Desertdeserter Posted January 1, 2016 Share Posted January 1, 2016 Happy New Year! I have taken out Bupa Platinum Visitors cover for my family and I but I have been informed by Bupa that I am still liable for Medical Levy Surcharge tax as this product (Their most comprehensive cover for 457 visa holders) is not a compliant product for MLS exemption - I pay $680 P/M for the cover which does not have an excess associated with any claims. I am a UK national with a British Passport and will be earning over the $180k MLS family limit. What Bupa did offer me was a "Reciprocal Health Cover," product for approximately $1,800, which does not add any further cover or benefit to my existing Platinum policy, which will then make my policy qualify for MLS exemption and they will provide me with a tax certificate to confirm this. Does this sound correct or am I being charged £1,800 for Bupa to print me a letter when my accountant could confirm that my cover is actually sufficient to be exempt from the MLS tax? When I asked Bupa they explained that by taking out the Reciprocal Health Cover with them for $1,800 they are then responsible for paying my MLS and I only have to pay them the initial initial premium - does that mean that Bupa will actually pay the ATO my MLS on my behalf? Doesn't sound correct. Also, do I pay the additional 1-1.5% MLS tax on my total gross earnings or just the portion that I earn above the MLS threshold of $180,000? Thanks in advance for any answers! Quote Link to comment Share on other sites More sharing options...
toOZ2012 Posted January 1, 2016 Share Posted January 1, 2016 (edited) Not according to this website: https://www.457visacompared.com.au/457-visa-health-insurance/condition-8501-health-cover/medicare-surcharge-july-2014/ Can 457 Visa holders & other overseas visitors working in Australia avoid this tax? Yes, if you come from a country with a reciprocal health care agreement. I you come from one of these countries after you purchase working visa cover, you should apply for reciprocal health cover (Medicare). There is no extra charge for this and combined with private cover can help you avoid paying the tax Two more useful links: http://www.privatehealth.gov.au/healthinsurance/overseas/457visa.htm http://privatehealth.gov.au/healthinsurance/incentivessurcharges/mls.htm Edited January 1, 2016 by toOZ2012 Quote Link to comment Share on other sites More sharing options...
toOZ2012 Posted January 1, 2016 Share Posted January 1, 2016 Also, do I pay the additional 1-1.5% MLS tax on my total gross earnings or just the portion that I earn above the MLS threshold of $180,000? MLS is charged on gross or very close to gross income - depends on the type of deductions. https://www.ato.gov.au/Individuals/Medicare-levy/Medicare-levy-surcharge/Income-for-Medicare-levy-surcharge,-thresholds-and-rates/ Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted January 2, 2016 Share Posted January 2, 2016 Feel able to send an email or a PM to me (click on my name to the left of this post) if you would like the name and contact details for my person at BUPA. My understanding is that BUPA does have a private health insurance product for temporary visa holders that enables the policy holder to not pay the Medicare Levy Surcharge. Best regards. Quote Link to comment Share on other sites More sharing options...
Desertdeserter Posted January 5, 2016 Author Share Posted January 5, 2016 Thanks toOZ2012 - that link explains the situation.... Quote [h=2]Can 457 Visa holders & other overseas visitors working in Australia avoid this tax?[/h]Yes, if you come from a country with a reciprocal health care agreement. I you come from one of these countries after you purchase working visa cover, you should apply for reciprocal health cover (Medicare). There is no extra charge for this and combined with private cover can help you avoid paying the Medicare Levy Surcharge. For overseas working visitors the private health insurance you require is: 1) 457 Visa Holders need 457 Visa Health Insurance 2) 485 Visa Holders need 485 Visa Health Insurance 3) Other Visa Holder need Overseas Visitor Health Insurance By having a DIBP (Department of Immigration & Border Protection) compliant policy not only do you meet condition 8501 of your visa but you also meet have adequate health insurance to avoid the medicare levy surcharge no matter what your taxable income is this year. So in summary - my Bupa Visa Platinum cover is DIBP compliant and Bupa have sent me a letter confirming this. If I then enroll myself and family into Medicare by completing the Medicare Enrollment Form then I should be exempt from paying the Medical Levy Surcharge tax without having to pay Bupa an additional $1,750 for their "Reciprocal Healthcare Product." Does this sound correct? Quote Link to comment Share on other sites More sharing options...
HarveySpecter Posted January 5, 2016 Share Posted January 5, 2016 From personal experience of having had a reciprocal Medicare card and 457 insurance policy, you will likely still be stung for the MLS. I am also with BUPA and was also told that the only way to avoid this was to purchase additional cover. I decided not to do so and was required to pay the MLS each year. Which turned out to be quite expensive on top of the insurance! Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted January 5, 2016 Share Posted January 5, 2016 Yes, the key to avoiding the Medicare Levy Surcharge is to have suitable private health cover. I repeat my offer for those that are concerned - send an email or a PM to me if you would like the name of my contact at BUPA to whom we send clients requiring suitable private health insurance. If you have a subclass 457 visa, aren't concerned about the MLS, and are from the UK you don't need to purchase private health insurance as the reciprocal health care agreement between the UK and Australia facilitates a temporary Medicare card and emergency treatment under Medicare in Australia. Best regards. Quote Link to comment Share on other sites More sharing options...
Ken Posted January 5, 2016 Share Posted January 5, 2016 ... am I being charged £1,800 for Bupa to print me a letter when my accountant could confirm that my cover is actually sufficient to be exempt from the MLS tax? You certainly appear to be being ripped off, but no, an accountant can't confirm that you have complying hospital cover. Only the insurance company that is providing the complying hospital cover can do that. Note that it is the complying hospital cover that gives you the MLS exemption - having Reciprocal Health Cover merely means that you have the same health cover as an Australian with no insurance has and an Australian with no insurance has to pay the MLS. I suggest you see if Alan Collett's contact at bupa can help and if not that you talk to a different insurance company. Quote Link to comment Share on other sites More sharing options...
VRC Posted January 15, 2016 Share Posted January 15, 2016 Hi Alan. I'm new to PomsinOz and can't work out how to PM or email you. I would like the name of your contact at BUPA please, as I am in the same situation (ludicrously expensive visitor's health insurance with Medibank, yellow Medicare card, still paying MLS). Also would be interested in discussing an application for PR here. Thank you. Quote Link to comment Share on other sites More sharing options...
VRC Posted January 15, 2016 Share Posted January 15, 2016 Can you PM me please? and then perhaps I can reply? Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted January 15, 2016 Share Posted January 15, 2016 Can you PM me please? and then perhaps I can reply? PM received - and reply sent! Best regards. Quote Link to comment Share on other sites More sharing options...
youngwombat Posted January 16, 2016 Share Posted January 16, 2016 Can someone help clarify a query for me? My family are all UK citizens, living now in Oz on a 457 visa, do i have a duty to renew my health insurance? I took it out in order to apply for the visa, but have found that the cost isn't justified. I'm paying about 120 pounds per month for insurance with IMG. My renewal date is around the corner. The wording of the 457 details is a bit ambiguous, and it seems that there's a sense on PomzInOz that as long as you have insurance when you apply for your visa then you can cancel without forfeiting anything. Is that right? Or if I cancel/fail to renew my private health insurance do i risk being booted out the country by Immigration??? Thanks! I am thinking about a dentist/optician only option for insurance which is much cheaper and probably makes more sense, but i'm not sure what my legal standing is with the 457 Immi status for dumping the overall health cover. Overall, I miss the NHS! Quote Link to comment Share on other sites More sharing options...
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