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Health Requirement and PIC 4007 Waiver Australia 2026: Significant Cost and Undue Cost
Most Australian visa applicants must satisfy a health requirement. The applicable Public Interest Criterion depends on the visa subclass. PIC 4007 is particularly important because it contains a discretionary health-waiver mechanism for the significant-cost and prejudicing-access component of the health test.
How the health requirement is assessed
A Medical Officer of the Commonwealth assesses the medical evidence using a hypothetical-person approach. Home Affairs states that the MOC considers the likely health and community services required by a person with the same condition and severity, rather than the applicant's personal ability to pay or private health insurance.
Department overview: Health requirements for visas.
The current Significant Cost Threshold
Home Affairs currently states that the Significant Cost Threshold is $86,000. If estimated health or community-service costs exceed that threshold, the applicant can fail the significant-cost component of the health requirement unless a statutory exception or an available health waiver applies.
Current threshold source: Protecting health care and community services.
What does PIC 4007 allow to be waived?
PIC 4007(2) permits the Minister to waive paragraph 4007(1)(c) if the applicant meets all other visa criteria and the Minister is satisfied that grant would be unlikely to result in undue cost to the Australian community or undue prejudice to the access of an Australian citizen or permanent resident to health care or community services.
Current legislation: Migration Regulations 1994 — PIC 4007.
PIC 4005 versus PIC 4007
PIC 4005 contains the health requirement but does not include the same general health-waiver provision found in PIC 4007. Whether a visa uses PIC 4005 or PIC 4007 therefore matters significantly. The applicable subclass criteria must be checked before assuming a waiver is available.
Public-health and scarce-service issues
The PIC 4007 waiver is directed to paragraph (1)(c). It does not operate as a general waiver of every health requirement, such as tuberculosis or a condition that poses a public-health threat. Home Affairs currently identifies organ transplants and dialysis as services considered in short supply for prejudicing-access purposes.
Children born and ordinarily resident in Australia
Current PIC 4005 and PIC 4007 wording excludes a minor born in Australia and ordinarily resident in Australia from the significant-cost or prejudicing-access component specified in paragraph (c), subject to the detailed criteria and the child's circumstances.
This health requirement is different from Visa Condition 8501 — adequate health insurance.
