Medicare Levy and Medicare Levy Surcharge

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Medicare Levy and Medicare Levy Surcharge


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Old 21st July 2019, 03:55 AM
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Default Medicare Levy and Medicare Levy Surcharge

When do we qualify for Medicare Levy and Medicare Levy Surcharge? Is it the day we are granted Medicare Card?

I actually have few queries on the subject.

1) Do we get 1 year window from the date we are granted Medicare card in Australia before we are subject to Medicare Levy and Medicare Levy Surcharge?

2) Can we take Private Health Insurance to get exemption from both Medicare Levy and Medicare Levy Surcharge?

3) Are there any specific guidelines on the Private Insurance that we must buy to seek exemption?

4) Which is the cheapest Private Insurance that we can buy if the intention is just to avoid Medicare Levy and Medicare Levy Surcharge?

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Old 21st July 2019, 04:20 AM
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Originally Posted by Deepti.Sinha View Post
When do we qualify for Medicare Levy and Medicare Levy Surcharge? Is it the day we are granted Medicare Card?

I actually have few queries on the subject.

1) Do we get 1 year window from the date we are granted Medicare card in Australia before we are subject to Medicare Levy and Medicare Levy Surcharge?

2) Can we take Private Health Insurance to get exemption from both Medicare Levy and Medicare Levy Surcharge?

3) Are there any specific guidelines on the Private Insurance that we must buy to seek exemption?

4) Which is the cheapest Private Insurance that we can buy if the intention is just to avoid Medicare Levy and Medicare Levy Surcharge?
1. There is no window
The day you become eligible to apply for a Medicare card, you become liable to pay the medical levy and surcharge, irrespective of whether you apply for the Medicare card or not

2. you cannot get exemption from Medical levy, only the medical levy surcharge

3. You can check the health insurance you are proposing to buy, if it is MLS compliant or not

4. HCF is the cheapest as far as I know. But it’s a useless piece of paper in case of a real emergency. It just saves MLS and has been pulled up by regulatory authorities several times

I hope you are aware that MLS kicks in only after you cross 90,000 aud individually or 180,000 aud as a couple

Cheers

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Old 21st July 2019, 05:34 AM
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Originally Posted by Deepti.Sinha View Post
When do we qualify for Medicare Levy and Medicare Levy Surcharge? Is it the day we are granted Medicare Card?

I actually have few queries on the subject.

1) Do we get 1 year window from the date we are granted Medicare card in Australia before we are subject to Medicare Levy and Medicare Levy Surcharge?

2) Can we take Private Health Insurance to get exemption from both Medicare Levy and Medicare Levy Surcharge?

3) Are there any specific guidelines on the Private Insurance that we must buy to seek exemption?

4) Which is the cheapest Private Insurance that we can buy if the intention is just to avoid Medicare Levy and Medicare Levy Surcharge?
1. The Medicare Levy applies from the date you register for Medicare - it comes out of your annual tax. The Lifetime Health Cover loading was introduced by the Australian Government to encourage Australian residents to take out hospital insurance earlier in life. All Australian residents can avoid this loading if they take out an adequate level of hospital cover prior to the 1st of July following their 31st birthday.

The loading is only applicable to private hospital cover premiums, not extras, and is calculated as 2% per year on top of your hospital cover premium, for 10 consecutive years, up to a maximum of 70%.

If you are already over the age of 31 when you become an Australian resident, and you want to benefit from private health insurance, you will not have to pay any loading as long as you take out hospital cover within 12 months of registering for your Medicare (or Reciprocal Medicare) card.

2. No exemption from Medicare Levy. Medicare Levy Surcharge applies if your income is over a certain point, and you don't have private cover (as well as Medicare): https://migration.bupa.com.au/about-...esidents#table

3. Almost any level of private hospital cover (but the deductible matters, and is taken into account!) see "Can you avoid paying the Medicare Levy Surcharge", here: https://www.iselect.com.au/health-in...evy-surcharge/

4. Check comparison websites for policies. I'd avoid Basic and look at Bronze, Silver or Gold depending on your needs. Better cover many not cost much more than cheaper cover. If you need cover to avoid the Medicare Levy Surcharge, be sure it does do that.

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Old 21st July 2019, 06:08 AM
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1. The Medicare Levy applies from the date you register for Medicare - it comes out of your annual tax. The Lifetime Health Cover loading was introduced by the Australian Government to encourage Australian residents to take out hospital insurance earlier in life. All Australian residents can avoid this loading if they take out an adequate level of hospital cover prior to the 1st of July following their 31st birthday.

The loading is only applicable to private hospital cover premiums, not extras, and is calculated as 2% per year on top of your hospital cover premium, for 10 consecutive years, up to a maximum of 70%.

If you are already over the age of 31 when you become an Australian resident, and you want to benefit from private health insurance, you will not have to pay any loading as long as you take out hospital cover within 12 months of registering for your Medicare (or Reciprocal Medicare) card.

