The Sydney Morning Herald
· collected 2026-09-17 · by Rob Harris, Nick Newling
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, with MPs who served in the ADF split on whether Veterans Affairs Minister Matt Keogh should resign.
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Keogh → abandon → ADF
In a statement on Thursday morning Keogh said he had listened to veterans’ concerns and was taking the threshold “off the table”.
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he → say → table
The decision comes as the government also faces pressure to deliver on the recommendations of the Royal Commission into Defence and Veteran Suicide.
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government → come → Defence
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.
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measure → propose → visits
Instead, veterans would have had their care reviewed once treatment costs reached $5000.
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costs → have → 5000
“We have heard from veterans there are concerns about this approach,” Keogh said.
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Keogh → hear → approach
“We have been listening carefully and today, the government is taking the proposed $5000 threshold off the table.”
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government → listen → table
The move had been weaponised by the Coalition and independent senator Jacqui Lambie who had attacked it and rallied community support for the government to axe the measure.
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government → weaponise → 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.
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he → say → years
He had previously argued the changes would reduce administrative burdens for about 90 per cent of veterans, allied health practitioners and GPs.
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changes → argue → veterans
Keogh said he would now consult veterans and health providers on other ways to improve wellbeing outcomes while maintaining the integrity of the system.
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he → say → system
Lambie welcomed the backdown on Thursday, encouraging veterans to “have too many beers” in celebration, while Opposition Leader Angus Taylor said it had taken the government too long to change its position.
“This is a government that’s had its priorities wrong from the moment we saw the budget.
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we → welcome → budget
The budget is unwinding in front of our eyes, and that’s because the government has simply got it wrong time and time again,” Taylor said.
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Taylor → unwind → eyes
Speaking alongside Taylor was Liberal frontbencher Phillip Thompson, a veteran of the war in Afghanistan.
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Thompson → speak → Afghanistan
Thompson became emotional when he spoke of the “personal” nature of the government’s attempt and its effect on his friends.
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he → become → friends
“The only reason I’m not another statistic, or my name’s not etched on the wall at the War Memorial, is because I had services that I could get.
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I → ’m → that
I had psychology support.
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I → have → support
I had physio and [occupational therapy] when I needed it,” Thompson said.
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Thompson → have → it
The MP joined opposition veterans affairs spokesman Michael McCormack and Taylor in calling for the immediate resignation or sacking of Keogh.
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MP → join → Keogh
Several Labor caucus members had voiced concerns internally over the past week over a growing constituency backlash towards the cap, claiming they’d been inundated by complaints.
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they → voice → complaints
Likewise, several who had defended the measures to veterans within their electorate now feel undermined by the decision to drop it and lack of efforts from Keogh to sell it.
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who → defend → it
“Once again, we’ve lost a whole lot of skin for nothing,” one MP said.
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MP → lose → nothing
In a separate press conference on Thursday morning, both Lambie and Greens senator David Shoebridge offered a fulsome defence of the minister.
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Lambie → offer → minister
“In the time I’ve been out here, Matt is the best thing that we have probably had, and he’s the smartest thing we’ve had.
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we → have → that
He’s a lawyer.
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He → ’ → ?
He knows how it works,” Lambie said.
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Lambie → know → ?
“OK, he’s taken a bit of a trip on this one, he didn’t get this right.
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this → take → one
But what that department is doing, considering the amount of pressure it’s been under, is the best I have seen that that department operating.”
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department → do → pressure
Shoebridge said any blame directed at Keogh should be redirected to Prime Minister Anthony Albanese and Treasurer Jim Chalmers.
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blame → say → Albanese
“No minister volunteers a three-quarter of a billion dollar saving in a portfolio,” Shoebridge said.
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Shoebridge → volunteer → portfolio
The Senate was set to vote on legislation on Thursday which implements key recommendations from the Royal Commission into Defence and Veteran Suicide to reduce harm and suicide risk among Defence personnel.
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which → set → personnel
The changes aim to modernise how the military discipline system manages mental health conditions — replacing outdated processes with a specialised Defence Mental Health Tribunal — and expands victim protections, such as enabling the suspension of members under civilian criminal investigation.
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system → aim → investigation
If you are a current or former ADF member or a relative and need support, contact the Defence All-Hours Support Line on 1800 628 036 or Open Arms on 1800 011 046.
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you → need → 046
Other support lines include Lifeline on 13 11 14, Beyond Blue on 1300 22 4636 and the NSW Mental Health Line on 1800 011 511.
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lines → include → 511
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Subscribers → sign → newsletter
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