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.
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
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⚡ 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 Vietnam 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 |
| $75,000 AUD | $13,288 AUD | $0 (Exempt) | +$1,500 AUD/yr | $61,712 AUD | $9,000 AUD |
Official ATO & Bilateral Treaty Framework for Vietnam
Legal taxation and healthcare analysis
The Australia-Vietnam Bilateral Tax Agreement establishes progressive tax rules preventing double taxation on expatriate wage earnings.
Vietnam 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.
Vietnamese Visa Holders Australian Tax & MES Guide
Vietnamese students on Subclass 500, graduates on 485, and holidaymakers on 462 can legally claim 100% exemption from the 2% Medicare levy through Services Australia Form MS015.
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 certificate.