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OTA Federal Budget Response

Published: Wednesday 26 March 2025

Occupational Therapy Australia (OTA) CEO Samantha Hunter said:

“Occupational Therapy Australia (OTA) is deeply concerned by the glaring omission of allied health in this year's federal budget. Once again, this budget highlights the alarming neglect of allied health, despite its critical role in Australia's healthcare system.

“The government claims it’s addressing urgent health needs, yet continues to ignore the allied health sector, leaving thousands of Australians struggling to access essential care.

“Shifting support for children with autism and developmental challenges from the NDIS to foundational services that are not yet established is reckless without adequate transitional arrangements. Families are left hanging by a thread, pushed to breaking point as state governments play political hot potato and schools scramble without funding, resources, or clear guidance.

“More than 1,200 NDIS participants each week are receiving distressing letters, demanding rapid reassessment of their eligibility, leaving nearly half facing their vital support being withdrawn. This budget offers no solutions – only deepening anxiety and uncertainty for families and practitioners.

“The government must urgently prioritise transitional funding to bridge this alarming gap, preventing vulnerable children from slipping behind at a critical stage of development.

“The health of Australia’s veterans is also being left behind in this budget. Veterans rely on essential allied health services for their mental and physical well-being, but low provider fees severely limit their access to care. Despite recommendations from the Defence and Veteran Suicide Royal Commission, the government has failed to increase provider fees and address the barriers veterans face in accessing vital health services.”

“The workforce crisis among allied health providers, including occupational therapists, has reached breaking point, with occupational therapists facing worsening workforce shortages. Immediate investment is crucial. OTA calls for urgent funding of a national supervision program, extended placement support for occupational therapy students, and streamlined pathways for overseas-trained therapists to bolster this in-demand workforce.

“While OTA welcomes the government's intent to clarify responsibilities for foundational supports, the current reality is chaotic. Thousands of families with children who have autism and developmental challenges face immediate distress as supports have been hastily withdrawn. With no transitional funding provided and lack of clarity from federal and state governments on the road ahead, these children risk being abandoned by the system, and forced into uncertainty as governments pass the buck. OTA urgently calls for transitional funding to bridge this critical gap and protect vulnerable children and families from falling further behind.

“OTA urges the government to recognise the critical role allied health plays, move beyond short-sighted savings, and deliver meaningful, immediate investment into the workforce that underpins Australia's healthcare future."

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