Healthcare in Australia

Written by Lais Cattassini Moderated by Oleksandra Dosii

Lais Cattassini

Lais is a Brazilian journalist and copywriter with over 17 years of experience, writing about things she knows really well (travelling, cinema, social media trends) and things she loves learning about.

Oleksandra Dosii

Oleksandra is a dedicated marketer with a passion for growing HR-tech products. She believes content marketing is about delivering high-quality content that provides value—not just generating leads. Since 2016, Oleksandra has been involved in tech talent relocation.

Last update: September 14, 2024

Next update: Scheduled for February 1, 2025

Interesting facts:

• Australians who earn above a certain income threshold and do not have private health insurance are subject to a Medicare Levy Surcharge.
• Many healthcare providers in Australia offer bulk billing, meaning that the cost of the service is directly billed to Medicare with no out-of-pocket expense for the patient.
• Australia has specific healthcare initiatives aimed at improving health outcomes for Aboriginal and Torres Strait Islander populations, who face higher rates of chronic illness and lower life expectancy.

Overview of the Australian healthcare system

The Australian healthcare system is a mix of public and private services, offering comprehensive healthcare to its citizens and permanent residents. It operates under a universal health care model, ensuring that all Australians have access to necessary medical services, largely funded through taxes.

Medicare is the cornerstone of Australia's public health system, introduced in 1984. It provides free or subsidised treatment for a wide range of medical services, including visits to general practitioners (GPs), public hospital treatments, and certain diagnostic tests like X-rays and pathology services.

Medicare covers the majority of healthcare services, and patients who use the public system often do not have out-of-pocket expenses. Australians also have the option of private health insurance, which covers services Medicare does not fully pay for, such as private hospital treatments, elective surgeries, and dental care.

Primary care is provided by general practitioners (GPs), who are the first point of contact for medical issues. Secondary care is typically accessed through GP referrals.

The Pharmaceutical Benefits Scheme (PBS) helps reduce the cost of prescription medications for Australian citizens and residents. It ensures that essential medicines are accessible at a lower price, with the government subsidising many medications.

How to access the healthcare system in Australia as an expat

Eligibility for Medicare

Medicare is available to Australian citizens, permanent residents and certain visa holders, such as those from countries with reciprocal healthcare agreements, including the UK, New Zealand, Ireland, Italy, Sweden, and others.

If you're an expat, the first step is to determine your eligibility based on your visa status. Temporary residents, such as students or short-term workers, may not have full access to Medicare and might need private health insurance.

Register for Medicare

Complete the Medicare enrollment form available on the official Services Australia website or pick it up from a Medicare Service Centre.

Once you have completed the form and gathered your documents, you can submit your application in person, at your nearest Medicare Service Centre, or by mail. You'll need to send certified copies of all the necessary documents.

After submitting the form, you'll receive your Medicare card by mail. Processing times vary but are usually within 3-4 weeks. If you apply in person, you may get a temporary Medicare number immediately, allowing you to access healthcare services.

If you're from a country with an RHCA, you can access limited Medicare benefits as a temporary resident. You'll need to visit a Medicare Service Centre with your passport and visa.

Types of health insurance in Australia

Medicare (Public Health Insurance)

Medicare provides universal health coverage to citizens and eligible residents. It covers free treatment in public hospitals, visits to General Practitioners (GPs), subsidised specialist visits, the Pharmaceutical Benefits Scheme (PBS), and diagnostic tests like X-rays and blood tests in public hospitals.

Medicare is funded by the Medicare levy, which is 2% of taxable income for most taxpayers.

Private Health Insurance

Private health insurance allows people to have more choice over their healthcare providers, avoid long wait times, and access services not covered by Medicare. Private insurance is divided into two main types:

1. Hospital Cover

Hospital cover helps pay for treatments and surgeries in private hospitals or as a private patient in public hospitals.

The government introduced four tiers of private hospital cover to standardise policies and make it easier for consumers to understand. Basic covers some hospital treatments but only a limited number of services like psychiatric care and accident-related treatments. Bronze covers more procedures than Basic, including services like joint reconstructions and some surgeries, but still leaves out many elective surgeries. Silver offers more comprehensive cover, including heart surgery, dental surgery, and rehabilitation services. Gold is the highest level, covering virtually all hospital treatments, including those that lower levels don't cover (like pregnancy and birth services).

2. Extras Cover (General Treatment Cover)

Extras cover, also known as ancillary or general treatment cover, provides benefits for services that Medicare does not cover, including dental care, optical services, physiotherapy, speech therapy, and psychology services.

The private health insurance company you choose will depend on your needs and personal preferences. Some of Australia’s top insurance providers are Medibank, Bupa, HCF, and NIB.

Overseas Visitors Health Cover (OVHC)

This type of insurance is designed for temporary visa holders who are ineligible for Medicare. OVHC covers hospital treatments in private or public hospitals, visits to GPs and some specialists, ambulance services, and emergency medical treatments

Overseas Student Health Cover (OSHC)

Similar to OVHC, OSHC is a mandatory type of insurance for international students studying in Australia. It provides health coverage for students who are not eligible for Medicare.

How much does health insurance in Australia cost?

As we discussed, private health insurance in Australia comes in two main types: hospital cover and extras cover. Some people opt for combined policies that include both.

When it comes to hospital cover, policies can cost from $90 for Basic cover to over A$300 per month with Gold cover. Extras cover can range from A$30 to A$150 per month.

Overseas Visitors Health Cover (OVHC) and Overseas Student Health Cover (OSHC) will cost around A$40 to A$150 per month, depending on age, income, and location.

To encourage Australians to take out private health insurance, the government offers several financial incentives. Private Health Insurance Rebate helps reduce the cost of premiums for those earning under certain income thresholds. There is an 8.4% rebate for singles earning up to A$93,000. Higher rebates, up to 33.4%, are available for Australians aged 70 or more.

Lifetime Health Cover Loading (LHC) applies to individuals over the age of 31 who don't have hospital cover. The surcharge is 2% extra on premiums for each year after turning 31, and this loading remains in place for 10 years once you take out private insurance.

High-income earners who don't have private hospital cover are required to pay an additional 1.5% tax as part of their Medicare levy.

Expat health insurance in Australia

The specific visa you hold may dictate whether you must have insurance. For example, students are required to have Overseas Student Health Cover (OSHC). Expats on certain temporary visas are required to maintain adequate health insurance as a condition of their visa. For these expats, the most common form of insurance is OVHC.

If you become a permanent resident or hold a visa that makes you eligible for Medicare, you can rely on public healthcare services.

What to do in an emergency?

In an emergency, the most important thing to do is call 000 (triple zero). This is Australia's emergency number, and it connects you to ambulance, fire, or police services.

If the situation is not life-threatening but still urgent, you can go directly to the nearest hospital emergency department. Alternatively, call Healthdirect Australia at 1800 022 222 for medical advice from registered nurses, who are available 24/7.