If you were a foreign resident for tax purposes for:
- the full year, you can claim a full exemption from the Medicare levy
- only part of the year, you can still claim full exemption from the Medicare levy for that period if
- you didn't have any dependants for that period
- all your dependants were in a Medicare levy exemption category for that period.
You claim this exemption when you lodge your income tax return. This exemption is known as exemption category 2 on your tax return when you complete the Medicare levy section.
See Your tax residency for help to work out your tax residency.
Example: foreign resident claims a full exemption from the Medicare levy
Muhammad is a resident of Pakistan. He comes to Australia to work and earn income for short periods in the income year. Muhammad's family lives in Pakistan and Muhammad always returns to Pakistan when his work finishes in Australia.
Muhammad is considered a foreign resident for tax purposes.
Muhammad can claim a full exemption from paying the Medicare levy because he is a Foreign resident for the full year.
End of example