Country information Australia

Health insurance for foreign workers in Australia

As the fourth largest economy in the Asian region and the 12th largest economy in the world Australia is a popular destination among expatriates. Foreign workers in Australia want to benefit from the economic power of the country and its close connection to the fast growing markets in Asia. Beside hard facts like the low unemployment rate and 25 years of uninterrupted annual economic growth many other factors cause people from around the world to start searching for a job in Australia.

Foreign workers in Australia can witness attracions like Australia’s spectecular nature, the impressive wildlife and lively metropolises. But not only the environment is impressive. Immigrants from about 200 countries as well as the indigenous inhabitants (Aboriginals and Torres Strait Isander) created Australia’s culture with a rich variety of ethnic, lingustic and religious influences.

Eligible group

All foreign workers in Australia except citizens of New Zealand need a visa. There are several visa types for temorarily work in Australia. In this article we deal with the Working Holiday visa (subclass 417), the Work and Holiday visa (subclass 462) and the Temporary Work (Skilled) visa (subclass 457).

The Working Holiday visa is designed for young people who want to holiday and work in Australia for up to a year. As long as your Working holiday visa is valid you are allowed to leave and re-enter Australia as often as you want. During your stay you are allowed to work for each employer for up to six months and to study for up to four months. Working Holiday visa holders are allowed to apply for a second Working Holiday visa for up to one more year.

You have to meet following requirements:

• you must be between 18 and 30 years of age
• you do not have a dependent child with you during your stay in Australia
• you must have sufficent funds to support yourself during your stay in Australia
• you must have sufficent funds to buy a return ticket to your home country
• you must meet character and health requirements
• you must have a passport from an eligible country (Belgium, Canada, Republic of Cyprus, Denmark, Estonia, Finland, France, Germany, Hong Kong Special Administrative Region of the People's Republic of China (including British National Overseas passport holders), Republic of Ireland, Italy, Japan, Republic of Korea, Malta, Netherlands, Norway, Sweden, Taiwan, United Kingdom)

The Work and Holiday visa is also designed for young people who want to holiday and work in Australia for up to a year. As long as your Work and Holiday visa is valid you are allowed to leave and re-enter Australia as often as you want. During your stay you are allowed to work for each employer for up to six months and to study for up to four months. Working Holiday visa holders can apply for a second Working Holiday visa for up to one more year.

You have to meet following requirements:

• you must be between 18 and 30 years of age
• you do not have a dependent child with you during your stay in Australia
• you must have sufficent funds to support yourself during your stay in Australia
• you must have sufficent funds to buy a return ticket to your home country
• you must meet character and health requirements
• you must meet the educational requirements (depending on the passport you hold, the education requirements could be slightly different.)
• you must have functional English language skills
• you must have a letter of support from your government
• you must have a passport from an eligible country (Argentina, Bangladesh, Chile, People's Republic of China, Hungary, Indonesia, Israel, Luxembourg, Malaysia, Poland, Portugal, San Marino, Singapore, Slovak Republic, Slovenia, Spain, Thailand, Turkey, USA, Uruguay, Vietnam)

The Temporary Work (Skilled) visa allows you to work in Australia in a nominated occupation for your approved sponsor for up to 4 years. As long as your Temporary Work (Skilled) visa is valid you are allowed to leave and re-enter Australia as often as you want. You are allowed to bring members of your family with you.

You have to meet following requirements:

• you must be nominated by an approved sponsor to work in an occupation on the list of eligible skilled occupations
• you must meet skill requirements, and any registration and licensing obligations for the nominated occupations
• you must have a certain level of English
• you must meet the health requirements
• you must meet character and health requirements
• you must have a adequate health insurance. The health insurance must cover you and any member of your family
• you must show your police certificates
• you must have no outstanding debts to the Australian Government

Please note the Australian Covernment announced to abbolish and replace the Temporary Work (Skilled) visa (subclass 457 visa) with the Temporary Skill Shortage (TSS) visa. The replacement is planned for March 2018. Here you can find further information about the changes.

Legal basics about health insurance for workers in Australia

Australia’s statutory healthcare system is called Medicare. It provides subsidies for primary care and public hospital care. Medicare ensures that all Australian citizens and permanent residents have access to quality health services. Temporary workers in Australia do not have access to Medicare unless they decide to become permanent residents in Australia.

In comparison to the contributions you have to pay for statutory health insurance in other developed coutries the contributions for Australia’s Medicare are quite small. According to your salary you have to pay from 2% to 3,5% of your income for Medicare. Unemployed people and pensioners do not have to pay for Medicare.

The relatively small premiums for Medicare go along with limited benefits. Medicare subsidies medical treatments to a certain level. In genral it covers 100% of public hospital costs, 85% of sepcialists costs, and 75% of general practitioner costs. The difference between the actual costs and the covered costs has to be payed out of pocket by the patient. Costs for dentistry, optometry, and ambulance transport are not covered at all and have to be payed completely out of the pocket. That is why many Australians have a private health insurance to make healthcare costs controllable.

Citizens of countries Australia has a Reciprocal Health Care Agreements (RHCA) with have limited access to Medicare even if they work in Australia temorarily. Please note that the limited access to Medicare through RHCA generally does not replace private travel health insurance for your stay abroad.

Hence the statutory healthcare system Medicare is only avaliable for citizens of Australia and permanent residents, temporary worker in Australia should take out a travel health insurance for they stay abroad. A adequate travel health insurance is even a requirement for the Temporary Work (Skilled) visa. Therefore the travel health insurance for temporary workers in Canada must provide evidence of adequate health insurance. See the level of health insurance your travel health insurance must cover.

Insurance advice

Every country has its own healthcare system. On the basis of characteristics like your home country, the duration of your stay, the reason of your stay and the destination of your trip different needs for health insurance appear. Our organistion recommends Care Concept AG from Germany for health insurance solutions abroad. Click here for further informations about Care Concept AG.

As a temporary worker in Australia you are not covered though the satutory healtcare system of your home country. Further you generally do not have access to Australia statutory healthcare system Medicare during your stay in Australia. Since you are responsible for all medical costs that occur during your saty, we recommend to take out an international health insurance.

If you want to enter Australia as a foreign worker with the Work and Holiday visa or the Working holiday visa we recommend the Care Discover insurance for temporary worker in Australia, at 1.39 € per day. Click here for more information about the health insurance Care Discover.

Foreign workers in Australia that will enter the country with a Temporary Work (Skilled) visa must take out international health insurances that provide evidence of adequate benefits, which are set by the Australian gouvernment. Please contact us via EMAIL for detailed informations and insurance recommendation.

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