McCormack welcomes scrapping of proposed veteran health cap

Member for Riverina and Shadow Minister for Veterans’ Affairs Michael McCormack has welcomed the Federal Government’s decision to abandon its proposed $5000 annual threshold for veterans’ allied health care. The Government announced on 17 September that the proposed threshold would not proceed, following weeks of criticism from veterans, ex-service organisations and opposition parties. The measure, announced in the 2026 Federal Budget, would have changed the way veterans accessed allied health services funded through the Department of Veterans’ Affairs (DVA). Under the existing arrangements, veterans generally receive allied health treatment in 12-session cycles, with a new GP referral required for further treatment. The proposed changes would have removed the need for a new referral after each 12 sessions, but introduced a $5000 annual threshold at which a veteran’s care would be reviewed. This was projected to save the federal government $748 million over three years. The proposal raised concerns among veterans’ organisations that a dollar threshold could restrict access to necessary treatment, particularly for veterans requiring ongoing or complex physical or psychological care. Mr McCormack had campaigned against the proposal and last month travelled to every state and territory as part of a national listening tour, meeting veterans, ex-service organisations and community groups. With the threshold withdrawn, the existing 12-session treatment cycle will remain in place. Speaking in Parliament on September 17, Mr McCormack said the Government’s decision to withdraw the threshold was welcome, but criticised the consultation process. “They did not consult prior to the May budget,” Mr McCormack said. “They had not consulted until about 31 August, in the second week of the nationwide listening tour that I went on.” The Riverina MP also used his speech to call for Veterans’ Affairs Minister Matt Keogh to be removed from the portfolio. “They've scrapped the cap - well and good. He (the Prime Minister) needs to scrap the minister,” Mr McCormack said. He argued the Veterans’ Affairs portfolio should have a stronger voice within Cabinet when decisions affecting veterans are considered. “Our veterans deserve better,” Mr McCormack said. While the proposed $5000 threshold has been abandoned, the Government’s planned $169.7 million increase to allied health provider fees will proceed from July 1, 2027. The Government says the investment will be the largest increase in veteran allied health provider fees in more than two decades and will partly respond to Recommendation 71 of the Royal Commission into Defence and Veteran Suicide. The Returned and Services League of Australia (RSL), together with nine other national veteran organisations, has also welcomed the decision. RSL Australia National President Peter Tinley said the organisations had advocated against the threshold since the Budget was announced in May. “This is the right outcome for veterans and their families. The threshold is off the table, and that is exactly what we have been asking for since Budget night,” Mr Tinley said. The organisations involved included RSL Australia, Legacy Australia, the TPI Federation of Australia, Australian Commando Association, Women Veterans Australia, Defence Force Welfare Association, Defence Reserves Association, Australian Special Air Service Association, Australian Peacekeeper and Peacemaker Veterans’ Association and Soldier On Australia. The organisations wrote jointly to Mr Keogh in August and subsequently participated in consultation sessions with the Minister and DVA. Legacy Australia Chair Dr Mark Lax said the decision was particularly significant for families of veterans and war widows who also hold Veteran Cards. The Defence Force Welfare Association said the outcome demonstrated the value of sustained advocacy by the veteran community. The RSL has said further work is needed to address concerns about inappropriate or excessive use of allied health services by some providers, arguing that any measures to address overservicing should target providers rather than impose financial restrictions on veterans. Mr McCormack has also continued to criticise other recent decisions affecting veterans, including changes to medallic recognition and funding for the Invictus Games. In Parliament, he also raised the Government’s decision not to provide funding for the Doug and Kaye Baird travel program, which promotes the legacy of Corporal Cameron Baird VC MG, who was posthumously awarded the Victoria Cross. Mr McCormack said the Government needed to ensure veterans had a stronger voice in future decisions affecting their care and support. For veterans across the Riverina, however, the immediate issue of the proposed $5000 allied health threshold has now been settled. The threshold will not be introduced, while the existing 12-session treatment cycle remains in place and the Government’s planned increase to allied health provider fees is set to continue from 2027. The Government and veteran organisations are now expected to continue discussions about improving access to care while addressing concerns about the integrity and cost of the DVA system.