What is Medicare and are working holiday makers covered?

Are working holiday makers covered by Medicare?

Generally, no:

• Holders of working holiday visas 417 and 462 are not eligible for Medicare
• The exception is citizens of countries with a Reciprocal Health Care Agreement
• Without coverage, you are treated as a private patient
• You pay the full cost of GP visits, specialist appointments, prescriptions, and hospital treatment

The 11 countries with an RHCA covering working holiday makers are listed in our article on Medicare agreements with Australia.

What does no Medicare coverage cost you in practice?

Healthcare costs without Medicare:

• GP consultation: $80 to $120 per visit
• Specialist appointment: $200 to $500+ per visit
• Prescriptions: full retail price (often $20 to $80+)
• Emergency department visit: free in public hospitals (but follow-up may be charged)
• Public hospital admission: variable, can be expensive
• Ambulance: often hundreds of dollars (depends on state)

Given these costs, comprehensive travel and health insurance is essential. Most working holiday visa applications require you to have health insurance as a visa condition.

What is the Medicare Levy exemption?

The Medicare Levy is a 2% tax applied to the taxable income of Australian residents to fund Medicare. Working holiday makers who are not eligible for Medicare are entitled to claim an exemption:

• Saves you 2% of your taxable income
• On $30,000 of earnings, the exemption is worth $600
• Must be claimed correctly on your tax return
• Not automatic, must be applied at lodgment

Our team applies this exemption automatically when we prepare your return. If you have already lodged without claiming the exemption, we can amend the return to recover the levy paid.

How can you get healthcare as a working holiday maker?

Options for healthcare coverage:

• Private travel/health insurance: essential for non-RHCA countries (often a visa condition)
• RHCA enrolment: if your country qualifies, enrol in Medicare for limited coverage
• Out-of-pocket: for incidental costs, pay the full fee

Our team can apply the Medicare Levy exemption regardless of whether you took out private insurance. The exemption is based on your Medicare eligibility, not on whether you bought private cover.

For more on RHCA countries and what they cover, see our article on Medicare agreements with Australia.