Understanding OSHC and OVHC: Basics for International Students

What is OSHC and Who Needs It?

Overseas Student Health Cover (OSHC) is compulsory for all holders of the Student Visa (subclass 500). It ensures students meet visa condition 8501, which requires maintaining adequate health insurance during their stay. OSHC policies are offered by major providers like Bupa, Allianz, Medibank, Ahm and nib, and typically cover doctor visits, hospital treatment, and limited pharmaceuticals.

OVHC Explained: When It Applies to Visa Holders

Overseas Visitor Health Cover (OVHC) is required for many temporary visa holders other than students, such as those on:

• 482 Temporary Skill Shortage visas
• 485 Temporary Graduate visas
• Visitor visas with 8501 conditions

While OSHC is strictly for students, OVHC covers a broader set of migrants and can also help avoid the Medicare Levy Surcharge if you earn above the income threshold.

Why These Policies Matter at Visa End

Both OSHC and OVHC are tied to visa compliance. Cancelling your policy too early may risk breaching visa conditions, while not cancelling in time may leave money unclaimed. Refunds become particularly important at visa end—whether you’re graduating, moving to another country, or becoming a permanent resident in Australia.

Refund Eligibility for Unused OSHC and OVHC

Common Scenarios for Refunds

You may be eligible for a refund if:

• You leave Australia earlier than your visa end date.
• Your visa application is refused before entering Australia.
• You switch to a permanent visa that makes OSHC/OVHC unnecessary.
• You cancel duplicate cover (e.g., if you bought a new policy by mistake).

Refunds are pro-rata (based on unused policy days) but usually exclude a non-refundable first month and may carry admin fees.

Provider-Specific Rules

• Bupa: Requires visa cancellation or evidence of departure. Admin fee ~$50 AUD.
• Allianz Care Australia: Refunds on a pro-rata basis, minimum one month non-refundable.
• Medibank: Similar refund structure; processing time 4–6 weeks.

Each provider’s terms vary, which is why comparing at getmypolicy.online helps you anticipate refund conditions upfront.

Documentation Needed: Visa Proof, Exit Evidence

To claim, you typically need:

• Copy of your visa grant/cancellation notice.
• Flight ticket or boarding pass proving departure.
• Completed provider refund form (available online).

How Pro-Rata Calculations Work for Refunds

Step-by-Step Formula

The general refund formula is:

(Unused Days ÷ Total Policy Days) × Premium Paid – Admin Fee = Refund

Examples: Single Student vs. Family Policy

• Single Student: You bought a 12-month OSHC for AUD $600 but leave 3 months early. Unused days = 90. Refund ≈ AUD $150 minus admin fee.
• Family Policy: Family OVHC at AUD $3,000/year, cancelled 6 months early. Refund ≈ AUD $1,500 minus fees.

Tools and Tips: Use getmypolicy.online's Refund Estimator

Instead of manual math, getmypolicy.online offers a refund estimator tool that factors in pro-rata calculations and provider-specific rules, giving you a clear picture before you cancel.

Tax Implications of OSHC/OVHC Premiums and Refunds

No Deductions for Premiums-Why OSHC/OVHC Aren’t Eligible for Rebates

Unlike domestic health insurance, OSHC and OVHC premiums are not tax-deductible. They also don’t qualify for the Private Health Insurance Rebate, since they aren’t “complying health insurance” products.

If someone is on Student or temporary visa, they don’t have to pay Medicare levy. Medicare levy applies, if they have medicare care whoch they get after PR.

Medicare Levy Surcharge (MLS) and How OVHC Helps Avoid It

If you’re on a temporary skilled visa and earn above the MLS threshold (AUD $93,000 for singles / AUD $186,000 for families in 2025), OVHC helps you avoid this tax. Students with OSHC usually don’t face MLS, but workers on OVHC often benefit significantly.

Reporting Refunds on Your ATO Tax Return as an Overseas Visitor‍

Refunds themselves generally don’t affect your tax return—they’re treated as returning your own premiums. However, if you’re on OVHC and claiming MLS exemption, ensure your cover dates align correctly in your ATO myTax records.

Step-by-Step Cancellation and Refund Process

Contacting Your Provider: Online Forms vs. Phone/Email

Most insurers now have online cancellation forms (e.g., Allianz portal, Bupa refund form). Others may require you to email documents.

Timeline: Processing Times and Potential Delays

Refunds typically take 2–6 weeks, depending on provider backlogs. Leaving the process until your last week in Australia can risk delays, so apply at least 4 weeks before departure.

Avoiding Pitfalls: Visa Breaches and Admin Fees

• Do not cancel OSHC before your visa ends-it may breach condition 8501.
• Expect non-refundable admin fees (~$50 AUD).
• Refunds less than 1 month are usually not processed.