Medicare Levy Exemption for International Students in Australia (2026 Guide)

If you are an international student in Australia on a temporary visa, you are probably not entitled to Medicare benefits. This means you should not be paying the 2% Medicare levy on your taxable income. Many international students do not realise they can claim this exemption, and end up paying hundreds of dollars more tax than they need to.

This guide explains who qualifies for the Medicare levy exemption, how to apply for a Medicare Entitlement Statement (MES), and exactly what to enter in your tax return.

What is the Medicare levy?

The Medicare levy is a 2% tax on your taxable income that funds Australia's public health system. It is separate from income tax and is calculated automatically when you lodge your tax return.

For example, if your taxable income is $30,000, the Medicare levy would be $600. If you earn $45,000, it would be $900. For most international students working part-time, the levy is between $300 and $900 per year.

If you are not entitled to Medicare benefits, you should not have to pay this levy.

Are international students exempt from the Medicare levy?

Yes, in most cases. If you hold a temporary visa (such as a student visa subclass 500) and you are not entitled to Medicare benefits, you qualify for a full or partial exemption from the Medicare levy.

Australia has Reciprocal Health Care Agreements (RHCA) with a small number of countries. If you are from one of these countries, you may have limited Medicare access and may only qualify for a partial exemption (you pay a reduced levy instead of the full 2%).

Countries with Reciprocal Health Care Agreements

Students from the following countries may have limited Medicare entitlements under an RHCA: the United Kingdom, Ireland, New Zealand, Sweden, the Netherlands, Finland, Norway, Belgium, Slovenia, Italy, and Malta.

If you are from one of these countries, you should still apply for a Medicare Entitlement Statement. The MES will confirm whether you had full, partial, or no Medicare entitlement during the financial year, and the ATO will calculate the correct levy amount.

Countries without an RHCA

If your country does not have an RHCA with Australia (this includes most countries, such as China, India, Colombia, Brazil, South Korea, Japan, Vietnam, Nepal, the Philippines, and others), you are not entitled to Medicare benefits at all. You qualify for a full exemption from the Medicare levy.

How to claim the exemption: Medicare Entitlement Statement (MES)

To claim the exemption on your tax return, you need a Medicare Entitlement Statement (MES) from Services Australia. This is a document that confirms you were not entitled to Medicare benefits during the relevant financial year.

You cannot simply tick "exempt" on your tax return without evidence. The ATO requires the MES as proof.

How long does the MES take?

Processing times vary, but most applications are completed within 28 days. In busy periods (July to October, during tax season), it can take longer. Apply early to avoid delays with your tax return.

If your MES has not arrived by the time you need to lodge, your tax agent can lodge your return and claim the exemption based on your visa status, then attach the MES when it arrives.

How to apply for a Medicare Entitlement Statement

There are three ways to apply.

Option 1: Online through myGov (recommended)

1. Sign in to your myGov account at my.gov.au.

2. Link the Individual Healthcare Identifiers (IHI) service if you have not already done so.

3. Navigate to the Medicare Entitlement Statement section.

4. Complete the application online, including your visa details and the financial year you need the statement for.

5. Upload supporting documents (see below).

6. Submit the application. You will receive the MES in your myGov inbox.

Option 2: Download and submit the MS015 form

1. Download the MS015 form (Application for a Medicare Entitlement Statement) from the Services Australia website.

2. Complete the form. You will need your full name, date of birth, visa details, and the period you are requesting the statement for.

3. Attach copies of supporting documents.

4. Submit the form by post or upload it through myGov.

Option 3: Ask your tax agent

Your tax agent can help you complete the MS015 form and submit it on your behalf. You will still need to sign the declaration and provide your identity documents.

At Y&S Accounting, we help international students with this process every tax season. If you book a tax return appointment with us, we handle the MES application as part of the service.

Supporting documents you will need

When you apply for an MES, you need to provide:

- A copy of your passport (the page with your name, photo, and passport number)

- Your current visa details (you can get a copy of your visa grant notice from your ImmiAccount, or provide a Visa Entitlement Verification Online (VEVO) check result)

- If you have applied for permanent residency: a letter from the Department of Home Affairs confirming your application status

- If you hold private health insurance: a copy of your Overseas Student Health Cover (OSHC) certificate (this does not give you Medicare entitlement, but Services Australia may ask for it)

All documents must be clear and legible. Accepted file types are PDF, JPG, PNG, GIF, or BMP. Individual files cannot exceed 5 MB and the total upload limit is 10 MB. PDFs cannot be password protected.

