5.7.2 Additional Permanent Impairment Compensation Payment for a new condition

Claims lodged prior to 1 July 2026

Additional MRCA PI compensation under subsection 71(1) of the MRCA for a new condition is payable from:

1. the date the claim for liability was lodged for the new condition; and

2. the date on which the delegate determines the impairment became permanent and stable and the required increased degree of impairment exists

Note: The required increased degree of impairment under section 71(1) of the MRCA is 5 impairment points.

Change in arrangements from 1 July 2026 following commencement of the VETS Act – section 71(1) claims

Claims lodged after 1 July 2026

Additional PI compensation under subsection 71(1) of the MRCA for a new condition is payable from the later of:

1. The date the claim for liability was lodged for the new condition; or

2. The date on which the impairment became permanent and stable (as estimated by the medical practitioner) and the required increased degree of impairment exists.

•    If (b) is the later date, then the date of effect is the first day of the calendar month of that date.

Note: The required increased degree of impairment under section 71(1) of the MRCA is 5 impairment points.

Example

A veteran with only MRCA service after 1 July 2004 has previously received MRCA PI compensation. The veteran makes a claim for liability for a new condition under the MRCA on 5 September 2026. Following acceptance of liability for the condition, the veteran makes a claim for MRCA PI compensation on 18 October 2026. The medical practitioner estimates that the veteran’s impairment became permanent and the condition stable on 30 September 2026.

In this instance, the delegate compares the date of the liability claim with the date of the medical practitioner’s estimation, and takes the later of the two dates, being 30 September 2026. As the later date is the estimation of the date the impairment became permanent and the condition stable, the delegate determines that permanent impairment compensation is payable from the first day of the calendar month i.e. 1 September 2026.