The Australian Health System - What You Need to Know

You health is imperative. In fact, to invest in yourwebsite.
health is to invest in a bright future. Without goodWhat are your Incentives for Private health
health your future may not be certain. In thisCover
instance, prevention is better than cure. However,For holders of an Australian permanent resident
illness can creep up n us when we least expect itvisa it is voluntary whether you wish to take out
to. So, a good health system is important. It’llprivate health insurance. So the issue of the
certainly put your mind at ease.incentives is relevant to this class of visa holder.
There are a few worthwhile factors to keep inHowever, also important to recognise in the case
mind in regards to the Australian Health System.of an Australian temporary visa holder, is that it is
The public health system is funded throughgenerally a condition imposed by the Department
Medicare. The private health system is fundedof Immigration that such a visa holder must take
through private health insurance. Consider theout private health cover.
following...The three main incentives available for persons
Establish if you are eligible for Medicarewho take out private health insurance in Australia
If you reside in Australia, you are an Australian orare the 'lifetime healthcover' concession, the
New Zealand citizen or the holder of anfederal government rebate benefit and the
Australian permanent resident visawaiver of additional Medicare levy surcharge.
– you are eligible to enrol for Medicare. OfLifetime health Cover Concession
course, persons in possession of an AustralianHow does the lifetime health cover concession
Temporary Resident Visa are not eligible to enroloperate? In order to lock in the lowest premium
for Medicare.for life, a person needs to take out hospital
This rule remains intact irrespective of the lengthinsurance cover by 1st July following their 31st
of the stay they’re under.birthday. Thereafter, for each and every year
One exception; The holder of a United Kingdomthat person fails to take out such cover, a loading
passport under certain reciprocity arrangementsfor life is added to the premium at the cumulative
with NHS a holder of an Australian temporary visarate of 2 per cent per year.
under a UK passport will be eligible to enrol forFor example, if a new Australian permanent
Medicare.resident migrant enters Australia at the age of 39
Eligible Australian permanent visa holdersand fails to take out hospital insurance cover until
These include skilled based visas, business-basedthe age of 45, they will pay 30 per cent more in
visas and the family-based visas.premiums (as calculated to the default 30 years
Ineligible Australian temporary visa holdersof age), even though his or her residence in
These include the initial entry student skilled-basedAustralia has only been for six years.
visas, the initial entry employer sponsored andCharges for Federal Government Rebate Benefit
contractor type visas and the provisional entryHow much is the federal government rebate
business-based visas and the family-based visas.benefit? For persons under the age of 65 the
Enquire what your services coverrebate is 30 per cent, for persons between the
In house hospital services Medicare coversages of 65-69 the rebate is 35 per cent and for
If you choose to be treated in a public hospital,persons over 70 is 40 per cent. The rebate is
Medicare covers the whole cost including theapplied annually as a reduction to the health
accommodation and all treatment by doctors andinsurance premium then payable.
specialists. If you choose to be treated in aMedicare Levy Surcharge
private hospital, Medicare covers 75 per cent ofMedicare levy surcharge of 1 per cent is applied
the Medicare Schedule fee for doctors andto high income earners who fail to take out health
specialists.insurance cover in any particular tax year. Note
You will needthat a high income earner is a single person
Private health insurance for the hospitalderiving annual taxable income of greater than
accommodation costs and the gap between otherAUS$50,000. A family or couple the threshold is
full medical service billings over the Medicareannual taxable income greater than AUS$100,000
Schedule refund amounts.combined.
Out of hospital servicesTax Deduction
Medicare covers 85 % of the Medicare ScheduleYou can’t obtain a tax deduction for your
fee. You’re responsible for the excess whichmedical expenses. Tax deduction is not obtained if
is generally covered by your private healthnet medical expenses are incurred or for private
insurance.health insurance cover paid. Although, you are
Services include; Consultation fees for doctors andentitled to a tax offset determined at the flat
specialists, supporting medical procedures. Theserate of 20 per cent for all medical and
include X-rays and pathology tests and eye testspharmaceutical expenses incurred annually in
performed by optometrists.excluded from theexcess of the present AUS$1,500 medical
above mentioned are most dental procedures,threshold.
contact lenses and private hospital cover again toNow that you aware of your benefits and the
be covered by private health insurance.costs you will incur, how shall you plan ahead?
What cost will you incur?Check your visa class and if eligible enrol yourself
There is no direct fee charged to join the nationaland your family unit for Medicare at the earliest
Medicare system. Instead, the cost to run thetime of entry.
national Medicare system is recovered indirectlyIf you’re not eligible, for Medicare, apply for
by levying each Australian taxpayer a base ratean annual exemption certificate. You can obtain
of 1.5 per cent of his or her taxable income.advice on any prescribed waiting periods and
Employers in Australia recover this base rateregister for ‘safety net benefits’ if
through the periodic PAYG tables.medical expenditures are likely to be high.
Although the taking out of private health insuranceKeep in mind that irrespective of visa class, take
covers is voluntary, if an Australian taxpayer failsout private health insurance at the earliest time of
to take out such cover (and is a so-called highentry. This will allow access to all the concessions.
income earner) a further 1 per cent Medicare levyContact the Private Health Insurance
surcharge will be added to such taxpayer's liability.Administration for all the health insurance
An important planning tip is for those enteringproviders in the area you settle in. You should
Australia under an Australian temporary residentobtain two quotes for comparative purposes
visa to apply for exemption from the Medicare(cost and extent of cover). Also retain medical
levy charge.expense vouchers for tax year end claiming of
If you don't apply for the exemption certificate,the tax offset, where applicable.
you will not be refunded the Medicare levyNow that you’re clued up, you’re able to
collected, notwithstanding you did not and weremake full use of this system. Remember,
not eligible for Medicare benefits. The exemptionyou’re health a significant factor in your bright
application form is also available from the Medicarefuture in youradoptive country.