Saturday, October 31, 2015

Medicare levy exemption for temporary residents

Q:
I am working in Australia with 457 visa, and I don't have any medicare card for me and family. No medicare benifits but medicare levy was deducted in my tax return.

A:
Australian residents need to pay 2% of taxable income for medicare levy (1.5% before 2015). If you were temporary resident and you are not entitled any medicare benefits, you may entitle to exemption. You can ask "medicare levy exemption certification application form" at nearest medicare service center and apply for your exemption. If you exempt from medicare levy you will save a lot of money in your tax return.

You may be eligible for Medicare levy exemption if you:
  • do not hold an Australian permanent resident visa and have not applied for a permanent resident visa.
  • did not reside in one of the following countries prior to entering Australia – the United Kingdom, Northern Ireland, Italy, Malta, Sweden the Netherlands, Finland, Norway, Belgium or Slovenia. These countries have a Reciprocal Health Care Agreement with Australia.
  • are an Australian citizen residing overseas for 5 years or more (this excludes diplomats, defence force personnel or an employee of the Australian government).
  • are a New Zealand citizen that has been residing in Australia for less than 6 months.

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