Albanese dumps controversial veterans’ health cap amid fierce criticism

The Albanese government has abandoned a controversial plan to introduce a $5000 threshold for veterans’ allied health treatment after a fierce campaign from the veteran community .

Veterans Affairs Minister Matt Keogh said in a statement on Thursday morning he had listened to veterans’ concerns and was taking the threshold “off the table”. The decision comes as the government also faces pressure to deliver on the recommendations of the Royal Commission into Defence and Veteran Suicide.

The proposed measure, announced in May’s budget, would have replaced the current system requiring veterans to return to a GP for a new referral after every 12 allied health visits. Instead, veterans would have had their care reviewed once treatment costs reached $5000.

“We have heard from veterans there are concerns about this approach,” Keogh said. “We have been listening carefully and today, the government is taking the proposed $5000 threshold off the table.”

The move had been weaponised by the Coalition and independent senator Jacqui Lambie who had attacked the move and rallied community support for the government to axe the measure.

Keogh said the government would proceed with a separate plan to increase allied health fees paid by the Department of Veterans’ Affairs, which he says would be the biggest increase in 20 years.

He had previously argued the changes would reduce administrative burdens for about 90 per cent of veterans, allied health practitioners and GPs.

Keogh said he would now consult veterans and health providers on other ways to improve wellbeing outcomes while maintaining the integrity of the system.

Opposition Leader Angus Taylor said the “back down” had taken too long.

“These are people who have served our country with distinction, and they need to be treated with respect by this government,” Taylor told reporters prior to Keogh’s official announcement.

“This is a minister who is not up to the job. It has taken too long to scrap this cap, it should never have happened, and frankly, it’s time for this minister to go.”