Allied Health service Cap: what it means
As part of the Federal Government 2026-27 Budget on Tuesday 12 May, the Government announced a measure introducing an annual $5,000 allied health cap for veterans to take effect on 1 July 2027.
The Government will begin consultations in August 2026 to develop a process for veterans with higher needs to have the cap raised.
RSL Australia opposes the cap and is calling for it to be withdrawn.
About the cap
The Government says the cap will reduce overservicing and make treatment more effective.
There are a small number of providers who are exploiting veterans, providing many more consultations and treatments than are needed.
The Government can use the data it collects to identify the businesses that are exploiting veterans and government payments.
The Department of Veterans’ Affairs (DVA) said in the Senate Estimates Hearing in June that on average in 2024-25, a veteran using dietician services will have had one consultation a month, costing $1,023 for the year, with the top 5 per cent of dieticians are responsible for 66 per cent of costs.
110,000 Veteran Card holders actively use allied health services. On average, veterans spend $3,500 a year on allied health services, with around 25,000 spending an average of $9,700 a year.
The Government has not explained why around 25 per cent of veterans using allied health services are being targeted by this measure, instead of the 5 per cent of service providers who are doing the wrong thing.
Data source: Department of Veterans’ Affairs at the Senate Foreign Affairs, Defence and Trade Legislation Committee Estimates Hearing, 2 June 2026.
we hear you!
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.
For veterans needing a psychologist, once the new rebate increases are applied, the $5,000 will cover 19 psychologist consultations. A veteran regularly consulting with a psychologist and one other provide, will almost certainly exceed the cap within three months.
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 launched a national campaign and we are:
working across Parliament, engaging with the Minister, non-Government parties and independents so they understand the real impact of this decision on veterans and their families.
engaging with the Minister for Veterans’ Affairs and DVA, calling for shonky providers to be monitored and targeted with compliance action - not veterans!
inviting partnerships with other national veteran service organisations to strengthen the message to the Government and Parliament.
calling on you to use your voice and get involved!
Your voices are powerful
You can sign our petition and share your experiences. The stories shared by veterans and their families help the Minister, MPs, Senators and officials understand the real human impact of this measure.
You can call or write directly to the Minister, the Shadow Minister, and your local MPs and Senators. Your voices matter, and we encourage you to keep making them heard