Do new migrants have to pay the Lifetime Health Cover Loading? 

If you’re a new migrant, we hope you’re enjoying life in Australia.  

One of the things you’ll need to think about as you adjust to life as an Aussie is our healthcare system. While many treatments and services are covered by Medicare, there are some advantages to taking out Private Health Insurance. In some cases, getting health cover might mean you have to pay the Lifetime Health Cover Loading as a new migrant – depending on when you start your policy.   

Here’s what you need to know about the Lifetime Health Cover Loading for new migrants. 

What is the Lifetime Health Cover Loading? 

Lifetime Health Cover Loading (LHCL) is an Australian government initiative to encourage people to take out Private Health Insurance at a younger age, reducing the burden on the public healthcare system. LHCL means that if you do not take out Hospital Cover before the age of 31, you will pay an extra 2% Loading for every year you’re over 30 (capped at 70%). But if you’re a new migrant, different rules apply. 

Find out more in our Lifetime Health Cover Loading Guide. 

New migrants have one year from their ‘Base Day’ to take out Hospital Cover without incurring the LHCL.  

Your LHCL Base Day as a migrant is whichever of these 2 dates falls last:  

• the 1 July following your 31^st birthday OR 

• the first anniversary of the date you registered for Medicare (you can check this with Services Australia). 

If you’re a new migrant to Australia, you should work out your LHCL Base Day to determine when you need to take out Hospital Cover to avoid paying the Loading. If you take out a policy after your Base Day, you will pay an extra 2% for every year you are over 30 when you began your policy.  

Remember, you have one year after your Base Day before the Loading will apply.  

Should I get Hospital Cover? 

Now that you’re an Australian resident, you’re eligible for free treatment at public hospitals under Medicare. However if you want to be treated in a private hospital, to avoid long waiting lists for elective procedures, having Hospital Cover will help you get treated faster. You’ll be able to choose your own doctor, and if available, might even have your own hospital room. Private Health Insurance is optional in Australia, and we recommend you consider your budget and healthcare needs before deciding whether or not to take out cover.  

What is Hospital Cover?

Another reason to consider Hospital Cover is to avoid paying the Medicare Levy Surcharge. This Levy of between 1% and 1.5% applies to singles earning more than $97,000 or couples with a combined income of more than $194,000. If you have Hospital Cover, you won’t be charged this Levy at tax time. 

How do I choose the right policy? 

The right policy depends on your budget and healthcare needs. To find the best Hospital Cover for you at the best price, healthslips.com.au compares every policy from every insurer without bias. We aren’t selling insurance and you don’t have to enter any personal details, so you can search your options at your own pace, without any pressure to buy.  

Search for health insurance using our Calculator, or work out your Lifetime Health Cover Loading. 

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.

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