Paying for dental implants in Australia

Paying in stages

An implant is placed in steps. The post goes in first and the new tooth goes on later. Finder describes this as several visits over a few months.

Because the work is spread out, ask whether the practice bills at each stage, and ask for a written plan that shows what you pay at each visit. That way the bill matches the work as it is done.

Source: Finder.

Payment plans

If a practice offers a payment plan, its own or through a finance company, before you sign, ask these questions:

• Is there a set up fee or a monthly account fee?
• Is there interest, and from what date?
• What happens if a payment is late?
• What is the total you will pay by the end of the plan?
• Can you pay it off early without a fee?

Compare the total of the plan with the cash price. The gap is the true cost of spreading the bill.

Timing your extras cover

If you have extras cover with major dental, two rules shape when to claim. Finder notes:

• a waiting period of about a year for major dental
• then a cap each year, often A$500 to A$800

Since the limit resets each year, some people ask their dentist whether the stages of their treatment can fall in two benefit years. Whether that works depends on your treatment plan, so it is a question for your dentist and your fund.

See the Medicare and extras guide for the questions to ask your fund.

Source: Finder.

Early release of super: the ATO rules

The ATO lets some people take super out early on compassionate grounds. Dental treatment is one of the listed medical treatments, but the bar is high. The ATO says early access is a last resort, to be used only after all other ways to pay have been tried.

The five ATO conditions for early super

The ATO will only approve a release if you meet all five:

1. Residency. You are, or have been, an Australian citizen or permanent resident, or a New Zealand citizen. A current temporary resident cannot apply.
2. An eligible expense. The cost must fit one of the ATO's listed types, such as medical treatment.
3. Unpaid, or paid with borrowed money. The expense has not been paid, or it was paid with money you borrowed and cannot repay without your super.
4. No other way to pay. You cannot pay some or all of it any other way.
5. Evidence. You hold all the evidence the ATO asks for.

Source: ATO conditions page.

What the ATO asks for with dental treatment

For medical treatment, the ATO says the treatment must not be readily available through the public health system. Dental treatment needs extra evidence on top of the usual. You must give:

• an itemised quote or invoice that lists your out of pocket costs
• two medical reports: one from a relevant registered medical specialist, and one from a registered medical practitioner or another specialist

The reports must explain the condition and how it is a life threatening illness or injury, acute or chronic pain, or a mental illness. They must say why the treatment is needed and how it treats that condition.

If you live in Australia and plan treatment overseas, the reports must explain why you cannot have it here.

Source: ATO medical treatment page.

What the ATO will not approve

• Cosmetic work that is not needed to treat the condition. When there are cheaper and dearer choices, the ATO only approves what is needed, even if you would prefer the dearer one.
• Treatment for a condition you might get in future.
• Holidays, retreats and spa treatments.
• Fees a third party charges to help you prepare the application.

The ATO also warns about misleading ads that promise easy access to super, and it says both you and your practitioner can face penalties if a diagnosis or certification is false.

Source: ATO medical treatment page.

How to apply for early super, step by step

The ATO's guide sets out these steps. The ATO does not charge to process an application.

1. Check with your super fund. Ask if it allows early release and if your balance covers the amount plus the tax that is usually taken out.
2. Collect the evidence. Quotes must be no more than 6 months old and unpaid invoices no more than 30 days old. One medical report must come from a specialist in the area of the condition.
3. Apply online. In ATO online services through myGov, choose Super, then Manage, then Compassionate release of super. You get a receipt ID. If you cannot apply online, phone 13 10 20 for a paper form.
4. Wait for the outcome. The ATO normally decides within 14 days for online forms and 28 days for paper forms. It tells you by phone or SMS and sends a letter.
5. Contact your fund. If approved, the ATO sends the letter to your fund too. You then ask the fund to release the money. It takes out tax and gives you a payment summary.
6. Pay the bill and keep receipts. Add any taxable amount from the payment summary to your tax return for that year.

Only registered tax agents may charge a fee to help you apply, and you cannot use released super to pay that fee. Never share your myGov sign in details with anyone. If the ATO says no, it explains why, and you generally have 14 days from the decision letter to ask for a review.

Money taken from super now is money that will not grow for your retirement. Weigh that before you apply, and talk to a licensed financial adviser if you are unsure.

Sources: ATO application guide and the ATO page on what to expect after you apply.

A worksheet for the real cost

Whichever way you pay, start from a written quote and work out the real figure. Fill in each line from your own papers.

The sample uses a quote inside Finder's A$3,000 to A$7,000 range and an A$800 yearly cap, the top of Finder's usual range. It is an example, not a price for your mouth. For typical prices, see dental implant cost in Australia.

Ranges from Finder.

Which path fits which situation

Rules from the ATO medical treatment page and Finder.

Paying for implants questions

Answers drawn from the ATO conditions page, the ATO medical treatment page and Finder.