Medicare Levy Exemption for Indian Passport Holders in Australia
India does not have a Reciprocal Health Care Agreement (RHCA) with Australia. Indian passport holders on temporary visas (such as 482 TSS, 485 Graduate, and 500 Student) are not entitled to Medicare and can claim a 100% Medicare Levy Exemption (saving 2% of total taxable income) via an MES from Services Australia.
Contextual tax, banking, and overseas remittance offers
Gross Annual Salary (AUD)
Base salary before tax & superannuation
Visa Subclass & Nationality
Determines tax residency brackets and Medicare eligibility
100% Medicare Levy Exemption (MES): As a non-citizen from a non-RHCA country, you can obtain a Medicare Entitlement Statement (MES) from Services Australia and pay 0% Medicare Levy.
Additional Residency & Insurance Toggles
Applying for PR with work rights gives you interim Medicare access, removing the MES exemption.
Avoids 1.0% – 1.5% Medicare Levy Surcharge for taxable incomes above $101,000.
Take-Home Income
You save $2,300/yr ($192/mo) under Category 1 MES.
Paid in addition to gross salary
Total pkg: $128,800
Citizen vs. Visa Holder Comparison
$86,262
Includes 2% Medicare$89,712
0% Medicare (MES)Extra take-home pay due to 100% Medicare Levy Exemption
/ year
Compare Approved OVHC Health Cover
Maintain mandatory health insurance for Work Visa (482/485) while claiming 100% Medicare Levy Exemption.
- Instant Department of Home Affairs letter
- No waiting period on emergency dental
- 24/7 multilingual health advice line
- 100% compliant with visa condition 8501
- Direct billing at 1,000+ medical clinics
- Telehealth included at $0 co-pay
- Simple digital claims via nib app
- Unlimited emergency ambulance
- Customizable extras & dental
⚡ Instant digital visa certificate sent to your email in under 3 minutes.
Get Quote with Bupa AustraliaHow to Claim 100% Medicare Levy Exemption (MES)
Official step-by-step Services Australia checklist
Obtain a certified copy of your passport photo page, current Australian visa grant notice (or VEVO check), and proof of arrival.
Apply online using your Services Australia / Medicare online account through myGov, or complete Medicare Entitlement Statement (MS015).
Once approved (usually 4-6 weeks), enter your MES certificate number under ATO tax return question M2 (Medicare Levy Exemption: 365 days).
Contextual tax, banking, and overseas remittance offers
Australian Tax & Medicare Rules for India Nationals
Official ATO & Services Australia MES framework
Tax Residency & Stage 3 Tax Rates
Temporary visa holders from India residing in Australia for work or study are generally assessed as Australian Residents for Tax Purposes. This grants you the $18,200 tax-free threshold and lower marginal rates under the Stage 3 Tax Cuts.
Medicare Entitlement Statement (MES) Steps
India does not have an RHCA treaty with Australia. As a temporary resident maintaining private OVHC/OSHC health cover, you can apply for an MES from Services Australia to claim a 100% exemption on Question M2 of your ATO tax return.
Medicare Exemption FAQs for India Citizens
Q:Are Indian citizens exempt from the Medicare Levy in Australia?
Yes! Indian passport holders on temporary visas without PR applications are 100% exempt from the 2% Medicare Levy because Australia has no reciprocal healthcare agreement with India.
Q:How much tax does an Indian on a 482 or 485 visa save?
You save exactly 2% of your taxable income. For example, on an AUD $100,000 salary, you save $2,000 per year; on an AUD $150,000 salary, you save $3,000 per year.
Q:How do I claim the Medicare Levy Exemption as an Indian national?
1. Apply for a Medicare Entitlement Statement (MES) online via Services Australia before lodging your tax return. 2. Once your MES is approved, tick 'Yes' to the Medicare Levy Exemption Category 1 question on your ATO tax return.