Supporting the veteran community with a simpler, easier system from 1 July

Australian Parliament House

 

The final step in the journey towards a simpler, easier to use legislative framework for veterans’ compensa­tion is now less than 3 months away. 

From 1 July the current three-Act system will be simplified, with all new claims determined under a single ongoing Act – an improved version of the Military Rehabilita­tion and Compensation Act 2004 (MRCA). 

This will enable veterans and families of veterans to have all new claims for compensation and rehabilitation assessed against the MRCA criteria, regardless of when a veteran served, or when their inju­ries or diseases occurred. 

The transition to the improved MRCA as the single ongoing Act marks a major milestone in the response to the recommendations of the Royal Commission into Defence and Veteran Suicide. The Royal Commission highlighted the need to simplify and harmonise the legislation governing compensa­tion and rehabilitation to reduce the complexity of the support sys­tem for veterans and families of veterans. 

The changing nature of Defence service across the 20th and 21st centuries had resulted in a system of multiple Acts. This made it hard for veterans, families, advocates and DVA staff to navigate, leaving some individuals eligible for com­pensation under more than one Act for the same injury, incapacity, or death. 

In responding to the need to change this complex and some­times confusing system, from 2022 the veteran community and other key stakeholders were consulted on legislative reform, with feedback shaping the Veterans’ Entitlements, Treatment and Support (Simplifica­tion and Harmonisation) Act 2025 (VETS Act), which was passed by the Australian Parliament in Febru­ary 2025. 

When it comes into full effect on 1 July, the VETS Act will bring all veterans’ entitlements under the improved MRCA, providing clearer, fairer and more consist­ent compensation outcomes for veterans and families of veter­ans. Various entitlements will be enhanced, while allowances and other payments that had operated differently across the 3 Acts will be standardised from 1 July. 

This includes reimbursement for travel for treatment and expanded eligibility for incapacity payments, as well as improvements to liability, and benefits for dependants, from support for education to funeral compensation.

As part of the transition, the Veterans’ Entitlements Act 1986 (VEA) and Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) will close to new claims for compensation on Tuesday, 30 June (11.59 pm AEST). 

Existing compensation payments under the VEA and DRCA will then be ‘grand-parented’ from 1 July. This means they will continue uninterrupted and be indexed as normal, with no reduction in entitlements. There is an exception for veterans receiving DRCA incapacity payments, who will transition to the more beneficial MRCA pay­ments from 1 July. 

As part of the VETS Act, a single review pathway harmonising appeals across the 3 Acts to the Veterans’ Review Board was introduced on 21 April 2025.

Support for veterans

When the new veterans’ legislation comes into full effect from 1 July, there will be no change to existing compensation payments or services. Veterans will not need to take any action for these payments to continue.

Existing income support payments such as the Veteran Payment, Ser­vice Pension, Partner Service Pension and Income Support Supplement will continue as nor­mal. There will be no change to existing Disability Compensation Payments, including above gen­eral rate payments such as the Special Rate Pension (TPI) Tem­porary Special Rate (TTI) and Extreme Disablement Adjustment (EDA) under the provisions of the VETS Act. 

There is an exception for DRCA veterans receiving incapacity pay­ments, who will have their benefits transferred to the more generous MRCA incapacity payments on 1 July. 

All veterans with Qualifying Ser­vice will continue to be eligible for the Gold Card at age 70, with treat­ment for existing card holders to continue unchanged. 

The automatic payment of War Widows and Orphans’ pensions under the VEA will continue after 1 July, as well as the automatic granting of funeral benefits. Eli­gible dependants will continue to receive Gold Cards. 

There will be no interruption to approved services already being received for Rehabilitation and Household Services and/or Atten­dant Care. 

All claims lodged by National Ser­vicemen will be investigated and determined under the improved MRCA from 1 July. This includes veterans with part-time service in the Citizen Military Forces (CMF), and coverage under the 1971 and 1930 Acts.

Eligible DRCA veterans will automatically transition to the more beneficial MRCA incapacity payments from 1 July. Payments under the MRCA include a remu­neration loading and have no notional reduction for superannuation. VEA veterans who are unable to work because of service-related conditions may also be eligible to claim for incapacity payments from 1 July.

Improvements to liability 

The improved MRCA will recognise medical conditions previously accepted under the DRCA or VEA, so there will be no need to re-establish liability for existing accepted conditions. This includes presumptive conditions and categories accepted under the DRCA, including compensation for Point Cook firefighters and F-111 Deseal/Reseal workers.

A number of changes will also be made to liability provisions under the improved MRCA from 1 July:

  • Medical event on duty: The definition of ‘service injury’ will change from 1 July, removing the requirement to show an injury that occurs on duty, such as a heart attack or stroke, was caused by a member’s service.
  • Injuries or deaths arising from treatment: Serving members will be covered for unintended consequences of treatment under Defence health arrangements, including for pre-existing conditions or preventative treatment.
  • Conditions relating to tobacco use: Claims relating to tobacco use before 1 January 1998 may be accepted as service related, ensuring no disadvan-tage for VEA and DRCA veterans.

