Veterans' Legislation Reform – Frequently asked questions

Additional Disablement Amount (ADA)

What is the process for calculating offsets for ADA? I understand that the existing compensation payments will be offset. What does that look like when we consider the combination of all three Acts, Superannuation and Invalidity payments?

The Additional Disablement Amount (ADA) is a safety net for veterans over pension age with significant service-related impairments, replacing the Extreme Disablement Adjustment (EDA) as the Veterans’ Entitlements Act 1986 (VEA) closes to new claims. ADA payments, set at the same rate as EDA, are reduced dollar-for-dollar by other disability compensation and permanent impairment payments. Commonwealth-funded superannuation is also offset at 60 cents per dollar, reflecting the ADA’s non-taxable status and aligning with the Special Rate Disability Pension (SRDP) under the Military Rehabilitation and Compensation Act 2004 (MRCA). Veterans cannot receive ADA if they opt for SRDP, incapacity payments, or certain Disability Compensation Payment rates.

Superannuation offsetting is a long-held principle that a person should not be able to receive income maintenance payments twice from Government through superannuation and compensation. The offsetting approach for ADA, consistent with SRDP, recognises that most veterans now have superannuation for retirement, unlike when EDA was introduced. ADA remains a safety net for those without additional retirement payments.

Eligibility for ADA excludes those already receiving SRDP, incapacity payments, or certain rates of Disability Compensation Payments (EDA, Intermediate Rate or Special Rate), and is the reason these are not offsets for the ADA.

Benefits following death

I am the partner of a VEA TPI veteran. From 1 July 2026, if I receive the automatic funeral benefit of $3,000 can I also obtain an additional MRCA funeral benefit?

The funeral benefit payment of $3,000 will be automatically paid where a veteran was receiving the following payments at the time of their death:

• Special rate (TPI) of Disability Compensation Payment
• Extreme Disablement Adjustment (EDA) rate of Disability Compensation Payment
• Disability Compensation Payment plus an allowance as a multiple amputee.
• Veterans who were former prisoners of war

From 1 July 2026, the widow/er can also claim under the Military Rehabilitation and Compensation Act 2004 (MRCA) and if eligible (i.e. the death is accepted as service-caused) can receive a maximum reimbursement of $14,990.43 (minus the $3,000 that was automatically paid).

Importantly, any dependants who have received benefits prior to 1 July 2026 will not have access to any additional benefits under the MRCA.

Disability Compensation Payment (DCP) to Incapacity Payment (INCAP)

Can a veteran with VEA service only, who is in receipt of Disability Compensation Payment (DCP), claim incapacity payments if they have a new condition accepted under the improved MRCA after 1 July 2026? If so, do they need to prove the MRCA condition caused them to cease work, not the VEA conditions?

From 1 July 2026, a veteran who currently only has coverage under the Veterans’ Entitlements Act 1986 (VEA) will be able to claim incapacity payments under the Military Rehabilitation and Compensation Act 2004 (MRCA). A veteran’s already accepted conditions under the VEA will automatically be taken to be an accepted MRCA condition, as a result, they will be able to make their claim for incapacity payments based on the existing conditions, or a newly accepted MRCA condition, where either or both conditions incapacitate them for work. Eligibility for incapacity payments will require the veteran to be under age pension age. Where a veteran is found eligible and starts to receive MRCA incapacity payments, their Above General Rate portion of their DCP will be offset by the amount of incapacity payments they are receiving. There is no impact on the general rate portion of their DCP.

Future Application For Increase

How do I initiate a VEA Application for Increase (AFI) or reassessment under the improved MRCA from 1 July 2026?

Existing payments under the Veterans Entitlements Act 1986 (VEA) and Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA), except DRCA incapacity payments, will be grandparented, which means they will continue uninterrupted and be indexed as normal. All new compensation claims, including those for the worsening of an already accepted condition (commonly referred to as an AFI under the VEA), will be determined under an improved Military Rehabilitation and Compensation Act 2004 (MRCA).

VEA veterans will be able to lodge a claim for MRCA compensation and rehabilitation, including claims for new conditions or for the worsening of their existing VEA and DRCA accepted conditions.

Grand-Parented Provisions

I am a TPI veteran. Will I still be able to obtain my Rehabilitation Appliances Program (RAP) or Vehicle Assistance Scheme (VAS) under the new system?

