Do I need hospital cover in Australia?

Do you need hospital cover in Australia depends on whether you are resident or visitor, income and health needs, but for many Australians it is highly recommended or effectively required. For Australian citizens and permanent residents, hospital cover is not legally mandatory, but you need it to avoid extra tax and long waiting lists. If you earn over $97,000 single or $194,000 family in 2024-2025 and do not have eligible hospital cover with $750 excess or less, you pay Medicare Levy Surcharge of 1% to 1.5% extra, so $970 to $1,455 for $97K earner, which is often more than cost of basic hospital cover $1,200 per year, so you need hospital cover to avoid surcharge. Also, public hospital waiting list for elective surgery like knee replacement, cataract and hernia is 6 to 18 months, with hospital cover you get treated within weeks in private hospital with choice of doctor. Lifetime Health Cover adds 2% loading per year after age 31 if you do not have hospital cover, so you need it by 31 to avoid extra. For visitors on tourist visa, hospital cover via Overseas Visitor Health Cover is strongly recommended and effectively needed because hospital costs $1,500 per day without cover, and Department of Home Affairs recommends adequate health insurance. For working holiday and student visas, hospital cover is mandatory for visa grant. So residents need hospital cover to avoid tax and waiting, visitors need it to avoid huge bills.