Getting health insurance for tax reasons on a 457

Lucifer-0

Hi.

I'm getting mixed opinions on this....I'm on a 457, don't have medicare.
I've read that I should get health insurance, otherwise I'll be taxed approx 890 dollars if I don't have it. I've also been advised that this won't apply to me because I'm not a citizen and/or am on a 457.

Advise please.

Legend100

you have been advised correctly

health insurance for PR/citizens can affect tax if they are liable to medicare levy surcharge. This is a levy on incomes over 88k for a single person who does not have relevant health cover

it doesn't apply to you as you are not liable to the surcharge in the first place being on a 457 (assuming you are from ROI)

NorfolkEnchants

Legend100 is correct - but it depends on the country you came in from. If you came directly from ROI then youa re exempt, but if you came from another country that has a reciprocal healthcare agreement with AU (e.g. the UK) then you maybe caught.

Also, you need a certain type of health insurance to support the 457, but this is not tax related.

Noo

The tax is for medicare...if you are from ROI you are not entitled to medicare therefore you dont pay the tax, well you do but you can claim it back at the end of the tax year. You don't need medical insurance for a 457 as you are covered under the reciprocal health agreement between Ireland and Australia (however you might still get it for your own reasons/piece of mind)

NorfolkEnchants

Noo wrote: »

The tax is for medicare...if you are from ROI you are not entitled to medicare therefore you dont pay the tax, well you do but you can claim it back at the end of the tax year. You don't need medical insurance for a 457 as you are covered under the reciprocal health agreement between Ireland and Australia (however you might still get it for your own reasons/piece of mind)

Not necessarily true. For example, I am from ROI but if I was working in the UK (and therefore making NI contributions, with access to NHS) before coming to Australia then I would be entitled to a Medicare card and subject to the Medicare levy (and potentially Medicare levy surcharge if I didn't hold private health insurance).

Also, 457 visa requirements do specify that a certain level of healthcare is required, but this is for immigration purposes and not for tax.

In the OP's case, if you came directly from ROI then you don;t need to include insurance details on your return, as youa re not subject to Medicare levy or Medicare levy surcharge. Your visa requriements regarding health insurance are a completely separate thing and are not checked for tax purposes.

Mellor

NorfolkEnchants wrote: »

Not necessarily true. For example, I am from ROI but if I was working in the UK (and therefore making NI contributions, with access to NHS) before coming to Australia then I would be entitled to a Medicare card and subject to the Medicare levy (and potentially Medicare levy surcharge if I didn't hold private health insurance).

But the OP said he isn't entitled to medicare, so none of that should be relevant.
Obliviously, i'm assuming he wasn't wrong about being entitled to medicare.

Also, 457 visa requirements do specify that a certain level of healthcare is required, but this is for immigration purposes and not for tax.

Emergency healthcare via ROI's reciprocal healthcare agreement is adequate to meet 457 requirements. Additional cover isn't needed.

NorfolkEnchants

Mellor wrote: »

But the OP said he isn't entitled to medicare, so none of that should be relevant.
Obliviously, i'm assuming he wasn't wrong about being entitled to medicare.

He said he doesn't have Medicare, which I took to mean he doesn't have a Medicare card. That's different to being entitled to Medicare - it's the eligibility for a Medicare card that is important, not whether the card is actually held or not.

Mellor wrote: »

Emergency healthcare via ROI's reciprocal healthcare agreement is adequate to meet 457 requirements. Additional cover isn't needed.

News to me Ted

Mellor

NorfolkEnchants wrote: »

He said he doesn't have Medicare, which I took to mean he doesn't have a Medicare card. That's different to being entitled to Medicare - it's the eligibility for a Medicare card that is important, not whether the card is actually held or not.

I took it to mean that he wasn't entitled to Medicare. I imagine that's what most people would be referring to.

News to me Ted

Well you learn something new everyday.
You can put the feet up now for the evening.