Understanding DVA’s upcoming legislation changes

DVA is implementing legislative reforms through the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2024 (VETS Act).  

These changes aim to simplify and harmonise veterans’ legislation, creating a more effective, single system that improves support for veterans and their families. 

What is changing? 

From 1 July 2026, all new compensation claims will be processed under an enhanced Military Rehabilitation and Compensation Act (MRCA).  

The Veterans’ Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) will close to new claims. 

Will my current payments continue?  

Existing payments under the VEA and DRCA – excluding DRCA incapacity and Veterans' Children Education Scheme (VCES) payments – will be grandfathered, continuing uninterrupted, and indexed as usual. 

Veterans receiving DRCA incapacity payments will automatically transition to higher MRCA incapacity payments.  

Children of DRCA veterans may become eligible under the MRCA Education and Training Scheme (MRCAETS), with VCES recipients transitioning to MRCAETS from 1 July 2026. 

Do I need to do anything right now? 

Not necessarily. If you submitted a claim before the commencement date of 1 July 2026 that hasn’t been determined yet, it will be determined under the current tri-Act system. Only those claims received on or after the commencement date will be determined under the improved MRCA. 

What other improvements are included? 

The VETS Act will see the MRCA enhanced for various entitlements 

• A new Additional Disablement Amount (ADA), similar to the Extreme Disablement Adjustment (EDA), will also be introduced.  

• Funeral-related improvements include retaining automatic VEA funeral benefits and increasing funeral allowances and reimbursement for all service-related deaths. 

• The reforms expand access and entitlements in several areas.  

• The Repatriation Commission will gain the ability to prescribe certain conditions under presumptive liability arrangements – or rules that make it easier for some conditions to be accepted as related to service.  

• The definition of service injury has been broadened to include “medical events on duty,” such as heart attacks or strokes occurring while on duty. 

• Posthumous permanent impairment provisions will allow age-based lump-sum payments (excluding lifestyle components) to be made to a veteran’s estate where a claim was lodged prior to death.  

• The additional compensation for children of severely impaired veterans will be paid to the primary carer of the eligible child; or appropriately apportioned between primary carers. 

Other improvements include empowering the Repatriation Commission to require financial advice for vulnerable veterans prior to compensation payments, and increasing travel reimbursement for treatment under MRCA rates, with removal of the 50 km minimum threshold. 

Veterans and their families are encouraged to visit the DVA website for further details regarding the veterans’ legislation changes, with an information booklet now available.