Allied Health care Cap: what it means

As part of the Federal Government 2026-27 Budget Announcement on Tuesday 12 May, the Government announced the $5,000 allied health cap for veterans.

RSL Australia is acting on your behalf. Here is what we know, what we are doing, and how you can help.

What was announced?

The 2026-27 Federal Budget included a $5,000 annual cap on allied health services for Veteran Card holders, to take effect from 1 July 2027. This means the rebates available for services such as physiotherapy, psychology, occupational therapy, podiatry and exercise physiology would be capped at $5,000 per financial year.

The Budget did include an increase to allied health provider fees, the largest in over 20 years. However, fee schedules for GPs and specialists were not increased, something we called for in our pre-budget submission.

what we are hearing

• The underlying reason for these measures, as outlined by the Department for Veterans’ Affairs, is to address overservicing by some providers.

• Many veterans live with complex, chronic conditions that require regular and ongoing allied health treatment. For them, this care is not discretionary.

• While the Government has confirmed DVA will fund services above the cap where there is a valid clinical need, the application and approval process has not yet been designed or made public.

• The fee schedule for GPs and specialists remains unaddressed, meaning veterans continue to face out-of-pocket costs and difficulty accessing care through their Veteran Cards.

what rsl australia is doing

• We have written to the Minister for Veterans’ Affairs with our concerns about the cap and calling for full transparency on how the exemption mechanism will work.

• We are working across Parliament, engaging with non-Government parties and independents so they understand the real impact of this decision on veterans and their families. They need to be informed when it comes time to debate this.

• A Senate Estimates hearing on Tuesday, 2nd June will provide an opportunity for Senators to question the Department for Veterans’ Affairs directly about the cap.
  We will be listening closely and will update our community on any new information.

• Legislation is needed to implement the cap. We are calling for a more targeted approach to address overservicing where it exists.

How you can help

The veteran community has already made a real difference by writing to us, the Minister, the Shadow Minister, and local MPs and Senators. Your voices matter, and we encourage you to keep making them heard.

Your experiences are powerful. The stories shared by veterans and their families help the Minister, MPs, Senators and officials understand the real human impact of this measure.

We want to hear from you. Your stories will help strengthen the discussions we have with Government.