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Labor dumps veteran health cap after backlash
On Thursday, September 17, 2026, the Albanese government abandoned a controversial $5,000 annual cap on veterans' allied health services; Veterans' Affairs Minister Matt Keogh confirmed the threshold is now "off the table."
Initially included in this year's federal budget to "help limit unnecessary over-servicing," the measure aimed to save $750 million over three years and would have required veterans to prove their need for care exceeding $5,000 annually.
Veterans, families, and doctors campaigned against the proposal, fearing it would delay essential care, while Independent Senator Jacqui Lambie and the Coalition pressured the government for weeks to axe the measure, arguing services are not "optional extras."
Keogh stated he listened to concerns and will consult health providers on ways to maintain system integrity, noting the government will proceed with a separate plan to increase allied health fees for veterans.
Liberal Leader Angus Taylor accused the government of being too slow to act, saying it had taken too long to scrap the cap, and during a press conference at Parliament House on Thursday, he called for Keogh's resignation.