Reciprocal Health Cover - Basic

The Rebate and Medicare Levy Surcharge (MLS) only applies to you if you can access Medicare. Do you have access to Medicare?

Reciprocal Health Cover - Basic

Reciprocal Health Cover – Basic is designed for overseas visitors holding a Reciprocal Medicare Card when you only need basic hospital cover to supplement your working overseas visitors cover. It provides restricted cover for Rehabilitation, Hospital Psychiatric Services and Palliative Care and can be purchased in addition to one of our working visitors covers. In response to COVID-19, we have added Lung and Chest cover to our Basic and Basic Plus policies from 26 March 2020. This means private patient hospital admissions for Lung and Chest conditions, which includes most COVID-19 related treatments, are included on ALL our hospital policies during this time. This cover also provides an exemption from the Medicare Levy Surcharge (MLS). By purchasing Reciprocal Health Cover – Basic, you may also be eligible to receive the Australian Government Rebate on your private health insurance.


Working Overseas Visitors Cover
+
Reciprocal Health Cover - Basic
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No need to pay Medicare Levy Surcharge
Important documents for you to read

Reciprocal Health Cover - Basic (PDF)

What is the Medicare Levy Surcharge?

Most Australian taxpayers pay an annual Medicare Levy on their taxable income each year. This helps fund Medicare, the public healthcare system that provides free or subsidised cover for certain healthcare services to Australian citizens and permanent residents. On top of this, if you do not have private health insurance you may be charged the Medicare Levy Surcharge (MLS) of between 1-1.5% depending on your income.

Will you need to pay the MLS?

If you’re visiting Australia to work and you have access to Medicare, depending on your circumstances you may be required to pay the MLS. You will have to pay the MLS if all of the following apply to you:

  • You are from a Reciprocal Health Care Agreement country and are eligible for a Reciprocal Medicare Card;
  • You earn over the threshold amount of $90,000 a year for singles or $180,000 a year for couples and families* in Australia
  • You have overseas visitors cover without our additional Reciprocal Health Cover – Basic

*On a family membership this increases by $1,500 per child after the first. The family thresholds also apply to single parent families and couples including de facto couples

Please consult your tax advisor if you’re unsure if the Medicare Levy Surcharge applies to you.

How much MLS will I have to pay?

Income Up to $90,000 $90,001 - $105,000 $105,001 - $140,000 More than $140,001
Medicare Levy Surcharge 0% 1% 1.25% 1.5%
Income Up to $180,000* $180,001 - $210,000* $210,001 - $280,000* More than $280,001*
Medicare Levy Surcharge 0% 1% 1.25% 1.5%

*On a family membership this increases by $1,500 per child after the first. The family thresholds also apply to single parent families and couples including de facto couples.

By purchasing Reciprocal Health Cover - Basic you may also be eligible to receive the Australian Government Rebate on your private health insurance.

What is the rebate?

The Australian Government Rebate on private health insurance (the 'rebate') is an initiative whereby, depending on your income, the Government may contribute an amount towards of the cost of your private health insurance. The rebate is reviewed annually and effective each year from 1 April.

Will you receive the rebate?

Depending on your income you may be entitled to receive the rebate if you:

  • are from a country with a Reciprocal Health Care Agreement (RHCA) with Australia,
  • have a Reciprocal Medicare Card; and
  • have Extras cover included on your Overseas Visitors Cover or in addition. (the rebate is only available on your Extras cover), or
  • have purchased Reciprocal Health Cover - Basic (an additional cover that can be purchased by you to help eliminate the Medicare Levy Surcharge).

The level of rebate you're entitled to is based on the age of the oldest person covered by the policy and by combined annual earnings.

What rebate am I entitled to?

Income Thresholds# Up to $90,000 $90,001 - $105,000 $105,001 - $140,000 More than $140,001
Rebate Tiers Base Tier Tier 1 Tier 2 Tier 3
REBATE^
Up to 65 years 24.608% 16.405% 8.202% 0%
65 - 69 years 28.710% 20.507% 12.303% 0%
70 years and over 32.812% 24.608% 16.405% 0%

^Rebate percentages are effective for payments made from 1 April 2022 and are indexed annually.

#The income thresholds will remain the same until 30 June 2022. For more information visit ato.gov.au.

Income Thresholds# Up to $180,000* $180,001 - $210,000* $210,001 - $280,000* More than $280,001*
Rebate Tiers Base Tier Tier 1 Tier 2 Tier 3
REBATE^
Up to 65 years 24.608% 16.405% 8.202% 0%
65 - 69 years 28.710% 20.507% 12.303% 0%
70 years and over 32.812% 24.608% 16.405% 0%

^Rebate percentages are effective for payments made from 1 April 2022 and are indexed annually.

#The income thresholds will remain the same until 30 June 2022. For more information visit ato.gov.au.

*On a family membership this increases by $1,500 per child after the first. The family thresholds also apply to single parent families and couples including de facto couples.

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