Health clearance is part of the Public Interest Criteria (PIC). These are in Schedule 4 of the Migration Regulations. These are known as PIC 4005, PIC 4006A and PIC 4007. The health public interest criteria that must be met depends on the visa being applied for.
This criterion is the most strict, there are no provisions to waive this requirement if the applicant fails to meet the requirements.
If the requested, the applicant is required to sign a health undertaking.
PIC 4006A (for Visa Subclass 457 only)
The requirement may be waived if the nominating employer has given a written undertaking a to meet all costs related to the disease or condition that caused the applicant to fail to meet the health requirements.
This requirement may be waived if the applicant satisfies all other criteria for the visa and the decision-maker is satisfied that the granting of the visa would be unlikely to result in undue cost to the Australian community and undue prejudice to the access to health care or community services of an Australian citizen or permanent resident.