Temporary Graduate Visa (Subclass 485) Tax Calculator
Subclass 485 Graduate visa holders enjoy full unrestricted work rights in Australia. You are taxed under Australian resident Stage 3 tax brackets and can save 2% of your income via the 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 $1,700/yr ($142/mo) under Category 1 MES.
Paid in addition to gross salary
Total pkg: $95,200
Citizen vs. Visa Holder Comparison
$67,012
Includes 2% Medicare$68,712
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 Take-Home Pay Examples for Subclass 485 (Temporary Graduate) Holders
Pre-calculated Stage 3 marginal tax withholdings and Medicare exemption net impact
| 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 | $1,300 AUD | +$1,300 AUD/yr | $54,712 AUD | $7,800 AUD |
| $85,000 AUD | $16,288 AUD | $1,700 AUD | +$1,700 AUD/yr | $68,712 AUD | $10,200 AUD |
| $110,000 AUD | $23,788 AUD | $2,200 AUD | +$2,200 AUD/yr | $86,212 AUD | $13,200 AUD |
Official ATO & Services Australia Rules for Subclass 485 (Temporary Graduate)
How your visa subclass is treated under Australian tax legislation
Resident Stage 3 tax rates ($0 - $18,200: 0%, $18,201 - $45,000: 16%, $45,001 - $135,000: 30%) with 12% superannuation.
Since 485 visa holders must maintain Overseas Visitors Health Cover (OVHC), you are not eligible for Medicare benefits and can claim a 100% exemption from the 2% Medicare levy via an MES from Services Australia.
Complete Taxation Guide for Subclass 485 Temporary Graduate Visa Holders
The Subclass 485 Temporary Graduate visa provides unrestricted work rights in Australia for international graduates. Maximizing your net pay through Stage 3 brackets and the Medicare levy exemption can save you thousands annually.
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1. Stage 3 Tax Rates for 485 Graduates
As an Australian resident for tax purposes, your income is taxed under Stage 3 rates:#
2. Claiming the Medicare Entitlement Statement (MES)
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3. PR Bridging Visa Transitions (Subclasses 189/190/186)
Tax & Medicare Questions for Subclass 485 (Temporary Graduate)
Q:How much money can a 485 visa holder save with the Medicare Exemption?
On an $85,000 salary, the 2% Medicare exemption saves you $1,700 per year. On a $110,000 salary, you save $2,200 per year in extra net cash.
Q:When does a 485 visa holder become liable for Medicare?
You become liable for Medicare once you apply for Permanent Residency (e.g. Subclass 189, 190, or 186) with work rights, which grants you access to an interim blue Medicare card.