5.2 Entitlement to Permanent Impairment Compensation
Under sections 68 and 71 of the MRCA, permanent impairment (PI) compensation is payable when certain eligibility criteria are met, including where:
- liability has been accepted for one or more conditions under the MRCA; or
- conditions are taken to have been accepted under the MRCA from 1 July 2026 by way of section 24A (because they were accepted under the old DRCA or the old VEA).
Delegates should refer to Chapters 5.2.1 to 5.2.4 of the MRCA PI Policy Manual for more information about the required degrees of impairment under sections 68 and 71, as well as the permanency and stability requirements of impairment and conditions.
Under the MRCA, PI is assessed based on a whole-body assessment of all service-related conditions combined. Whilst there is nothing preventing veterans from making initial liability claims under the MRCA for as many conditions as they wish (and whenever they wish), the MRCA does contain provisions serving to prevent the frustration of the MRCA PI whole-body assessment. These provisions prevent successive MRCA PI claims for the same matter, or until the matter is finally determined, which is usually when the veteran has exhausted all avenue of appeal, or the appeal period has expired.
The policy in this Chapter discusses this in more detail and provides delegates with guidance on when they can proceed to undertake a MRCA PI assessment and baseline impairment rating, following major reforms to veteran’s portfolio legislation brought about by the VETS Act on 1 July 2026.
No new claim before earlier claim finally determined
Key points
- The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter.
- In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
- From 1 July 2026, the MRCA is amended to extend the prohibition on making successive claims (within same matter periods) to veterans with conditions under the old DRCA or the old VEA, where claims for those conditions are not yet finally determined:
- These amendments assist to facilitate the determination of claims under the improved MRCA, as the single, ongoing Act from 1 July 2026; and
- Ensure the correct baseline impairment rating can be assessed and determined under Chapter 26 of the GARP M 2026, following a MRCA PI claim from 1 July 2026.
- The new provisions from 1 July 2026 for veterans with conditions under the old DRCA or the old VEA, do not prevent valid MRCA PI claims for a different matter.
- Before proceeding to a MRCA PI assessment and baseline impairment rating process, delegates should consider whether all claims for conditions involved in the assessment are finally determined:
- If all are, then the baseline impairment rating under Chapter 26 of GARP M can proceed following a claim for MRCA PI compensation,
- If they are not, a MRCA PI claim may still be valid, but the baseline impairment rating process may not be able to proceed. This is discussed in more detail below.
When a claim for compensation under the MRCA is finally determined
Note: The policy in this section is broadly relevant to claims for MRCA PI compensation for veterans with conditions exclusively accepted under the MRCA and who do not have conditions that are taken to be accepted under the MRCA by way of section 24A (i.e. old DRCA conditions or old VEA conditions).
The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter. In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
A claim for MRCA PI compensation for this cohort of veterans is finally determined when:
- A determination in respect of PI compensation is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review has expired and the reconsideration or review was not sought.
Note: Delegates should be mindful that MRCA PI claims are determined using the whole of person methodology of all accepted MRCA conditions combined and all conditions involved in the MRCA PI assessment and determination cannot be reassessed during the same matter period, or before the claim is finally determined. This does not prevent PI claims during the same matter period for a different matter.
Example: A delegate determines on 1 January 2024 that a veteran is entitled to MRCA PI compensation under section 68 for MRCA accepted conditions, left shoulder and right ankle. On 30 March 2024, the veteran has a new MRCA condition accepted, adjustment disorder, and makes a subsequent MRCA PI claim on 4 April 2024 under section 71. The left shoulder and right ankle conditions are not yet finally determined so they cannot be reassessed, but this does not prevent the adjustment disorder from being assessed. The impairment ratings for the same matter left shoulder and right ankle conditions should be continued through to the new whole-body assessment including new points for adjustment disorder.
Note: On 1 July 2026, old DRCA or old VEA conditions became MRCA conditions, facilitated by the new s24A of the MRCA. Veterans with coverage only under the old DRCA or the old VEA on 1 July 2026 are not subject to the above policy, as they did not have a claim for MRCA PI compensation before the major legislative reform changes on 1 July 2026. For veterans with MRCA PI compensation claims before 1 July 2026 which included conditions accepted under the old DRCA or the old VEA (commonly referred to as dual or tri-Act veterans), as well as old DRCA or old VEA exclusive veterans, the following policy below will more appropriately apply.
When a claim under the old DRCA or old VEA is finally determined
Note: The policy in this section is relevant to claims for MRCA PI compensation from 1 July 2026 for veterans with conditions accepted under the old DRCA and old VEA that became MRCA accepted conditions on 1 July 2026 by way of section 24A. Delegates should also note that the finally determined concept is new on 1 July 2026 for this cohort of veterans, as it did not exist under the old DRCA. Finally determined in the MRCA context specifically assists to facilitate the transition to the MRCA as the single, ongoing Act on 1 July 2026.
On 1 July 2026, the old DRCA and the old VEA closed to new claims. Veterans with conditions accepted under the old DRCA and the old VEA can claim PI compensation under the MRCA for any worsening in impairment levels. However, a claim for PI compensation under the MRCA for this cohort of veterans cannot be made in respect of an old DRCA or old VEA condition until the claim under the old DRCA or old VEA is finally determined. Where there are other claims for old DRCA or old VEA conditions that are finally determined, a valid MRCA PI compensation claim can be made in respect of those conditions. However, the assessment of the MRCA PI claim under the whole-body assessment model (including the baseline impairment rating calculation) is subject to further discussion and a proviso, as expanded on below.
A claim under the old DRCA or the old VEA for this cohort of veterans is finally determined when:
- A determination in respect of claim for a condition under the old DRCA or the old VEA is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review for the claim for the condition under the old DRCA or the old VEA has expired and the reconsideration or review was not sought.
Depending on a veteran’s individual situation, it may be necessary for delegates to consider simultaneously when both their MRCA PI compensation claim became finally determined, and their claims under the old DRCA or old VEA became finally determined, if before 1 July 2026 they were considered MRCA ‘dual-Act’ or MRCA ‘tri-Act’. This is because when a MRCA PI claim is determined, impairment points from conditions under the old DRCA or the old VEA are included in the MRCA PI assessment.
Note: Delegates should be mindful that neither the old DRCA nor the old VEA splits liability and PI/DCP claims into separate steps like the MRCA. A claim under the old DRCA or the old VEA is a reference to a ‘claim for compensation/pension’. This means that where liability is accepted, the permanent impairment (old DRCA) or Disability Compensation Payment (old VEA) is automatically looked at to determine whether it is payable. Policy acknowledges that administratively, the two steps are split in the ICT system and there are different medical assessment forms for the two steps, creating a perception that there are separate steps/claims. However legislatively, there is no distinction.
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for lumbar spondylosis on 30 June 2024. On 1 August 2025, PI compensation was determined and subsequently paid. The claim for lumbar spondylosis under the old DRCA will not be considered finally determined (in the MRCA context) until the DRCA PI decision on 1 August 2025 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis (in the MRCA context) became finally determined on 1 August 2026.
Example: A former ‘dual-Act’ veteran with accepted conditions under the MRCA and the old DRCA had MRCA PI compensation determined on 30 May 2025, as well as old DRCA PI compensation determined on 20 June 2026. The delegate must have regard to when both the MRCA PI compensation claim is finally determined and when the old DRCA claim is finally determined. If the time for reconsideration or review expires and no reconsideration or review is sought, both claims will be finally determined 12-months after the respective determinations. It is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating from 20 June 2027, when all claims are finally determined.
Old DRCA claims specific policy
Veterans who have liability accepted for a condition under the old DRCA after 1 July 2026, can proceed to an old DRCA PI assessment after 1 July 2026, if there is a positive indication from the veteran that they wish to be assessed. This indication may come via various channels including MyService, email, Needs Assessment, etc.
Note: The old DRCA claim for this condition will not be considered finally determined until the PI is assessed and determined, and the decision is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). This happens organically 12-months post the PI determination (subject to any reconsideration or review action).
What if old DRCA PI compensation is not being sought or is requested to be discontinued?
Veterans are not required to proceed with an old DRCA PI assessment; this is completely at their discretion. There may be instances where this cohort of veterans wish to transition to the MRCA sooner for the purpose of being assessed for ancillary benefits, like the Gold Card, for example.
If veterans positively indicate they do not wish to proceed to an old DRCA PI assessment or wish to discontinue an in train old DRCA PI assessment, they can do so.
Note: In this situation, the claim for the old DRCA condition will not be considered finally determined until the decision about liability is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for knee osteoarthritis on 30 June 2026. On 1 July 2026, the veteran undertook a needs assessment and stated they did not wish to be assessed for old DRCA PI (it is open to them to do so). The claim for lumbar spondylosis under the old DRCA will not be considered finally determined until the liability decision made on 30 June 2026 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis is finally determined on 30 June 2027, at which time it is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating. Once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit the claim under the old DRCA.
Is there anything preventing MRCA PI claims for a different old DRCA or old VEA matter?
