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.

Sep 17, 2026

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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.

In brief

The government reversed a controversial policy limiting allied health services for defence veterans following weeks of pressure from senators and veterans' groups. Political pressure from independent senator Jacqui Lambie and veterans' advocates forced the Labor government to abandon a $5,000 annual cap on allied…

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

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

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.”

What to remember

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.

Read the original on the Guardian

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