2. No exemption from Medicare Levy. Medicare Levy Surcharge applies if your income is over a certain point, and you don't have private cover (as well as Medicare): https://migration.bupa.com.au/about-...esidents#table

3. Almost any level of private hospital cover (but the deductible matters, and is taken into account!) see "Can you avoid paying the Medicare Levy Surcharge", here: https://www.iselect.com.au/health-in...evy-surcharge/

4. Check comparison websites for policies. I'd avoid Basic and look at Bronze, Silver or Gold depending on your needs. Better cover many not cost much more than cheaper cover. If you need cover to avoid the Medicare Levy Surcharge, be sure it does do that.
1. Are you sure ?
I registered for Medicare a few days after I applied for my 189, as I was not aware that I was eligible to apply for the Medicare card even without getting the PR

However, when filing my tax returns for that year, my accountant put the date of the start of the medical levy and surcharge from the date that I applied for my 189 and became eligible, and not the date I actually applied

If one doesn’t ever apply for Medicare card, will he not be required to pay the ML and MLS ever ?

Cheers

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Last edited by NB; 21st July 2019 at 06:12 AM.
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Old 21st July 2019, 08:09 AM
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1. Are you sure ?
I registered for Medicare a few days after I applied for my 189, as I was not aware that I was eligible to apply for the Medicare card even without getting the PR

However, when filing my tax returns for that year, my accountant put the date of the start of the medical levy and surcharge from the date that I applied for my 189 and became eligible, and not the date I actually applied

If one doesn’t ever apply for Medicare card, will he not be required to pay the ML and MLS ever ?

Cheers
I always tend to think of people arriving in Australia for the first time, not those that were here already and get registered when they apply for a permanent skilled visa. Which is a mistake on my part, but I still tend to do it!

Here's the official stuff:

New migrants to Australia

If you are a new migrant to Australia, then your LHC base day is the later of
the 1 July following your 31st birthday; or
the first anniversary of your full Medicare registration.
You have until that day to take out hospital cover without incurring a Lifetime Health Cover loading.

Your 'full Medicare registration' refers to the date you registered for interim or full Medicare benefits (usually a blue or green Medicare card). Reciprocal Medicare does not count for LHC purposes.

You can confirm your full Medicare registration date by requesting a letter from Medicare - contact Medicare (Department of Human Services) or visit your local Medicare branch.

If you miss your Lifetime Health Cover base day, you will have to pay a loading. The loading is calculated as 2% for each year you are aged over 30 when you take out hospital cover.

An example: Sonja was registered for full Medicare benefits (green Medicare card) on 20 April 2013. Sonja had her 31st birthday on 8 November 2013. Sonja’s Lifetime Health Cover (LHC) base day is 1 July 2014 because this is the 1 July following her 31st birthday. Sonja purchased private hospital cover on 2 October 2018. On that date Sonja was 36 years old so she has to pay 12% LHC loading [(36 years old – 30 year cut-off) x 2%].

New migrant and overseas on base day, if your base day is after 1 July 2009

The following applies if you are:

a new migrant;
overseas on your Lifetime Health Cover base day; and
you registered with Medicare on or after 1 July 2009.

If all these apply to you, then you will not have to pay a Lifetime Health Cover loading if you purchase hospital cover within 12 months of your first return to Australia for a period of 90 days or more. The anniversary of your return to Australia becomes your new Lifetime Health Cover base day.


https://www.privatehealth.gov.au/hea...tm#newmigrants

In terms of not registering for Medicare, good question.

Can't see why you wouldn't register, as any service would otherwise be payable at full rates - no Medicare refund from the doctor, full cost recovery for any hospital services. No Medicare card to help as a piece if ID, either. Medicare in Australia is easily one of the best bargains for health care of any country, in terms of value.

Even if not registered, you'd still have to pay the Medicare Levy if you're a Permanent Resident - it will always be calculated and included in your tax (there are exemptions for Temporary Residents, blind people, diplomatic staff, those on Sickness Allowance and former Defence Force members in some cases - you because you might not register, well, that's not the ATO's problem!

And you'd still need to pay the surcharge if you didn't have Medicare and Private Health Insurance of your income was in that range.


Last edited by kaju; 21st July 2019 at 08:12 AM.
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Old 22nd July 2019, 12:33 AM
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Default Medicare Levy Exemption

Hello All,

I have a question regarding the Medicare Levy Exemption which I am planning to apply for.
  • PR application Lodged on the 16th November 2018
  • PR Grant on the 06th March 2019

On the day I lodged my application, I was eligible to apply for Medicare (Blue Card), so does this mean I am eligible for exemption from 1st July 2018 until 15th November 2018?

Thank you.

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Old 22nd July 2019, 12:35 AM
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Originally Posted by SAMYBOY View Post
Hello All,

I have a question regarding the Medicare Levy Exemption which I am planning to apply for.
  • PR application Lodged on the 16th November 2018
  • PR Grant on the 06th March 2019

On the day I lodged my application, I was eligible to apply for Medicare (Blue Card), so does this mean I am eligible for exemption from 1st July 2018 until 15th November 2018?

Thank you.
Thatís correct

Cheers

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https://www.expatforum.com/expats/au...g-journey.html

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