Key points

• The MRCA contains provisions that recover and bar compensation under the MRCA, where a veteran or dependant successfully recovers damages from third parties (other than the Commonwealth), for the same cause of action or service death,
• A cause of action will be the same cause of action as a damages award, if it is the same condition arising from the same causal events, or the same service death, in the case of dependants,
• Compensation under the MRCA includes incapacity payments, permanent impairment, medical treatment and household services,
• The Commonwealth can choose to instigate or take over a claim against a third party in relation to a cause of action that is compensable under the MRCA,
• All common law action against third parties (other than the Commonwealth) can affect compensation payable under the MRCA (including treatment eligibility) for the same cause of action or same service death:
  • It is for this reason that all veterans and dependants should be informed of the impacts of the choice to pursue a claim at common law on any applicable compensation payments,
• Actions for damages against third parties (other than the Commonwealth) are not restricted, insofar as damages can be pursued for all aspects of the cause of action (i.e. in the case of veterans, is not restricted to just non-economic loss damages).

Damages received from 1 July 2026 - key points

• From 1 July 2026, the MRCA compensation recovery and barring provisions (in sections 401 and 402) may apply to veterans covered formerly under the old VEA or the old DRCA, in specific scenarios. Amendments to the legislation mean that if a MRCA compensation offsetting provision applies, the analogous provisions under the VEA or the DRCA cannot apply (i.e. to avoid double offsets under the Acts):
  • VEA
    • Where a veteran receiving a VEA DCP recovers damages from a third party (other than the Commonwealth) after 1 July 2026 for the same cause of action, the MRCA will recover the VEA DCP for the same cause of action,
    • Section 93 of the VEA remains open to recover medical treatment paid under the VEA for the same condition,
    • Compensation under the MRCA is also barred for the same cause of action.
  • DRCA
    • Where a veteran who has received DRCA compensation recovers damages from a third party (other than the Commonwealth) after 1 July 2026 for the same cause of action, the MRCA will recover the DRCA compensation (permanent impairment, incapacity payments, etc.) for the same cause of action.
    • Compensation under the MRCA is also barred for the same cause of action.
  • Dependants
    • The MRCA recovers dependant compensation under the DRCA or the VEA, when a dependant recovers damages from a third party (other than the Commonwealth) after 1 July 2026, for the same service death. This means the MRCA may recover:
      • Any dependant compensation under the DRCA, and
      • Any War Widow(er)s Pension and Orphan's Pension under the VEA.

Note: Delegates are required to carefully consider claim settlement documents to identify who chose to take common law action and who recovered damages. Only the person who recovered damages will be impacted by the MRCA compensation recovery and barring provisions.

Comparison Table

Key points

• The MRCA contains provisions that recover and bar compensation under the MRCA, where a veteran or dependant successfully recovers damages from third parties (other than the Commonwealth), for the same cause of action or service death,
• A cause of action will be the same cause of action as a damages award, if it is the same condition arising from the same causal events, or the same service death, in the case of dependants,
• Compensation under the MRCA includes incapacity payments, permanent impairment, medical treatment and household services,
• The Commonwealth can choose to instigate or take over a claim against a third party in relation to a cause of action that is compensable under the MRCA,
• All common law action against third parties (other than the Commonwealth) can affect compensation payable under the MRCA (including treatment eligibility) for the same cause of action or same service death:
  • It is for this reason that all veterans and dependants should be informed of the impacts of the choice to pursue a claim at common law on any applicable compensation payments,
• Actions for damages against third parties (other than the Commonwealth) are not restricted, insofar as damages can be pursued for all aspects of the cause of action (i.e. in the case of veterans, is not restricted to just non-economic loss damages).

Damages received from 1 July 2026 - key points

• From 1 July 2026, the MRCA compensation recovery and barring provisions (in sections 401 and 402) may apply to veterans covered formerly under the old VEA or the old DRCA, in specific scenarios. Amendments to the legislation mean that if a MRCA compensation offsetting provision applies, the analogous provisions under the VEA or the DRCA cannot apply (i.e. to avoid double offsets under the Acts):
  • VEA
    • Where a veteran receiving a VEA DCP recovers damages from a third party (other than the Commonwealth) after 1 July 2026 for the same cause of action, the MRCA will recover the VEA DCP for the same cause of action,
    • Section 93 of the VEA remains open to recover medical treatment paid under the VEA for the same condition,
    • Compensation under the MRCA is also barred for the same cause of action.
  • DRCA
    • Where a veteran who has received DRCA compensation recovers damages from a third party (other than the Commonwealth) after 1 July 2026 for the same cause of action, the MRCA will recover the DRCA compensation (permanent impairment, incapacity payments, etc.) for the same cause of action.
    • Compensation under the MRCA is also barred for the same cause of action.
  • Dependants
    • The MRCA recovers dependant compensation under the DRCA or the VEA, when a dependant recovers damages from a third party (other than the Commonwealth) after 1 July 2026, for the same service death. This means the MRCA may recover:
      • Any dependant compensation under the DRCA, and
      • Any War Widow(er)s Pension and Orphan's Pension under the VEA.

Note: Delegates are required to carefully consider claim settlement documents to identify who chose to take common law action and who recovered damages. Only the person who recovered damages will be impacted by the MRCA compensation recovery and barring provisions.

