Companies that employ citizens of other countries on foreign assignment need to ensure they understand and comply with legislation and regulations in the expatriates’ home country. Companies employing Australians on foreign assignment need to ensure their corporate benefits plan is compliant with the Australian Health Act.

Incentives…
The health care system in Australia is a mixture of public and private sector service providers. The government is trying to encourage enrolment in the private system to ease the burden of health care on the public purse by offering a number of incentives. These include a Pharmaceutical Benefits Scheme (provided in the public sector) and a 30% rebate on private health insurance premiums (through income taxes).

…and penalties
The government has also introduced penalties, enforced through the income tax system, as Australians have to report worldwide income. Australian citizens on foreign assignment must remain covered by an Australian Registered Health Benefit Organization (RHBO) in order to avoid these penalties, and to be eligible for public sector benefits upon return to Australia. These penalties include fines on individuals and their employers, as well as premium and income tax surcharges. In certain circumstances the income tax surcharge can remain in place for the balance of the taxpayers life! These penalties also apply to temporary workers from countries with which Australia has a Reciprocal Health Care Agreement, by allowing them only limited emergency access to the public health system, and holding them personally responsible for levies and tax surcharges.

The solution
The Norfolk solution is simple. We will either employ a global underwriter, which has an Australian RHBO facility, or arrange with Willis Australia for an Australian registered health plan. Either way, our clients enjoy virtually seamless administration, and their employees enjoy the following benefits:

• Guaranteed re-entry into the Australian Health System with no waiting times and penalties.
  
  
• Lifetime Health Coverage compliancy that eliminates the increased premium penalties.
  
  
• Full private health fund coverage in Australia for short visits and/or annual leave to Australia.
  
  
• Continuity of health fund membership during the period of international assignment.
  
  
• Medicare Levy Surcharge exemption for Australian expatriates and inpatriates in Australia whose countries have a reciprocal agreement with Australia.
  
  
• Compliance with Government Sponsorship Agreement and Legal Liabilities. Sponsorship agreement requires releasing the Australian Government from the hospital and medical costs liabilities of expats and their dependents. A compliant benefits program provides this coverage, which otherwise would be provided directly by the sponsoring companies.
  
  

  If you want to know more...
  For more information on the Australian health care system and compliant product availability, contact Phil Tyson at 1-800-672-6089, ext. 234, or philt@norfolkmobility.com.