Absolutely! All our levels of domestic hospital cover are tax compliant products and will therefore exempt you from incurring the Medicare Levy Surcharge (MLS) at tax time.
Does my overseas cover exempt me from the Medicare Levy Surcharge?
If you currently hold an OVC policy with HIF and earn above the adjusted taxable incomes detailed below, then you may still incur the Medicare Levy Surcharge at tax time. To reduce your next tax bill and avoid paying the MLS, we strongly suggest that you purchase a domestic hospital policy in addition to your visa-compliant Overseas Visitors Cover (OVC), as your OVC is not considered an adequate tax exemption product by the Australian Tax Office.
If you currently hold an OVS policy with HIF and do not earn above the adjusted taxable incomes detailed in the table below, you may be exempt from the MLS by completing the Government’s ‘Medicare Entitlement Statement’.
Medicare levy exemption
Did you know that you may be exempt from paying the Medicare levy if you:
- meet certain medical requirements
- are a foreign resident
- are not entitled to Medicare benefits.
Non-Medicare card holders can apply to Medicare for a “Medicare Levy Exemption Certificate”. If granted this will exempt the Overseas Visitor from paying the Medicare Levy and Medicare Levy Surcharge – if applicable. If you’re still not sure, head over to the Australian Tax Office’s information about the Medicare levy exemption.
From 1 July 2023 the Adjusted Taxable Income thresholds are outlined in the table below:
| POLICY TYPE | ADJUSTED TAXABLE INCOME |
|---|
SINGLE
COUPLE/FAMILY | $93,000 or less
$186,000 or less | $93,001 - 108,000
$186,001 - 216,000 | $108,001 - 144,000
$216,001 - 288,000 | $144,001 or more
$288,001 or more |
| APPLICABLE MLS | 0% | 1.0% | 1.25% | 1.5% |
Important. please note:
- The thresholds may increase annually based on growth in Average Weekly Ordinary Time Earnings. Single parents & couples (including de facto couples) are subject to family tiers. For families with children, the thresholds are increased by $1,500 for each child after the first.
- Non-domestic temporary residents can only purchase domestic products for tax saving purposes.
- Non-domestic temporary residents are not able to claim on services covered on domestic hospital products.
- Make sure you get in touch when and if you become eligible for Medicare so we can ensure you’re on the appropriate cover.