Health Waivers and Australian Visa Applications

Health Waiver Australia (PIC 4007)

Failed the visa health requirement? Here’s what to do next.

Being told your visa application “does not meet” the health requirement is frightening — but for many applicants it is not the end of the road. If your visa is subject to Public Interest Criterion (PIC) 4007, a health waiver may still allow your visa to be granted, even where a medical condition has been assessed as too costly or as prejudicing access to scarce services.

This guide explains how the Australian visa health requirement works, what a PIC 4007 health waiver is, how the Significant Cost Threshold (SCT) is applied, and how Tolic Lawyers prepares health waiver submissions that give applicants the best possible chance of success. If you have received a Form 884 Medical Officer of the Commonwealth opinion and are not sure what to do next, this is the page for you.

What is a health waiver (PIC 4007)?

A health waiver is a discretionary exemption that allows a visa to be granted even though the applicant — or a non-migrating family member — has failed the migration health requirement. It is only available where the relevant visa subclass is governed by PIC 4007. Visas governed by PIC 4005 do not offer a waiver, which makes identifying the correct criterion the critical first step in any failed health requirement matter.

The waiver recognises that a medical condition, on its own, should not automatically exclude an applicant where the projected impact on the Australian community can be mitigated and where there are strong compassionate and compelling reasons to grant the visa.

Which visas allow a health waiver?

A health waiver is only available if PIC 4007 applies to your visa subclass. This includes:

• Employer-sponsored visas — Subclass 482 (Skills in Demand), Subclass 186 (Employer Nomination Scheme, including the Temporary Residence Transition stream) and Subclass 494 (Skilled Employer Sponsored Regional)
• Partner and family visas — Subclass 820/801 and 309/100 partner visas, and the Subclass 300 Prospective Marriage (fiancé) visa
• Humanitarian and protection visas
• Certain student visas — for example, Subclass 500 students sponsored by Foreign Affairs or the Defence sector

The waiver is not available under PIC 4005, and it cannot be exercised where a health condition presents a genuine public health risk, such as active tuberculosis.

How does failing the health requirement work?

After you complete your Migration Health Examination, the Department of Home Affairs receives a report from a Medical Officer of the Commonwealth (MOC). You may be assessed as “Does Not Meet” the health requirement if:

• the condition is likely to result in significant health care or community service costs; or
• the condition may prejudice the access of Australian citizens or permanent residents to health care or community services that are in short supply (for example, dialysis or organ transplants).

At this point you will generally be issued with a Form 884 — the MOC opinion that you do not meet the health test — together with a section 57 natural justice letter inviting you to respond. This is your formal opportunity to provide further evidence relevant to a PIC 4007(2) health waiver, including evidence of any compassionate and compelling circumstances. Acting quickly and strategically at this stage is essential. The quality of the submission you put forward in response to Form 884 often determines the outcome.

The Significant Cost Threshold (SCT): the $86,000 benchmark

The Significant Cost Threshold (SCT) is the figure used to decide whether a condition imposes a high enough cost burden to fail the health requirement. Since 1 July 2024 — and current as at 2026 — the SCT is AUD $86,000 (increased from the previous figure of $51,000).

Importantly, having a medical condition does not automatically mean you will exceed the SCT. The assessment depends on the type and severity of the condition, the anticipated need for health or community services, and your intended period of stay in Australia.

How the MOC calculates your costs

• Temporary visa applicants — costs are assessed over the duration of your intended stay in Australia.
• Provisional or permanent visa applicants — costs are generally assessed over a five-year period, or three years if you are aged 75 or older. Where a condition is permanent or ongoing with a reasonably predictable course, the assessment may extend over your remaining life expectancy, up to a maximum of ten years.

Conditions that commonly trigger an SCT assessment include cancer requiring ongoing treatment, HIV/AIDS, intellectual disability, Autism Spectrum Disorder, chronic renal disease (such as dialysis), complex mental health conditions, and haemophilia or other high-cost chronic conditions. A diagnosis alone, however, is never the full picture — the real question is projected cost and service use, and how that can be mitigated.

What costs count toward the Significant Cost Threshold?

The SCT captures a broad range of health and welfare services when estimating the potential impact of a condition.

Health spending includes hospital care (public and private, including emergency and inpatient services); primary health care delivered by GPs, nurses and allied health professionals; referred and unreferred medical services such as specialist consultations, diagnostic imaging and pathology; pharmaceuticals subsidised under the Pharmaceutical Benefits Scheme (PBS); aged care; and public health and research.

Welfare spending includes disability services funded under the National Disability Insurance Scheme (NDIS); specialised and inclusive education support, including early intervention; and cash welfare payments such as the Carer Payment, Disability Support Pension and Child Disability Assistance Payment.

Understanding exactly which of these cost items the MOC has relied on is central to challenging an assessment effectively.

What is “prejudice to access”?

Separate from cost, a condition can fail the health requirement if it would prejudice the access of Australian citizens and permanent residents to health resources that are already in limited supply. The most common examples are organ or bone-marrow transplants, dialysis services, and high-dependency services such as ICU beds or specialised paediatric or geriatric care.

When can the Department grant a health waiver?

To exercise a waiver under PIC 4007(2), the delegate must be satisfied that:

• all other visa criteria are met;
• granting the visa is unlikely to result in undue cost to the Australian community, or undue prejudice to access to health care or community services; and
• any impact can be mitigated — for example, through private health insurance, personal finances, family and support networks, or limited actual use of services.

Compassionate and compelling circumstances are weighed in the balance, and where the decision affects an Australian citizen or permanent resident minor child, that child’s best interests are a primary consideration.

