1.1 Purpose of the MRCA

The Military Rehabilitation and Compensation Act 2004 (MRCA) provides treatment, rehabilitation and compensation for members and former members of the Australian Defence Force (ADF), their dependants and other eligible persons in respect of injury, disease or death related to service. The MRCA also sets out governance, administration and reporting requirements.

A primary aim of this legislation is rehabilitation for ADF members and former members whose capacity for work is affected by conditions that have been accepted as related to their service. 

Prior to this legislation being introduced on 1 July 2004, ADF members were subject to two compensation Acts, depending on their time and type of service. They were the Veterans' Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA).

However, changes which commenced on 1 July 2026 resulted in the VEA and the DRCA being closed to new compensation claims and the MRCA becoming the single Act providing coverage for compensation and rehabilitation, irrespective of when (or where) an individual served or when they were injured or became ill.

Claims received prior to 1 July 2026 will continue to be considered under the legislation which the claim(s) was submitted. 

Note that claims for income support payments under the VEA (including Veteran Payment, Service Pension, Partner Service Pension and Income Support Supplement) were not impacted by commencement of the new arrangements.

Entitlements established under the VEA and DRCA prior to 1 July 2026 were also retained under ‘grandparenting’ arrangements. 

The MRCA is designed to create a fair and equitable compensation system recognising the needs of serving members of the ADF as well as eligible former members and their dependants. The MRCA adopts the beneficial 'beyond reasonable doubt' standard of proof for determining whether an injury, disease or death relating to warlike or non-warlike service is a service injury, disease or death. The 'reasonable satisfaction' standard of proof applies when determining whether an injury, disease or death relating to peacetime service is a service injury, disease or death and for all other determinations under MRCA. In most cases it utilises the Statements of Principles (SOPs) in linking injury, disease or death with service. Where an individual’s service aggravates a pre-existing condition, and the cause of the aggravation satisfies a SOP factor, compensation can be provided to the extent of the aggravation.

The actual financial benefits for permanent impairment arising from warlike or non-warlike service are higher than those arising from peacetime service except for the most serious impairment and for service-related deaths, where the same compensation benefits are payable.

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-1-introduction/11-purpose-mrca

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1.1.1 Commencement

The Military Rehabilitation and Compensation Act 2004 (MRCA) provides treatment, rehabilitation and compensation for members and former members of the Australian Defence Force (ADF), their dependants and other eligible persons in respect of injury, disease or death related to service. The MRCA also sets out governance, administration and reporting requirements.

A primary aim of this legislation is rehabilitation for ADF members and former members whose capacity for work is affected by conditions that have been accepted as related to their service. 

Prior to this legislation being introduced on 1 July 2004, ADF members were subject to two compensation Acts, depending on their time and type of service. They were the Veterans' Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA).

However, changes which commenced on 1 July 2026 resulted in the VEA and the DRCA being closed to new compensation claims and the MRCA becoming the single Act providing coverage for compensation and rehabilitation, irrespective of when (or where) an individual served or when they were injured or became ill.

Claims received prior to 1 July 2026 will continue to be considered under the legislation which the claim(s) was submitted. 

Note that claims for income support payments under the VEA (including Veteran Payment, Service Pension, Partner Service Pension and Income Support Supplement) were not impacted by commencement of the new arrangements.

Entitlements established under the VEA and DRCA prior to 1 July 2026 were also retained under ‘grandparenting’ arrangements. 

The MRCA is designed to create a fair and equitable compensation system recognising the needs of serving members of the ADF as well as eligible former members and their dependants. The MRCA adopts the beneficial 'beyond reasonable doubt' standard of proof for determining whether an injury, disease or death relating to warlike or non-warlike service is a service injury, disease or death. The 'reasonable satisfaction' standard of proof applies when determining whether an injury, disease or death relating to peacetime service is a service injury, disease or death and for all other determinations under MRCA. In most cases it utilises the Statements of Principles (SOPs) in linking injury, disease or death with service. Where an individual’s service aggravates a pre-existing condition, and the cause of the aggravation satisfies a SOP factor, compensation can be provided to the extent of the aggravation.

The actual financial benefits for permanent impairment arising from warlike or non-warlike service are higher than those arising from peacetime service except for the most serious impairment and for service-related deaths, where the same compensation benefits are payable.

