From 1 July 2026, veterans can earn more, and the value of their assets can be higher, before their pension payments are affected.
The rise in income and asset amounts is in line with the annual indexation process of the income free areas and asset value limits that are used to calculate rates of income support pensions.
Disability compensation payments and war widow(er)'s pensions are not subject to the income and assets tests.
Related to these thresholds increasing, some recipients of the service pension, income support supplement, veteran payment and social security age pension may see an increase to their payments.
The rate of permanent impairment payments, eligible young person payments, as well as limits for household services and attendant care under the Military Rehabilitation and Compensation Act 2004 (MRCA) will increase from 1 July 2026.
Veterans who are receiving compensation payments under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) will also receive an increase.
Pensioners don’t need to do anything to receive the increase.
The Veterans’ Entitlements Act 1986 (VEA) and DRCA will close to new claims for rehabilitation and compensation on 1 July 2026. Payments received under these Acts will continue to be indexed. This includes the rates applicable to claims lodged prior to 1 July 2026, ensuring the clients who have lodged these claims are not disadvantaged when their claims are determined.
The table below outlines the new limits and thresholds for income support payments and new MRCA and DRCA rates. For more information, including a summary of the new income and asset thresholds, pension rates and allowances please visit the DVA payment rates page.
New maximum limits and thresholds from 1 July 2026
| Amount of income a recipient may receive before their pension is reduced |
Single rate (fortnightly) |
Couples rate - combined (fortnightly) |
| Service or Age Pension | $ 226.00 | $ 396.00 |
| Income Support Supplement (War Widow[er]'s Pension is included in these amounts)* | $ 1,872.00 | $ 2,519.20 |
| Maximum value of assets a person can have before their pension is affected | ||
| Service or Age Pension | ||
| Homeowner | $ 333,000.00 | $ 499,000.00 |
| Non-homeowner | $ 600,000.00 | $ 766,000.00 |
| Income Support Supplement* | ||
| Homeowner | $ 607,500.00 | $ 853,000.00 |
| Non-homeowner | $ 874,500.00 | $ 1,120,000.00 |
| Deeming threshold | $ 66,800.00 | $ 110,600.00 |
| MRCA rates |
New Rate (Weekly) |
|
| Maximum Permanent Impairment amount | $ 447.39 | |
| Maximum rate of Household Services | $ 633.47 | |
| Maximum rate of Attendant Care | $ 633.47 | |
| Dependent eligible young person | $ 191.56 | |
| DRCA rates |
New Rate (Lump Sum) |
|
| Maximum lump sum permanent impairment | $ 323,722.77 | |
|
New Rate (Weekly) |
||
| Maximum household services | $ 609.74 | |
| Maximum attendant care service | $ 609.74 | |
| Death dependent child | $ 188.89 | |
*Different limits apply if assessed under transitional rules.