There will be a number of improvements to Permanent Impairment (PI) compensation from 1 July:

  • ‘Date of effect’: This will allow treating doctors to provide a meaningful estimate of when an impairment met the criteria of being permanent and stable for payment to commence.
  • MRCA section 80 (s.80) additional compensation payments for the children of severely injured veterans: In changes from 1 July, the amount can be paid either to the impaired veteran or to the primary carer (or appropriately apportioned where primary caring arrangements are shared) of the eligible young person or child.
  • Posthumous PI payment for veteran families: Providing an option to convert weekly payments into a lump sum where claims were outstanding at the time of a veteran’s death.
  • Financial advice: The Repatriation Commission will be able to determine circumstances where a vulnerable veteran must receive financial advice before receiving a lump sum PI payment.

New support for severely impaired veterans 

Additional Disablement Amount 

The Additional Disablement Amount (ADA) is a new payment that will provide continued support for veterans over pension age with a high degree of impairment due to service-caused injuries or illness. It is similar to the VEA Extreme Disablement Adjustment (EDA) benefit. 

Veterans who are eligible for the ADA will receive a Vet­eran Gold Card, with compensation also available to wholly dependent partners in the event of the veterans death. 

Special Rate Disability Pension 

The Special Rate Disability Pension (SRDP) supports vet­erans who are under pension age and whose capacity for work is severely restricted because of accepted conditions related to military service. It can be received instead of MRCA incapacity payments. 

DRCA veterans will become eligible for the SRDP for the first time from 1 July. VEA veterans ineligible for the Spe­cial Rate (or TPI) pension because of the "alone test" may also be eligible for the SRDP (as there is no equivalent test under the MRCA). Veterans who are eligible for the SRDP will receive a Veteran Gold Card, with compensation also available to wholly dependent partners in the event of the veteran's death. 

Veteran Card 

DRCA veterans with high levels of impairment may become eligible for the Veteran Gold Card for the first time from 1 July. This will require acceptance of initial liability for a new condition under the improved MRCA or the wors­ening of an accepted condition by 5 impairment points, and 60 impairment points overall. 

Eligibility for the ADA or SRDP from 1 July is also a path­way to the Gold Card. 

Travel for medical treatment 

From 1 July, all eligible treatment card holders will be able to claim the MRCA travel reimbursement amount of $0.68/ km when a private vehicle is used to travel for approved treatment. This is higher than the rate of $0.44/km cur­rently payable under the VEA. 

The 50 km round trip minimum distance requirement will be removed, ensuring more veterans can be reimbursed for travel costs related to treating their service conditions from 1 July. 

Rehabilitation 

From 1 July, veterans with open VEA and DRCA rehabil­itation plans will automatically transition to the MRCA rehabilitation scheme. As there are no differences between DRCA and MRCA rehabilitation, this will mean no change for DRCA veterans. 

VEA veterans working under the Veterans’ Vocational Rehabilitation Scheme (VVRS) will remain eligible for the special rate and intermediate rate of the disability compen­sation pension and invalidity service pension. DVA will also review VVRS plans to identify any additional rehabilitation activities that may be of benefit. 

Household Services and Attendant Care 

VEA veterans having difficulties managing domestic or personal care tasks due to service-related conditions will become eligible to apply for Household Services and/or Attendant Care for the first time from 1 July.


Support for veteran families

The children of severely injured DRCA veterans will be eligible to apply for the Military Rehabilitation and Compensation Act Education and Training Scheme for the first time from 1 July. 

Funeral expenses for all service-related deaths occurring on or after 1 July will be reimbursed up to a maximum of $14,990 (indexed). This will include the automatic granting of funeral compen­sation for eligible VEA veterans, with this benefit retained and increased from $2,000 to $3,000. 

Additional lump sum compensation may also be payable where a veteran’s death is service-related and occurs on or after 1 July. 

Partners of veterans who were eli­gible for the Additional Disablement Amount at the time of their death and who meet the MRCA criteria of "Wholly Dependent" will be entitled to compen­sation. Eligible partners may receive a Gold Card for life, and the children of deceased DRCA veterans may also be eligible for a Gold Card for claims made after 1 July. 

There will also be the flexibility to convert their Wholly Dependent Part­ner compensation payments into an age-based lump sum for claims made after 1 July.
 

Deciding when to make a claim 

All new claims for compensation under the VEA and DRCA will close on Tuesday, 30 June (11.59pm AEST). New claims for compensation and rehabilitation received on or after 1 July will then be determined under the improved MRCA as the single ongoing Act. 

Useful information 

A range of resources is available on DVA’s website that can help you learn more about the changes from 1 July. This includes: 

  • more than 20 fact sheets and summaries of the impact for particular groups
  • frequently asked questions
  • scenarios that demonstrate how the improved MRCA may impact individual circumstances.

 

FIND OUT MORE 

The changes to compensation from 1 July will enable veterans and families of veterans to better understand their entitlements and receive the support they need, when they need it. 

For more information visit the DVA website at www.dva.gov.au/legislationreform.