Medicare Levy exemption & refund for temporary residents

The Medicare Levy is a 2% charge on your taxable income that funds Australia's public health system. Temporary visa holders who are not enrolled in Medicare are generally entitled to a full exemption — meaning the levy should never have been deducted from their wages. If it was, ALITAX lodges an amendment and the ATO refunds the difference — typically $800 to $1,500 or more.

Who Qualifies for the Medicare Levy Exemption?

Most temporary visa holders who were not enrolled in Medicare are eligible. This includes student visa (subclass 500) holders, working holiday makers (417 and 462) from most countries, and skilled temporary workers (457, 482) not enrolled in Medicare. Citizens of countries with a Reciprocal Health Care Agreement with Australia — including the UK, Ireland, Italy, Sweden, Netherlands, Belgium, Norway, Finland, Slovenia and Malta — may be enrolled in Medicare and not eligible for the full exemption.

What Is the Medicare Levy Surcharge?

The Medicare Levy Surcharge (MLS) is an additional tax of 1% to 1.5% for high-income earners ($93,000+ for singles in 2025–26) who do not hold appropriate private hospital insurance. Temporary residents not enrolled in Medicare are generally exempt from the MLS as well.

How Much Can You Claim Back?

The Medicare Levy is 2% of taxable income. On a $40,000 income, the levy is $800. On a $75,000 income, it is $1,500. ALITAX reviews your return and lodges an amendment to recover the full amount you are owed.

How to Claim the Medicare Levy Exemption

1. Obtain a Medicare Entitlement Statement (MES) from Services Australia confirming you were not entitled to Medicare during your time in Australia
2. Lodge or amend your tax return with the exemption applied — ALITAX handles both steps
3. The ATO processes your refund within 7–10 business days of the amendment

Can You Amend a Previously Lodged Return?

Yes. The ATO allows amendments to returns lodged within the last 2 years. If you lodged through myGov or with a different agent and did not claim the Medicare Levy exemption, ALITAX can review and amend your return. No upfront cost — our fee is only payable once your refund is confirmed. Contact ALITAX at info@alitax.com.au for a free eligibility check. (Source: ATO, ato.gov.au. Last updated July 2026.)