your health.

The main consideration is your retirement savings. Money withdrawn today is money that can no longer earn investment returns in your super fund. Early withdrawals are also generally taxed, and replacing those savings later is subject to normal contribution rules and limits.

On the other hand, some patients see surgery as an investment in their long-term health and quality of life. Both considerations deserve attention.

Before applying, consider your alternatives. Could private health insurance cover some costs? Would upgrading your policy and serving the required waiting period be practical? You could also explore medical payment plans through Total Lifestyle Credit (TLC), subject to its lending criteria.

Third-party services such as SuperCare can assist with applications but charge fees. Brisbane Bariatric Centre's superannuation resource currently lists a $480 SuperCare service fee payable on approval.

Most importantly, speak with an independent financial adviser or your superannuation company before making a decision. We're here to advise on your medical treatment, not your retirement finances.

A Word on Overseas Surgery

Overseas weight loss surgery packages, particularly in destinations such as Türkiye, are increasingly promoted online. Lower prices and shorter waiting times can make them appealing, and many patients undergo treatment without complications.

However, there are risks worth understanding before travelling.

Complications such as infections, surgical leaks or twisting of the stomach may develop after you've returned to Australia. If your surgeon is overseas, accessing timely follow-up care may be more complicated. Serious complications may require treatment in Australian hospitals.

There's also the longer-term picture.

Bariatric surgery changes how you eat and, depending on the procedure, how your body absorbs nutrients. Monitoring iron, vitamin B12, vitamin D and calcium is important. Issues such as reflux, nutritional deficiencies or weight regain may also develop years after surgery.

That's why we emphasise ongoing support, including access to an optional 24-month aftercare program through NV Health.

“The surgery itself is just one part of the journey. It’s the relationship you have with your surgical team afterwards that really matters – having people who know you, who can support you through the ups and downs, and are there if questions or problems come up. If you’re looking at an overseas package, I’d encourage you to think beyond the operation itself and ask, ‘Who’s going to be there for me when I’m back home?’” says Dr Justin Greenslade

If you're considering using compassionate release funds for overseas treatment, confirm eligibility with the ATO first. Funds must be used for their approved purpose, and misuse might have serious consequences.

How Brisbane Bariatric Centre Can Help

Considering weight loss surgery but unsure how to pay for it? At Brisbane Bariatric Centre, we've supported many patients through the compassionate release process. Our team can help with surgical quotes, medical documentation and information about your funding options.

Explore our superannuation resource page or contact us to discuss your next steps.

We also welcome rural, regional and interstate patients, with telehealth consultations where appropriate and guidance on potential travel subsidies.

Book a consultation with Dr Justin Greenslade at Greenslopes Private Hospital, approximately 15 minutes from Brisbane's CBD.

Call 07 3324 0015 or contact Brisbane Bariatric Centre to get started.

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