The Medicare levy section in myTax asks how many days you were entitled to a full or half exemption during the year — most people answer zero, because most taxpayers don't qualify. It's a narrow, category-based exemption, not a general opt-out, and getting the day count wrong either under-claims an exemption you're entitled to or understates levy you actually owe.
What is myTax actually asking with this question?
After your income details, myTax asks whether you were exempt from the Medicare levy for all or part of the year, and if so, for how many days at the full-exemption rate and how many at the half-exemption rate. This is separate from the Medicare Levy Surcharge question about private health cover — the levy itself (2% of taxable income) and the surcharge are two different things asked about in two different places.
Who actually qualifies for a Medicare levy exemption?
| Category | Exemption level | Typical evidence needed |
|---|---|---|
| Certain temporary residents (visa holders not entitled to Medicare) | Full exemption | Medicare Entitlement Statement (MES) from Services Australia |
| Foreign resident for tax purposes for the full year | Full exemption | Confirmed by your residency status on the return |
| Blind pensioner or certain sickness allowance recipients | Full exemption | Centrelink/DVA correspondence |
| Left or arrived in Australia partway through the year, changing entitlement | Half exemption for the relevant period | Medicare Entitlement Statement covering that period |
The most common real-world case is temporary visa holders — certain visa subclasses aren't entitled to enrol in Medicare at all, and specifically need a Medicare Entitlement Statement to claim the exemption, not just their visa grant letter. Our guide on the 482 visa Medicare levy exemption covers that specific visa category in more detail.
Where do I get proof for the days I'm claiming?
Services Australia — not the ATO (ATO guidelines) — issues the Medicare Entitlement Statement, and it's the document that specifies your exact exemption period in days. AusTax AI's lodgement profile asks about your visa and residency status upfront specifically so this section doesn't get missed. Applying for an MES can take a few weeks, so it's worth starting the process before you're ready to lodge rather than after, especially close to the 31 October 2026 deadline. Without an MES covering the exact dates you claim, the ATO can query or disallow the exemption later.
What if I'm not sure whether I qualify?
If your situation isn't a clear match to the categories above — for example, you're unsure whether your visa entitles you to Medicare, or your residency status changed partway through the year — the safest default is to answer zero days and confirm your position separately, rather than guess a number. In short, an exemption you're not certain about is one worth checking before you claim it, not after.
A common example: arriving or leaving partway through the year
Say you arrived in Australia on a temporary visa in October, part-way through the financial year. For the months before you arrived, you weren't a resident and had no Australian income, so those months simply aren't part of your Australian return at all. From your arrival date, if your visa doesn't entitle you to Medicare, you may be able to claim a full exemption for the days between arrival and whenever your entitlement (or a reciprocal health care arrangement) begins — but only for the exact period your Medicare Entitlement Statement confirms, not a rounded estimate of "a few months." The same logic applies in reverse if you leave Australia partway through the year.
Quick checklist
- Confirm which category you fall into, if any — most taxpayers claim zero days
- Apply for a Medicare Entitlement Statement from Services Australia early if you need one
- Match your claimed days exactly to what the MES states, not an estimate
- Remember this is separate from the Medicare Levy Surcharge and private health insurance questions elsewhere in the return
AusTax AI's tax agents see Medicare levy exemption questions most often from temporary visa holders lodging their first Australian return — if that's you, our step-by-step myTax guide covers where this section sits among the rest of the form.
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*This is general information only, not personal tax advice. Medicare levy exemption eligibility depends on your specific visa and residency status — confirm yours with Services Australia or a Registered Tax Agent.*