Do 482 Visa Holders from RHA Countries Need to Pay the Medicare Levy?
For citizens of Reciprocal Healthcare Agreement (RHA) countries on a subclass 482 Temporary Skill Shortage (TSS) visa, the requirement to pay the Medicare Levy depends on Medicare eligibility, registration status, and income level. Some visa holders may be exempt, while others may be required to contribute to Australia’s public healthcare system.
This blog explains the Medicare Levy, possible exemptions, and the Medicare Levy Surcharge (MLS) for 482 visa holders from RHA countries, helping you understand your tax obligations and options.
1. Understanding Medicare Entitlement for 482 Visa Holders from RHA Countries
What Is a Reciprocal Healthcare Agreement (RHA)?
Australia has Reciprocal Healthcare Agreements (RHAs) with several countries, including:
- United Kingdom
- New Zealand
- Ireland
- Italy
- Belgium
- Sweden and more.
These agreements allow citizens of RHA countries to access limited Medicare benefits while in Australia, but coverage is not comprehensive.
What Medicare Covers for RHA Country Citizens?
✔ Medically necessary treatment in public hospitals.
✔ Subsidized GP visits under Medicare.
✖ No coverage for elective procedures or full private hospital care.
✖ No automatic enrolment—visa holders must register for Medicare.
Medicare Levy Implications
- Registered for Medicare? You will likely need to pay the 2% Medicare Levy (if your taxable income is above the threshold).
- Not Registered? You may be exempt, but you need a Medicare Entitlement Statement (explained below).
2. How to Get an Exemption from the Medicare Levy
If a 482 visa holder does not register for Medicare or is not eligible under the RHA, they may qualify for an exemption from the Medicare Levy.
Steps to Claim an Exemption:
- Obtain a Medicare Entitlement Statement (MES)
- This document from Services Australia confirms you are not entitled to Medicare benefits.
- Apply for it through the Medicare website.
- Submit the MES with Your Tax Return
- When filing taxes, provide the Medicare Entitlement Statement to the Australian Taxation Office (ATO).
- This proves you should not be charged the Medicare Levy.
The Medicare Levy may be incorrectly applied to your taxable income without this exemption.
3. Medicare Levy Surcharge (MLS) for High-Income Earners
The Medicare Levy Surcharge (MLS) is separate from the standard Medicare Levy and applies to high-income earners without adequate private health insurance.
How Does MLS Affect 482 Visa Holders?
- If your income exceeds MLS thresholds and you do not hold private health insurance, you may be required to pay MLS, even if you are exempt from the standard Medicare Levy.
- To avoid MLS, maintain Overseas Visitor Health Cover (OVHC) or another compliant private health insurance plan.
MLS Income Thresholds (2024)
| Income level | MLS Rates |
|---|---|
| $93,000 - $108,000 (single) | 1% |
| $108,001 - $144,000 (single) | 1.25% |
| Above $144,000 (single) | 1.5% |
4. Key Factors Affecting Medicare Levy for RHA Citizens on a 482 Visa
- Registered with Medicare?
- You pay the 2% Medicare Levy (if above the income threshold).
- Not Registered with Medicare?
- You may be exempt (with a Medicare Entitlement Statement).
- High Income and No Private Health Cover?
- You may be charged MLS, even if you don’t pay the Medicare Levy.
5. Example Scenarios
To help clarify the tax obligations, here are some example scenarios:
Scenario 1: UK Citizen on a 482 Visa, Registered for Medicare
- Registers for Medicare under the RHA.
- Taxable income: $110,000 per year.
- Pays the 2% Medicare Levy ($2,200).
- Does not pay MLS because they have adequate private health insurance.
Medicare Levy applies
MLS does not apply
Scenario 2: Irish Citizen on a 482 Visa, Not Registered for Medicare
- Chooses not to register for Medicare.
- Obtains a Medicare Entitlement Statement.
- Taxable income: $120,000 per year.
- No Medicare Levy is charged, but since they lack private health insurance, they must pay 1.25% MLS ($1,500).
Exempt from Medicare Levy
MLS applies due to no private health insurance
Scenario 3: Italian Citizen on a 482 Visa, Low Income
- Registered for Medicare under RHA.
- Taxable income: $40,000 per year (below the threshold).
- Exempt from both the Medicare Levy and MLS.
No Medicare Levy
No MLS
6. How to Plan for Medicare Levy & MLS
To avoid unexpected tax costs, 482 visa holders from RHA countries should:
- Determine Medicare eligibility and whether registration is beneficial.
- Apply for a Medicare Entitlement Statement if not using Medicare.
- Consider private health insurance to avoid the Medicare Levy Surcharge.
- Consult with a tax advisor if unsure about obligations.
Proper planning ensures compliance with Australian tax laws while minimising unnecessary healthcare-related tax liabilities.
Conclusion
Citizens of RHA countries on a 482 visa need to assess their Medicare status and tax obligations carefully. If they register for Medicare, they must pay the Medicare Levy. If they are ineligible, they can obtain a Medicare Entitlement Statement to claim an exemption. However, high-income earners should also be aware of the Medicare Levy Surcharge (MLS), which applies regardless of Medicare access.
