This bill is currently before Parliament.
Health, care & disability
Eligible veterans and dependants could not have their total allied health careHealth services provided by professionals such as physiotherapists, psychologists, dietitians and occupational therapists. capped over a week, month, year or any other period.
The 2026–27 Budget announced a $5,000 yearly limit on Department of Veterans’ Affairs-funded allied health careHealth services provided by professionals such as physiotherapists, psychologists, dietitians and occupational therapists. from 1 July 2027. The government later described this as a review thresholdA spending level that triggers another check or approval process. and said clinically necessary care above $5,000 would remain available after review and approval. The bill’s supporters said the spending trigger could still interrupt or discourage care: the proposed measure was expected to save $748 million over three years and then $340.2 million each year, while about one in ten Veteran Card holders could exceed the threshold after provider fees rose.
Before this bill, eligible veterans and dependants could receive DVA-funded allied health treatment under existing veterans’ compensation schemes, while the 2026–27 Budget announced a $5,000 annual limit from 1 July 2027; rising provider fees meant about one in ten Veteran Card holders could exceed it. Veterans, families, providers and advocates then objected that the threshold could trigger extra approvals and interrupt care, prompting Senator Ross Cadell’s private bill on 15 September 2026 to protect clinically needed treatment from monetary caps, co-payments and spending-triggered reviews.
Maria Kovacic (Liberal) argued that the proposed $5,000 threshold would add an approval process involving the allied health provider, the veteran’s usual GP and the Department of Veterans’ Affairs. She said veterans in regional, rural and remote areas could be hit particularly hard because they already have fewer participating providers, longer journeys and limited alternatives. She also argued that the forecast savings suggested the threshold would reduce spending rather than operate as a harmless administrative check.
Senator Ross Cadell introduced this bill. Supportive speeches so far have come from Liberal.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
21 days
Updated 06 Oct 2026.
Meaning
Eligible veterans and dependants could not have their total allied health careHealth services provided by professionals such as physiotherapists, psychologists, dietitians and occupational therapists. capped over a week, month, year or any other period. They also could not be required to make a co-payment or gap paymentAn amount the patient must contribute towards treatment. as a condition of receiving covered treatment. The bill would not set the fee payable for an individual service.
Reaching or approaching a spending threshold could not, by itself or as a substantial reason, trigger extra reviews or paperwork, or cause treatment to be delayed, suspended, stopped or refused. Reviews and conditions based on clinical need, effectiveness, patient safety or fraud could continue.
These protections would cover treatment available under the Military Rehabilitation and Compensation Act and the Veterans’ Entitlements Act. Regulations could extend the protections to additional treatment pathways but could not narrow the stated coverage.
Compensation for allied health treatment under the military rehabilitation and defence-related claims systems could not be subject to a total cap over a period. However, compensation could still be limited to the amount the person actually spent on treatment.
The bill defines allied health broadly, covering services from professionals such as psychologists, physiotherapists, podiatrists, occupational therapists and speech pathologists. Regulations could add professions, but could not remove a listed profession or authorise a spending cap.
The changes would start the day after Royal AssentThe formal approval required before a passed bill becomes law.. They would protect treatment or compensation available from that date, including for people whose underlying entitlement arose earlier, but would not reopen amounts already settled before commencement.
The purpose of the Bill is to ensure that access to allied health treatment for eligible veterans and dependents is determined by clinical need rather than by an arbitrary monetary cap or expenditure-triggered review threshold. The 2026-27 Budget announced a $5,000 annual monetary limit on Department of Veterans’ Affairs funded allied health services from 1 July 2027. The Government now describes the measure as a review threshold and says clinically necessary treatment above $5,000 will remain available following review and approval. The Bill is required because expenditure would neverthelessMilitary Rehabilitation and Compensation Amendment (Veterans’ Allied Health Care) explanatory memorandum
(c) a review to be conducted, or additional evidence, information or documents to be given to the Commission, in relation to allied health treatment to be provided to a person under this Part, solely or substantially because the total cost of allied health treatment provided to the person during a period is approaching, has reached or exceeded, or would be likely to reach or exceed, a specified amount; or (d) the provision of allied health treatment to a person under this Part to be delayed, suspended, discontinued or refused solely or substantially because the total cost of allied health treMilitary Rehabilitation and Compensation Amendment (Veterans’ Allied Health Care) introduced text
(1) This section applies in relation to: (a) treatment to which a person is entitled under Part 3 for an injury or disease; and (b) treatment to which a person is entitled under Part V of the VEA for an injury or disease; and (c) treatment to which a person is entitled under a provision prescribed by the regulations. (2) The entitlement to treatment must not be subject to a condition (however described) that would have the effect of requiring: (a) the total cost of allied health treatment provided to the person under the entitlement during a period to be less than a specified amount; orMilitary Rehabilitation and Compensation Amendment (Veterans’ Allied Health Care) introduced text
