The Coalition is calling on the Albanese Labor Government to abandon its planned $5,000 annual cap on Veterans’ allied health care before it comes into effect.
The Albanese Government’s 2026–27 Budget imposed an arbitrary $5,000 annual limit on DVA-funded allied health services for Veteran Card holders from 1 July 2027.
The Government has booked $748 million in savings over three years from the measure, rising to around $340 million every year thereafter.
The Leader of the Opposition, the Hon Angus Taylor MP, said the Government had made the wrong choice by looking to cut Veterans’ health care to repair its failed Budget.
“Labor found $748 million for its broken Budget by capping care for the people who served our country,” Mr Taylor said.
“They could have found savings elsewhere. Instead, they chose Veterans to pay the price. There are better places to find Budget savings than the health care of Australians who have worn our nation’s uniform.”
“A Veteran’s treatment should be determined by their health needs and their clinicians, not an arbitrary dollar figure imposed in Canberra.”
“This week Parliament observed Vietnam Veterans’ Day – this was an opportunity for the Prime Minister to reflect and change course, not just for veterans impacted by these cuts but their families as well.”
“The Prime Minister should scrap this cap before it ever comes into effect. I have written to the PM to ask him to think again on this,” Mr Taylor said.
Shadow Minister for Veterans’ Affairs, the Hon Michael McCormack MP, said the policy was particularly concerning because those most likely to reach the cap were Veterans with significant and complex health needs.
“By the Government’s own admission, around one in ten Veteran Card holders are expected to reach this cap,” Mr McCormack said.
“These are the very Veterans who may require the greatest level of care.”
“We’ve heard the story of Meg from Sydney who is a Vietnam War Widow. The annual cost of Meg’s care to manage her chronic pain is $11,400 and this support allows her to stay mobile, independent and remain in her own home. Labor’s arbitrary cap unfairly targets widows like Meg and thousands of Veterans families.”
“A Veteran living with a serious physical injury and PTSD should never be forced to choose between seeing their physiotherapist or their psychologist because they have reached an arbitrary government limit.”
“The Royal Commission into Defence and Veteran Suicide made 122 recommendations. A $5,000 cap on Veterans’ allied health care was not one of them,” Mr McCormack said.
Shadow Minister for Defence Industry and Defence Personnel, and former Australian Army soldier Phillip Thompson OAM MP said Veterans had earned the right to know that the health care they need would be there for them.
“No Veteran should be handed a gap payment because a departmental spreadsheet says they have accessed too much health care for injuries or conditions caused by their service,” Mr Thompson said.
“When you ask someone to put on the uniform and serve their country, there is an obligation that comes with that.
“For many Veterans, allied health care is not optional. It is part of how they manage serious injuries, trauma and the consequences of their service every day.
“Lest we forget is not just a slogan for Anzac Day. It is a promise that the Government has an obligation to honour,” Mr Thompson said.
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