Private ruling: Medicare levy surcharge
Published: July 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Does your international health insurance policy qualify as a complying health insurance policy for Medicare levy surcharge (MLS) purposes? | A1: No.


Relevant legislative provisions: Medicare Levy Act 1986 Subsection 3(5).

Reasons for decision: Summary: The MLS is in addition to the Medicare levy. The MLS is payable if you or your dependants did not have an appropriate level of private patient hospital cover for the whole of the relevant income year and your taxable income was above the surcharge threshold amount. An appropriate level of private patient hospital cover is cover provided by an insurance policy issued by a registered health insurer for hospital treatment in Australia. Subsection 3(5) of the Medicare Levy Act 1986 (MLA 1986) states that a person is covered by an insurance policy that provides private patient hospital cover if the policy is a complying health insurance policy (within the meaning of the Private Health Insurance Act 2007 (PHIA 2007)) that covers hospital treatment. The Private Health Insurance Administration Council (PHIAC) administers the PHIA 2007 and maintains on its website an up to date record of all private health insurers providing complying policies. Your overseas health insurance provider does not appear on the PHIAC's website. Therefore their policy is not a complying health insurance policy within the meaning of the PHIA 2007 and does not satisfy the requirement of subsection 3(5) of the MLA 1986.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | You are a resident of Australia for tax purposes. | You and your partner have private health insurance with an overseas health insurance provider which is valid for use within Australia and includes hospital cover. | Your overseas health insurance provider does not appear on the Private Health Insurance Administration Council website, and so is not a registered fund in Australia.