Claiming an exemption
You can claim a full exemption for any period that you:
- have a Medicare Entitlement statement (MES) showing you were not entitled to Medicare benefits because you were a temporary resident for Medicare purposes, and either
- you did not have any dependants for that period
- all your dependants (including your spouse) were also in a Medicare levy exemption category for that period
- are a member of a diplomatic mission or consular post in Australia and meet other conditions.
If you qualify for an exemption, you claim the exemption through your tax return. This exemption is known as exemption category 3 on your tax return when you complete the Medicare levy section.
Medicare Entitlement Statement
A Medicare Entitlement StatementExternal Link (MES) from Services Australia shows the period in an income year that you were not entitled to Medicare benefits. If you have an MES, it doesn't automatically mean you are exempt from the Medicare levy. All your dependants, including your spouse, must also be exempt from Medicare benefits to receive a Medicare levy exemption.
Applying for an MES and lodging your tax return
- Apply: The quickest and easiest way to apply for an MES is online using a myGov account linked to Services AustraliaExternal Link. MES applications open 1 June. You need to apply for an MES as soon as possible so you can lodge your tax return correctly and on time.
- Wait: It can take up to 8 weeks for your MES application to be processed by Services Australia. You must wait until you receive your MES before lodging your tax return.
- Lodge: When completing your tax return, you need to complete the exemption category for Medicare benefit (see example below). We will work out if you are exempt from paying the Medicare levy when we assess your tax return.
Example: don't have to pay the Medicare levy
In 2023–24, Priya was on a Temporary Skill Shortage visa (subclass 482) and had no dependants. Priya wasn't entitled to Medicare benefits and wants to claim an exemption from paying the Medicare levy.
Priya needs a Medicare Entitlement Statement (MES) to show she wasn't entitled to Medicare benefits in 2023–24 before completing her 2023–24 tax return.
Priya applies to Services Australia for a MES. It takes up to 8 weeks to receive the MES from Services Australia.
Priya receives the MES stating she was not entitled to Medicare benefits for the full year, from 1 July 2023 to 30 June 2024. Priya keeps a copy of the MES for her records.
Priya can claim a full Medicare levy exemption for the full year as she has a MES for the period 1 July 2023 to 30 June 2024 and she doesn't have any dependants.
If Priya completes her tax return using myTax, she enters '366' as the number of days she qualified for the Full 2% levy exemption and answers 'Yes' to the question 'Were you a temporary resident for Medicare purposes and have a Medicare entitlement statement from Services Australia?'
End of exampleExample: have to pay the Medicare levy
In 2023–24, Jed was on a Temporary Skill Shortage visa (subclass 482) and had a spouse for the full year. Jed wasn't entitled to Medicare benefits and wants to claim an exemption from paying the Medicare levy. Jed's spouse was entitled to Medicare benefits in 2023–24.
Jed applied and received a Medicare Entitlement Statement (MES) showing he wasn't entitled to Medicare benefits for the full year, from 1 July 2023 to 30 June 2024.
Even though Jed has a MES and wasn't entitled to Medicare benefits, Jed can't claim the exemption. This is because his spouse was entitled to Medicare benefits and therefore is not in a Medicare levy exemption category.
End of exampleMember of a diplomatic mission or consular post in Australia
You do not have to pay the Medicare levy if you are a member of a diplomatic mission or consular post in Australia (or a member of such a person's family and you were living with them) and:
- were not an Australian citizen, and
- do not ordinarily live in Australia, and
- you did not have any dependants for that period, or
- all your dependants (including your spouse) were in a Medicare levy exemption category for that period.