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-1-introduction/11-purpose-mrca/111-commencement

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1.1.2 Governance and Administration of the MRCA

The Military Rehabilitation and Compensation Act 2004 (MRCA) provides treatment, rehabilitation and compensation for members and former members of the Australian Defence Force (ADF), their dependants and other eligible persons in respect of injury, disease or death related to service. The MRCA also sets out governance, administration and reporting requirements.

A primary aim of this legislation is rehabilitation for ADF members and former members whose capacity for work is affected by conditions that have been accepted as related to their service. 

Prior to this legislation being introduced on 1 July 2004, ADF members were subject to two compensation Acts, depending on their time and type of service. They were the Veterans' Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA).

However, changes which commenced on 1 July 2026 resulted in the VEA and the DRCA being closed to new compensation claims and the MRCA becoming the single Act providing coverage for compensation and rehabilitation, irrespective of when (or where) an individual served or when they were injured or became ill.

Claims received prior to 1 July 2026 will continue to be considered under the legislation which the claim(s) was submitted. 

Note that claims for income support payments under the VEA (including Veteran Payment, Service Pension, Partner Service Pension and Income Support Supplement) were not impacted by commencement of the new arrangements.

Entitlements established under the VEA and DRCA prior to 1 July 2026 were also retained under ‘grandparenting’ arrangements. 

The MRCA is designed to create a fair and equitable compensation system recognising the needs of serving members of the ADF as well as eligible former members and their dependants. The MRCA adopts the beneficial 'beyond reasonable doubt' standard of proof for determining whether an injury, disease or death relating to warlike or non-warlike service is a service injury, disease or death. The 'reasonable satisfaction' standard of proof applies when determining whether an injury, disease or death relating to peacetime service is a service injury, disease or death and for all other determinations under MRCA. In most cases it utilises the Statements of Principles (SOPs) in linking injury, disease or death with service. Where an individual’s service aggravates a pre-existing condition, and the cause of the aggravation satisfies a SOP factor, compensation can be provided to the extent of the aggravation.

The actual financial benefits for permanent impairment arising from warlike or non-warlike service are higher than those arising from peacetime service except for the most serious impairment and for service-related deaths, where the same compensation benefits are payable.

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-1-introduction/11-purpose-mrca/112-governance-and-administration-mrca

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1.1.3 DVA Structure

The Military Rehabilitation and Compensation Act 2004 (MRCA) provides treatment, rehabilitation and compensation for members and former members of the Australian Defence Force (ADF), their dependants and other eligible persons in respect of injury, disease or death related to service. The MRCA also sets out governance, administration and reporting requirements.

A primary aim of this legislation is rehabilitation for ADF members and former members whose capacity for work is affected by conditions that have been accepted as related to their service. 

Prior to this legislation being introduced on 1 July 2004, ADF members were subject to two compensation Acts, depending on their time and type of service. They were the Veterans' Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA).

However, changes which commenced on 1 July 2026 resulted in the VEA and the DRCA being closed to new compensation claims and the MRCA becoming the single Act providing coverage for compensation and rehabilitation, irrespective of when (or where) an individual served or when they were injured or became ill.

Claims received prior to 1 July 2026 will continue to be considered under the legislation which the claim(s) was submitted. 

Note that claims for income support payments under the VEA (including Veteran Payment, Service Pension, Partner Service Pension and Income Support Supplement) were not impacted by commencement of the new arrangements.

Entitlements established under the VEA and DRCA prior to 1 July 2026 were also retained under ‘grandparenting’ arrangements. 

The MRCA is designed to create a fair and equitable compensation system recognising the needs of serving members of the ADF as well as eligible former members and their dependants. The MRCA adopts the beneficial 'beyond reasonable doubt' standard of proof for determining whether an injury, disease or death relating to warlike or non-warlike service is a service injury, disease or death. The 'reasonable satisfaction' standard of proof applies when determining whether an injury, disease or death relating to peacetime service is a service injury, disease or death and for all other determinations under MRCA. In most cases it utilises the Statements of Principles (SOPs) in linking injury, disease or death with service. Where an individual’s service aggravates a pre-existing condition, and the cause of the aggravation satisfies a SOP factor, compensation can be provided to the extent of the aggravation.

The actual financial benefits for permanent impairment arising from warlike or non-warlike service are higher than those arising from peacetime service except for the most serious impairment and for service-related deaths, where the same compensation benefits are payable.

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-1-introduction/11-purpose-mrca/113-dva-structure

Last amended