Medicare and Insurance Guides
Working holiday makers face a range of tax and administrative questions outside the core areas of TFN, ABN, tax returns, and super. These articles cover Medicare access, the Medicare Levy and Medicare Levy Surcharge, claiming GST back on goods you take home, and other general topics that affect backpackers living and working in Australia.
Check your Medicare status →What Medicare & Other covers, and who it is for
The Medicare levy is a 2 per cent charge on taxable income and it comes off by default. Most 417 and 462 visa holders are not entitled to Medicare and were never meant to pay it. These guides cover who is entitled and who is not, the reciprocal health care agreement countries, how the exemption is claimed, health cover while you are here, and the administrative questions that do not fit anywhere else.
On $25,000 of earnings the levy is $500. Claiming the exemption is not automatic and the ATO will not apply it for you.
It has to be claimed on the return, and to claim it you need a Medicare Entitlement Statement from Services Australia, which must be applied for and commonly takes weeks to arrive. Your passport decides whether the exemption is available to you at all.
All Medicare & Other articles (18)
Are You Covered by Medicare on a WHV?
Most working holiday makers are not covered by Medicare. Your passport decides it, and it decides whether you can claim the 2% levy exemption too.
Read more →11 Countries That Get Medicare in Australia
Eleven countries hold a Reciprocal Health Care Agreement with Australia. What the cover includes, and why being on the list removes your levy exemption.
Read more →Do Working Holiday Makers Pay the 2% Levy?
Most 417 and 462 holders are not entitled to Medicare, so the 2% levy should not apply. That is about $500 on $25,000, and your passport decides it.
Read more →The Two Boxes on the TFN Declaration Form
The residency and tax-free threshold questions decide your withholding rate. How working holiday makers complete the form correctly, line by line.
Read more →Tax Withheld on Your Payslip: What It Means
Tax withheld is what your employer sends the ATO before paying you. On a working holiday visa it should be about 15%. What each wrong percentage means.
Read more →What Is an Income Statement in Australia?
The income statement replaced the paper payment summary. Your employer files it through payroll reporting, and it is only final once marked as tax ready.
Read more →What Is the ATO? A Backpacker's Guide
The Australian Taxation Office issues your TFN, receives your employer's reports, pays your refund and releases your super. Four interactions, one number.
Read more →Gross vs Net Pay: Where the Money Goes
Gross is before tax, net is what lands in your account. About 15% sits between them on a WHV, and super is paid on top rather than out of your wages.
Read more →Are Tips Taxable in Australia? Yes
Cash and card tips both count as assessable income. How tips flow through payslips, what the ATO expects you to declare, and record-keeping that suffices.
Read more →Tax After Leaving Australia: What Is Left
Leaving Australia does not close your tax file. The final return, the super claim and any ABN cancellation outlive the flight, and can be done remotely.
Read more →SGC: When an Employer Skips Your Super
Miss a quarterly super payment and employers owe the Super Guarantee Charge - with interest and penalties. How to report unpaid super and get it recovered.
Read more →Opening an Australian Bank Account on a WHV
All four major banks open accounts on a passport, and most let you apply before you fly. What matters is when you close it, not which bank you pick.
Read more →TRS: Claim the 10% GST Back at the Airport
Spend $300 or more with one business within 60 days of leaving and the 10% GST comes back at the airport. A $1,000 laptop refunds about $91.
Read more →UK Medicare in Australia: What Is Covered
British backpackers get Medicare under the reciprocal agreement. It covers medically necessary treatment, and the 2% levy applies.
Read more →Do German Backpackers Get Medicare?
Germany has no reciprocal agreement with Australia, so cover is on you. Incoming insurance vs Australian OVHC, typical costs, and the levy exemption.
Read more →Health Insurance on a WHV: Who Needs It
RHCA-country backpackers get Medicare basics; everyone else risks five-figure hospital bills. What OVHC covers, typical prices, and visa considerations.
Read more →Emergency Care Without Medicare: The Cost
An uninsured emergency department visit commonly costs hundreds to thousands of dollars. What hospitals charge, payment plans, and reducing the risk.
Read more →Travel Insurance vs OVHC: Which Covers You
Travel policies often exclude injuries at work - the reason many backpackers need OVHC instead. The differences, gaps, and how to combine them properly.
Read more →Common questions
Frequently asked questions
Do working holiday makers pay the Medicare Levy?
No. Working holiday makers are not eligible for Medicare and are not required to pay the 2% Medicare Levy. Claiming the exemption requires a Medicare Entitlement Statement from Services Australia, which commonly takes up to six weeks to issue.
Can working holiday makers use Medicare?
Only nationals of countries with a Reciprocal Health Care Agreement with Australia (including the UK, Ireland, Italy, Belgium, the Netherlands, Sweden, Norway, Finland, Malta, Slovenia, and New Zealand) can enrol in Medicare for limited cover. All other working holiday makers should hold private health insurance.
Can working holiday makers claim GST back on goods they take home?
Yes. The Tourist Refund Scheme allows you to claim back the 10% GST on goods over $300 (per supplier) that you purchased within 60 days of departure and carry out of Australia. Claims are made at the airport before you fly.
Do working holiday makers need private health insurance?
Yes for most. Private health insurance is a visa condition for many working holiday visas and is essential for backpackers who are not covered by a Reciprocal Health Care Agreement with Australia.