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Private health cover for new migrants and Australians returning from overseas
Lifetime Health Cover base days for new migrants and returning expats, the one-year window, time overseas and suspended cover, Medicare eligibility and the surcharge.
If you have just become eligible for Medicare as a new migrant, or you are an Australian returning after years abroad, you usually have a one-year window to take out hospital cover without a Lifetime Health Cover loading. For new migrants aged over 31, the base day is the first anniversary of full Medicare registration. For Australians who were overseas on their usual base day, cover must be bought by the first anniversary of the day you return, where a return means your first stay of 90 days or more. Miss the window and the standard loading of 2% for each year over 30 applies. The Medicare Levy Surcharge works separately: it can apply from the day you become a resident for tax purposes if your income is high enough and you have no hospital cover.
This guide is part of private health insurance mistakes. The general rules are in Lifetime Health Cover loading.
New migrants
| Your situation | LHC base day |
|---|---|
| Under 31 when you get full Medicare registration | The 1 July after your 31st birthday, as for everyone |
| 31 or older when you get full Medicare registration | The first anniversary of full Medicare registration |
Example. Ana, 38, gets permanent residency and full Medicare registration on 3 March 2026. Her base day is 3 March 2027. If she takes out hospital cover by then, she pays no loading. If she joins on 1 August 2027, her age on the 1 July before joining is 39, so her loading is (39 − 30) × 2% = 18% for 10 years.
Interim Medicare cover, such as for some partner visa applicants, may not count as full registration; check with Services Australia and your insurer.
Australians returning from overseas
If you were overseas on your base day, you have until the first anniversary of your return to buy hospital cover without a loading. A return is your first stay of 90 days or more. Visits of up to 90 consecutive days are treated as still being overseas.
Example. Ben was born in 1990 and lived in London from 2018 to 2026. His usual base day of 1 July 2022 passed while he was overseas. He returns to live in Sydney on 15 September 2026, so he has until 15 September 2027 to buy hospital cover with no loading.
Time overseas and days of absence
- Time spent outside Australia is generally not counted towards your 1,094 days of absence. privatehealth.gov.au describes this for people overseas for more than a year; check how it applies to you. Short visits home of up to 90 consecutive days count as time overseas; longer stays count as time in Australia.
- Some insurers let you suspend cover while overseas. An approved suspension does not count against your 1,094 days, but suspension terms vary by insurer.
- If you cancel cover to leave, keep records of your departure and return dates, such as passport stamps or travel movement records, in case your insurer needs evidence later.
The surcharge on arrival
The Medicare Levy Surcharge has no one-year grace period. It is assessed day by day for each day you are without appropriate hospital cover while it applies to you.
Example (illustrative). A single Australian returns on 1 July 2026, is a tax resident for the whole of 2026–27 and earns $130,000 taxable income, which is in tier 2 (1.25%). With no hospital cover all year, the surcharge is $130,000 × 1.25% = $1,625. If they take out appropriate hospital cover on 1 September 2026, they were uninsured for 62 days (31 in July and 31 in August), so the surcharge is $1,625 × 62 ÷ 365 = $276.03. If they were overseas on their base day, their LHC window, by contrast, runs until 1 July 2027.
The exact treatment of part-year residents is set by the ATO; check its surcharge pages or ask a registered tax agent.
People not eligible for Medicare
Temporary visa holders who are not eligible for Medicare do not use resident private health insurance in the usual way. Many visas require Overseas Visitors Health Cover or Overseas Student Health Cover. People not eligible for Medicare can apply to Services Australia for a Medicare Entitlement Statement, which can exempt them from the Medicare levy and surcharge. Lifetime Health Cover does not apply until you become eligible for full Medicare registration.
Checklist for new arrivals
- Confirm your Medicare status and registration date with Services Australia.
- Work out your LHC base day using the privatehealth.gov.au calculator.
- Estimate your income for surcharge purposes for the part of the year you are resident.
- Decide on hospital cover before your base day, using the policy comparison guide.
- Check ambulance cover for your state.
- Keep evidence of overseas periods for future LHC questions.
When to consult a professional
Residency for tax purposes can be complex for people moving countries. A registered tax agent can confirm when the surcharge starts to apply. For health needs on arrival, register with a GP; healthdirect on 1800 022 222 can help you find services.
FAQ
Does my overseas health insurance count?
No. Only hospital cover from a registered Australian insurer counts for the surcharge and Lifetime Health Cover.
I arrived on a temporary visa and later became a permanent resident. When does my window start?
From your full Medicare registration, not your arrival date.
Do waiting periods apply to new migrants?
Yes. The standard waiting periods apply, including 12 months for pre-existing conditions and pregnancy.
Can I transfer waiting periods from an overseas policy?
No. Portability applies only between Australian registered insurers.
Sources
- PrivateHealth.gov.au — LHC rules for new migrants and Australians overseas, LHC calculator
- Services Australia — Medicare enrolment and Medicare Entitlement Statements
- Australian Taxation Office — surcharge and residency
- Department of Home Affairs — visa health insurance conditions
