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16 Step-up to incapacity payments for veterans studying

Last amended 
19 September 2018

How incapacity payments are normally calculated

Incapacity payments are economic loss compensation payments for a loss of earnings as a result of a service-related physical or mental health condition. Typically incapacity payments “step down” to 75 per cent (or a higher percentage depending on hours worked) of pre-injury earnings after a period of 45 weeks in payment. 

What will this measure mean for veterans studying?

This measure will provide an eligible former member of the Australian Defence Force with incapacity payments based on 100% of their normal earnings, where that member is engaged in a DVA rehabilitation program and, as part of that program, is undertaking full-time study to assist them in securing ongoing suitable and sustainable employment after their ADF service. This measure is applicable under both the DRCA and MRCA.

This is a pilot program that will be running from 1 November 2018 to 30 June 2022.


A person may be eligible if they are:

  • currently participating in a DVA rehabilitation program;
  • participating in a full-time course of study approved as part of their rehabilitation plan; and
  • are eligible to receive incapacity payments.

Clients are expected to maintain compliance with their rehabilitation program, including studying full-time, to remain eligible to be stepped up. Clients will need to continue to meet required benchmarks for study units and complete the course of study within a pre-agreed timeframe.