Healthcare systems differ from country to country. The healthcare system in Australia is made up of publicly run Medicare and private health insurance. Here’s some information to help you better understand how the Australian healthcare system works and what it means for you.
Medicare
Medicare is Australia’s public healthcare system, which provides free or subsidised cover for many healthcare costs and is available to all Australian citizens and permanent residents, and some temporary residents of Australia.
Overseas visitors are not eligible for Medicare benefits unless they are from a country that has a Reciprocal Health Care Agreement (RHCA) with Australia.
Reciprocal Health Care Agreements (RHCA) with Australia
The Australian Government has signed a RHCA with governments of certain countries to allow people coming from those countries some access to Medicare. These countries include United Kingdom, Malta, Sweden, Finland, Italy, Norway, Belgium, the Netherlands, New Zealand, Republic of Ireland and Slovenia.
If you are from any of the RHCA countries with the exception of New Zealand and the Republic of Ireland, you are eligible to receive a Reciprocal Medicare card.The level of Medicare cover you receive is limited to immediately necessary treatment only, and the level and period of cover varies depending on which country you come from. To find out if you have access to Medicare and what level and period of cover you are eligible for please refer to Medicare.
It’s important to note that even if you are eligible for Medicare under a reciprocal arrangement with your country, you will only be covered for immediately necessary medical treatment. This does not include treatment that is considered ongoing, elective, or treatment in a private hospital; and you will not be able to choose your own doctor in hospital.
That’s where your private health insurance can help. We offer a range of overseas visitor covers that provide greater control in choosing where you are treated and who treats you. Many of our covers for overseas visitors provide public and private Hospital cover, full Ambulance cover, cover for visits to the doctor or specialists in private practice, and Extras cover for a wide range of health services including dental, optical, physiotherapy, massage and more.
Choose from covers for overseas visitors on working visas including 457
Choose from covers for overseas visitors on non-working visas
What is the Federal Government Rebate?
The Federal Government provides a rebate on private health insurance premiums to everyone who is eligible for Medicare benefits. It is not currently means tested and is aimed at making healthcare more affordable and accessible to all Australians. The rebate is paid according to the age of the oldest person on the health insurance membership as follows:
- If you are over 70 years old or more, then you, and any other person covered by your membership, are eligible to receive a 40% Federal Government Rebate on your private health insurance.
- If you are between 65-69 years old, then you, and any other person covered by your membership, are eligible to receive a 35% Federal Government Rebate on your private health insurance.
- If you are under 65 years old, you, and anyone else covered by your membership, are eligible to receive a 30% Federal Government Rebate on your private health insurance
- If you are an overseas visitor, and you choose a combined Hospital and Extras cover, you may be eligible for the Government Rebate on your Extras premiums. This only applies if you are from a country that has a Reciprocal Health Care Agreement (RHCA) with Australia and you hold a reciprocal Medicare card.
To apply for the Federal Government Rebate upfront, eligible overseas visitors must be able to provide details of their reciprocal Medicare card upon taking out private health insurance. If you are still overseas at the time of joining, you may not yet have your reciprocal Medicare card. You can apply for the Federal Government Rebate once you are in Australia and have your reciprocal Medicare card.
What is the Medicare Levy Surcharge (MLS)?
All taxpayers in Australia must pay 1.5% of their taxable income as a Medicare Levy. In addition to this, individuals and families on incomes above the MLS thresholds who do not have eligible private hospital cover may have to pay the MLS. This is an additional 1% on top of the Medicare Levy.
The current MLS thresholds are $80,000 per annum (for singles) and $160,000 per annum (for couples and families).* If you are an overseas visitor who is eligible for a reciprocal Medicare card and earning over the MLS threshold in Australia, you may be liable to pay the MLS.
If you are not eligible for a reciprocal Medicare card you will be exempt from the MLS and an exemption form can be obtained from Medicare. You should ask your tax adviser for more information or visit ato.gov.au
Our Overseas Visitor Private Health Covers do not exempt you from paying the MLS. However, you are able to purchase an additional cover called Reciprocal Health Cover, which will provide you with an exemption to the MLS. Reciprocal Health Cover will cost you less than the MLS itself. For more information about this option, please contact us.
* Increases by $1500 per child, after the first child. Thresholds are reviewed each year by the Federal Government.
What is the Lifetime Health Cover (LHC) loading?
The LHC loading is only applicable to Australian citizens and residents. They are not applicable to overseas visitors on temporary visas. However, if you become eligible for Medicare as a permanent resident, you must take out Australian resident’s health cover within 12 months to avoid any LHC loading.
Obligations for a 457 working visa
Persons on or applying for a 457 working visa must fulfil the following obligations::
- maintain adequate health insurance arrangements for themselves and their dependants for the duration of their stay in Australia; and
- purchase a health insurance cover that meets the minimum health requirements as set out by the Department of Immigration and Citizenship (DIAC).
Please note that all our working visa visitors health covers meet the minimum requirements to support a 457 working visa application, except for Short Stay Education Cover.
Once you take out one of our working visa visitors health covers, 457 visa applicants will receive a confirmation letter which may be used as proof of cover to support your visa application to the Department of Immigration and Citizenship (DIAC).
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