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ATO FY 2025/26 STAGE 3 ACTIVE
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🇻🇳Vietnam Passport Holder Guide

Medicare Levy Exemption for Vietnamese Passport Holders

Vietnam has no RHCA agreement with Australia. Vietnamese citizens on temporary visas are eligible for full Medicare Levy Exemption under Category 1.

100% Medicare Levy Exemption Eligible (MES Category 1)
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Gross Annual Salary (AUD)

Base salary before tax & superannuation

FY 2025/26 Stage 3
AUD $
$20k$100k$180k$300k
Quick Presets:

Visa Subclass & Nationality

Determines tax residency brackets and Medicare eligibility

Non-RHCA (MES Eligible)

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

Applied for Permanent Residency (PR)?Subclass 186/189/190/820

Applying for PR with work rights gives you interim Medicare access, removing the MES exemption.

Adequate Private Hospital Cover?Avoids MLS Surcharge

Avoids 1.0% – 1.5% Medicare Levy Surcharge for taxable incomes above $101,000.

Estimated Net Pay

Take-Home Income

Net Take-Home (annual)22% Effective Rate
$89,712/ annual
Medicare Exempt (MES Eligible)0% Levy

You save $2,300/yr ($192/mo) under Category 1 MES.

Gross Salary$115,000
Income Tax (Stage 3)-$25,288
Medicare Levy0% Exempt$0
Total Tax Withheld$25,288
Employer Superannuation12.0%

Paid in addition to gross salary

$13,800

Total pkg: $128,800

Citizen vs. Visa Holder Comparison

+$3,450 Advantage
AU Citizen / PR

$86,262

Includes 2% Medicare
Visa Holder (You)

$89,712

0% Medicare (MES)
Net Take-Home Difference

Extra take-home pay due to 100% Medicare Levy Exemption

+$3,450

/ year

OVHC (Condition 8501)Department of Home Affairs Compliant

Compare Approved OVHC Health Cover

Maintain mandatory health insurance for Work Visa (482/485) while claiming 100% Medicare Levy Exemption.

Verified Australian Funds
Bupa AustraliaFast Visa Letter (Condition 8501)
$114/mostarting price
🎉 Save 10% First 12 Months
  • Instant Department of Home Affairs letter
  • No waiting period on emergency dental
  • 24/7 multilingual health advice line
Allianz Care AustraliaGovernment Approved
$108/mostarting price
🎉 Exclusive Student & Expat Rates
  • 100% compliant with visa condition 8501
  • Direct billing at 1,000+ medical clinics
  • Telehealth included at $0 co-pay
nib Health FundsBest Value
$98/mostarting price
🎉 Get $100 Digital Mastercard
  • 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 Australia

How to Claim 100% Medicare Levy Exemption (MES)

Official step-by-step Services Australia checklist

Form MS015
1Prepare Documents

Obtain a certified copy of your passport photo page, current Australian visa grant notice (or VEVO check), and proof of arrival.

2Lodge via myGov

Apply online using your Services Australia / Medicare online account through myGov, or complete Medicare Entitlement Statement (MS015).

3Claim on Tax Return

Once approved (usually 4-6 weeks), enter your MES certificate number under ATO tax return question M2 (Medicare Levy Exemption: 365 days).

💡 Apply for your MES early in June/July to ensure quick ATO processing.Services Australia Official MES Portal
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Australian Tax & Medicare Rules for Vietnam Nationals

Official ATO & Services Australia MES framework

Tax Residency & Stage 3 Tax Rates

Temporary visa holders from Vietnam 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

Vietnam 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.

Frequently Asked Questions

Medicare Exemption FAQs for Vietnam Citizens

Q:Do Vietnamese citizens pay Medicare tax in Australia?

No, Vietnamese passport holders on temporary visas qualify for 0% Medicare levy with an approved MES.