Changes for allied health from July 2027

The Australian Government handed down the 2026-27 Federal Budget on 12 May 2026, including further investment in the veteran support system to deliver on recommendations from the Royal Commission into Defence and Veteran Suicide. The Government will invest $5.7 billion in 2026-27 to support the health, wellbeing and care of eligible veterans and their dependants.

As part of the Budget, the Government will be investing $169.7 million to increase fees for allied health providers from 1 July 2027. This is the largest investment in allied health fees for veterans in over 20 years and will help veterans’ better access the care that they need. 

Alongside this change, a $5,000 annual limit on allied health expenditure each financial year will be established from 1 July 2027. This will help limit unnecessary over servicing, while still supporting veterans whose care needs go beyond the limit where this is clinically indicated. 

During the next 12 months, DVA will consult with veterans, families of veterans, health service providers and peak bodies, and ex-service organisations on how the new arrangements will operate.

What is changing for allied health services?

From 1 July 2027:

• Fees paid to allied health providers will increase—the largest increase in more than 
  20 years.
• The current 12-session (or 12 months, whichever occurs first) Treatment Cycle will be removed - which means veterans can access greater than 12 allied health sessions without needing an additional referral.
• A $5,000 Annual Monetary Limit for allied health services each financial year will be established.
• Veterans with a critical or acute health need will continue to be supported. This will include additional support above the limit where this is clinically indicated. The design of this and other aspects of the new arrangements will be informed through the engagement with the veteran community. 

These changes aim to make it easier to access care, reduce unnecessary approvals, and improve the veteran support system.

Fee increases apply to chiropractic, diabetes education, dietetics, exercise physiology, occupation therapy, orthotist, osteopathic, physiotherapy, podiatry, psychology, social work, and speech therapy services. It does not include dental, optical or hearing services, or medical or specialist services. 

Psychology and counselling services delivered through Open Arms do not count towards the $5,000 annual limit. 

This new limit only applies to allied health. Information about the other supports available from General Practitioners and Specialists can be found on the DVA website.

Why is the Government making these changes?

The changes respond to:

• the Royal Commission into Defence and Veteran Suicide
• feedback that current fees limit veterans’ access to allied health services
• concerns that administration and treatment cycle restrictions impact negatively on veterans and providers
• evidence that a small number of providers are taking advantage of veterans 

The new approach will:

• improve access and choice of providers
• ensure funding allows veterans to access the treatment they need
• support a sustainable and fair system for veterans and providers

What happens if I need more support?

If your care needs go above the $5,000 annual limit, DVA will fund additional services where there is a demonstrated clinical need. 
DVA is working to ensure the process is simple and how approval for additional limits will be made quickly. This ensures veterans are not disadvantaged if they require higher levels of clinical care.

These changes do not take effect for over a year. More information about how these new arrangements will work will be made available to veterans and their families well ahead of the 1 July 2027 start date. 

The intent is to support people to access the clinical treatment they need, while reducing over servicing and inappropriate use of allied health services. 

How will this affect veterans and families?

For most veterans and families, there will be little or no change.

• Current usage of allied health services indicates around 1 in every 10 veteran card holders use more than $5,000 in a year, including accounting for the higher fees in this measure.
• Access to allied health services will continue, with less administration following the removal of the current treatment cycle arrangements. Providers will still be expected to follow best practice communication with other members of the treating team.
• Higher provider fees are expected to mean more providers are willing to see veteran patients and better access to care.

For those with higher or more complex needs:

• There will be pathways to access additional support in line with the treatment those veterans need

What support will still be available?

Veterans and families will continue to be supported.

• Veterans can still access the clinically necessary allied health treatment they need.
• DVA will continue to fund care above $5,000 where there is a valid clinical need.
• The Provisional Access to Medical Treatment (PAMT) program will continue to support veterans awaiting claim decisions.
• Existing programs such as Non-Liability Health Care and treatment arrangements remain in place.
• Services delivered through Open Arms do not count towards the $5,000 annual limit.

These arrangements ensure that all veterans, including those with acute or complex needs, continue to receive appropriate care.

When do the changes start?

The changes will start on 1 July 2027. 

Before then DVA will:

• continue to provide information to veterans, families of veterans, health service providers and peaks, and ex-service organisations on how the new system will operate
• develop a pathway and guidance on how to access additional support where needed
• provide clear information on what the changes mean in practice.

Where can I get help or more information?

You can get more information or support by visiting the Allied health page on the DVA website.

Further updates and detailed guidance will be provided ahead of 1 July 2027.