The provisions do not prevent a claim for MRCA PI compensation during the same matter period for a different old DRCA or old VEA matter. However, there are transitional and whole-body assessment issues (including in relation to the baseline impairment rating process) to be considered.
Delegates must turn their mind to the distinction between:
- A valid MRCA PI claim, and
- When it is appropriate to assess and determine the baseline impairment rating under Chapter 26 of the GARP M 2026, to address the valid MRCA PI claim.
There is a clear distinction between a valid MRCA PI claim and a claim that is ready to be assessed for the baseline impairment rating. Delegates should take care as to not confuse the two, as a MRCA PI claim can be both valid, and not ready to be assessed for the baseline impairment rating at the same time. Where this occurs, it may be appropriate to hold off on the baseline impairment rating process, until all claims under the old DRCA or the old VEA are finally determined. This is to ensure that the baseline impairment rating under the MRCA is applied correctly and accurately translates all impairment ratings under the old Acts (WPI for old DRCA and DCP for old VEA) to the starting degree of impairment for the MRCA context, as intended by the policy and described in Chapter 26 of the GARP M.
Example: Before 1 July 2026, a veteran previously covered exclusively under the old DRCA has two accepted conditions. The claim for one of the conditions (right knee) became finally determined on 1 January 2026. The claim for the other condition (left shoulder) is not finally determined until 30 January 2027. On 1 July 2026, the veteran makes a valid MRCA PI claim for the right knee condition. However, the delegate cannot assess the MRCA baseline impairment rating until 30 January 2027, when the left shoulder claim is finally determined. This is because the left shoulder must be included in the baseline impairment rating process and cannot be excluded.
When a valid MRCA PI claim can be made where there are old DRCA or old VEA conditions
Despite the closure of the old DRCA and the old VEA on 1 July 2026, in train or registered claims for compensation (liability and/or PI/DCP assessments) before 1 July 2026 can continue uninterrupted. In short, provided liability was claimed under the old DRCA or old VEA before 1 July 2026, there is nothing preventing the PI or DCP assessment occurring after 1 July 2026.
However, the MRCA baseline impairment rating process under Chapter 26 of GARP M cannot proceed until all claims under the old DRCA or the old VEA are no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
It is important to note that this does not prevent a valid MRCA PI claim being made for other old DRCA or old VEA conditions that have reached a finally determined state, and those valid MRCA PI claims should be registered. However, delegates will be required to delay the MRCA baseline impairment rating process (to ensure the outcome is correct) and discuss this delay with the veteran. Valid MRCA PI claims cannot be withdrawn unless with express approval from the veteran or their nominated representative.
Note: For the policy to work as it is intended, once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit claims under the old DRCA and the old VEA. This is why it is imperative that the baseline impairment rating process and MRCA PI determination is not undertaken until all old DRCA and old VEA claims are finally determined.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/52-entitlement-permanent-impairment-compensation
5.2.1 Required Degrees of Impairment
Under sections 68 and 71 of the MRCA, permanent impairment (PI) compensation is payable when certain eligibility criteria are met, including where:
- liability has been accepted for one or more conditions under the MRCA; or
- conditions are taken to have been accepted under the MRCA from 1 July 2026 by way of section 24A (because they were accepted under the old DRCA or the old VEA).
Delegates should refer to Chapters 5.2.1 to 5.2.4 of the MRCA PI Policy Manual for more information about the required degrees of impairment under sections 68 and 71, as well as the permanency and stability requirements of impairment and conditions.
Under the MRCA, PI is assessed based on a whole-body assessment of all service-related conditions combined. Whilst there is nothing preventing veterans from making initial liability claims under the MRCA for as many conditions as they wish (and whenever they wish), the MRCA does contain provisions serving to prevent the frustration of the MRCA PI whole-body assessment. These provisions prevent successive MRCA PI claims for the same matter, or until the matter is finally determined, which is usually when the veteran has exhausted all avenue of appeal, or the appeal period has expired.
The policy in this Chapter discusses this in more detail and provides delegates with guidance on when they can proceed to undertake a MRCA PI assessment and baseline impairment rating, following major reforms to veteran’s portfolio legislation brought about by the VETS Act on 1 July 2026.
No new claim before earlier claim finally determined
Key points
- The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter.
- In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
- From 1 July 2026, the MRCA is amended to extend the prohibition on making successive claims (within same matter periods) to veterans with conditions under the old DRCA or the old VEA, where claims for those conditions are not yet finally determined:
- These amendments assist to facilitate the determination of claims under the improved MRCA, as the single, ongoing Act from 1 July 2026; and
- Ensure the correct baseline impairment rating can be assessed and determined under Chapter 26 of the GARP M 2026, following a MRCA PI claim from 1 July 2026.
- The new provisions from 1 July 2026 for veterans with conditions under the old DRCA or the old VEA, do not prevent valid MRCA PI claims for a different matter.
- Before proceeding to a MRCA PI assessment and baseline impairment rating process, delegates should consider whether all claims for conditions involved in the assessment are finally determined:
- If all are, then the baseline impairment rating under Chapter 26 of GARP M can proceed following a claim for MRCA PI compensation,
- If they are not, a MRCA PI claim may still be valid, but the baseline impairment rating process may not be able to proceed. This is discussed in more detail below.
When a claim for compensation under the MRCA is finally determined
Note: The policy in this section is broadly relevant to claims for MRCA PI compensation for veterans with conditions exclusively accepted under the MRCA and who do not have conditions that are taken to be accepted under the MRCA by way of section 24A (i.e. old DRCA conditions or old VEA conditions).
The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter. In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
A claim for MRCA PI compensation for this cohort of veterans is finally determined when:
- A determination in respect of PI compensation is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review has expired and the reconsideration or review was not sought.
Note: Delegates should be mindful that MRCA PI claims are determined using the whole of person methodology of all accepted MRCA conditions combined and all conditions involved in the MRCA PI assessment and determination cannot be reassessed during the same matter period, or before the claim is finally determined. This does not prevent PI claims during the same matter period for a different matter.
Example: A delegate determines on 1 January 2024 that a veteran is entitled to MRCA PI compensation under section 68 for MRCA accepted conditions, left shoulder and right ankle. On 30 March 2024, the veteran has a new MRCA condition accepted, adjustment disorder, and makes a subsequent MRCA PI claim on 4 April 2024 under section 71. The left shoulder and right ankle conditions are not yet finally determined so they cannot be reassessed, but this does not prevent the adjustment disorder from being assessed. The impairment ratings for the same matter left shoulder and right ankle conditions should be continued through to the new whole-body assessment including new points for adjustment disorder.
Note: On 1 July 2026, old DRCA or old VEA conditions became MRCA conditions, facilitated by the new s24A of the MRCA. Veterans with coverage only under the old DRCA or the old VEA on 1 July 2026 are not subject to the above policy, as they did not have a claim for MRCA PI compensation before the major legislative reform changes on 1 July 2026. For veterans with MRCA PI compensation claims before 1 July 2026 which included conditions accepted under the old DRCA or the old VEA (commonly referred to as dual or tri-Act veterans), as well as old DRCA or old VEA exclusive veterans, the following policy below will more appropriately apply.
When a claim under the old DRCA or old VEA is finally determined
Note: The policy in this section is relevant to claims for MRCA PI compensation from 1 July 2026 for veterans with conditions accepted under the old DRCA and old VEA that became MRCA accepted conditions on 1 July 2026 by way of section 24A. Delegates should also note that the finally determined concept is new on 1 July 2026 for this cohort of veterans, as it did not exist under the old DRCA. Finally determined in the MRCA context specifically assists to facilitate the transition to the MRCA as the single, ongoing Act on 1 July 2026.
On 1 July 2026, the old DRCA and the old VEA closed to new claims. Veterans with conditions accepted under the old DRCA and the old VEA can claim PI compensation under the MRCA for any worsening in impairment levels. However, a claim for PI compensation under the MRCA for this cohort of veterans cannot be made in respect of an old DRCA or old VEA condition until the claim under the old DRCA or old VEA is finally determined. Where there are other claims for old DRCA or old VEA conditions that are finally determined, a valid MRCA PI compensation claim can be made in respect of those conditions. However, the assessment of the MRCA PI claim under the whole-body assessment model (including the baseline impairment rating calculation) is subject to further discussion and a proviso, as expanded on below.
A claim under the old DRCA or the old VEA for this cohort of veterans is finally determined when:
- A determination in respect of claim for a condition under the old DRCA or the old VEA is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review for the claim for the condition under the old DRCA or the old VEA has expired and the reconsideration or review was not sought.
Depending on a veteran’s individual situation, it may be necessary for delegates to consider simultaneously when both their MRCA PI compensation claim became finally determined, and their claims under the old DRCA or old VEA became finally determined, if before 1 July 2026 they were considered MRCA ‘dual-Act’ or MRCA ‘tri-Act’. This is because when a MRCA PI claim is determined, impairment points from conditions under the old DRCA or the old VEA are included in the MRCA PI assessment.