RAP items are prescribed by health providers based on the assessed clinical needs of the patient. These arrangements apply to Veteran Gold Card holders, including TPI recipients under the Veterans’ Entitlements Act 1986 (VEA) and Special Rate Disability Pension (SRDP) eligible persons under the Military Rehabilitation and Compensation Act 2004 (MRCA), and to Veteran White Card holders for their accepted conditions. There are no changes to these arrangements as a result of the VETS Act.

Currently, veterans with specific types of war- or defence-caused injury or diseases, such as multiple amputations, paraplegia or a condition of similar severity or effect may be eligible to access the VAS, however here are no linkages to TPI eligibility.

The MRCA also provides compensation towards clinically required vehicle modification, but there is no specific requirement to be SRDP eligible to access MRCA vehicle assistance. Eligibility for vehicle assistance under the MRCA is based on clinical assessment of the veteran’s inability to drive safely in a vehicle without modifications, or their inability to be driven safely and reasonably comfortably in a vehicle without modifications. Under the single ongoing Act model, vehicle assistance will be provided under the MRCA, including for veterans whose conditions have been accepted under the Veterans’ Entitlements Act 1986 (VEA).

Will case law such as Kattenberg and Wall be recognised post 1 July 2026?

Prior judicial decisions such as those made by the Courts in Kattenberg v Repatriation Commission and Military Rehabilitation and Compensation Commission v Wall will continue to be relevant precedent that can be considered in relation to later similar cases under the Military Rehabilitation and Compensation Act 2004 (MRCA) that relate to equivalent provisions under that Act, unless they become superseded or qualified by subsequent case-law specific to the MRCA.

Incapacity

I’m on DRCA Incapacity payments. What will happen to my payments after 1 July 2026?

From 1 July 2026, veterans receiving incapacity payments under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) immediately before this date will automatically transition to the more generous Military Rehabilitation and Compensation Act 2004 (MRCA) scheme. Veterans will not have their incapacity payments reduced as a result of this transition. The new legislative arrangements and any adjustment to payment rates will only apply from 1 July 2026. New rates of payment and any applicable allowances will not be backdated.

Individual advice

Can you tell me what my points would be under the improved MRCA so I can understand whether it is more beneficial for me to stay where I am or claim under the new system?

While DVA cannot provide personalised advice, there are a range of resources on the website to help you understand how the new system will operate, including scenarios which demonstrate how the improved Military Rehabilitation and Compensation Act 2004 (MRCA) may impact individual circumstances.

You can also find a free, trained and qualified advocate near you via the Advocacy Register, which lists ESOs by location and services offered.

Permanent Impairment

I am a VEA veteran being paid a Disability Compensation Payment (DCP) and I have also had liability accepted under the DRCA. I have declined my DRCA PI so as not to affect my VEA DCP payments. If I decide to request DVA to pay PI for the already accepted DRCA liability from 1 July 2026, what Act will PI be determined under?

From 1 July 2026, a new section 24A of the Military Rehabilitation and Compensation Act 2004 (MRCA) will mean that any previously accepted service-related conditions under the Veterans’ Entitlements Act 1986 (VEA) and Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) will automatically be considered a service-related condition under the MRCA. This means that if a veteran with VEA and/or DRCA accepted conditions will be able to make claims under MRCA after this date, such as for additional amounts of compensation for any worsening of those conditions, without needing to recontest those condition and lodge new liability claims.

From 1 July 2026, veterans who currently only have VEA and/or DRCA accepted conditions will only be able to make claims for PI compensation under the MRCA in relation to a worsening of their existing conditions. For PI compensation to be payable, there must be an increase of five impairment points assessed under the approved Guide to Determining Impairment and Compensation 2016 (GARP M). As those veterans have not ever been assessed under the MRCA and GARP M, a new methodology is required to translate impairment ratings under the VEA and the DRCA into a baseline impairment rating, from which the 5-point increase may be assessed after 1 July 2026.

In this scenario, those DRCA conditions would not be counted towards the baseline impairment rating; only the VEA ratings would be counted. This is because the baseline impairment rating is a translation of impairment ratings under the Acts for which compensation was actually paid, rather than a translation of the service-related conditions themselves. This ensures the baseline impairment rating is not unintentionally inflated, thereby ensuring veterans receive their correct PI compensation entitlement under the MRCA for a worsening of any existing condition before 1 July 2026.

I am a VEA veteran on a Disability Compensation Payment (DCP). Can I receive this as a lump sum after 1 July 2026?

