An expat guide to healthcare and health insurance in Australia

The Australian healthcare system is of high quality, as is evident from the long life expectancy in this country. The quality of care is good in the private sector as well as in the public sector. There are numerous and easily accessible medical facilities throughout the country. Each city has walk-in clinics where it’s possible to receive treatment without prior appointment.

Medicare

The Australian healthcare system is called Medicare. Australian citizens and permanent residents can enrol in Medicare. Medicare gives free or highly subsidised access to health care facilities. The Australian health system is partly funded by Australian tax payers who pay a “Medicare levy” of 2% of their income.

If you are on a temporary visa, you may be eligible for Medicare too. Click here to find out more.

As an incentive for the population to sign up for a Medicare approved insurance, people can claim a tax rebate every year matching the type of insurance they have.

People who don’t have an appropriate level of cover for hospital care and earn above a certain income (90,000 Australian dollars for single people and $180,000 for couples and families), must pay a Medicare levy surcharge, which equates 1 to 1.5% of their taxable income.

The Medicare levy surcharge is designed to encourage Australians and residents to apply for private health insurance, and reduce the pressure on the Australian public healthcare system.

All info on Medicare and tax can be found here: https://www.ato.gov.au/Individuals/Medicare-levy/Completing-Medicare-and-private-health-insurance-on-your-tax-return/ 

Medicare does not cover:

– Ambulance services,
– Private patient hospital cost,
– Medical and hospital costs outside Australia,
– Medical and hospital services deemed not necessary, which includes most dental services, glasses, contact lenses and hearing aids and cosmetic surgery,
– Consultations with the doctor of one’s choice.

Around 30% of the Australian population has signed up for a private medical insurance in order to have a wider coverage than that offered by Medicare.

I’m a foreigner: should I sign up for health insurance in Australia?

Your type of visa determines whether you must register or not for compulsory health insurance before entering the Australian territory. You need to check the conditions of your visa. However, even in the situation where you are not obliged to take out insurance, it is still strongly recommended because of the high medical costs in this country.

There are two typical cases:

– If you are a permanent resident, you must register for Medicare. Signing up for a private medical insurance on top is optional.
– If you haven’t been a permanent resident in Australia for the past two years (tourist, student, on a working holiday visa…), you are not eligible for Medicare and you will have to sign up for private medical insurance.

Healthcare agreement between Australia and 11 countries:

People from 11 countries that have a reciprocal healthcare agreement with Australia are entitled to limited subsidised health services in Australia with Medicare. The countries are: New Zealand, the United Kingdom, Ireland, Sweden, the Netherlands, Finland, Italy, Belgium, Malta, Slovenia and Norway. Students from Norway, Finland, Malta and Ireland can’t access Medicare. The access to Medicare is only for medically necessary treatment while visiting Australia and the agreement won’t cover pre-existing conditions or non-urgent treatment.

It’s therefore important to sign up for a private health insurance in order to cover the medical costs that Medicare won’t cover.
On certain types of visa (for example 457 for temporary workers and 485 for students lengthening their stay in Australia), you are obliged to subscribe to a private medical insurance with a certain level of cover decided by the Australian authorities. This health insurance policy can be local or international, but regardless of the type of insurance that you choose, you must make sure it complies with local requirements.