Tax Return:: Applying for a Medicare Entitlement Statement

Hello, this is your tax and super specialist, P&C Tax Professionals.

Did you know that applying for a Medicare Entitlement Statement (MES) can help you to increase your tax refund or reduce your tax payable? However, not everyone will be eligible for the MES. In today’s blog post, we will uncover the specifics of applying for a MES including who’s eligible for one and how to get one.

<What is a MES?>

A Medicare Entitlement Statement (MES) is basically a document that outlines the relevant period during the financial year in which you were not eligible for Medicare. If you weren’t entitled to any of the Medicare benefits for part or for the entire financial year, you could be considered exempt from paying the Medicare levy when lodging your annual tax return.

You would need the statement in order to apply for the Medicare levy exemption on your tax return. From there, it is ultimately up to the Australian Taxation Office (ATO) to decide whether or not you will have to pay for the Medicare levy.

An important thing to note is that you must receive a new statement for each individual financial year that you are claiming a Medicare levy exemption for. Even if you have claimed for the exemption previously and it was approved, it does not mean that you will automatically be exempt each year.

<Who is eligible?>

For those of you who were not eligible for the Medicare benefits for either all or part of a given financial year, you may apply for the MES.

Prior to applying for a statement, double check that you were definitely ineligible for Medicare. This is because, even if you do not possess a Medicare card, you could still be eligible.

If you were eligible for Medicare for the entire financial year --> you will not be entitled to receiving the statement.

Conversely, according to the Australian Government, if you were the following, you may be able to get the MES:

> an Australian permanent resident who has lived outside of Australia for a period of 12 months or more

> a temporary visa holder who has not applied for permanent residency in Australia

> a temporary visa holder who were 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

> an Australian citizen living overseas for 5 years or more.

<How to get one>

In order to get the Medicare Entitlement Statement, you would need to complete a form called “Application for a Medicare Entitlement Statement”. This particular form can be completed by your registered tax agent on your behalf.

Along with your filled out form, you may also need to provide a certified copy of your:

> Passport (both photo and signature page to prove your identity)

> Current visa

> Evidence that you have applied for permanent residency

> Evidence your permanent residency has been refused or withdrawn.

Here, a certified copy basically implies that an authorised person (such as your tax agent/accountant) has endorsed the copy of your document. The authorised person must have seen the original copy of the document.

<Submit your form>

The completed form and any supporting documentations can be sent via post or email to the address as listed on the application form.

<What happens after you apply?>

Please keep in mind that it may take up to 6 weeks to review and process your application, especially if you apply between the peak season during July to November.

Let’s wrap it up here but feel free to contact us through our official Facebook Page (P&C Tax Professionals – Australia) or send your enquiries to our email address at pnctax@naver.com.

Thank you and bye for now!