The Australian Physiotherapy Association (APA) cautiously welcomes the reform-focused sentiment of the 2026-27 Federal budget tonight and a positive announcement for veterans’ health.

APA National President Dr Rik Dawson said that this government’s willingness to pursue health care reform, despite the challenges of the current fiscal environment, is commendable.

‘We are pleased to see that, despite the challenging fiscal environment, the 2026-27 federal budget prioritises reforms across the health care sector,’ said Dr Dawson.

‘We especially applaud the inclusion of a long overdue and significant increase for physiotherapy rebates within the Department of Veterans’ Affairs,’ said Dr Dawson. ‘And we appreciate Minister Keogh’s approach which reflects a greater understanding that value‑based care for veterans depends on rebate settings that support quality, access and system sustainability. In coming days, we look forward to receiving more information on the practical implications and consequences of the $5,000 annual cap on allied health services.’

‘We are also pleased by an increase in support for endometriosis and pelvic pain clinics, originally dedicated in last year’s budget, which include physiotherapists and provide care for women experiencing endometriosis, pelvic pain, perimenopause and menopause.’

‘However, while these reforms represent a positive step forward, deeper, structural reforms will be needed to truly alleviate the current strains on the Australian health care system.’  

The budget indicates a shift toward a narrower reform focus, most evident in the NDIS, where cost containment and scheme boundaries now dominate. While framed around sustainability, there is limited clarity on how unmet need will be absorbed elsewhere in the health system.

A lack of attention to multidisciplinary models and scope of practice reforms is a disappointing oversight, which continues to limit physiotherapists’ contribution across prevention, treatment and recovery and shifts pressure rather than easing it across the system.

‘Going forward, we hope to see significant changes which improve care access and prioritise physiotherapy-led preventative care.’

The federal budget also includes:

• $1.9 billion commitment to the expansion of Urgent Care Clinics, which particularly highlights a focus on improving access, relieving emergency departments and delivering faster care close to home. The inclusion of physiotherapists in these clinics remains a focus for the APA.  
• $389.8 million over four years for Support at Home program refinements – though noting the lack of any public information regarding Support at Home pricing caps, which the Commonwealth Government has indicated are intended to commence from 1 July 2026.
• $261.1 million over five years from 2025-26 for a range of programs to achieve better health outcomes for First Nations people under the National Agreement on Closing the Gap.

The APA will continue to work through the detail of this budget and provide more updates in the coming days. 

-ENDS- 

Dr Rik Dawson is available for further comment.