Note: Delegates should be mindful that neither the old DRCA nor the old VEA splits liability and PI/DCP claims into separate steps like the MRCA. A claim under the old DRCA or the old VEA is a reference to a ‘claim for compensation/pension’. This means that where liability is accepted, the permanent impairment (old DRCA) or Disability Compensation Payment (old VEA) is automatically looked at to determine whether it is payable. Policy acknowledges that administratively, the two steps are split in the ICT system and there are different medical assessment forms for the two steps, creating a perception that there are separate steps/claims. However legislatively, there is no distinction.
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for lumbar spondylosis on 30 June 2024. On 1 August 2025, PI compensation was determined and subsequently paid. The claim for lumbar spondylosis under the old DRCA will not be considered finally determined (in the MRCA context) until the DRCA PI decision on 1 August 2025 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis (in the MRCA context) became finally determined on 1 August 2026.
Example: A former ‘dual-Act’ veteran with accepted conditions under the MRCA and the old DRCA had MRCA PI compensation determined on 30 May 2025, as well as old DRCA PI compensation determined on 20 June 2026. The delegate must have regard to when both the MRCA PI compensation claim is finally determined and when the old DRCA claim is finally determined. If the time for reconsideration or review expires and no reconsideration or review is sought, both claims will be finally determined 12-months after the respective determinations. It is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating from 20 June 2027, when all claims are finally determined.
Old DRCA claims specific policy
Veterans who have liability accepted for a condition under the old DRCA after 1 July 2026, can proceed to an old DRCA PI assessment after 1 July 2026, if there is a positive indication from the veteran that they wish to be assessed. This indication may come via various channels including MyService, email, Needs Assessment, etc.
Note: The old DRCA claim for this condition will not be considered finally determined until the PI is assessed and determined, and the decision is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). This happens organically 12-months post the PI determination (subject to any reconsideration or review action).
What if old DRCA PI compensation is not being sought or is requested to be discontinued?
Veterans are not required to proceed with an old DRCA PI assessment; this is completely at their discretion. There may be instances where this cohort of veterans wish to transition to the MRCA sooner for the purpose of being assessed for ancillary benefits, like the Gold Card, for example.
If veterans positively indicate they do not wish to proceed to an old DRCA PI assessment or wish to discontinue an in train old DRCA PI assessment, they can do so.
Note: In this situation, the claim for the old DRCA condition will not be considered finally determined until the decision about liability is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for knee osteoarthritis on 30 June 2026. On 1 July 2026, the veteran undertook a needs assessment and stated they did not wish to be assessed for old DRCA PI (it is open to them to do so). The claim for lumbar spondylosis under the old DRCA will not be considered finally determined until the liability decision made on 30 June 2026 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis is finally determined on 30 June 2027, at which time it is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating. Once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit the claim under the old DRCA.
Is there anything preventing MRCA PI claims for a different old DRCA or old VEA matter?
The provisions do not prevent a claim for MRCA PI compensation during the same matter period for a different old DRCA or old VEA matter. However, there are transitional and whole-body assessment issues (including in relation to the baseline impairment rating process) to be considered.
Delegates must turn their mind to the distinction between:
- A valid MRCA PI claim, and
- When it is appropriate to assess and determine the baseline impairment rating under Chapter 26 of the GARP M 2026, to address the valid MRCA PI claim.
There is a clear distinction between a valid MRCA PI claim and a claim that is ready to be assessed for the baseline impairment rating. Delegates should take care as to not confuse the two, as a MRCA PI claim can be both valid, and not ready to be assessed for the baseline impairment rating at the same time. Where this occurs, it may be appropriate to hold off on the baseline impairment rating process, until all claims under the old DRCA or the old VEA are finally determined. This is to ensure that the baseline impairment rating under the MRCA is applied correctly and accurately translates all impairment ratings under the old Acts (WPI for old DRCA and DCP for old VEA) to the starting degree of impairment for the MRCA context, as intended by the policy and described in Chapter 26 of the GARP M.
Example: Before 1 July 2026, a veteran previously covered exclusively under the old DRCA has two accepted conditions. The claim for one of the conditions (right knee) became finally determined on 1 January 2026. The claim for the other condition (left shoulder) is not finally determined until 30 January 2027. On 1 July 2026, the veteran makes a valid MRCA PI claim for the right knee condition. However, the delegate cannot assess the MRCA baseline impairment rating until 30 January 2027, when the left shoulder claim is finally determined. This is because the left shoulder must be included in the baseline impairment rating process and cannot be excluded.
When a valid MRCA PI claim can be made where there are old DRCA or old VEA conditions
Despite the closure of the old DRCA and the old VEA on 1 July 2026, in train or registered claims for compensation (liability and/or PI/DCP assessments) before 1 July 2026 can continue uninterrupted. In short, provided liability was claimed under the old DRCA or old VEA before 1 July 2026, there is nothing preventing the PI or DCP assessment occurring after 1 July 2026.
However, the MRCA baseline impairment rating process under Chapter 26 of GARP M cannot proceed until all claims under the old DRCA or the old VEA are no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
It is important to note that this does not prevent a valid MRCA PI claim being made for other old DRCA or old VEA conditions that have reached a finally determined state, and those valid MRCA PI claims should be registered. However, delegates will be required to delay the MRCA baseline impairment rating process (to ensure the outcome is correct) and discuss this delay with the veteran. Valid MRCA PI claims cannot be withdrawn unless with express approval from the veteran or their nominated representative.
Note: For the policy to work as it is intended, once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit claims under the old DRCA and the old VEA. This is why it is imperative that the baseline impairment rating process and MRCA PI determination is not undertaken until all old DRCA and old VEA claims are finally determined.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/52-entitlement-permanent-impairment-compensation/521-required-degrees-impairment
5.2.2 Aggravation
Under sections 68 and 71 of the MRCA, permanent impairment (PI) compensation is payable when certain eligibility criteria are met, including where:
- liability has been accepted for one or more conditions under the MRCA; or
- conditions are taken to have been accepted under the MRCA from 1 July 2026 by way of section 24A (because they were accepted under the old DRCA or the old VEA).
Delegates should refer to Chapters 5.2.1 to 5.2.4 of the MRCA PI Policy Manual for more information about the required degrees of impairment under sections 68 and 71, as well as the permanency and stability requirements of impairment and conditions.
Under the MRCA, PI is assessed based on a whole-body assessment of all service-related conditions combined. Whilst there is nothing preventing veterans from making initial liability claims under the MRCA for as many conditions as they wish (and whenever they wish), the MRCA does contain provisions serving to prevent the frustration of the MRCA PI whole-body assessment. These provisions prevent successive MRCA PI claims for the same matter, or until the matter is finally determined, which is usually when the veteran has exhausted all avenue of appeal, or the appeal period has expired.
The policy in this Chapter discusses this in more detail and provides delegates with guidance on when they can proceed to undertake a MRCA PI assessment and baseline impairment rating, following major reforms to veteran’s portfolio legislation brought about by the VETS Act on 1 July 2026.
No new claim before earlier claim finally determined
Key points
- The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter.
- In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
- From 1 July 2026, the MRCA is amended to extend the prohibition on making successive claims (within same matter periods) to veterans with conditions under the old DRCA or the old VEA, where claims for those conditions are not yet finally determined:
- These amendments assist to facilitate the determination of claims under the improved MRCA, as the single, ongoing Act from 1 July 2026; and
- Ensure the correct baseline impairment rating can be assessed and determined under Chapter 26 of the GARP M 2026, following a MRCA PI claim from 1 July 2026.
- The new provisions from 1 July 2026 for veterans with conditions under the old DRCA or the old VEA, do not prevent valid MRCA PI claims for a different matter.
- Before proceeding to a MRCA PI assessment and baseline impairment rating process, delegates should consider whether all claims for conditions involved in the assessment are finally determined:
- If all are, then the baseline impairment rating under Chapter 26 of GARP M can proceed following a claim for MRCA PI compensation,
- If they are not, a MRCA PI claim may still be valid, but the baseline impairment rating process may not be able to proceed. This is discussed in more detail below.
When a claim for compensation under the MRCA is finally determined
Note: The policy in this section is broadly relevant to claims for MRCA PI compensation for veterans with conditions exclusively accepted under the MRCA and who do not have conditions that are taken to be accepted under the MRCA by way of section 24A (i.e. old DRCA conditions or old VEA conditions).
The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter. In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
A claim for MRCA PI compensation for this cohort of veterans is finally determined when:
- A determination in respect of PI compensation is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review has expired and the reconsideration or review was not sought.
Note: Delegates should be mindful that MRCA PI claims are determined using the whole of person methodology of all accepted MRCA conditions combined and all conditions involved in the MRCA PI assessment and determination cannot be reassessed during the same matter period, or before the claim is finally determined. This does not prevent PI claims during the same matter period for a different matter.
