05/08/2026
Proposed $5,000 Cap on Veterans’ Allied Health Care
From 1 July 2027, the Australian Government plans to introduce a $5,000 annual limit on Department of Veterans’ Affairs-funded allied health services for Veteran Card holders.
The new system will replace the current 12-session treatment cycle, removing the need for veterans to repeatedly obtain GP referrals for continuing treatment. Provider fees for services such as psychology, physiotherapy and exercise physiology will also increase to better reflect current market rates.
Some essential services will remain outside the cap, including psychology and counselling provided through Open Arms, as well as dental, optical and medical specialist care. DVA has indicated that additional funding may be approved where there is a demonstrated clinical need, although the approval process has not yet been finalised.
Despite these safeguards, veteran organisations, clinicians and advocates have raised serious concerns about the potential impact on veterans with complex, chronic or service-related conditions. Those living with PTSD, physical injuries or multiple health needs may require sustained and coordinated care that quickly exceeds the proposed threshold.
The Royal Commission into Defence and Veteran Su***de emphasised the need for responsive, continuing and stage-based support throughout a veteran’s life. Recommendation 71 specifically highlighted the importance of services informed by lived experience and long-term evidence. Australia’s commitment to veterans must extend beyond symbolic recognition. Any funding framework must ensure that financial limits do not create barriers to treatment, discourage help-seeking or undermine confidence among serving personnel and veterans.
Policymakers should consult closely with veterans and health professionals before implementing this significant change.