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ssuryava89(Newbie)Newbie
25 Oct 2023

Hello Team,


I need certain clarification related Medicare levy surcharge (MLS). While talking with tax agent, I got to know I have to pay MLS for 2022-23 tax year returns as I moved from 482 to permanent residency but did not get full hospital cover immediately after PR grant or after eligible for medicare card.


Below are events:


1) I was on 482 visa and on private insurances provider (visitor cover), which is not an issue.


2) My PR application lodged on Aug 2022, and I became eligible to apply medicare but I did not apply and was on existing private cover - mentioned in point1.


3) I received my PR in Jan 2023 and still did not apply medicare till March 2023.


4) I got Medicare on March 2023, and convert existing policy to full hospital cover in June 2023.



My tax agent has give me medicare entitlement form to get some deduction in MLS.


My question is, do you know from which months I have to pay MLS, is it the day I become eligible for medicare or time after PR grant (considering I dont have full hospital cover at that time but on work permit visitor private insurance policy.


Also any possibility I can avoid full MLS in above scenario.


Many thanks.

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3 replies
791 views
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Most helpful reply

CaroATO(Community Support)Community Support
26 Oct 2023

Hi @ssuryava89,


When you lodge your tax return, we'll ask you the number of days you had appropriate level of private patient hospital cover rather than the day you become eligible for Medicare or when you became a PR.


When you personalise your tax return, you'll be able to tell us if you were an Australian resident for tax purposes for the full financial year or not. Based on this information and the number of days you had appropriate private patient hospital cover we'll work out the amount of MLS you'll need to pay.


Happy lodging!

All replies

Most helpful reply

CaroATO(Community Support)Community Support
26 Oct 2023

Hi @ssuryava89,


When you lodge your tax return, we'll ask you the number of days you had appropriate level of private patient hospital cover rather than the day you become eligible for Medicare or when you became a PR.


When you personalise your tax return, you'll be able to tell us if you were an Australian resident for tax purposes for the full financial year or not. Based on this information and the number of days you had appropriate private patient hospital cover we'll work out the amount of MLS you'll need to pay.


Happy lodging!

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Medicare levy surcharge (MLS) after moving from 482 work permit to PR visa | ATO Community