Example: A delegate determines on 1 January 2024 that a veteran is entitled to MRCA PI compensation under section 68 for MRCA accepted conditions, left shoulder and right ankle. On 30 March 2024, the veteran has a new MRCA condition accepted, adjustment disorder, and makes a subsequent MRCA PI claim on 4 April 2024 under section 71. The left shoulder and right ankle conditions are not yet finally determined so they cannot be reassessed, but this does not prevent the adjustment disorder from being assessed. The impairment ratings for the same matter left shoulder and right ankle conditions should be continued through to the new whole-body assessment including new points for adjustment disorder.
Note: On 1 July 2026, old DRCA or old VEA conditions became MRCA conditions, facilitated by the new s24A of the MRCA. Veterans with coverage only under the old DRCA or the old VEA on 1 July 2026 are not subject to the above policy, as they did not have a claim for MRCA PI compensation before the major legislative reform changes on 1 July 2026. For veterans with MRCA PI compensation claims before 1 July 2026 which included conditions accepted under the old DRCA or the old VEA (commonly referred to as dual or tri-Act veterans), as well as old DRCA or old VEA exclusive veterans, the following policy below will more appropriately apply.
When a claim under the old DRCA or old VEA is finally determined
Note: The policy in this section is relevant to claims for MRCA PI compensation from 1 July 2026 for veterans with conditions accepted under the old DRCA and old VEA that became MRCA accepted conditions on 1 July 2026 by way of section 24A. Delegates should also note that the finally determined concept is new on 1 July 2026 for this cohort of veterans, as it did not exist under the old DRCA. Finally determined in the MRCA context specifically assists to facilitate the transition to the MRCA as the single, ongoing Act on 1 July 2026.
On 1 July 2026, the old DRCA and the old VEA closed to new claims. Veterans with conditions accepted under the old DRCA and the old VEA can claim PI compensation under the MRCA for any worsening in impairment levels. However, a claim for PI compensation under the MRCA for this cohort of veterans cannot be made in respect of an old DRCA or old VEA condition until the claim under the old DRCA or old VEA is finally determined. Where there are other claims for old DRCA or old VEA conditions that are finally determined, a valid MRCA PI compensation claim can be made in respect of those conditions. However, the assessment of the MRCA PI claim under the whole-body assessment model (including the baseline impairment rating calculation) is subject to further discussion and a proviso, as expanded on below.
A claim under the old DRCA or the old VEA for this cohort of veterans is finally determined when:
- A determination in respect of claim for a condition under the old DRCA or the old VEA is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review for the claim for the condition under the old DRCA or the old VEA has expired and the reconsideration or review was not sought.
Depending on a veteran’s individual situation, it may be necessary for delegates to consider simultaneously when both their MRCA PI compensation claim became finally determined, and their claims under the old DRCA or old VEA became finally determined, if before 1 July 2026 they were considered MRCA ‘dual-Act’ or MRCA ‘tri-Act’. This is because when a MRCA PI claim is determined, impairment points from conditions under the old DRCA or the old VEA are included in the MRCA PI assessment.
Note: Delegates should be mindful that neither the old DRCA nor the old VEA splits liability and PI/DCP claims into separate steps like the MRCA. A claim under the old DRCA or the old VEA is a reference to a ‘claim for compensation/pension’. This means that where liability is accepted, the permanent impairment (old DRCA) or Disability Compensation Payment (old VEA) is automatically looked at to determine whether it is payable. Policy acknowledges that administratively, the two steps are split in the ICT system and there are different medical assessment forms for the two steps, creating a perception that there are separate steps/claims. However legislatively, there is no distinction.
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for lumbar spondylosis on 30 June 2024. On 1 August 2025, PI compensation was determined and subsequently paid. The claim for lumbar spondylosis under the old DRCA will not be considered finally determined (in the MRCA context) until the DRCA PI decision on 1 August 2025 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis (in the MRCA context) became finally determined on 1 August 2026.
Example: A former ‘dual-Act’ veteran with accepted conditions under the MRCA and the old DRCA had MRCA PI compensation determined on 30 May 2025, as well as old DRCA PI compensation determined on 20 June 2026. The delegate must have regard to when both the MRCA PI compensation claim is finally determined and when the old DRCA claim is finally determined. If the time for reconsideration or review expires and no reconsideration or review is sought, both claims will be finally determined 12-months after the respective determinations. It is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating from 20 June 2027, when all claims are finally determined.
Old DRCA claims specific policy
Veterans who have liability accepted for a condition under the old DRCA after 1 July 2026, can proceed to an old DRCA PI assessment after 1 July 2026, if there is a positive indication from the veteran that they wish to be assessed. This indication may come via various channels including MyService, email, Needs Assessment, etc.
Note: The old DRCA claim for this condition will not be considered finally determined until the PI is assessed and determined, and the decision is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). This happens organically 12-months post the PI determination (subject to any reconsideration or review action).
What if old DRCA PI compensation is not being sought or is requested to be discontinued?
Veterans are not required to proceed with an old DRCA PI assessment; this is completely at their discretion. There may be instances where this cohort of veterans wish to transition to the MRCA sooner for the purpose of being assessed for ancillary benefits, like the Gold Card, for example.
If veterans positively indicate they do not wish to proceed to an old DRCA PI assessment or wish to discontinue an in train old DRCA PI assessment, they can do so.
Note: In this situation, the claim for the old DRCA condition will not be considered finally determined until the decision about liability is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for knee osteoarthritis on 30 June 2026. On 1 July 2026, the veteran undertook a needs assessment and stated they did not wish to be assessed for old DRCA PI (it is open to them to do so). The claim for lumbar spondylosis under the old DRCA will not be considered finally determined until the liability decision made on 30 June 2026 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis is finally determined on 30 June 2027, at which time it is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating. Once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit the claim under the old DRCA.
Is there anything preventing MRCA PI claims for a different old DRCA or old VEA matter?
The provisions do not prevent a claim for MRCA PI compensation during the same matter period for a different old DRCA or old VEA matter. However, there are transitional and whole-body assessment issues (including in relation to the baseline impairment rating process) to be considered.
Delegates must turn their mind to the distinction between:
- A valid MRCA PI claim, and
- When it is appropriate to assess and determine the baseline impairment rating under Chapter 26 of the GARP M 2026, to address the valid MRCA PI claim.
There is a clear distinction between a valid MRCA PI claim and a claim that is ready to be assessed for the baseline impairment rating. Delegates should take care as to not confuse the two, as a MRCA PI claim can be both valid, and not ready to be assessed for the baseline impairment rating at the same time. Where this occurs, it may be appropriate to hold off on the baseline impairment rating process, until all claims under the old DRCA or the old VEA are finally determined. This is to ensure that the baseline impairment rating under the MRCA is applied correctly and accurately translates all impairment ratings under the old Acts (WPI for old DRCA and DCP for old VEA) to the starting degree of impairment for the MRCA context, as intended by the policy and described in Chapter 26 of the GARP M.
Example: Before 1 July 2026, a veteran previously covered exclusively under the old DRCA has two accepted conditions. The claim for one of the conditions (right knee) became finally determined on 1 January 2026. The claim for the other condition (left shoulder) is not finally determined until 30 January 2027. On 1 July 2026, the veteran makes a valid MRCA PI claim for the right knee condition. However, the delegate cannot assess the MRCA baseline impairment rating until 30 January 2027, when the left shoulder claim is finally determined. This is because the left shoulder must be included in the baseline impairment rating process and cannot be excluded.
When a valid MRCA PI claim can be made where there are old DRCA or old VEA conditions
Despite the closure of the old DRCA and the old VEA on 1 July 2026, in train or registered claims for compensation (liability and/or PI/DCP assessments) before 1 July 2026 can continue uninterrupted. In short, provided liability was claimed under the old DRCA or old VEA before 1 July 2026, there is nothing preventing the PI or DCP assessment occurring after 1 July 2026.
However, the MRCA baseline impairment rating process under Chapter 26 of GARP M cannot proceed until all claims under the old DRCA or the old VEA are no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
It is important to note that this does not prevent a valid MRCA PI claim being made for other old DRCA or old VEA conditions that have reached a finally determined state, and those valid MRCA PI claims should be registered. However, delegates will be required to delay the MRCA baseline impairment rating process (to ensure the outcome is correct) and discuss this delay with the veteran. Valid MRCA PI claims cannot be withdrawn unless with express approval from the veteran or their nominated representative.
Note: For the policy to work as it is intended, once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit claims under the old DRCA and the old VEA. This is why it is imperative that the baseline impairment rating process and MRCA PI determination is not undertaken until all old DRCA and old VEA claims are finally determined.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/52-entitlement-permanent-impairment-compensation/522-aggravation
Aggravation of Signs and Symptoms s30
Under sections 68 and 71 of the MRCA, permanent impairment (PI) compensation is payable when certain eligibility criteria are met, including where:
- liability has been accepted for one or more conditions under the MRCA; or
- conditions are taken to have been accepted under the MRCA from 1 July 2026 by way of section 24A (because they were accepted under the old DRCA or the old VEA).
Delegates should refer to Chapters 5.2.1 to 5.2.4 of the MRCA PI Policy Manual for more information about the required degrees of impairment under sections 68 and 71, as well as the permanency and stability requirements of impairment and conditions.