Existing payments under the Veterans’ Entitlements Act 1986 (VEA) will be grand-parented. This means they will continue uninterrupted and be indexed as normal. It will only be a new claim for permanent impairment (PI) compensation (which includes claims for worsening of existing conditions) from 1 July 2026 that can be received as a lump sum. Any amount payable for worsening can then be converted to a lump sum. If you are entitled to receive an amount of PI compensation, the weekly periodical payment will be paid to you on a fortnightly basis. You can then choose to convert this amount to a lump sum, or a combination of periodic payment and lump sum, depending on your degree of impairment. The decision to receive some or all of your compensation as a lump sum is final and cannot be reversed or altered later.

Single Review Pathway

What is the position for veterans submitting a claim for DRCA PI reassessment during the 12-month appeal period commencing 21 April 2025?

From 21 April 2025, the new review pathway commenced for determinations made under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA). As a result, any permanent impairment determination made under DRCA after this date can be reviewed by the Veterans’ Review Board (VRB) within 12 months of the date of the determination. This new review pathway has no impact on a veteran’s right to make further primary claims for permanent impairment compensation for an increased degree of impairment as a result of their service-related condition under the DRCA within that appeal period. 
Additionally, where no application for review to the VRB has been made, a veteran can still lodge a new claim for compensation under DRCA before that 12-month appeal period expires.

Veteran Gold Card

I currently have accepted conditions under the DRCA. Will I be able to obtain a Veteran Gold Card after 1 July 2026?

From 1 July 2026, veterans who were previously only covered under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA), who have high levels of impairment may, for the first time, be eligible for a Gold Card under the Military Rehabilitation and Compensation Act 2004 (MRCA). 

However, eligibility will require either:

• acceptance of a new claim for initial liability (i.e. newly accepted condition/s) under the MRCA, or
• for existing impairments to have worsened by at least five impairment points overall as a trigger for eligibility/assessment under the MRCA.

Will the Veteran Gold Card be asset tested?

Veterans under the age of 70 and in receipt of any amount of Service Pension are eligible for a Gold Card if they are receiving:

• the Disability Compensation Payment under the Veterans’ Entitlements Act 1986 (VEA) of 50% of the General Rate or higher, or
• have been assessed at 30 or more impairment points under the Military Rehabilitation and Compensation Act 2004 (MRCA), and
• their income and assets are below certain limits.

Where a person’s income and assets increase over the thresholds resulting in them no longer being eligible for the Service Pension, they will subsequently not meet the criteria for Gold Card eligibility.

Veterans 70 years or older with Qualifying Service will be issued a Gold Card automatically, regardless of the income and assets levels.

Similarly, veterans who meet other impairment thresholds (such as having 60 or more impairment points or have been eligible to choose the Special Rate Disability Pension under the MRCA) will also be able to receive the Gold Card without the income and assets tests being applied. These arrangements will continue unchanged from 1 July 2026.

Will my child get a Veteran Gold Card after commencement of the single ongoing Act?

Supports available for children and dependants under the Military Rehabilitation and Compensation Act 2004 (MRCA) from 1 July 2026 will remain unchanged. To be eligible for a Veteran Gold Card, an eligible young person must be a dependant of a deceased member who was wholly or mainly dependent on the member immediately before the member’s death.

A dependant is an ‘eligible young person’ if they are:

• under 16 years of age; or
• between 16 and 25 years, undertaking full-time education and are not in full-time employment or engaged in full-time work on his or her own account.

I am 75 with a white card. Under the new legislation does that entitle me to a Veteran Gold Card, as I am over 70?

The passage of the new legislation, the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025, does not change the criteria for the automatic grant of a Gold Card at age 70.
For the veteran to automatically receive a Gold Card at age 70 they must have rendered Qualifying Service, which is essentially service in a war or conflict. It will be provided automatically at age 70 if DVA is already aware that the person has rendered Qualifying Service. If a person has rendered Qualifying Service and they do not receive the card automatically as this has not yet been recognised or determined by DVA, they can lodge a claim for Qualifying Service so DVA can confirm their eligibility.  Qualifying Service claims can be lodged via MyService or through submitting DVA form D0506. More information on Qualifying Service can be found here: Qualifying service | Department of Veterans' Affairs.

