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Reciprocal agreement and medicare exemption


hefbat

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Hi there,

My family is travelling to Oz on a 457 visa where we will be working for the next three years. We will not be applying for permanent residency during this time period but will be Australian residents for tax purposes.

 

I understand that we are covered by Medicare (once we arrive and enroll) due to the reciprocal agreement with the UK.

 

Does this mean we still have to pay the Medicare levy and MLS or do we receive an exemption.

 

Cheers

Mike

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You'll have to pay the levy, as you'll be earning above the threshold in order to qualify for the 457. The medicare levy surcharge is only payable if you earn over a certain amount, maybe around the $80k amount for a single - easy to look up on the Internet.

 

the medicare levy is a little bit like national insurance in the uk. If you want to take out from the system, it's not too unreasonable to pay in as well.

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