Under the MRCA, PI is assessed based on a whole-body assessment of all service-related conditions combined. Whilst there is nothing preventing veterans from making initial liability claims under the MRCA for as many conditions as they wish (and whenever they wish), the MRCA does contain provisions serving to prevent the frustration of the MRCA PI whole-body assessment. These provisions prevent successive MRCA PI claims for the same matter, or until the matter is finally determined, which is usually when the veteran has exhausted all avenue of appeal, or the appeal period has expired.
The policy in this Chapter discusses this in more detail and provides delegates with guidance on when they can proceed to undertake a MRCA PI assessment and baseline impairment rating, following major reforms to veteran’s portfolio legislation brought about by the VETS Act on 1 July 2026.
No new claim before earlier claim finally determined
Key points
- The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter.
- In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
- From 1 July 2026, the MRCA is amended to extend the prohibition on making successive claims (within same matter periods) to veterans with conditions under the old DRCA or the old VEA, where claims for those conditions are not yet finally determined:
- These amendments assist to facilitate the determination of claims under the improved MRCA, as the single, ongoing Act from 1 July 2026; and
- Ensure the correct baseline impairment rating can be assessed and determined under Chapter 26 of the GARP M 2026, following a MRCA PI claim from 1 July 2026.
- The new provisions from 1 July 2026 for veterans with conditions under the old DRCA or the old VEA, do not prevent valid MRCA PI claims for a different matter.
- Before proceeding to a MRCA PI assessment and baseline impairment rating process, delegates should consider whether all claims for conditions involved in the assessment are finally determined:
- If all are, then the baseline impairment rating under Chapter 26 of GARP M can proceed following a claim for MRCA PI compensation,
- If they are not, a MRCA PI claim may still be valid, but the baseline impairment rating process may not be able to proceed. This is discussed in more detail below.
When a claim for compensation under the MRCA is finally determined
Note: The policy in this section is broadly relevant to claims for MRCA PI compensation for veterans with conditions exclusively accepted under the MRCA and who do not have conditions that are taken to be accepted under the MRCA by way of section 24A (i.e. old DRCA conditions or old VEA conditions).
The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter. In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
A claim for MRCA PI compensation for this cohort of veterans is finally determined when:
- A determination in respect of PI compensation is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review has expired and the reconsideration or review was not sought.
Note: Delegates should be mindful that MRCA PI claims are determined using the whole of person methodology of all accepted MRCA conditions combined and all conditions involved in the MRCA PI assessment and determination cannot be reassessed during the same matter period, or before the claim is finally determined. This does not prevent PI claims during the same matter period for a different matter.
Example: A delegate determines on 1 January 2024 that a veteran is entitled to MRCA PI compensation under section 68 for MRCA accepted conditions, left shoulder and right ankle. On 30 March 2024, the veteran has a new MRCA condition accepted, adjustment disorder, and makes a subsequent MRCA PI claim on 4 April 2024 under section 71. The left shoulder and right ankle conditions are not yet finally determined so they cannot be reassessed, but this does not prevent the adjustment disorder from being assessed. The impairment ratings for the same matter left shoulder and right ankle conditions should be continued through to the new whole-body assessment including new points for adjustment disorder.
Note: On 1 July 2026, old DRCA or old VEA conditions became MRCA conditions, facilitated by the new s24A of the MRCA. Veterans with coverage only under the old DRCA or the old VEA on 1 July 2026 are not subject to the above policy, as they did not have a claim for MRCA PI compensation before the major legislative reform changes on 1 July 2026. For veterans with MRCA PI compensation claims before 1 July 2026 which included conditions accepted under the old DRCA or the old VEA (commonly referred to as dual or tri-Act veterans), as well as old DRCA or old VEA exclusive veterans, the following policy below will more appropriately apply.
When a claim under the old DRCA or old VEA is finally determined
Note: The policy in this section is relevant to claims for MRCA PI compensation from 1 July 2026 for veterans with conditions accepted under the old DRCA and old VEA that became MRCA accepted conditions on 1 July 2026 by way of section 24A. Delegates should also note that the finally determined concept is new on 1 July 2026 for this cohort of veterans, as it did not exist under the old DRCA. Finally determined in the MRCA context specifically assists to facilitate the transition to the MRCA as the single, ongoing Act on 1 July 2026.
On 1 July 2026, the old DRCA and the old VEA closed to new claims. Veterans with conditions accepted under the old DRCA and the old VEA can claim PI compensation under the MRCA for any worsening in impairment levels. However, a claim for PI compensation under the MRCA for this cohort of veterans cannot be made in respect of an old DRCA or old VEA condition until the claim under the old DRCA or old VEA is finally determined. Where there are other claims for old DRCA or old VEA conditions that are finally determined, a valid MRCA PI compensation claim can be made in respect of those conditions. However, the assessment of the MRCA PI claim under the whole-body assessment model (including the baseline impairment rating calculation) is subject to further discussion and a proviso, as expanded on below.
A claim under the old DRCA or the old VEA for this cohort of veterans is finally determined when:
- A determination in respect of claim for a condition under the old DRCA or the old VEA is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review for the claim for the condition under the old DRCA or the old VEA has expired and the reconsideration or review was not sought.
Depending on a veteran’s individual situation, it may be necessary for delegates to consider simultaneously when both their MRCA PI compensation claim became finally determined, and their claims under the old DRCA or old VEA became finally determined, if before 1 July 2026 they were considered MRCA ‘dual-Act’ or MRCA ‘tri-Act’. This is because when a MRCA PI claim is determined, impairment points from conditions under the old DRCA or the old VEA are included in the MRCA PI assessment.
Note: Delegates should be mindful that neither the old DRCA nor the old VEA splits liability and PI/DCP claims into separate steps like the MRCA. A claim under the old DRCA or the old VEA is a reference to a ‘claim for compensation/pension’. This means that where liability is accepted, the permanent impairment (old DRCA) or Disability Compensation Payment (old VEA) is automatically looked at to determine whether it is payable. Policy acknowledges that administratively, the two steps are split in the ICT system and there are different medical assessment forms for the two steps, creating a perception that there are separate steps/claims. However legislatively, there is no distinction.
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for lumbar spondylosis on 30 June 2024. On 1 August 2025, PI compensation was determined and subsequently paid. The claim for lumbar spondylosis under the old DRCA will not be considered finally determined (in the MRCA context) until the DRCA PI decision on 1 August 2025 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis (in the MRCA context) became finally determined on 1 August 2026.
Example: A former ‘dual-Act’ veteran with accepted conditions under the MRCA and the old DRCA had MRCA PI compensation determined on 30 May 2025, as well as old DRCA PI compensation determined on 20 June 2026. The delegate must have regard to when both the MRCA PI compensation claim is finally determined and when the old DRCA claim is finally determined. If the time for reconsideration or review expires and no reconsideration or review is sought, both claims will be finally determined 12-months after the respective determinations. It is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating from 20 June 2027, when all claims are finally determined.
Old DRCA claims specific policy
Veterans who have liability accepted for a condition under the old DRCA after 1 July 2026, can proceed to an old DRCA PI assessment after 1 July 2026, if there is a positive indication from the veteran that they wish to be assessed. This indication may come via various channels including MyService, email, Needs Assessment, etc.
Note: The old DRCA claim for this condition will not be considered finally determined until the PI is assessed and determined, and the decision is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). This happens organically 12-months post the PI determination (subject to any reconsideration or review action).
What if old DRCA PI compensation is not being sought or is requested to be discontinued?
Veterans are not required to proceed with an old DRCA PI assessment; this is completely at their discretion. There may be instances where this cohort of veterans wish to transition to the MRCA sooner for the purpose of being assessed for ancillary benefits, like the Gold Card, for example.
If veterans positively indicate they do not wish to proceed to an old DRCA PI assessment or wish to discontinue an in train old DRCA PI assessment, they can do so.
Note: In this situation, the claim for the old DRCA condition will not be considered finally determined until the decision about liability is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for knee osteoarthritis on 30 June 2026. On 1 July 2026, the veteran undertook a needs assessment and stated they did not wish to be assessed for old DRCA PI (it is open to them to do so). The claim for lumbar spondylosis under the old DRCA will not be considered finally determined until the liability decision made on 30 June 2026 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis is finally determined on 30 June 2027, at which time it is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating. Once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit the claim under the old DRCA.
Is there anything preventing MRCA PI claims for a different old DRCA or old VEA matter?
The provisions do not prevent a claim for MRCA PI compensation during the same matter period for a different old DRCA or old VEA matter. However, there are transitional and whole-body assessment issues (including in relation to the baseline impairment rating process) to be considered.
Delegates must turn their mind to the distinction between:
- A valid MRCA PI claim, and
- When it is appropriate to assess and determine the baseline impairment rating under Chapter 26 of the GARP M 2026, to address the valid MRCA PI claim.
