Medicare Levy Exemption for Filipino Passport Holders
The Philippines has no Reciprocal Health Care Agreement (RHCA) with Australia. Filipino temporary visa holders (such as 482 nurses, engineers, and hospitality workers) are not eligible for Medicare benefits and are legally entitled to a 100% Medicare Levy Exemption.
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 Philippines 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%) |
|---|---|---|---|---|---|
| $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 |
| $110,000 AUD | $23,788 AUD | $0 (Exempt) | +$2,200 AUD/yr | $86,212 AUD | $13,200 AUD |
Official ATO & Bilateral Treaty Framework for Philippines
Legal taxation and healthcare analysis
The Australia-Philippines Tax Treaty establishes clear rules for the taxation of personal services and cross-border income earned by Filipino residents.
Philippines 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.
Complete Tax & MES Guide for Filipino Citizens in Australia
Thousands of Filipino healthcare workers, registered nurses, engineers, and hospitality professionals work in Australia on Subclass 482 TSS, 485 Graduate, and 500 Student visas.
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1. Why Filipino Citizens Do Not Pay Medicare Levy
The Philippines is a non-RHCA nation. Filipino visa holders must purchase private health insurance (OVHC Condition 8501) and are exempt from paying Australia's 2% Medicare levy:#
2. How to Claim the Exemption on Form MS015
Medicare Exemption FAQs for Philippines Citizens
Q:Can Filipino nurses on Subclass 482 claim the Medicare exemption?
Yes! Filipino nurses and temporary workers are 100% exempt from the 2% Medicare levy as long as they have not lodged a Permanent Residency application with work rights.