Compassionate and compelling circumstances

These circumstances are assessed case by case, on the evidence. Examples that may be taken into account include (but are not limited to):

• An Australian citizen or permanent resident sponsor with a serious health condition who would be unable to access suitable treatment if forced to relocate overseas.
• No viable permanent migration pathway for the couple in the applicant’s home country or any other country where they have a right to reside — for example, where same-sex relationships are not legally recognised.
• Severe financial hardship for the sponsor if required to live in the applicant’s home country, due to barriers such as language, lack of family support, or limited employment.
• A sponsor who holds or held a Protection, Refugee or Humanitarian visa, where refusing the waiver would cause family separation because the sponsor cannot safely return home and no third-country option exists.
• Adverse impact on Australian citizen minor children — for example, where the sponsor is legally prevented by the other parent from removing the children from Australia.
• Strong family ties in Australia, with ongoing caring or financial responsibilities toward family members who rely on the sponsor.
• A significant benefit Australia would lose — through specialised skills, business expertise, or valuable community service, including employment or volunteering.
• A sponsor and family well-established in a remote, rural or regional area, contributing to local community and workforce stability.
• Occupational skills that are in demand in Australia (including occupations on relevant skilled occupation lists such as the Core Skills Occupation List), where the applicant or working family members are employed in those roles.
• A unique or specialised skillset essential to an employer’s operations, where the employer would suffer significant detriment if the waiver were not exercised.
• Other compelling circumstances relating to the location, dependency or wellbeing of the applicant’s or sponsor’s family.

Responding to Form 884: mitigating the cost and burden

A persuasive response to a Form 884 does two things at once: it challenges or contextualises the MOC’s cost estimate, and it builds the compassionate and compelling case for the waiver to be exercised. Key considerations include:

• Cost assessment — scrutinising how the MOC estimated treatment and service costs over the relevant period, and whether the modelled “hypothetical” costs reflect your actual circumstances.
• Undue burden — addressing whether any costs are genuinely “undue,” given your ability to offset or reduce them.
• Mitigating factors — documenting private health insurance, family support, personal funds, and realistic (often limited) service use.
• Timing — remembering that a waiver is only considered once all other visa criteria are met.
• Multiple applicants — where more than one applicant fails the health requirement, the waiver assessments are made jointly.

Evidence is everything. Targeted, recent medical reports, financial documentation, and well-drafted legal submissions consistently outperform generic responses.

If your health waiver is refused: review at the ART

A refusal is not necessarily the end. Depending on your visa and circumstances, a decision may be reviewable by the Administrative Review Tribunal (ART) — the body that replaced the former Administrative Appeals Tribunal. The ART can consider whether the PIC 4007(2) requirements are met, and additional health assessments may form part of the review. Strict timeframes apply, so early advice is critical.

How Tolic Lawyers can help

We recently assisted a client applying for a Subclass 482 (Skills in Demand) visa whose child was diagnosed with autism. The MOC assessed the potential health-related costs at $125,000 over four years. Our team prepared a detailed submission addressing the MOC’s concerns, highlighting mitigating factors and providing strong supporting evidence. The health issue was successfully resolved and the visa was granted.

At Tolic Lawyers, we provide a comprehensive, strategic health waiver legal service, including:

• Reviewing MOC assessments and health reports
• Preparing persuasive PIC 4007 health waiver submissions
• Gathering medical, financial and expert evidence
• Drafting compelling compassionate and personal arguments
• Liaising with medical professionals and Department case officers
• Advising on appeal and review options at the ART if a waiver is refused

Have you received a Form 884 MOC opinion and aren’t sure what to do next? Talk to the experienced team at Tolic Lawyers for clear, reliable legal guidance.

Tolic Lawyers — Immigration & Employment Law

Suite 19/103 George Street, Parramatta NSW 2150

P: (02) 8077 2562   www.toliclawyers.com.au

Frequently asked questions

What is a health waiver in Australia?

A health waiver is a discretionary exemption under PIC 4007 that allows a visa to be granted despite an applicant failing the health requirement, where the impact on the Australian community can be mitigated and compassionate and compelling circumstances apply.

What is the Significant Cost Threshold in 2026?

The Significant Cost Threshold is AUD $86,000 (increased from $51,000 on 1 July 2024 and current as at 2026). If your projected health and community service costs exceed this amount, the MOC will assess you as not meeting the health requirement.

Which visas allow a health waiver?

Visas governed by PIC 4007, including Subclass 482, 186 and 494 employer-sponsored visas, partner visas (820/801 and 309/100), the Subclass 300 Prospective Marriage visa, humanitarian and protection visas, and certain student visas. PIC 4005 visas do not allow a waiver.

I received Form 884 — what should I do?

Form 884 is the MOC’s opinion that you do not meet the health requirement, issued with a section 57 natural justice invitation to respond. You should act quickly to prepare a PIC 4007 health waiver submission with medical, financial and compassionate evidence. Legal advice at this stage significantly strengthens your case.

Can a health waiver refusal be appealed?

Yes. Depending on your circumstances, a refusal may be reviewable by the Administrative Review Tribunal (ART), which can reassess whether the PIC 4007(2) requirements are met.

Disclaimer: This article is general information only and is current as at June 2026. It is not legal or migration advice. The visa health requirement, PIC 4007 health waiver criteria and the Significant Cost Threshold are complex and fact-specific, and outcomes depend on individual circumstances. Please obtain advice tailored to your situation from a qualified legal practitioner before acting. Liability limited by a scheme approved under Professional Standards Legislation.