SUBSTANTIAL INCREASE IN ALLIED HEALTH FUNDING FOR VETERANS THROUGH DVA New fee structure heralds largest increase in provider fees in over 20 years
With
Hon Matt Keogh MP
Minister for Veterans’ Affairs &
Minister for Defence Personnel
Australian Government
Scot MacDonald
General Manager, Policy and Advocacy
Exercise & Sports Science Australia (ESSA)
Katie Lyndon,
Chief Executive Officer
Exercise & Sports Science Australia (ESSA)
Dr Rik Dawson, National President
Australian Physiotherapy Association (APA)
Diana Poole, Chair
The Australian Orthotic Prosthetic Association (AOPA)
SEGMENT
Filmed in Launceston, Canberra, Melbourne & Sydney | May 2026
The Australian Federal 2026–27 Budget included several significant announcements relating to allied health services for veterans, largely tied to the Government’s response to recommendations from the Royal Commission into Defence and Veteran Suicide.
A key measure was a substantial increase in funding for allied health services delivered through the Department of Veterans’ Affairs (DVA). The Government committed $169.7 million over five years, along with ongoing funding, to increase fees paid to allied health providers treating veterans. This was described as the largest increase to veteran allied health fees in more than two decades and applies across a broad range of professions including physiotherapy, psychology, occupational therapy, exercise physiology, podiatry, speech pathology, dietetics and social work.
The Budget also announced reforms aimed at reducing administrative burden for veterans and clinicians. From July 2027, the existing 12-session treatment cycle arrangements will be removed, meaning veterans will no longer need repeated GP referrals after each block of treatment in order to continue receiving allied health support.
Another major change was the introduction of a $5,000 annual cap on allied health spending for Veteran Card holders from 1 July 2027.
The Budget measures were positioned as part of broader reforms to improve veteran wellbeing, strengthen access to healthcare services, and modernise the delivery of care through the veterans’ health system.
The announcements also included changes to fee structures and billing practices of providers delivering care to veterans through the Department of Veterans’ Affairs (DVA) system.
The most immediate impact will come from the increase in DVA reimbursement rates across a range of allied health disciplines. For many providers, the updated fee schedule is likely to narrow the gap between DVA-funded appointments and standard private consultation fees. In recent years, some clinicians and practices had reported that DVA rates were comparatively low relative to operating costs, wage growth and rising demand for services. The increased funding may therefore improve the financial sustainability of treating veteran patients and reduce the need for practices to limit DVA bookings due to lower margins.
Australian Health Journal spoke with the Minister’s office, and a number of allied health industry groups on the announcements.
Source: Written by publisher
-
Prioritising Oral Health in Aged Care and Disability Support
Leonie Short is a Dental Practitioner and Dental Therapist. She started working as a dental therapist in Rural NSW and then moved into being an academic and researcher. Through her career, Leonie has worked at 6 universities across New South Wales and Queensland, and remaining community focused.
Leonie’s mission is to have improved oral health experiences and outcomes, however she recognises, the health system really needs to work hard to make it happen and for people to understand why it needs to be a priority.
-
Intervention in hearing loss for patients
In her role as an audiologist and trainer, Lauren McNee emphasises the urgency of addressing sudden hearing loss, highlighting the time-sensitive nature of available treatment options. She advises healthcare professionals, including GPs, pharmacists, primary care nurses and specialists, to remain vigilant for subtle signs of hearing loss in their patients. Such signs may include difficulty following prescription guidelines, miscommunication during conversations, or non-verbal cues like a tilt of the head or asking for repetitions.
-
Surgeon-scientist path laid for medical device research
In 2022, Distinguished Professor Gordon Wallace AO and Professor Mukherjee jointly established Beyond Science as a clinician led, academically supported and clinician run Australian-first medical technology translation program.
The program is aimed at early career researchers and clinician-scientists working in medical device research specifically in otolaryngology (ear, nose, and throat), head and neck surgery.
