Thousands of Australians are taking money from their retirement nest eggs to pay for weight loss surgery and other life-saving medical treatments that are not covered by Medicare.
Figures from the Department of Human Services show that 3709 Australians in 2012-13 withdrew money from their superannuation accounts to pay for medical treatment and transport they could not otherwise pay for. The average amount approved was $10,255 and the overall amount was $38 million.
A further 1448 people made an application to tap into their super but were rejected.
Would-be patients must receive permission from the Australian Prudential Regulation Authority and Department of Human Services, which strictly regulate early withdrawal of super.
These include procedures for a life-threatening illness or injury and acute or chronic pain. Applicants must prove they do not have the means to pay for the treatment any other way.
Sydney woman Fiona Wardrop, 32, weighed 135 kilograms when she decided to go under knife to help her lose weight. Her upper-gastrointestinal surgeon recommended she have sleeve gastrectomy. But, with no health insurance or lump sum sitting in her bank account, she made an application to her superannuation account and was granted $10,000.
She has since lost 80kg and withdrew a further $20,000 for a tummy tuck and breast implants.
The trend has grown since 2011, when Fairfax Media reported that between 2003 and 2010 the number of Australians who had dipped into their super to pay for medical treatment had jumped 38.6 per cent. That figure is expected to climb as more and more Australians are classified as overweight or obese.
Obesity rates, which jumped 11 per cent between 1989 and 2012, continue to rise in Australia. The National Health Reporting Authority for the Council of Australian Governments revealed that 28 per cent of Australians are obese.
In July this year, Australian Medical Association president Brian Owler said 89 per cent of medical treatments do not have any out-of-pocket costs, but acknowledged that some doctors charged "exorbitant fees".
Superannuation money can also be released early on compassionate grounds for funeral expenses, mortgage assistance and palliative care.
