Medicare Levy Exemption for Nepalese Passport Holders
Nepal has no RHCA agreement with Australia. Nepalese citizens on temporary visas (Subclass 500 Student, 485 Graduate, 482 TSS) are not entitled to Medicare and qualify for a 100% Medicare Levy Exemption via Form MS015 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
Worked Tax & Take-Home Pay Breakdown for Nepal Expats
Stage 3 resident tax rates with vs. without the 2% Medicare Levy Exemption
| Gross Annual Salary | Income Tax (Stage 3) | Medicare Levy (2%) | MES Extra Net Cash | Net Take-Home Pay | Super (12%) |
|---|---|---|---|---|---|
| $45,000 AUD | $4,288 AUD | $0 (Exempt) | +$900 AUD/yr | $40,712 AUD | $5,400 AUD |
| $65,000 AUD | $10,288 AUD | $0 (Exempt) | +$1,300 AUD/yr | $54,712 AUD | $7,800 AUD |
| $85,000 AUD | $16,288 AUD | $0 (Exempt) | +$1,700 AUD/yr | $68,712 AUD | $10,200 AUD |
Official ATO & Bilateral Treaty Framework for Nepal
Legal taxation and healthcare analysis
Nepal and Australia maintain bilateral trade frameworks ensuring transparent taxation of employment income earned within Australian territorial borders.
Nepal has no RHCA treaty with Australia. You are not entitled to Medicare and must submit Form MS015 to claim your 100% exemption on Item M2.
Australian Tax & MES Guide for Nepalese Students & Professionals
With over 150,000 Nepalese citizens living across Sydney, Melbourne, Brisbane, and regional Australia, the Nepalese diaspora represents one of Australia's fastest-growing international communities.
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1. Why Nepalese Visa Holders Qualify for 100% Medicare Exemption
Under Australian taxation law, temporary visa holders from Nepal:#
2. Worked Take-Home Pay Example for Nepalese Expats
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3. How to Apply for MES as a Nepalese Citizen
1. Download or fill Form MS015 on the Services Australia website. 2. Attach certified copies of your Nepalese passport bio page and Australian Department of Home Affairs visa grant notification. 3. Submit via the Services Australia online upload or postal address. 4. Record the approved exempt period in your MyTax tax return.Medicare Exemption FAQs for Nepal Citizens
Q:Are Nepalese students on visa 500 exempt from Medicare Levy?
Yes, Nepalese students holding private OSHC can claim a 100% exemption from the 2% Medicare Levy by obtaining an MES certificate from Services Australia.
Q:How long does it take Services Australia to approve an MES for Nepalese applicants?
Processing typically takes between 4 to 8 weeks. We recommend applying in May or June before lodging your tax return in July/August.