Penfold welcomes decision to scrap veterans’ allied health cap

Federal Member for Lyne Alison Penfold said after a massive national campaign, the Albanese Labor Government had been forced to scrap its $5000 annual cap on allied health services for veterans.

Ms Penfold said today’s decision was a victory for Lyne veterans, their families and the ex-service organisations who had strongly opposed the measure.

She said it was also a big win for common decency.

“This is the right decision, but it has taken far too long for the Albanese Labor Government to listen to veterans on this issue,” Ms Penfold said.

“Our veterans have served our country. When they need health care as a consequence of that service, they deserve to know the care they receive will be determined by their clinical needs, not by an arbitrary dollar figure.

“Veterans should never have been put through the uncertainty and anxiety caused by this proposal, yet I know too many of them have.

“Over recent months, veterans and their families have spoken loudly and clearly about what this cap could have meant for people with complex and ongoing health needs.

“They deserve enormous credit for making sure their voices were heard.”

The $5000 annual threshold was announced in the 2026–27 Federal Budget and was to apply to eligible allied health services funded through the Department of Veterans’ Affairs. The measure faced sustained opposition from veterans, ex-service organisations, and the Liberal-Nationals parties.

Ms Penfold said allied health services including physiotherapy, psychology, occupational therapy, podiatry and exercise physiology were an important part of veterans’ ongoing care.

She said for many veterans, allied health care was not an optional extra.

“Allied health care helps our veterans manage injuries and chronic conditions, maintain their independence and participate fully in their families and communities,” Ms Penfold said.

“The Albanese Labor Government was wrong to put a cap on their care needs; I am pleased common sense has prevailed.

“The focus now must be on ensuring veterans can get the timely, appropriate care they need, while dealing directly with any providers who abuse the system rather than making veterans pay the price.”

Ms Penfold said the reversal demonstrated the importance of listening directly to the veteran community.

“To every veteran, family member and advocate who stood up and spoke out: this decision is testament to your persistence,” she said.

“Those who have served Australia should have confidence Australia will be there for them when they need us.”