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superroot(Newbie)Newbie
29 July 2024

Hi,


I am on a TSS 482 visa and applied for permanent residency in August 2023 through the Employer Nomination Scheme (186). I enrolled on the medicare card on September 2023.


Due to the condition of my 482 visa, I didn't change my Overseas Visitor Health Cover (OVHC) insurance from Bupa instead of the domestic private hospital cover. I recently came to know that after applying to PR, we should convert the insurance from OVHC to domestic insurance, and I did the same.


Should I pay medicare levy surcharges during the July 2023 to June 2024 financial year?


Thanks in advance.

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ATO Certified Response
AshleyATO(Tax Time Tech Expert)Tax Time Tech Expert
ATO Certified Response5 Aug 2024

Hi @superroot


You may have to pay the Medicare levy surcharge if you are above a certain income. This depends on whether you are in the family or single income threshold.


If you are above the income threshold and don’t take out an appropriate level of private patient hospital cover you will pay the MLS.


If your private health insurance provider is an overseas provider that is not registered in Australia, you:

Have a read of this article Completing the Medicare questions on your tax return. 

superroot(Newbie)Newbie
12 Aug 2024

Hi @AshleyATO , Thanks for the clarifications. I appreciate the quick replies.


However, its more of a common statement available online that may not align with my question. Could you please go through the question and comeback with a closer answers.


For your reference, my question is "I didn't change my Overseas Visitor Health Cover from Bupa to domestic insurance once I became eligible for Medicare, should I pay the medicare levy surcharge or not in this situation?".

Liked by angel9
AshleyATO(Tax Time Tech Expert)Tax Time Tech Expert
13 Aug 2024

Hi @superroot

 

Did you start your domestic private hospital cover sometime in the 2023-24 income year? If so, you may not have to pay the Medicare levy surcharge (MLS) for the number of days you have that cover in the 2023-24 income year.

 

If you started the domestic private hospital cover on or after 1 July 2024, you don’t have an appropriate level of private patient hospital cover in the 2023-24 income year. This is because the Overseas Visitors Health Cover (OVHC) is not an appropriate level of cover for MLS purposes. This means you’ll have to pay the MLS for the full 2023-24 income year.

 

If you need to further confirmation, you can contact us for tailored technical assistance.

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