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Factsheet MRC10 - Motor Vehicle Compensation Scheme (MVCS)


This Factsheet provides information about the Motor Vehicle Compensation Scheme (MVCS). This scheme was established under the Military Rehabilitation and Compensation Act 2004 (MRCA).

What is the Motor Vehicle Compensation Scheme?

The MVCS provides assistance toward the cost of necessary motor vehicle modifications for eligible veterans. The MVCS can also subsidise the purchase of a suitable and clinically required motor vehicle in certain limited circumstances.

*Note: If you have an injury or disease that has been accepted under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA), information on possible vehicle modification assistance is available from DVA Factsheet MCS13. If you have an injury or disease that has been accepted under the Veterans’ Entitlements Act 1986 (VEA), information regarding the Vehicle Assistance Scheme (VAS) is available from DVA Factsheet DP78.

Who is eligible for assistance?

To be eligible for assistance under the MVCS you must:

  • have suffered an impairment as a result of an injury or disease for which liability has been accepted under the MRCA;
  • be clinically assessed as being unable to drive or be driven in a motor vehicle in safety and reasonable comfort without modifications; and
  • be able to derive a benefit from driving or being driven in the modified motor vehicle at least twice a week.

The benefits of a vehicle to your physical and mental health, and your level of mobility without access to the motor vehicle are also taken into account.

For information about which ADF members and former members are covered under the MRCA, see DVA Factsheet MRC01.

Who is not eligible for assistance?

You will not be entitled to assistance under the MVCS if you are a resident of a care institution (nursing home, hostel, etc.) and are not able to leave the institution.

How is eligibility for the MVCS decided?

As soon as you apply for assistance under the MVCS, the Department of Veterans' Affairs (DVA) will organise an assessment by a Driver Trained Occupational Therapist (OT). Driver Trained OTs are specialist OTs who have additional qualifications to assess a person's need for motor vehicle modifications and recommend such modifications. They are also qualified to train drivers on how to safely drive the car with modifications installed.

The assessment will assess whether you are able to benefit from assistance under the MVCS. It will also investigate what type of modifications you may need as a result of your accepted conditions to ensure that you can drive safely and in reasonable comfort. The decision about the type of support that you can receive through the MVCS will be based on evidence collected during this assessment.

What assistance is provided under the MVCS?

DVA will pay for the reasonable costs of clinically required modifications to a motor vehicle that you own or use, necessary maintenance and repair of those modifications as well as the cost of any additional insurance that relates to the value of the modifications.

In specific and limited circumstances, assistance can be provided to subsidise the cost of buying a suitable vehicle to meet your clinically required needs, due to conditions for which DVA has accepted liability. The driver trained OT assessment will provide information about your clinical needs, and the type of vehicle that you require. If you meet the eligibility criteria for this subsidy, assistance with replacing an MVCS vehicle can be considered once your vehicle is 5 years old or it has travelled 100,000 km. When making this decision, DVA will also consider evidence from a qualified mechanic about the vehicle’s condition, safety and maintenance history, and whether it is reasonable to replace it.

What are my obligations?

If you receive assistance with the purchase of a motor vehicle, you must register the vehicle and comprehensively insure it for its full market value. You must also ensure that the vehicle is maintained in good working order.

It is important you understand that the vehicle cannot be sold, transferred, used as security in a financial transaction or otherwise dealt with without DVA's written agreement. If you dispose of the vehicle or use it as part of a financial transaction without this agreement, you may be required to repay the subsidy you received.

What if I disagree with a decision?

If you disagree with a decision made under the MVCS, you may apply for a review by the Commission. You will need to make this request in writing, and lodge the request within three months of the decision being advised to you. When seeking a review, you need to set out the reasons why you consider the decision is wrong. If the Commission is of the opinion that sufficient reasons exist, a review by a person who did not undertake the initial decision may occur. If you are not satisfied with the result of the review of the decision, you will then have a right of review of the second decision by the Administrative Appeals Tribunal.

How do I claim for MVCS assistance?

There is no formal claim required for assistance through the MVCS. You can request assistance by:

  • ticking the relevant box on the MRCA claim form (DVA Form D2051);
  • providing a letter requesting compensation under the MVCS;
  • indicating during the needs assessment process that you would like assistance with motor vehicle modifications;
  • discussing any difficulties that you are having with driving during a rehabilitation assessment; or
  • by contacting DVA directly.

Information about how to make claim under MRCA can be found in DVA Factsheet MRC01. Information about needs assessments can be found in DVA Factsheet MRC34.

More Information

DVA General Enquiries

Phone: 1800 555 254 *


DVA Website:

Factsheet Website:

* Calls from mobile phones and pay phones may incur additional charges

Related Factsheets

Related Forms


The information contained in this Factsheet is general in nature and does not take into account individual circumstances. You should not make important decisions, such as those that affect your financial or lifestyle position on the basis of information contained in this Factsheet. Where you are required to lodge a written claim for a benefit, you must take full responsibility for your decisions prior to the written claim being determined. You should seek confirmation in writing of any oral advice you receive from DVA.

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12 September 2019