Eligibility for Disability Compensation Payments

This page provides an overview of Disability Compensation Payments and allowances available under the Veterans' Entitlements Act 1986 (VEA).

The Veterans’ Entitlements Act 1986 has closed to new applications for the Disability Compensation Payment as at 1 July 2026. If you are already receiving a Disability Compensation Payment, your payment will continue uninterrupted. 

What is Disability Compensation Payment?

Disability Compensation Payment is paid to compensate veterans for injuries or diseases caused or aggravated by war service or certain defence service rendered on behalf of Australia before 1 July 2004. It is a non-taxable pension.

Who was eligible for Disability Compensation Payment?

The eligibility requirements below relate to veterans who claimed before 1 July 2026. Any new claims for rehabilitation and compensation will be assessed under the Military Rehabilitation and Compensation Act 2004, irrespective of service or time of injury. 

You may have been eligible for a Disability Compensation Payment if you suffered from an injury or disease that is a result of service rendered:

• in the Australian Defence Force (ADF) in a war of conflict before 1 July 2004;
• in the Australian Merchant Navy during the Second World War;
• as a member of a specified peacekeeping force overseas;
• in the ADF whilst undertaking service overseas before 1 July 2004 that has been designated as hazardous;
• during the British Nuclear Tests program in Australia at prescribed nuclear test areas or whilst performing certain tasks during prescribed nuclear testing periods in the 1950s and 1960s;
• as one of certain civilians who assisted the ADF in wartime before 1 July 2004;
• in the ADF (after completion of 3 years qualifying period, unless medically discharged) from 7 December 1972 to 6 April 1994; or
• as a National Servicemen on or after 7 December 1972, where you chose to complete your service obligation or were medically discharged.

You may have also been entitled to a Disability Compensation Payment if you served with a Commonwealth or allied country and you lived in Australia before you enlisted.

How much is the Disability Compensation Payment?

The amount of Disability Compensation Payment paid depends on the level of incapacity you suffer as a result of your war-caused or defence-caused injuries and diseases. Generally, the more incapacitated you are, the higher the amount of pension you will receive.

There are 4 'categories' of Disability Compensation Payment payable:

• General Rate, payable in multiples of 10% up to 100%;
• Extreme Disablement Adjustment (for over 65 years of age only);
• Intermediate Rate; and
• Special Rate

Generally, the Disability Compensation Payment will become payable from three months before the date a claim is received by DVA. This means that once your claim for a Disability Compensation Payment is granted, the pension will commence from the next pension pay day along with an arrears payment for the pension that was payable for up to three months prior to your claim being received.

For information on the current rates of Disability Compensation Payment payable, refer to Rates for the Disability Compensation Payment and War Widow(er)’s Pension.

What is a Disability Compensation Payment allowance?

A Disability Compensation Payment allowance is paid to eligible pensioners to provide financial assistance, compensation or reward for valour.

While there are no new claims from 1 July 2026, veterans receiving the following allowances will continue to receive their existing allowance as usual:

• attendant allowance;
• clothing allowance;
• recreation transport allowance;

The decoration allowance and Victoria Cross Allowance formally provided for under the VEA transferred to the MRCA on 1 July 2026.

Attendant allowance

Attendant allowance is paid to an eligible veteran to assist with the cost of an attendant to help with such things as feeding, bathing, dressing and other activities of daily living. The allowance is payable where a veteran has certain war or defence-caused amputations, blindness, or injury or disease affecting the brain and spinal cord system, or has a condition similar in effect or severity. 

Clothing allowance

Clothing allowance is paid to an eligible veteran to help offset the cost of modifications, deterioration or damage, to clothing. The allowance is payable where a veteran has certain war or defence-caused amputations, blindness or disabilities that adversely impact the veteran's clothing.

Recreation transport allowance

Recreation transport allowance is paid to an eligible veteran suffering from severe war or defence-caused disabilities that affect mobility to promote access to recreational activities. The allowance is payable where a veteran has certain war or defence-caused amputations or blindness, or is handicapped to a similar extent to these disabilities. 

Decoration allowance

Decoration allowance may be paid to a veteran who is eligible for a VEA Disability Compensation Payment and has received an eligible decoration. The decoration allowance has transferred to the Military Rehabilitation and Compensation Act 2004 (MRCA). For more information about how to claim under the MRCA, visit the DVA website. 

Victoria Cross allowance

Victoria Cross Allowance is paid to veterans who have been awarded the Victoria Cross. This is paid automatically each year if you have been awarded the Victoria Cross.

How much are these allowances?

The allowances are paid at different rates. For details of the current rates of allowances, see Rates for the Disability Compensation Payment and War Widow(er)’s Pension. 

Energy Supplement

Energy Supplement may also be payable to Disability Compensation Payment recipients. 

War Widow/er’s Pension

War Widow/er’s pension is paid under the VEA to compensate widowed partners of veterans who have died as a result of war service or eligible Defence service. War widow(er)’s pension are not affected by other income, except other compensation payments.