Comparison Table

Key points

• The MRCA contains provisions that recover and bar compensation under the MRCA, where a veteran or dependant successfully recovers damages from third parties (other than the Commonwealth), for the same cause of action or service death,
• A cause of action will be the same cause of action as a damages award, if it is the same condition arising from the same causal events, or the same service death, in the case of dependants,
• Compensation under the MRCA includes incapacity payments, permanent impairment, medical treatment and household services,
• The Commonwealth can choose to instigate or take over a claim against a third party in relation to a cause of action that is compensable under the MRCA,
• All common law action against third parties (other than the Commonwealth) can affect compensation payable under the MRCA (including treatment eligibility) for the same cause of action or same service death:
  • It is for this reason that all veterans and dependants should be informed of the impacts of the choice to pursue a claim at common law on any applicable compensation payments,
• Actions for damages against third parties (other than the Commonwealth) are not restricted, insofar as damages can be pursued for all aspects of the cause of action (i.e. in the case of veterans, is not restricted to just non-economic loss damages).

Damages received from 1 July 2026 - key points

• From 1 July 2026, the MRCA compensation recovery and barring provisions (in sections 401 and 402) may apply to veterans covered formerly under the old VEA or the old DRCA, in specific scenarios. Amendments to the legislation mean that if a MRCA compensation offsetting provision applies, the analogous provisions under the VEA or the DRCA cannot apply (i.e. to avoid double offsets under the Acts):
  • VEA
    • Where a veteran receiving a VEA DCP recovers damages from a third party (other than the Commonwealth) after 1 July 2026 for the same cause of action, the MRCA will recover the VEA DCP for the same cause of action,
    • Section 93 of the VEA remains open to recover medical treatment paid under the VEA for the same condition,
    • Compensation under the MRCA is also barred for the same cause of action.
  • DRCA
    • Where a veteran who has received DRCA compensation recovers damages from a third party (other than the Commonwealth) after 1 July 2026 for the same cause of action, the MRCA will recover the DRCA compensation (permanent impairment, incapacity payments, etc.) for the same cause of action.
    • Compensation under the MRCA is also barred for the same cause of action.
  • Dependants
    • The MRCA recovers dependant compensation under the DRCA or the VEA, when a dependant recovers damages from a third party (other than the Commonwealth) after 1 July 2026, for the same service death. This means the MRCA may recover:
      • Any dependant compensation under the DRCA, and
      • Any War Widow(er)s Pension and Orphan's Pension under the VEA.

Note: Delegates are required to carefully consider claim settlement documents to identify who chose to take common law action and who recovered damages. Only the person who recovered damages will be impacted by the MRCA compensation recovery and barring provisions.

Comparison Table

Key points

• The MRCA contains provisions that recover and bar compensation under the MRCA, where a veteran or dependant successfully recovers damages from third parties (other than the Commonwealth), for the same cause of action or service death,
• A cause of action will be the same cause of action as a damages award, if it is the same condition arising from the same causal events, or the same service death, in the case of dependants,
• Compensation under the MRCA includes incapacity payments, permanent impairment, medical treatment and household services,
• The Commonwealth can choose to instigate or take over a claim against a third party in relation to a cause of action that is compensable under the MRCA,
• All common law action against third parties (other than the Commonwealth) can affect compensation payable under the MRCA (including treatment eligibility) for the same cause of action or same service death:
  • It is for this reason that all veterans and dependants should be informed of the impacts of the choice to pursue a claim at common law on any applicable compensation payments,
• Actions for damages against third parties (other than the Commonwealth) are not restricted, insofar as damages can be pursued for all aspects of the cause of action (i.e. in the case of veterans, is not restricted to just non-economic loss damages).

Damages received from 1 July 2026 - key points

• From 1 July 2026, the MRCA compensation recovery and barring provisions (in sections 401 and 402) may apply to veterans covered formerly under the old VEA or the old DRCA, in specific scenarios. Amendments to the legislation mean that if a MRCA compensation offsetting provision applies, the analogous provisions under the VEA or the DRCA cannot apply (i.e. to avoid double offsets under the Acts):
  • VEA
    • Where a veteran receiving a VEA DCP recovers damages from a third party (other than the Commonwealth) after 1 July 2026 for the same cause of action, the MRCA will recover the VEA DCP for the same cause of action,
    • Section 93 of the VEA remains open to recover medical treatment paid under the VEA for the same condition,
    • Compensation under the MRCA is also barred for the same cause of action.
  • DRCA
    • Where a veteran who has received DRCA compensation recovers damages from a third party (other than the Commonwealth) after 1 July 2026 for the same cause of action, the MRCA will recover the DRCA compensation (permanent impairment, incapacity payments, etc.) for the same cause of action.
    • Compensation under the MRCA is also barred for the same cause of action.
  • Dependants
    • The MRCA recovers dependant compensation under the DRCA or the VEA, when a dependant recovers damages from a third party (other than the Commonwealth) after 1 July 2026, for the same service death. This means the MRCA may recover:
      • Any dependant compensation under the DRCA, and
      • Any War Widow(er)s Pension and Orphan's Pension under the VEA.

Note: Delegates are required to carefully consider claim settlement documents to identify who chose to take common law action and who recovered damages. Only the person who recovered damages will be impacted by the MRCA compensation recovery and barring provisions.

Comparison Table