There is a clear distinction between a valid MRCA PI claim and a claim that is ready to be assessed for the baseline impairment rating. Delegates should take care as to not confuse the two, as a MRCA PI claim can be both valid, and not ready to be assessed for the baseline impairment rating at the same time. Where this occurs, it may be appropriate to hold off on the baseline impairment rating process, until all claims under the old DRCA or the old VEA are finally determined. This is to ensure that the baseline impairment rating under the MRCA is applied correctly and accurately translates all impairment ratings under the old Acts (WPI for old DRCA and DCP for old VEA) to the starting degree of impairment for the MRCA context, as intended by the policy and described in Chapter 26 of the GARP M.
Example: Before 1 July 2026, a veteran previously covered exclusively under the old DRCA has two accepted conditions. The claim for one of the conditions (right knee) became finally determined on 1 January 2026. The claim for the other condition (left shoulder) is not finally determined until 30 January 2027. On 1 July 2026, the veteran makes a valid MRCA PI claim for the right knee condition. However, the delegate cannot assess the MRCA baseline impairment rating until 30 January 2027, when the left shoulder claim is finally determined. This is because the left shoulder must be included in the baseline impairment rating process and cannot be excluded.
When a valid MRCA PI claim can be made where there are old DRCA or old VEA conditions
Despite the closure of the old DRCA and the old VEA on 1 July 2026, in train or registered claims for compensation (liability and/or PI/DCP assessments) before 1 July 2026 can continue uninterrupted. In short, provided liability was claimed under the old DRCA or old VEA before 1 July 2026, there is nothing preventing the PI or DCP assessment occurring after 1 July 2026.
However, the MRCA baseline impairment rating process under Chapter 26 of GARP M cannot proceed until all claims under the old DRCA or the old VEA are no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
It is important to note that this does not prevent a valid MRCA PI claim being made for other old DRCA or old VEA conditions that have reached a finally determined state, and those valid MRCA PI claims should be registered. However, delegates will be required to delay the MRCA baseline impairment rating process (to ensure the outcome is correct) and discuss this delay with the veteran. Valid MRCA PI claims cannot be withdrawn unless with express approval from the veteran or their nominated representative.
Note: For the policy to work as it is intended, once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit claims under the old DRCA and the old VEA. This is why it is imperative that the baseline impairment rating process and MRCA PI determination is not undertaken until all old DRCA and old VEA claims are finally determined.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/52-entitlement-permanent-impairment-compensation/522-aggravation/aggravation-signs-and-symptoms-s30
5.2.3 Additional Permanent Impairment Compensation for Another Accepted Condition
Under sections 68 and 71 of the MRCA, permanent impairment (PI) compensation is payable when certain eligibility criteria are met, including where:
- liability has been accepted for one or more conditions under the MRCA; or
- conditions are taken to have been accepted under the MRCA from 1 July 2026 by way of section 24A (because they were accepted under the old DRCA or the old VEA).
Delegates should refer to Chapters 5.2.1 to 5.2.4 of the MRCA PI Policy Manual for more information about the required degrees of impairment under sections 68 and 71, as well as the permanency and stability requirements of impairment and conditions.
Under the MRCA, PI is assessed based on a whole-body assessment of all service-related conditions combined. Whilst there is nothing preventing veterans from making initial liability claims under the MRCA for as many conditions as they wish (and whenever they wish), the MRCA does contain provisions serving to prevent the frustration of the MRCA PI whole-body assessment. These provisions prevent successive MRCA PI claims for the same matter, or until the matter is finally determined, which is usually when the veteran has exhausted all avenue of appeal, or the appeal period has expired.
The policy in this Chapter discusses this in more detail and provides delegates with guidance on when they can proceed to undertake a MRCA PI assessment and baseline impairment rating, following major reforms to veteran’s portfolio legislation brought about by the VETS Act on 1 July 2026.
No new claim before earlier claim finally determined
Key points
- The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter.
- In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
- From 1 July 2026, the MRCA is amended to extend the prohibition on making successive claims (within same matter periods) to veterans with conditions under the old DRCA or the old VEA, where claims for those conditions are not yet finally determined:
- These amendments assist to facilitate the determination of claims under the improved MRCA, as the single, ongoing Act from 1 July 2026; and
- Ensure the correct baseline impairment rating can be assessed and determined under Chapter 26 of the GARP M 2026, following a MRCA PI claim from 1 July 2026.
- The new provisions from 1 July 2026 for veterans with conditions under the old DRCA or the old VEA, do not prevent valid MRCA PI claims for a different matter.
- Before proceeding to a MRCA PI assessment and baseline impairment rating process, delegates should consider whether all claims for conditions involved in the assessment are finally determined:
- If all are, then the baseline impairment rating under Chapter 26 of GARP M can proceed following a claim for MRCA PI compensation,
- If they are not, a MRCA PI claim may still be valid, but the baseline impairment rating process may not be able to proceed. This is discussed in more detail below.
When a claim for compensation under the MRCA is finally determined
Note: The policy in this section is broadly relevant to claims for MRCA PI compensation for veterans with conditions exclusively accepted under the MRCA and who do not have conditions that are taken to be accepted under the MRCA by way of section 24A (i.e. old DRCA conditions or old VEA conditions).
The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter. In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
A claim for MRCA PI compensation for this cohort of veterans is finally determined when:
- A determination in respect of PI compensation is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review has expired and the reconsideration or review was not sought.
Note: Delegates should be mindful that MRCA PI claims are determined using the whole of person methodology of all accepted MRCA conditions combined and all conditions involved in the MRCA PI assessment and determination cannot be reassessed during the same matter period, or before the claim is finally determined. This does not prevent PI claims during the same matter period for a different matter.
Example: A delegate determines on 1 January 2024 that a veteran is entitled to MRCA PI compensation under section 68 for MRCA accepted conditions, left shoulder and right ankle. On 30 March 2024, the veteran has a new MRCA condition accepted, adjustment disorder, and makes a subsequent MRCA PI claim on 4 April 2024 under section 71. The left shoulder and right ankle conditions are not yet finally determined so they cannot be reassessed, but this does not prevent the adjustment disorder from being assessed. The impairment ratings for the same matter left shoulder and right ankle conditions should be continued through to the new whole-body assessment including new points for adjustment disorder.
Note: On 1 July 2026, old DRCA or old VEA conditions became MRCA conditions, facilitated by the new s24A of the MRCA. Veterans with coverage only under the old DRCA or the old VEA on 1 July 2026 are not subject to the above policy, as they did not have a claim for MRCA PI compensation before the major legislative reform changes on 1 July 2026. For veterans with MRCA PI compensation claims before 1 July 2026 which included conditions accepted under the old DRCA or the old VEA (commonly referred to as dual or tri-Act veterans), as well as old DRCA or old VEA exclusive veterans, the following policy below will more appropriately apply.
When a claim under the old DRCA or old VEA is finally determined
Note: The policy in this section is relevant to claims for MRCA PI compensation from 1 July 2026 for veterans with conditions accepted under the old DRCA and old VEA that became MRCA accepted conditions on 1 July 2026 by way of section 24A. Delegates should also note that the finally determined concept is new on 1 July 2026 for this cohort of veterans, as it did not exist under the old DRCA. Finally determined in the MRCA context specifically assists to facilitate the transition to the MRCA as the single, ongoing Act on 1 July 2026.
On 1 July 2026, the old DRCA and the old VEA closed to new claims. Veterans with conditions accepted under the old DRCA and the old VEA can claim PI compensation under the MRCA for any worsening in impairment levels. However, a claim for PI compensation under the MRCA for this cohort of veterans cannot be made in respect of an old DRCA or old VEA condition until the claim under the old DRCA or old VEA is finally determined. Where there are other claims for old DRCA or old VEA conditions that are finally determined, a valid MRCA PI compensation claim can be made in respect of those conditions. However, the assessment of the MRCA PI claim under the whole-body assessment model (including the baseline impairment rating calculation) is subject to further discussion and a proviso, as expanded on below.
A claim under the old DRCA or the old VEA for this cohort of veterans is finally determined when:
- A determination in respect of claim for a condition under the old DRCA or the old VEA is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review for the claim for the condition under the old DRCA or the old VEA has expired and the reconsideration or review was not sought.
Depending on a veteran’s individual situation, it may be necessary for delegates to consider simultaneously when both their MRCA PI compensation claim became finally determined, and their claims under the old DRCA or old VEA became finally determined, if before 1 July 2026 they were considered MRCA ‘dual-Act’ or MRCA ‘tri-Act’. This is because when a MRCA PI claim is determined, impairment points from conditions under the old DRCA or the old VEA are included in the MRCA PI assessment.
Note: Delegates should be mindful that neither the old DRCA nor the old VEA splits liability and PI/DCP claims into separate steps like the MRCA. A claim under the old DRCA or the old VEA is a reference to a ‘claim for compensation/pension’. This means that where liability is accepted, the permanent impairment (old DRCA) or Disability Compensation Payment (old VEA) is automatically looked at to determine whether it is payable. Policy acknowledges that administratively, the two steps are split in the ICT system and there are different medical assessment forms for the two steps, creating a perception that there are separate steps/claims. However legislatively, there is no distinction.
