Newy 87.8 FM – The Department of Veterans' Affairs will apply a $5,000 annual cap on allied health spending per veteran from 1 July 2027, a change RSL Australia opposes and wants withdrawn.
The cap, announced in the 2026-27 Federal Budget handed down on 12 May, covers services including physiotherapy, psychology, occupational therapy, podiatry and social work. It excludes dental, optical, hearing, GP and specialist services, and Open Arms psychology and counselling does not count toward the limit.
The current 12-session Treatment Cycle will be removed from the same date, and $169.7 million will increase allied health provider fees, which DVA describes as the largest allied health fee investment in more than 20 years. DVA says it will fund services above the limit where there is a demonstrated clinical need.
According to figures RSL Australia attributes to DVA evidence at Senate Estimates on 2 June, 110,000 Veteran Card holders actively use allied health, with an average spend of $3,500 a year, while around 25,000 veterans average $9,700 a year.
RSL National President Peter Tinley AM has sought assurances on how the cap will work, noting there is no detail yet on the above-cap approval process.
More than 22,000 veterans and families live across the Hunter region, with over 7,200 veterans in the Paterson electorate alone. A Veterans' and Families' Hub is being developed in Maitland, with outreach in Port Stephens, Singleton and Muswellbrook.
Government consultations on the above-cap process were to begin in August 2026.
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