# Labor scraps $5,000 veterans health cap after outcry

> The government reversed a controversial policy limiting allied health services for defence veterans following weeks of pressure from senators and veterans' groups.
- Title: Labor scraps $5,000 veterans health cap after outcry
- Summary: The government reversed a controversial policy limiting allied health services for defence veterans following weeks of pressure from senators and veterans'…
- Keywords: jacqui lambie, labor party, veterans affairs, allied health services, matt keogh, policy backdown, australian politics, defence veterans, health cap, fair care for veterans, news, world
- Source: the Guardian — https://theguardian.com/australia-news/2026/sep/17/veterans-allied-health-care-cap-jacqui-lambie-labor-backdown
- Published: 2026-09-17T00:52:40+00:00
- Read time: 1 min
- Topics: jacqui lambie, labor party, veterans affairs, allied health services, matt keogh, policy backdown, australian politics, defence veterans, health cap, fair care for veterans, news, world
## Labor reverses veterans health cap
The government abandoned plans to impose a $5,000 annual cap on allied health services for defence veterans, which was set to begin July 1, 2027.

> We have been listening carefully and today the government is taking the proposed $5,000 threshold off the table.
## Lambie's passionate campaign pays off
Independent senator Jacqui Lambie shared her own health struggles in a Senate speech last month, calling the cap cruel and warning of devastating impacts on veterans.

> This cap was cruel, it was dangerous and it should never have been announced in the first place.
## Veterans and opposition unite against policy
Veterans' groups, the Coalition opposition, and Lambie launched a weeks-long campaign against the cap, with opposition leader Angus Taylor calling for the minister's sacking.

> This was a mistake from the start. It should never have happened.
## Minister initially resisted meeting veterans
Veterans' affairs minister Matt Keogh faced strong criticism after initially refusing to meet with former servicemen lobbying against the cap before reversing course.
## Veterans celebrate the win
Lambie told veterans to celebrate, saying the cap had been scrapped. Fair Care for Veterans spokesman John Armfield praised Keogh for listening to veterans' concerns.

> Have a beer. Have too many beers, do whatever. But the bloody cap has been scrapped.
## Key takeaway

Political pressure from independent senator Jacqui Lambie and veterans' advocates forced the Labor government to abandon a $5,000 annual cap on allied health services for veterans.