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for lumbar spondylosis on 30 June 2024. On 1 August 2025, PI compensation was determined and subsequently paid. The claim for lumbar spondylosis under the old DRCA will not be considered finally determined (in the MRCA context) until the DRCA PI decision on 1 August 2025 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis (in the MRCA context) became finally determined on 1 August 2026.
Example: A former ‘dual-Act’ veteran with accepted conditions under the MRCA and the old DRCA had MRCA PI compensation determined on 30 May 2025, as well as old DRCA PI compensation determined on 20 June 2026. The delegate must have regard to when both the MRCA PI compensation claim is finally determined and when the old DRCA claim is finally determined. If the time for reconsideration or review expires and no reconsideration or review is sought, both claims will be finally determined 12-months after the respective determinations. It is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating from 20 June 2027, when all claims are finally determined.
Old DRCA claims specific policy
Veterans who have liability accepted for a condition under the old DRCA after 1 July 2026, can proceed to an old DRCA PI assessment after 1 July 2026, if there is a positive indication from the veteran that they wish to be assessed. This indication may come via various channels including MyService, email, Needs Assessment, etc.
Note: The old DRCA claim for this condition will not be considered finally determined until the PI is assessed and determined, and the decision is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). This happens organically 12-months post the PI determination (subject to any reconsideration or review action).
What if old DRCA PI compensation is not being sought or is requested to be discontinued?
Veterans are not required to proceed with an old DRCA PI assessment; this is completely at their discretion. There may be instances where this cohort of veterans wish to transition to the MRCA sooner for the purpose of being assessed for ancillary benefits, like the Gold Card, for example.
If veterans positively indicate they do not wish to proceed to an old DRCA PI assessment or wish to discontinue an in train old DRCA PI assessment, they can do so.
Note: In this situation, the claim for the old DRCA condition will not be considered finally determined until the decision about liability is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for knee osteoarthritis on 30 June 2026. On 1 July 2026, the veteran undertook a needs assessment and stated they did not wish to be assessed for old DRCA PI (it is open to them to do so). The claim for lumbar spondylosis under the old DRCA will not be considered finally determined until the liability decision made on 30 June 2026 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis is finally determined on 30 June 2027, at which time it is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating. Once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit the claim under the old DRCA.
Is there anything preventing MRCA PI claims for a different old DRCA or old VEA matter?
The provisions do not prevent a claim for MRCA PI compensation during the same matter period for a different old DRCA or old VEA matter. However, there are transitional and whole-body assessment issues (including in relation to the baseline impairment rating process) to be considered.
Delegates must turn their mind to the distinction between:
- A valid MRCA PI claim, and
- When it is appropriate to assess and determine the baseline impairment rating under Chapter 26 of the GARP M 2026, to address the valid MRCA PI claim.
There is a clear distinction between a valid MRCA PI claim and a claim that is ready to be assessed for the baseline impairment rating. Delegates should take care as to not confuse the two, as a MRCA PI claim can be both valid, and not ready to be assessed for the baseline impairment rating at the same time. Where this occurs, it may be appropriate to hold off on the baseline impairment rating process, until all claims under the old DRCA or the old VEA are finally determined. This is to ensure that the baseline impairment rating under the MRCA is applied correctly and accurately translates all impairment ratings under the old Acts (WPI for old DRCA and DCP for old VEA) to the starting degree of impairment for the MRCA context, as intended by the policy and described in Chapter 26 of the GARP M.
Example: Before 1 July 2026, a veteran previously covered exclusively under the old DRCA has two accepted conditions. The claim for one of the conditions (right knee) became finally determined on 1 January 2026. The claim for the other condition (left shoulder) is not finally determined until 30 January 2027. On 1 July 2026, the veteran makes a valid MRCA PI claim for the right knee condition. However, the delegate cannot assess the MRCA baseline impairment rating until 30 January 2027, when the left shoulder claim is finally determined. This is because the left shoulder must be included in the baseline impairment rating process and cannot be excluded.
When a valid MRCA PI claim can be made where there are old DRCA or old VEA conditions
Despite the closure of the old DRCA and the old VEA on 1 July 2026, in train or registered claims for compensation (liability and/or PI/DCP assessments) before 1 July 2026 can continue uninterrupted. In short, provided liability was claimed under the old DRCA or old VEA before 1 July 2026, there is nothing preventing the PI or DCP assessment occurring after 1 July 2026.
However, the MRCA baseline impairment rating process under Chapter 26 of GARP M cannot proceed until all claims under the old DRCA or the old VEA are no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
It is important to note that this does not prevent a valid MRCA PI claim being made for other old DRCA or old VEA conditions that have reached a finally determined state, and those valid MRCA PI claims should be registered. However, delegates will be required to delay the MRCA baseline impairment rating process (to ensure the outcome is correct) and discuss this delay with the veteran. Valid MRCA PI claims cannot be withdrawn unless with express approval from the veteran or their nominated representative.
Note: For the policy to work as it is intended, once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit claims under the old DRCA and the old VEA. This is why it is imperative that the baseline impairment rating process and MRCA PI determination is not undertaken until all old DRCA and old VEA claims are finally determined.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/52-entitlement-permanent-impairment-compensation/523-additional-permanent-impairment-compensation-another-accepted-condition
5.2.4 Additional Permanent Impairment Compensation for Deterioration
Under sections 68 and 71 of the MRCA, permanent impairment (PI) compensation is payable when certain eligibility criteria are met, including where:
- liability has been accepted for one or more conditions under the MRCA; or
- conditions are taken to have been accepted under the MRCA from 1 July 2026 by way of section 24A (because they were accepted under the old DRCA or the old VEA).
Delegates should refer to Chapters 5.2.1 to 5.2.4 of the MRCA PI Policy Manual for more information about the required degrees of impairment under sections 68 and 71, as well as the permanency and stability requirements of impairment and conditions.
Under the MRCA, PI is assessed based on a whole-body assessment of all service-related conditions combined. Whilst there is nothing preventing veterans from making initial liability claims under the MRCA for as many conditions as they wish (and whenever they wish), the MRCA does contain provisions serving to prevent the frustration of the MRCA PI whole-body assessment. These provisions prevent successive MRCA PI claims for the same matter, or until the matter is finally determined, which is usually when the veteran has exhausted all avenue of appeal, or the appeal period has expired.
The policy in this Chapter discusses this in more detail and provides delegates with guidance on when they can proceed to undertake a MRCA PI assessment and baseline impairment rating, following major reforms to veteran’s portfolio legislation brought about by the VETS Act on 1 July 2026.
No new claim before earlier claim finally determined
Key points
- The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter.
- In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
- From 1 July 2026, the MRCA is amended to extend the prohibition on making successive claims (within same matter periods) to veterans with conditions under the old DRCA or the old VEA, where claims for those conditions are not yet finally determined:
- These amendments assist to facilitate the determination of claims under the improved MRCA, as the single, ongoing Act from 1 July 2026; and
- Ensure the correct baseline impairment rating can be assessed and determined under Chapter 26 of the GARP M 2026, following a MRCA PI claim from 1 July 2026.
- The new provisions from 1 July 2026 for veterans with conditions under the old DRCA or the old VEA, do not prevent valid MRCA PI claims for a different matter.
- Before proceeding to a MRCA PI assessment and baseline impairment rating process, delegates should consider whether all claims for conditions involved in the assessment are finally determined:
- If all are, then the baseline impairment rating under Chapter 26 of GARP M can proceed following a claim for MRCA PI compensation,
- If they are not, a MRCA PI claim may still be valid, but the baseline impairment rating process may not be able to proceed. This is discussed in more detail below.
When a claim for compensation under the MRCA is finally determined
Note: The policy in this section is broadly relevant to claims for MRCA PI compensation for veterans with conditions exclusively accepted under the MRCA and who do not have conditions that are taken to be accepted under the MRCA by way of section 24A (i.e. old DRCA conditions or old VEA conditions).
The MRCA contains provisions preventing successive MRCA PI compensation claims before an earlier MRCA PI compensation claim for the same matter is finally determined. This does not prevent successive claims under the MRCA for a different matter. In respect of MRCA PI compensation claims, same matter refers to any condition that was included in the assessment resulting in a MRCA PI determination.
A claim for MRCA PI compensation for this cohort of veterans is finally determined when:
- A determination in respect of PI compensation is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review has expired and the reconsideration or review was not sought.
Note: Delegates should be mindful that MRCA PI claims are determined using the whole of person methodology of all accepted MRCA conditions combined and all conditions involved in the MRCA PI assessment and determination cannot be reassessed during the same matter period, or before the claim is finally determined. This does not prevent PI claims during the same matter period for a different matter.
