Ex-soldier MP fights Labor's $5k cap on veterans' mental health care

Phil Thompson, a former Australian soldier and now Liberal MP, is campaigning against Labor’s planned $5000 cap on veterans’ allied health services. The new limit, set to begin on 1 July 2027, aims to reduce fraud but has drawn strong opposition from veterans’ advocates. Thompson, who suffered life-changing injuries in Afghanistan, has pledged to overturn the policy if the Coalition wins the next election. Thompson’s military career ended abruptly on 19 October 2009, when an improvised explosive device (IED) detonated near him in Uruzgan Province. The blast left him with a traumatic brain injury, severe hearing loss and deep depression. His struggles with mental health followed, shaping his later work in advocacy.

After leaving the army, Thompson focused on mental well-being and suicide prevention. In 2018, his efforts earned him the title of Queensland Young Australian of the Year. A year later, he entered politics as the Liberal member for Herbert. The government’s $5000 cap targets excessive claims, with data showing the average veteran spends around $1900 annually on allied health. However, one in ten veterans exceeds the proposed limit. Thompson argues the restriction will harm those needing long-term support. He has promised to remove the cap entirely if his party returns to power.

The policy debate comes as veterans’ groups warn of reduced access to critical services. Thompson’s personal experience and political stance place him at the centre of the dispute. The outcome will depend on whether Labor’s fraud-prevention measures or the Coalition’s pledge to scrap the cap gains broader support.