Labor backs down on veterans’ health services cap after furious backlash from Jacqui Lambie and ex-ADF members

Independent senator had denounced as ‘cruel’ the plan to impose a $5,000 cap on allied health services for veterans

Labor has backdown on plans to impose a $5,000 cap on health services for defence veterans, caving to growing political pressure after weeks of criticism.

The government announced it would no longer pursue the cap for allied health services, which had been to come into force on 1 July 2027, after a weeks-long campaign by the opposition, veterans groups and independent senator Jacqui Lambie .

In a surprise move on Thursday, the veteran’s affairs minister, Matt Keogh, said he would drop the plan after concerns were raised following the May federal budget.

“We have been consulting on this measure, and we have heard from veterans there are concerns about this approach,” Keogh said in a statement.

“We have been listening carefully and today, the government is taking the proposed $5,000 threshold off the table.”

Keogh had been strongly criticised by veterans and the Coalition after he had initially refused to meet with a group of former servicemen lobbying for the changes to be scrapped.

The opposition leader, Angus Taylor, has called on Prime Minister Anthony Albanese to sack Keogh.

Labor had announced the policy to stop veterans being forced to go back to a doctor for an allied health referral every 12 sessions. The government said veterans needing more funding over the cap would still be allowed to apply for extra assistance.

Lambie had revealed her own health struggles and access to care in an impassioned speech to the Senate last month, urging the government to drop the $5,000 cap, warning it would have a “devastating impacts” on veterans.

“This cap was cruel, it was dangerous and it should never have been announced in the first place. I’m relieved that the government has finally listened and scrapped it and I thank them for doing it,” Lambie said in a statement on Thursday.

“This win belongs to every veteran, family member and Australian who spoke out, lobbied the government, signed the petition and kept the pressure on.

“They knew what would happen to our most vulnerable veterans if this cap went ahead and they fought like hell to make sure it didn’t.”

Taylor accused Keogh of not being up to the job and called the cap “egregious”.