In addition, the new Additional Disablement Amount (ADA) which will be provided under the improved Military Rehabilitation and Compensation Act 2004 (MRCA) after 1 July 2026, will provide a pathway for some veterans who are pension age and over to receive an automatic Gold Card. Eligibility for the ADA will be available to veterans who are:

• not in receipt of incapacity payments,
• not receiving the Special Rate Disability Pension (SRDP) under the MRCA, or the Extreme Disablement Adjustment (EDA) or Special Rate (TPI) of pension under the Veterans’ Entitlements Act 1986 (VEA),
• are pension age or older, and
• have an impairment rating of at least 70 points and a lifestyle rating of at least 6 under the MRCA  

The Gold Card is currently available at any age to veterans with certain defined high levels of accepted impairment arising from service covered under the VEA or the MRCA, regardless of whether the veteran has rendered Qualifying Service. From 1 July 2026, veterans who are currently not eligible for the Gold Card may gain potential eligibility to this entitlement if they meet relevant criteria, such as being eligible for the SRDP or being assessed at 60 or more impairment points under the MRCA. In addition, the changed coverage may result in access to a broader range of benefits and compensation compared with the legislative arrangements that now apply to service within Australia prior to 2004.

The legislation

Why is the start date of the single Act model 1 July 2026? 

We want to allow enough time to fully inform the veteran community about the changes and to ensure veterans have time to consider their individual circumstances before deciding whether to submit a claim under the current arrangements or when the new model starts. It is also important to allow enough time for us to train veteran advocates and DVA staff (delegates). 

What is the cost of the proposed legislative reforms? 

The Government has committed an additional $222 million for veteran and family entitlements across the first 2 years from commencement of the improved MRCA. This is on top of the $40.1 million provided to DVA to implement the reforms.

When will training be provided to advocates on the new legislation?

Advocates are already provided with training relating to the MRCA. Additional training will focus on the improvements to the MRCA and how compensation currently or previously received for VEA and/or DRCA accepted conditions would affect a new claim. 

DVA will provide training to advocates well before commencement of the new arrangements. This will ensure advocates can advise clients of their options prior to commencement.

Do the legislative changes result in any changes to veteran eligibility for an honour or award?

 There will be no changes to the honours and awards system. For further information about the process for honours and awards please visit the Department of Defence website at: Honours and awards | ADF Members & Families | Defence

What does this mean for veterans and families?

What does the term ‘grandparenting’ mean?

Entitlements being received under the VEA and/or the DRCA before the commencement date will continue uninterrupted and will be indexed annually.

What happens if I submit my claim before the commencement date but it is determined after the commencement date?

All claims received before the commencement date will be determined under the current tri-Act system. This includes claims that have not been determined by the commencement date. Only those claims received on or after the commencement date will be determined under the improved MRCA.

What happens to existing benefits under the VEA and DRCA?

Existing benefits being received under the VEA or DRCA at the date of commencement will continue to be paid, meaning any benefits already being received will not be stopped or reduced.

Any subsequent claims from the commencement date (including claims for worsening of pre-existing conditions) will be considered under the MRCA.

Are there any veterans or families who will be disadvantaged under the proposed legislation?

No veterans or family members will experience a reduction in the payments they are already receiving. The VETS Act will facilitate veterans’ eligibility for a range of benefits available under the improved MRCA, even if their service is currently covered by the VEA or DRCA. 

Currently, differences between the Acts can lead to inconsistent outcomes for veterans and families experiencing similar circumstances. The Government is confident that the package of benefits under the new system will be more beneficial to the veteran community overall and will be fairer and more consistent than the current tri-Act system. 

How do I know whether to submit a claim before or after the new system takes effect?

There are a variety of scenarios/case studies on the DVA website that demonstrate the impact of the reforms in various situations. These are designed to highlight the various aspects of the changes and how they may affect individuals.

While it is possible that no single scenario will cover your unique circumstances, reviewing these scenarios should provide you with an indication of how these changes could affect you. 

I was planning to claim a condition/deterioration of a condition under the VEA or the DRCA. Should I hold off until the new single Act commences?

This will be a matter of personal choice as everybody’s personal circumstances will differ. There are a range of scenarios/case studies on the DVA website which demonstrate how the proposed reforms would affect people in different circumstances.

Because the new model won’t take effect until 1 July 2026, you have time to decide whether to lodge a claim under the existing Act(s) prior to commencement of the new model. During this period, you may wish to seek further information from ex-service organisations or DVA.