Labor Repeals Planned $5,000 Cap on Veterans’ Allied Health Services

The Australian Labor Party has abandoned its proposal to impose a $5,000 cap on allied health services for defence veterans, a measure that was set to take effect on 1 July 2027. The decision follows a sustained campaign by opposition parties, veterans’ advocacy groups, and independent senator Jacqui Lambie, who described the cap as “cruel.” Labor’s announcement came after weeks of criticism from former Australian Defence Force members and the broader veteran community. The cap would have limited veterans’ out‑of‑pocket spending on allied health care, including physiotherapy, occupational therapy, and counseling. By withdrawing the cap, the government removes a financial barrier that could have restricted veterans’ access to essential health services. The move restores full, uncapped coverage for allied health care for all eligible veterans.