This report provides a comprehensive overview of the Australian healthcare system, with a specific focus on the impacts of Medicare. It begins with a brief introduction to the tax-funded healthcare system, emphasizing the roles of various healthcare practitioners and the division between public and private healthcare. The report then defines Medicare and its objective of providing accessible, affordable, and high-quality healthcare services to eligible Australian citizens. It details the funding mechanisms, including healthcare taxes and the Medicare Levy Surcharge. The report further examines the working of Medicare, including its role in covering expenses in public hospitals and the bulk-billing system. It also explores the Medicare Safety Net and the Pharmaceutical Benefits Scheme (PBS), which helps reduce the costs of regular health check-ups and medicines, respectively. Furthermore, the report discusses private healthcare insurance as a support to Medicare, covering additional costs and services. Finally, the report provides a comparison between private healthcare insurance and Medicare. The report concludes with references to various studies and publications related to Medicare and the Australian healthcare system.