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Policy and Advocacy update – 17 September 2026

Published: Thursday 17 September 2026

Allied health cap scrapped in sector win

The Government’s controversial $5,000 cap on allied health services for veterans has been scrapped.

After weeks of sector advocacy from OTA and numerous veterans’ bodies and health workforce stakeholders, Veterans Affairs Minister Matt Keogh confirmed that the measure, announced in a suite of allied health changes in the May budget, would be scrapped. The reversal was confirmed on 17 September.

While had OTA welcomed budget measures to remove the treatment cycle and raise allied health fees to more strongly align with other health workforce areas such as the NDIS, the $5,000 cap was swiftly recognised as a punitive measure that would create barriers to OT services, as capped funds were expended on the wide range of affected services.

OTA was also critical of the Government's lack of clarity around the review measures, including how 'strong clinical need' would be defined. OTA's Chief OT Michelle Oliver was able to meet with Shadow Veterans Affairs Minister Michael McCormack and the office of Veterans Affairs Minister Matt Keogh in August. OTA has collaborated strongly with our member-based National Reference Group in recent months to advocate for a broader, more flexible and consultative approach to the allied health changes, and we thank the NRG members for their investment of energy and time.

OTA will continue to monitor any future changes to allied health policy affecting veterans in the wake of the cap announcement and advise members accordingly.

OT award changes from 1 October: Check your classification and pay

OTs employed under the Health Professionals and Support Services (HPSS) Award, and their employers, should prepare for changes to job classifications and minimum pay rates. These apply from the first full pay period starting on or after 1 October 2026, with further minimum pay increases phased in through to 2030.

What should OTs and employers check?

  • Classification: review the new rules against the work the OT actually performs. Staff required to provide day-to-day supervision to students, allied health assistants or other clinicians may meet the new Level 2 criteria. Clinical, education and management responsibilities also need to be considered.

  • Experience: relevant experience with previous employers counts. Employees should ensure their employer has an accurate record of their experience and responsibilities.

  • Pay: even where an OT is already paid above award rates, employers should check that pay meets the new requirements. Check the transition arrangements for existing employees, including protections for higher minimum award rates.

OTA participated in the Fair Work Commission’s review, arguing for better recognition of bachelor, honours and master’s entry pathways, which is attached to higher remuneration. The Commission did not adopt this change and retained occupational therapy at AQF Level 7 in the Award’s qualifications table. The review nevertheless resulted in higher minimum award rates for OTs.

For more info, see the Fair Work’s guide to the changes, which includes the classification rules, updated pay calculator and October pay guide.

If you are unsure whether the Award applies or how the changes affect you or your staff, call the Fair Work Ombudsman on 13 13 94, Monday to Friday, 8 am–5.30 pm, excluding public holidays. Visit Fair Work’s contact page for other ways to get help.

Help inform our submission on women’s health

There’s still time to share your insights and help inform OTA’s submission to the Senate Select Committee on Women’s Health. If you work in women’s health or a related area, we’d like to hear about the issues affecting your practice and the people you support. The inquiry covers pregnancy and postpartum care, access to allied health services, persistent pain, fertility and assisted reproduction, and related healthcare policy and research. Please share your input with OTA ahead of the 9 October submission deadline. Further information on the Terms of Reference and making a submission can be found here.

OTA submission: Shaping the future of SIL commissioning

We have submitted our response to the Department of Health, Disability and Ageing’s consultation on supported independent living (SIL) commissioning, a process that will determine how SIL is designed, funded and delivered for years to come.

We made 19 recommendations, all grounded in a simple argument – quality SIL isn’t just about support hours, it's about building capable environments, homes, support arrangements and workers that genuinely enable participants to exercise choice, build capability and participate in everyday life.

We called for occupational therapists and allied health to be recognised and funded as core to SIL, not optional. We pushed for stronger safeguards for participants with psychosocial disability and complex needs, independent complaints pathways, and a reduction in restrictive practices. We also raised the need for regionally tailored approaches and genuinely Indigenous-led, culturally safe commissioning.

Our goal is a system where efficiency comes from better assessment and support design, not from buying fewer hours or standardising away individual need.

This submission reflects the expertise and everyday experience of occupational therapists working in SIL.

We've asked to stay involved in the Department's targeted consultation through the rest of 2026, and we'll keep members updated as this important reform progresses.

You can read our submission here.

Thriving Kids update

Thriving Kids begins rolling out from 1 October, but occupational therapists are still not explicitly included in the model. Help strengthen our call for OTs and the broader allied health workforce to be meaningfully included.

Take two quick actions today:

  • Email your MP: It takes just 30 seconds to ask your local federal MP to protect children’s access to occupational therapy. Over 150 people have sent an email to their local MP. See more here.

  • Sign the NSW petition: More than 2,850 people have already signed. Add your name by 3 October and help demonstrate the strength of support for OTs to be included. Sign the petition here.

Every email and signature strengthens the message to government: Thriving Kids needs OTs.

Last week OTA received a Thriving Kids briefing from the Federal Department of Health, Disability and Ageing, and is leading work to develop a model for low-cost assistive technology within Thriving Kids. If you wish to share any ideas, please contact policy@otaus.com.au.

Upcoming Ahpra webinars for OTs and employers

Ahpra is hosting a series of webinars in October to help practitioners and employers navigate registration requirements and health concerns. The following two sessions may be of interest for occupational therapists and employers.

Managing health concerns in partnership with Ahpra
8 October, 1.45–2.45pm (AEDT)
Learn when and how to share health concerns with Ahpra, what to expect from the process, and common outcomes.

Supporting allied health renewal
12 October, 2.45–3.45pm (AEDT)
Practical guidance on supporting practitioners with registration renewal, including portal access and late registration.