303B Entitlement to compensation for allied health treatment must not be subject to cost threshold (1) This section applies in relation to: (a) entitlement to compensation under Division 1A of Part 4 in respect of the cost of treatment; and (b) entitlement to compensation under section 16 of the DRCA in respect of the cost of treatment; and (c) entitlement to compensation under a provision prescribed by the regulations. (2) The entitlement to compensation must not be subject to a condition (however described) that would have the effect of limiting the entitlement so that the total compensMilitary Rehabilitation and Compensation Amendment (Veterans’ Allied Health Care) introduced text
allied health professional includes a person who is any of the following: (a) a chiropractor; (b) a clinical psychologist or psychologist; (c) a diabetes educator; (d) a dietitian; (e) an exercise physiologist; (f) a neuropsychologist; (g) an occupational therapist; (h) an orthotist; (i) an osteopath; (j) a physiotherapist; (k) a podiatrist; (l) a prosthetist; (m) a social worker; (n) a speech pathologist; (o) a professional of a kind prescribed by the regulations. allied health treatment means treatment delivered by an allied health professional in their capacity as an alliedMilitary Rehabilitation and Compensation Amendment (Veterans’ Allied Health Care) introduced text
Item 4—Application of amendments Item 4 applies the amendments to treatment, or compensation for treatment, to which a person is entitled on or after commencement, whether the entitlement first arose before, on or after commencement. The provision is prospective: it governs treatment and compensation from commencement and does not reopen amounts finally payable before that time. It ensures that existing eligible persons receive the same protection as persons whose entitlement arises later.Military Rehabilitation and Compensation Amendment (Veterans’ Allied Health Care) explanatory memorandum
Context
Before this bill, eligible veterans and dependants could receive DVA-funded allied health treatment under existing veterans’ compensation schemes, while the 2026–27 Budget announced a $5,000 annual limit from 1 July 2027; rising provider fees meant about one in ten Veteran Card holders could exceed it. Veterans, families, providers and advocates then objected that the threshold could trigger extra approvals and interrupt care, prompting Senator Ross Cadell’s private bill on 15 September 2026 to protect clinically needed treatment from monetary caps, co-payments and spending-triggered reviews.
Budget announces a $5,000 annual allied health limit
The government announced that DVA-funded allied health careHealth services provided by professionals such as physiotherapists, psychologists, dietitians and occupational therapists. would be subject to a $5,000 annual limit from 1 July 2027, alongside $169.7 million over five years to increase provider fees.
Military Rehabilitation and Compensation Amendment (Veterans’ Allied Health Care) explanatory memorandum ↗Veterans object to the planned health funding cap
Veterans described the proposed limit as a betrayal and an opposition spokesperson announced plans to table a petition seeking its removal.
ABC News ↗Injured NT veterans call for the cap to be removed
Northern Territory veterans joined the campaign against the $5,000 limit, warning that it could restrict access to necessary physical and mental health care.
ABC News ↗Pressure grows over the veterans’ health spending cap
The government faced sustained pressure over the change as veterans and other affected groups argued that a spending threshold could disrupt care even if additional funding remained available after review.
ABC News ↗The government describes the cap as a review thresholdA spending level that triggers another check or approval process.
The government changed its description of the $5,000 limit from an annual monetary cap to a review thresholdA spending level that triggers another check or approval process., while maintaining that clinically necessary treatment above it could receive approval.
Second reading speech ↗Senator Ross Cadell introduces the bill
Senator Ross Cadell introduced the private bill to prevent allied health treatment and compensation from being limited or subjected to extra requirements because spending reached a specified amount.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Key criticism
Maria Kovacic (Liberal) argued that the proposed $5,000 threshold would add an approval process involving the allied health provider, the veteran’s usual GP and the Department of Veterans’ Affairs. She said veterans in regional, rural and remote areas could be hit particularly hard because they already have fewer participating providers, longer journeys and limited alternatives. She also argued that the forecast savings suggested the threshold would reduce spending rather than operate as a harmless administrative check.
The evidence pack contains no speech opposing or criticising this bill itself. It reports the government’s position that the $5,000 amount would be a review thresholdA spending level that triggers another check or approval process., not a hard cap, and that clinically necessary treatment above it would remain available after review and approval. The detailed arrangements had not been finalised and consultation was underway.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
Kovacic supports the bill because it would prevent spending caps, patient charges and expenditure-triggered approval barriers from restricting veterans’ allied health careHealth services provided by professionals such as physiotherapists, psychologists, dietitians and occupational therapists., ensuring treatment is determined by clinical need.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“This bill does not oppose clinical oversight. It does not protect fraud, duplication, unsafe treatment or inappropriate servicing and DVA must be able to act where there is genuine evidence of those things. This bill rejects using expenditure as a proxy for clinical need.”Read the full speech in Hansard ↗
Record
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
