The Rebate and Medicare Levy Surcharge (MLS) only applies to you if you can access Medicare. Do you have access to Medicare?
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- Understanding the Australian healthcare system
- 482 & 485 visa information
- Are you eligible for a rebate?
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Reciprocal Health Cover
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. 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 =
No need to pay Medicare Levy Surcharge
Important documents for you to read
What is the Medicare Levy Surcharge?
Most Australians pay the Medicare levy as part of their taxes. On top of this, if you do not have private hospital cover and earn over a certain amount, you may also be charged the Medicare Levy Surcharge (MLS). These programs help to fund Medicare, Australia’s public healthcare system. Medicare provides free or subsidised cover for certain health services to Australians, permanent residents and some overseas visitors. People who hold Reciprocal Medicare cards are also eligible for some Medicare benefits.
Will you need to pay the MLS?
If you’re visiting Australia to work and you have access to Medicare, you may be required to pay the MLS. You will have to pay the MLS if the following applies to you:
- You are from a Reciprocal Health Care Agreement country and are eligible for a Reciprocal Medicare Card;
- your annual income is more than $105,000 as a single, or more than $210,000 as a couple, family or single parent,*
- You have overseas visitors cover without our additional Reciprocal Health Cover – Basic
*Applicable rebate percentages and income thresholds are reviewed annually by the Australian Government. Single parents and couples (including de facto couples) are subject to family tiers. For families with children, income thresholds are increased by $1,500 for each Medicare Levy Surcharge dependant child after the first child. For more information, visit the ATO website.
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 $105,000 | $105,001 - $123,000 | $123,001 - $164,000 | More than $164,001 |
|---|---|---|---|---|
| Medicare Levy Surcharge | 0% | 1% | 1.25% | 1.5% |
| Income | Up to $210,000* | $210,001 - $246,000* | $246,001 - $328,000* | More than $328,001* |
|---|---|---|---|---|
| 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 $105,000 | $105,001 - $123,000 | $123,001 - $164,000 | More than $164,001 |
|---|---|---|---|---|
| Rebate tiers | Base tier | Tier 1 | Tier 2 | Tier 3 |
| Rebate^ | ||||
| Up to 65 years | 24.118% | 16.079% | 8.038% | 0% |
| 65 - 69 years | 28.139% | 20.098% | 12.058% | 0% |
| 70 years and over | 32.158% | 24.118% | 16.079% | 0% |
^Rebate percentages are effective for payments made from 1 April 2026 and are reviewed yearly.
#Income thresholds are reviewed annually by the Australian Government and apply from 1 July 2026. For more information visit the Australian Tax Office.
| Income thresholds# | Up to $210,000* | $210,001 - $246,000* | $246,001 - $328,000* | More than $328,001* |
|---|---|---|---|---|
| Rebate tiers | Base tier | Tier 1 | Tier 2 | Tier 3 |
| Rebate^ | ||||
| Up to 65 years | 24.118% | 16.079% | 8.038% | 0% |
| 65 - 69 years | 28.139% | 20.098% | 12.058% | 0% |
| 70 years and over | 32.158% | 24.118% | 16.079% | 0% |
^Rebate percentages are effective for payments made from 1 April 2026 and are reviewed yearly.
#Income thresholds are reviewed annually by the Australian Government and apply from 1 July 2026. For more information visit the Australian Tax Office.
*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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