Medicare Levy Exemption Form: How to Apply and Claim (2026)

There's no separate Medicare levy exemption form to send to the ATO. If you're claiming because you weren't entitled to Medicare, the application you need is for a Medicare Entitlement Statement (MES), which you apply for from Services Australia through your myGov account; it can take up to 8 weeks. You then claim the exemption in the Medicare levy section of your tax return. Here's who qualifies and the steps.

What is the Medicare levy?

The Medicare levy is 2% of your taxable income, on top of income tax, and helps fund Medicare. If your taxable income is $50,000, the levy is $1,000.

Who can claim an exemption?

• Not entitled to Medicare: you were a temporary resident for Medicare purposes, for example on a temporary work visa, and have a Medicare Entitlement Statement for that period. All your dependants, including your spouse, must also be in an exemption category.
• Foreign residents: if you were a foreign resident for tax purposes, you don't pay the Medicare levy for that period.
• Medical exemptions: some people qualify for a full or half exemption, for example veterans entitled to full free medical treatment, and people receiving a blind pension or sickness allowance.
• Members of a diplomatic mission or consular post in Australia, and their families, if they meet the conditions.

A low income isn't an exemption, but it has a similar effect. For 2025–26, a single person pays no Medicare levy on taxable income of $28,011 or less, and a reduced levy up to $35,013. Families and seniors have higher thresholds, and the ATO works this out for you when you lodge.

How to claim the exemption

1. Get a Medicare Entitlement Statement if you need one: if you were a temporary resident for Medicare purposes, apply to Services Australia through your myGov account. Applications open on 1 July and can take up to 8 weeks.
2. Wait for it before you lodge: you need the statement before you complete your tax return.
3. Claim it in your tax return: in the Medicare levy section, enter the number of days you qualify for a full or half exemption. In myTax, you also answer whether you were a temporary resident for Medicare purposes with a Medicare Entitlement Statement.
4. Keep your records: keep a copy of the statement, or other evidence for your exemption, with your tax records.

Medicare levy surcharge is different

The Medicare levy surcharge is an extra 1% to 1.5% for higher earners without appropriate private hospital cover. If you qualify for a Medicare levy exemption, you generally don't pay the surcharge for that period either. See how to avoid the Medicare levy surcharge.

Need help?

If you're on a temporary visa, or have moved to or from Australia, we can check your residency and Medicare levy position and lodge your return. Book an appointment or see our tax return service.