What to enter in your tax return

When you lodge your tax return (either through myTax or through a tax agent), there is a section for the Medicare levy. Here is what to enter:

In myTax:

1. Go to the Medicare levy section.

2. Select "No" when asked "Were you entitled to Medicare benefits for the full year?"

3. Enter the number of days you were not entitled to Medicare during the financial year. For most international students on a student visa for the full year, this is 365 days (or 366 in a leap year).

4. Enter your Medicare Entitlement Statement details when prompted.

Through a tax agent:

Provide your MES to your tax agent. They will enter the exemption details in your return and ensure the levy is reduced or removed.

Medicare levy surcharge: does it apply to international students?

The Medicare levy surcharge (MLS) is a separate charge of 1% to 1.5% that applies to Australian residents who earn above $93,000 and do not hold private hospital cover.

The MLS does not apply to international students who are exempt from the Medicare levy. If you are not entitled to Medicare benefits and you have claimed the exemption, you do not need to pay the surcharge regardless of your income.

Your OSHC (Overseas Student Health Cover) is not the same as Australian private health insurance for MLS purposes, but this does not matter because the MLS only applies to people who are entitled to Medicare in the first place.

Common mistakes international students make

1. Not claiming the exemption at all. Many students do not know they are exempt and pay the full 2% levy unnecessarily. If you have paid the levy in previous years and were on a temporary visa without Medicare entitlement, you may be able to amend your past returns and claim a refund.

2. Applying for the MES too late. If you apply during peak tax season (July to September), processing can take several weeks. Apply as early as possible, ideally in May or June before the new financial year starts.

3. Confusing OSHC with Medicare. Your Overseas Student Health Cover is a private insurance policy required by your visa conditions. It does not give you Medicare entitlement. You are still eligible for the Medicare levy exemption even if you have OSHC.

4. Changing visa status mid-year. If you received a permanent visa partway through the year (for example, you were on a student visa until March and then received a permanent resident visa), you are only exempt for the days you held the temporary visa. You will need to pay the levy for the days you were a permanent resident with Medicare entitlement. The MES will show the exact dates.

Frequently asked questions

How much will I save by claiming the exemption?

The saving is 2% of your taxable income. If you earned $25,000, you save $500. If you earned $40,000, you save $800. For many international students, this is the single biggest saving on their tax return.

Can I claim the exemption for previous years?

Yes. If you were on a temporary visa without Medicare entitlement in previous financial years and you paid the Medicare levy, you can lodge an amendment to your tax return. The ATO generally allows amendments going back two years from the date the assessment was issued, but in some cases you can go back further. Talk to your tax agent.

I am on a working holiday visa (subclass 417 or 462). Am I exempt?

It depends on your country of origin. If your country has an RHCA with Australia (for example, the United Kingdom or Ireland), you may have limited Medicare entitlement and only qualify for a partial exemption. If your country does not have an RHCA, you qualify for a full exemption. Apply for an MES to confirm.

My employer is already withholding the Medicare levy from my pay. Can I stop this?

You can lodge a Medicare levy variation declaration with your employer (this is part of your TFN declaration). However, the simplest approach is to let your employer withhold the levy during the year and then claim the full exemption when you lodge your tax return. The overpaid levy will be refunded to you as part of your tax refund.

Do I need a new MES every year?

Yes. You need a separate MES for each financial year you want to claim the exemption. If your visa status has not changed, the application process is the same each year.

Need help with your tax return?

At Y&S Accounting in Brisbane, we specialise in tax returns for international students. We handle the Medicare levy exemption, help you claim all your deductions, and make sure you get the maximum refund.

Book your tax return appointment

This article was last updated on 29 April 2026. The information is general in nature and does not constitute personal tax, legal, or financial advice. Tax laws change frequently. Please contact us or consult a registered tax agent before acting on this information.