Do working holiday makers need private health insurance in Australia?

The cost of private cover is modest compared with the cost of going without it. A single emergency hospital admission in Australia without insurance can exceed $20,000.

Is private health insurance a visa condition?

The visa conditions vary by subclass and nationality:

• Subclass 417 (Working Holiday): most nationalities are not required to have insurance as a strict visa condition, but it is strongly recommended
• Subclass 462 (Work and Holiday): most agreements with Australia under this subclass require adequate health insurance for the duration of the visa, with the specific requirement varying by country

The Department of Home Affairs does not usually check insurance on entry, but a breach of a visa condition can be raised later, and going without insurance is risky regardless of the legal requirement.

What types of insurance are available?

The two main options are travel insurance and Overseas Visitors Health Cover (OVHC).

Travel insurance is bought from a travel insurance provider, usually before leaving home or shortly after arrival. It covers:

• Emergency medical treatment in Australia
• Hospital admission
• Repatriation to home country
• Trip cancellation, lost baggage, theft, and other travel-related risks
• Personal liability in some cases

Coverage periods are usually capped at 12 to 18 months, with the option of extension.

Overseas Visitors Health Cover (OVHC) is bought from an Australian private health fund and provides cover similar to Medicare, plus optional extras. It covers:

• Public and private hospital treatment
• GP visits
• Specialist consultations
• Pharmaceuticals
• Optional extras: dental, optical, physiotherapy, chiropractic

OVHC can be renewed indefinitely while in Australia and is the better option for working holiday makers who plan to spend longer than 12 months and want comprehensive medical cover.

Most working holiday makers benefit from having both: travel insurance for the broader travel risks and OVHC for ongoing medical cover.

How does cover differ for RHCA countries?

If you are from an RHCA country (UK, Ireland, Sweden, Netherlands, Finland, Norway, Belgium, Slovenia, Malta, Italy, New Zealand), you can enrol in Medicare and use the Australian public system for medically necessary treatment. Private cover is therefore a top-up rather than a primary insurance.

For RHCA nationals, the main gaps that private cover fills are:

• Ambulance (not Medicare-covered)
• Dental
• Optical
• Physiotherapy and other allied health outside hospital care
• Repatriation if seriously ill or injured

For non-RHCA nationals (Germany, France, Spain, USA, Canada, Japan, and others), private cover is the only health insurance available and must be comprehensive.

How much does it cost?

OVHC costs vary by fund and level of cover:

• Basic hospital cover for a single adult: $80 to $150 per month
• Comprehensive hospital cover: $150 to $250 per month
• Hospital plus extras: $200 to $350 per month

Travel insurance for a 12-month working holiday typically costs $400 to $1,200 depending on cover level, age, and the activities included (some adventure activities and farm work require additional cover).

What about ambulance cover?

Ambulance services are not covered by Medicare in most Australian states. A single ambulance ride can cost $400 to $1,500. Both OVHC and most travel insurance policies include ambulance cover, but the level varies. Worth checking before relying on it.

In Queensland and Tasmania, ambulance services are provided free or at low cost to residents under state schemes. In other states, ambulance is a private cost regardless of nationality.

Does private health insurance affect your tax?

For most working holiday makers, no. The Medicare Levy Surcharge, which applies to high-income Australian residents without private hospital cover, does not apply to working holiday makers because they are typically not tax residents. The 2% Medicare levy is also generally not applied to working holiday makers.

Some private health insurance premiums attract a government rebate, but the rebate is only available to Medicare-eligible Australian residents and does not apply to working holiday maker OVHC.

What to look for in a policy

When choosing private health cover, check:

• Excess: the amount you pay out of pocket before the insurance kicks in
• Waiting periods: pre-existing conditions are often excluded for 12 months
• Geographic coverage: some policies only cover Australia, others cover travel within the region
• Pregnancy and maternity: usually excluded or subject to long waiting periods
• Mental health: cover varies significantly between policies
• Adventure activities: bungee jumping, scuba diving, skydiving may need additional cover
• Farm work: some policies exclude or limit cover for agricultural work

How does our service support working holiday makers?

Our team does not sell health insurance directly, but health insurance status and Medicare eligibility affect your tax position. When you lodge your tax return through our service, we account for:

• Whether the Medicare levy applies (usually not for working holiday makers)
• Whether the Medicare Levy Surcharge applies (rarely)
• Any private health insurance rebate (rarely applicable to working holiday makers)

If you are uncertain about how your insurance status affects your tax, get in touch with our team.