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Australia scraps healthcare services cap for veterans — ABC News Australia

Lev Shevtsov 17 September 2026 03:34
Australia scraps healthcare services cap for veterans — ABC News Australia

The Australian government has abandoned a plan to set an annual cap of 5,000 Australian dollars for veterans on physiotherapy, dental services and other allied health care. Veterans' Affairs Minister Matt Keogh said that following consultations with veterans, the mechanism would no longer be considered, ABC News Australia reports.

What the plan proposed

The proposed mechanism would have introduced an annual monetary limit on such services. Veterans could have received additional funding if they demonstrated a clinical need. According to the May budget, the measure could have saved the government about 750 million Australian dollars over three years.

The initiative was criticised by the Coalition and veterans' organisations, which said it would make access to healthcare more difficult. Keogh acknowledged that veterans had expressed concerns about this approach. Earlier, he also told parliament that he had made a mistake.

Reaction from veterans and the opposition

Independent senator and veteran Jacqui Lambie called the scrapping of the cap a victory for every veteran. She said the restriction was cruel and dangerous and should never have been announced.

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Opposition leader Angus Taylor said the government had taken too long to abandon the policy and called on Keogh to resign. At the same time, John Armfield, a representative of Fair Care for Veterans, which had campaigned for the changes to be scrapped, said the minister had made the right decision.

Further consultations

The government explained the need for restrictions by its intention to counter excessive provision of services for which veterans were billed unnecessarily. According to the department, about 10% of veteran card holders spend more than 5,000 Australian dollars on such services each year. At Senate hearings in June, officials also reported a case in which a dietitian billed one patient 101,000 Australian dollars over a year, equivalent to 19 appointments a week.

Keogh said the government would continue consultations with veterans and service providers to improve access to care and ensure the integrity of the system. He also confirmed the government's intention to increase the fee rates for the services of such health professionals.

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