Veterans Affair Minister Matt Keogh has faced calls for his resignation over his handling of the $5000 cap. Photo: Kym Smith.
The Federal Government has backed down on plans to impose a $5000 threshold cap on veterans’ health care.
The proposed change, which was scheduled to come in to force from 1 July 2027, would have seen the current measure which requires veterans to go back to a GP every 12 allied health visits for a new referral changed to a $5000 threshold before their care needs to be reviewed.
But the proposal, which was laid out in May’s federal budget and has been roundly criticised by veterans’ groups, the federal opposition and the cross benches, has been withdrawn.
The RSL had previously commended parts of the government’s proposed legislative changes, including a bigger investment in allied health provider fees and the removal of the treatment cycle, which it said lifts a real administrative burden from veterans and providers.
“But a review of clinical effectiveness is a clinical question,” it said in a 12 August open letter to Veteran’s Affairs Minister Matt Keogh.
“It is answered with the treating practitioner, not by attaching a dollar figure to a veteran’s care and waiting for them to reach the limit.”
In a statement released this morning (18 September), Minister Keogh, who has faced calls for his resignation over the way he has managed the proposed changes, said the government had listened to concerns from veterans carefully.
“We have been consulting on this measure, and we have heard from veterans there are concerns about this approach,” he said.
“We have been listening carefully and today, the government is taking the proposed $5000 threshold off the table.
“We will not change our commitment to improving access to allied health care through the fee increase to allied health providers,” he added.
“We will engage with the veteran and provider community on how we can continue to deliver on the objective of achieving better veteran wellbeing outcomes while ensuring integrity of the system.”
The withdrawal of the cap comes after crossbench members and senators passed the Military Rehabilitation & Compensation Amendment (Veterans’ Healthcare Without Caps) 2026 which called for it to be scrapped
News of the withdrawal of the proposed threshold was welcomed by Independent Senator for Tasmania Jacqui Lambie who had co-sponsored the bill and had passionately objected to the changes.
“Since the government announced this $5000 cap on veterans’ health, I’ve had hundreds of veterans contact my office, telling me about the devastating impact it would have on them,” she said in a joint statement with other crossbench members.
“They’ve been supported by more than 34,000 Australians that signed my petition to ‘scrap the cap’, Aussies that had their back.
“We ask people to put their lives on the line for our country, with the promise we will look after them when they come home, to then turn around and tell them that care stops once they hit an arbitrary $5000 limit was a betrayal of the worst order,” she added.
“This cap was cruel, it was dangerous and it should never have been announced in the first place. I’m relieved that the government has finally listened and scrapped it and I thank them for doing it.”
Greens spokesperson for Veterans Senator David Shoebridge said the withdrawal of the cap was a win for decency and the thousands of veterans who pressured Parliament to do the right thing.
“This cap should never have been proposed, and today the government has admitted as much,” he said.
“To every veteran, widow and advocate who trusted the Greens to carry this fight into the Senate, thank you. You did not back down, and today the government had no choice but to follow.”
ACT Independent Senator David Pocock said the government should never have proposed making it harder for veterans to access the Allied Health Care they need.
“The Minister sat down last night with veterans from the ACT and heard their concerns directly,” he said.
“The government has made the right decision this morning not to proceed with this policy.
“Veterans and their advocates should be commended for the strong campaign they have run that has delivered this result. Going forward I hope we see a much more supportive and collaborative approach from the government with the veteran community.”
CEO of the Families of Veterans Guild, Renee Wilson said: “This is what happens when a community refuses to quietly accept bad policy.
“Veterans, war widows and families told the government very clearly that a spreadsheet limit on healthcare was no way to decide whether someone could keep seeing their physiotherapist or psychologist, and today the government has listened.
“That is a win for every person who wrote a letter, made a call, or shared their story over the past four months.”
