Medicare and Public Health After Gaining PR Through Visa 186
One of the important benefits of gaining permanent residence through the subclass 186 is full access to Medicare. If you previously had no Medicare while on a subclass 482, this is a significant change.
Who gets Medicare after the subclass 186
A permanent resident through the subclass 186 is eligible for Medicare from the day the visa is granted. There is no waiting period for Medicare — this differs from many other Centrelink benefits.
How to enrol in Medicare
- Visit your nearest Medicare Service Centre or use Medicare online
- Bring: your passport, visa grant letter (or VEVO printout), and proof of address
- Complete Form IM010 (Enrolment in Medicare)
- Receive your Medicare card by post within 2–4 weeks
While you wait for the card, you can use Medicare with a temporary Medicare number.
What Medicare covers
Medicare pays for:
- GP visits: fully covered if the doctor bulk-bills; if they do not bulk-bill, you pay the gap
- Specialists: Medicare covers the allowed portion — usually 85% of the schedule fee
- Public hospital: stays in a public ward, public surgery
- Tests, X-rays, scans: covered by Medicare under the schedule
Medicare does not cover:
- Dental (only some emergency cases through public services)
- Glasses and contact lenses
- Prescription medicines (covered by the PBS — Pharmaceutical Benefits Scheme)
- Cosmetic procedures
Pharmaceutical Benefits Scheme (PBS)
Alongside Medicare, permanent residents have access to the PBS — the scheme that subsidises prescription medicines. The current co-payment is much lower than the market price. The PBS is especially valuable for people with chronic conditions.
Medicare Levy
As a tax resident, you pay the Medicare Levy of 2% of your taxable income each year — calculated automatically in your tax return. This is how Medicare is funded.
The Medicare Levy is reduced or waived if your income is below a certain threshold.
Medicare versus OVHC/private health insurance
Medicare provides a foundation of health cover. Many permanent residents still choose to buy private health insurance in order to:
- Be admitted to a private hospital
- Choose their own doctor
- Cover dental and glasses
- Avoid the Medicare Levy Surcharge if their income is high
If your income is over $93,000 a year (single), you should consider private hospital cover to avoid an additional Medicare Levy Surcharge of 1–1.5%.