Australia has one of the best healthcare systems in the world. But there’s a few features of the system that visitors need to understand. Does Australia have free healthcare? Well, not exactly. The Australian healthcare system is a mix of private health insurance, and a public system called Medicare. Medicare ensures essential Australian healthcare for all citizens and most permanent residents. Private healthcare offers additional services, including dental treatments and shorter waiting times for elective procedures.
An Overview Of Australia’s Healthcare System
Medicare is paid for by a 2% tax levy on Australian workers. This removes most of the costs involved in doctor visits, hospital treatments, and prescription medicines.
However, for full cover, and access to many private hospitals and specialists, residents and visitors must buy private health insurance. That also applies to visitors from countries which have a Reciprocal Healthcare Agreement (RHCA) with Australia. Visitors with access to Medicare via an RHCA can expect some essential services from the Australian healthcare system, but not all.
Details of RHCAs vary between countries, so check what your country’s arrangements are before making a decision on private health insurance.
The Public Healthcare System
What is Medicare?
Medicare is Australia's publicly funded health insurance scheme. It provides funding for common medical services and treatments at low or no cost. It is funded through taxation, and is designed to give people access to basic healthcare in Australia regardless of their income or background.
Medicare covers visits to doctors, hospitals, and certain medical tests and treatments by specialists. It also subsidises some or all of the costs of prescription medicines via the pharmaceutical benefits scheme (PBS).
The Private Healthcare System
Does Australia Have Private Healthcare?
About half of the population also pay for private health insurance. Medicare does not pay for important things like dental and optical care. Nor does it cover treatments in private hospitals or ambulance services, which are very expensive.
Under Medicare, you may not be able to choose when you will go to hospital or which doctor you will see. And if you’re a visitor to the country and become seriously ill, you may have to pay for your return home.
The Australian health system encourages citizens to purchase private health insurance by offering incentives, like cheaper premiums for younger people and those on lower incomes.
Who is Eligible for Australian Healthcare?
Foreign residents eligible for Australian healthcare under Medicare include those from countries with Reciprocal Healthcare Agreements (RHCAs) like the UK, New Zealand, the Netherlands, Sweden, and Ireland. Certain visa holders, refugees, and asylum seekers may also qualify, along with temporary residents needing urgent treatment. Eligibility depends on your visa type and individual circumstances so check your status with the Department of Home Affairs or Human Services as soon as possible.
Most visitors are not required to pay the Medicare levy, but if a visitor becomes a resident for tax purposes and is eligible for Medicare, they may be subject to the tax. In such cases, they will need to lodge an income tax return with the Australian Taxation Office (ATO). The ATO calculates the Medicare levy based on their income and circumstances.
What if I’m Not Eligible for Medicare ?
If your country does not have an RHCA with the Australian health system, you will have to purchase private cover for the length of your stay.
The 8501 visa condition states that adequate health insurance for visitors to Australia is a condition of entry into the country. That means every visitor must have private health insurance, or be eligible for Medicare while in Australia. It’s a good idea to check the conditions of your working visa with your Australian employer, if you have one.
OVHC For Visitors Coming to Australia
OVHCInsurance assists travellers by helping you choose between several of the private health insurance companies available.
With a support team that speaks your language and fast processing of applications, OVHC Insurance helps you find the best insurance policy for your situation, including:
- 485 insurance for Temporary Graduate Visas; and
- 482 insurance for Temporary skill shortage Visas.
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