Example: A delegate determines on 1 January 2024 that a veteran is entitled to MRCA PI compensation under section 68 for MRCA accepted conditions, left shoulder and right ankle. On 30 March 2024, the veteran has a new MRCA condition accepted, adjustment disorder, and makes a subsequent MRCA PI claim on 4 April 2024 under section 71. The left shoulder and right ankle conditions are not yet finally determined so they cannot be reassessed, but this does not prevent the adjustment disorder from being assessed. The impairment ratings for the same matter left shoulder and right ankle conditions should be continued through to the new whole-body assessment including new points for adjustment disorder.
Note: On 1 July 2026, old DRCA or old VEA conditions became MRCA conditions, facilitated by the new s24A of the MRCA. Veterans with coverage only under the old DRCA or the old VEA on 1 July 2026 are not subject to the above policy, as they did not have a claim for MRCA PI compensation before the major legislative reform changes on 1 July 2026. For veterans with MRCA PI compensation claims before 1 July 2026 which included conditions accepted under the old DRCA or the old VEA (commonly referred to as dual or tri-Act veterans), as well as old DRCA or old VEA exclusive veterans, the following policy below will more appropriately apply.
When a claim under the old DRCA or old VEA is finally determined
Note: The policy in this section is relevant to claims for MRCA PI compensation from 1 July 2026 for veterans with conditions accepted under the old DRCA and old VEA that became MRCA accepted conditions on 1 July 2026 by way of section 24A. Delegates should also note that the finally determined concept is new on 1 July 2026 for this cohort of veterans, as it did not exist under the old DRCA. Finally determined in the MRCA context specifically assists to facilitate the transition to the MRCA as the single, ongoing Act on 1 July 2026.
On 1 July 2026, the old DRCA and the old VEA closed to new claims. Veterans with conditions accepted under the old DRCA and the old VEA can claim PI compensation under the MRCA for any worsening in impairment levels. However, a claim for PI compensation under the MRCA for this cohort of veterans cannot be made in respect of an old DRCA or old VEA condition until the claim under the old DRCA or old VEA is finally determined. Where there are other claims for old DRCA or old VEA conditions that are finally determined, a valid MRCA PI compensation claim can be made in respect of those conditions. However, the assessment of the MRCA PI claim under the whole-body assessment model (including the baseline impairment rating calculation) is subject to further discussion and a proviso, as expanded on below.
A claim under the old DRCA or the old VEA for this cohort of veterans is finally determined when:
- A determination in respect of claim for a condition under the old DRCA or the old VEA is not subject to any form or reconsideration or review, or
- The time to seek a reconsideration or review for the claim for the condition under the old DRCA or the old VEA has expired and the reconsideration or review was not sought.
Depending on a veteran’s individual situation, it may be necessary for delegates to consider simultaneously when both their MRCA PI compensation claim became finally determined, and their claims under the old DRCA or old VEA became finally determined, if before 1 July 2026 they were considered MRCA ‘dual-Act’ or MRCA ‘tri-Act’. This is because when a MRCA PI claim is determined, impairment points from conditions under the old DRCA or the old VEA are included in the MRCA PI assessment.
Note: Delegates should be mindful that neither the old DRCA nor the old VEA splits liability and PI/DCP claims into separate steps like the MRCA. A claim under the old DRCA or the old VEA is a reference to a ‘claim for compensation/pension’. This means that where liability is accepted, the permanent impairment (old DRCA) or Disability Compensation Payment (old VEA) is automatically looked at to determine whether it is payable. Policy acknowledges that administratively, the two steps are split in the ICT system and there are different medical assessment forms for the two steps, creating a perception that there are separate steps/claims. However legislatively, there is no distinction.
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for lumbar spondylosis on 30 June 2024. On 1 August 2025, PI compensation was determined and subsequently paid. The claim for lumbar spondylosis under the old DRCA will not be considered finally determined (in the MRCA context) until the DRCA PI decision on 1 August 2025 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis (in the MRCA context) became finally determined on 1 August 2026.
Example: A former ‘dual-Act’ veteran with accepted conditions under the MRCA and the old DRCA had MRCA PI compensation determined on 30 May 2025, as well as old DRCA PI compensation determined on 20 June 2026. The delegate must have regard to when both the MRCA PI compensation claim is finally determined and when the old DRCA claim is finally determined. If the time for reconsideration or review expires and no reconsideration or review is sought, both claims will be finally determined 12-months after the respective determinations. It is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating from 20 June 2027, when all claims are finally determined.
Old DRCA claims specific policy
Veterans who have liability accepted for a condition under the old DRCA after 1 July 2026, can proceed to an old DRCA PI assessment after 1 July 2026, if there is a positive indication from the veteran that they wish to be assessed. This indication may come via various channels including MyService, email, Needs Assessment, etc.
Note: The old DRCA claim for this condition will not be considered finally determined until the PI is assessed and determined, and the decision is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). This happens organically 12-months post the PI determination (subject to any reconsideration or review action).
What if old DRCA PI compensation is not being sought or is requested to be discontinued?
Veterans are not required to proceed with an old DRCA PI assessment; this is completely at their discretion. There may be instances where this cohort of veterans wish to transition to the MRCA sooner for the purpose of being assessed for ancillary benefits, like the Gold Card, for example.
If veterans positively indicate they do not wish to proceed to an old DRCA PI assessment or wish to discontinue an in train old DRCA PI assessment, they can do so.
Note: In this situation, the claim for the old DRCA condition will not be considered finally determined until the decision about liability is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
Example: A veteran previously covered exclusively under the old DRCA had liability accepted under the old DRCA for knee osteoarthritis on 30 June 2026. On 1 July 2026, the veteran undertook a needs assessment and stated they did not wish to be assessed for old DRCA PI (it is open to them to do so). The claim for lumbar spondylosis under the old DRCA will not be considered finally determined until the liability decision made on 30 June 2026 is no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined). Subject to reconsideration or review, the claim for lumbar spondylosis is finally determined on 30 June 2027, at which time it is open to the delegate to assess and determine the MRCA PI claim and baseline impairment rating. Once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit the claim under the old DRCA.
Is there anything preventing MRCA PI claims for a different old DRCA or old VEA matter?
The provisions do not prevent a claim for MRCA PI compensation during the same matter period for a different old DRCA or old VEA matter. However, there are transitional and whole-body assessment issues (including in relation to the baseline impairment rating process) to be considered.
Delegates must turn their mind to the distinction between:
- A valid MRCA PI claim, and
- When it is appropriate to assess and determine the baseline impairment rating under Chapter 26 of the GARP M 2026, to address the valid MRCA PI claim.
There is a clear distinction between a valid MRCA PI claim and a claim that is ready to be assessed for the baseline impairment rating. Delegates should take care as to not confuse the two, as a MRCA PI claim can be both valid, and not ready to be assessed for the baseline impairment rating at the same time. Where this occurs, it may be appropriate to hold off on the baseline impairment rating process, until all claims under the old DRCA or the old VEA are finally determined. This is to ensure that the baseline impairment rating under the MRCA is applied correctly and accurately translates all impairment ratings under the old Acts (WPI for old DRCA and DCP for old VEA) to the starting degree of impairment for the MRCA context, as intended by the policy and described in Chapter 26 of the GARP M.
Example: Before 1 July 2026, a veteran previously covered exclusively under the old DRCA has two accepted conditions. The claim for one of the conditions (right knee) became finally determined on 1 January 2026. The claim for the other condition (left shoulder) is not finally determined until 30 January 2027. On 1 July 2026, the veteran makes a valid MRCA PI claim for the right knee condition. However, the delegate cannot assess the MRCA baseline impairment rating until 30 January 2027, when the left shoulder claim is finally determined. This is because the left shoulder must be included in the baseline impairment rating process and cannot be excluded.
When a valid MRCA PI claim can be made where there are old DRCA or old VEA conditions
Despite the closure of the old DRCA and the old VEA on 1 July 2026, in train or registered claims for compensation (liability and/or PI/DCP assessments) before 1 July 2026 can continue uninterrupted. In short, provided liability was claimed under the old DRCA or old VEA before 1 July 2026, there is nothing preventing the PI or DCP assessment occurring after 1 July 2026.
However, the MRCA baseline impairment rating process under Chapter 26 of GARP M cannot proceed until all claims under the old DRCA or the old VEA are no longer subject to reconsideration or review, or the time for the reconsideration or review has expired (i.e. they are finally determined).
It is important to note that this does not prevent a valid MRCA PI claim being made for other old DRCA or old VEA conditions that have reached a finally determined state, and those valid MRCA PI claims should be registered. However, delegates will be required to delay the MRCA baseline impairment rating process (to ensure the outcome is correct) and discuss this delay with the veteran. Valid MRCA PI claims cannot be withdrawn unless with express approval from the veteran or their nominated representative.
Note: For the policy to work as it is intended, once the MRCA baseline impairment rating process is undertaken, the veteran has, for all intents and purposes, transitioned to the MRCA and cannot go back and revisit claims under the old DRCA and the old VEA. This is why it is imperative that the baseline impairment rating process and MRCA PI determination is not undertaken until all old DRCA and old VEA claims are finally determined.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/52-entitlement-permanent-impairment-compensation/524-additional-permanent-impairment-compensation-deterioration