How to Get a Medicare Entitlement Statement for a Medicare Levy Exemption

What is a Medicare Entitlement Statement?

A Medicare Entitlement Statement (MES) is issued by Services Australia and identifies the period during a financial year when you were not eligible for Medicare. If you were not eligible for Medicare, you may need an MES to claim the relevant Medicare levy exemption in your Australian income tax return.

The MES is evidence of your Medicare eligibility status for the period shown. It is not itself a decision that you are exempt from the Medicare levy. The Australian Taxation Office decides whether you have to pay the Medicare levy.

Who can get an MES?

Services Australia can issue an MES if you were not eligible for Medicare for all or part of a financial year. Importantly, not having a Medicare card does not necessarily mean you were not eligible for Medicare.

Services Australia lists circumstances in which a person may be able to get an MES. These include an Australian permanent resident who lived outside Australia for 12 months or more; a temporary visa holder who had not applied for permanent residence; a temporary visa holder who was not eligible for Medicare under a Reciprocal Health Care Agreement; a New Zealand citizen who spent less than 6 months in Australia within a 12-month period; or an Australian citizen living overseas for 5 years or more.

If you were eligible for Medicare for the entire financial year, Services Australia says you cannot get an MES.

What if your country has a Reciprocal Health Care Agreement?

A temporary visa does not automatically establish that you were ineligible for Medicare. Services Australia specifically identifies temporary visa holders who were not eligible for Medicare under a Reciprocal Health Care Agreement as people who may get an MES. Your actual Medicare eligibility during the relevant period therefore matters.

When can you apply for an MES?

You normally apply from 1 July for the previous financial year. Services Australia says applications submitted before 1 July cannot be accepted or processed unless the special rule for people leaving Australia applies.

If you are leaving Australia, Services Australia says you can apply from 1 July for the current financial year up to 4 weeks before your departure date. The application will be processed after you depart. However, the separate myGov online application can only be used from 1 July for the previous financial year, even if you plan to leave Australia.

What documents do you need?

You or your tax agent must provide a copy of the name and photo page of your passport to prove your identity.

Services Australia may also require documents relevant to your immigration or Medicare eligibility circumstances, including:

• your current visa;
• a Department of Home Affairs letter showing when your permanent residence application was received;
• a Department of Home Affairs letter showing when a permanent residence application was granted, refused or withdrawn;
• a letter from the Administrative Review Tribunal, Federal Circuit and Family Court or High Court showing that you lodged an appeal concerning a refused permanent residence application;
• proof that you requested ministerial intervention;
• your European Health Insurance Card or other proof of health insurance, where relevant.

For proof of health insurance from Belgium, Finland, Italy, the Netherlands, Norway, Slovenia, Sweden or the United Kingdom, Services Australia requires the evidence to show an expiry date.

What file formats can you upload?

For an online application, supporting documents must be clear and show all relevant information. Services Australia accepts PDF, JPG, PNG, GIF and BMP files. Each file must be less than 5 MB and the total must be less than 10 MB. PDF files must not be password protected.

How do you apply online?

Services Australia provides two online routes through myGov. The main option is the Medicare Entitlement Statement dashboard in the Individual Healthcare Identifiers (IHI) service through myGov. If the IHI service is not already linked, myGov can prompt you to create or link an IHI. Services Australia notes that you must be in Australia when applying for an IHI so your identity can be verified.

The MES dashboard lets you track your application, upload documents and download or print statements. If you choose to receive letters in your myGov Inbox, you can also receive notifications when there is an update in the dashboard.

If you cannot use the MES dashboard, Services Australia provides a separate Medicare Entitlement Statement online application through myGov. That route can only be used from 1 July for the previous financial year.

Can you apply with a paper form?

Yes. If you cannot apply online, you can complete form MS015 – Application for a Medicare Entitlement Statement. Services Australia also directs tax agents to use this form. A tax agent can fill it out, but the applicant must complete the declaration.

When using the form, follow the current lodgment instructions on MS015 and include the required identity and supporting documents. Services Australia lists its Medicare Entitlement Statement Unit as the responsible unit for correspondence about this service.

How long does an MES take?

Services Australia states that an application may take up to 8 weeks if you apply between July and November because it receives a high volume of applications during that period. It does not publish the same fixed maximum for every application lodged outside that period.

If you apply online, Services Australia will notify you of the outcome or tell you if more information is required. If you apply using the form, it will write to you and send an approved statement to the address provided.

Does an MES automatically exempt you from the Medicare levy?

No. An MES confirms the period for which Services Australia determined that you were not eligible for Medicare. The ATO applies the tax rules and decides whether you qualify for the Medicare levy exemption.

For the ATO exemption category concerning people not entitled to Medicare benefits, the ATO states that a full exemption can apply for a period covered by an MES showing that you were not entitled to Medicare benefits because you were a temporary resident for Medicare purposes, provided the applicable dependant conditions are also satisfied. Having an MES alone therefore does not establish the final tax outcome.

If you are preparing your return online, the separate Helpydo guide explains how to lodge an individual tax return with myTax.

What if your spouse is also not eligible for Medicare?

Services Australia says that if your spouse is not eligible for Medicare, you both need a Medicare Entitlement Statement before starting your tax return. The ATO also considers your dependant circumstances when determining whether the Medicare levy exemption applies.

Do not assume that one person's MES automatically covers a spouse or other dependant.

Do you need a new MES every year?

Yes. Services Australia states that you must get a new Medicare Entitlement Statement for each year in which you claim a Medicare levy exemption on this basis. Receiving a statement for an earlier financial year does not establish eligibility for a later year.

What do you do after receiving the statement?

When you prepare your income tax return, tell the ATO that you have a Medicare Entitlement Statement and use the period established by the statement when completing the relevant Medicare levy information. Keep the MES for your records.

If you already lodged your return before receiving information that changes your tax return, do not simply change figures without checking the applicable tax rules. The separate guide to amending an Australian tax return explains the ATO amendment process.

Common mistakes to avoid

• Do not assume that having no Medicare card proves you were ineligible. You may still have been entitled to Medicare.
• Do not normally apply before 1 July for the previous financial year; early applications cannot be accepted or processed unless the departure exception applies.
• Do not assume a temporary visa automatically makes you eligible for an MES. Medicare eligibility, including eligibility under a Reciprocal Health Care Agreement, must be considered.
• Include the name and photo page of your passport and any additional documents Services Australia needs to establish your entitlement period.
• Do not upload password-protected PDFs or files exceeding the published online limits.
• Do not assume an approved MES automatically removes the Medicare levy. The ATO makes the final tax determination.
• Apply for a new statement for every financial year in which you need to claim the exemption on this basis.