Increase to incapacity payments

Veterans receiving incapacity payments can look forward to a pay increase following a decision by the Defence Force Remuneration Tribunal. As part of the Australian Defence Force’s (ADF) commitment to modernising the ADF employment offer, the tribunal has made a decision to increase military salaries by a flat rate of $2,000 (before tax). This change came into effect from 25 May 2023.

The Department of Veterans’ Affairs is assessing veterans’ incapacity payments in line with the ADF pay increase. If you are eligible, no action is necessary on your part. The incapacity payment calculations for the increase need to be processed individually and manually. We appreciate your understanding that this will take time and you will be notified when yours has been completed.

This increase applies to permanent ADF- trained members up to and including the rank of Major General (or equivalent) and for members of the reserves and training force on a pro-rata basis. Recipients of incapacity payments are affected by the military pay increase because their rate of payment is based on the ADF salary they would be receiving if they were still serving. All eligible veterans will receive adjusted payments back to the date the tribunal decision took effect – 25 May 2023.

For any queries about how the military pay increase will affect your incapacity payments, contact DVA on 1800 VETERAN (1800 838 372).