5.18 Payment Practices

Compensation claims determined before 1 July 2026

Where a claim for MRCA PI compensation is determined before 1 July 2026, the compensation must be paid to an account that is:

• Nominated by the person entitled to receive the compensation; and

• Maintained (including jointly) by the person entitled to receive the compensation.

In most situations, this means an account nominated by the veteran that is also maintained by them (i.e. a bank account solely in their name or in theirs and their spouse’s name, for example). 

Compensation claims determined from 1 July 2026

A new subsection 430(3D) commenced under the MRCA on 1 July 2026 which changed the usual arrangements. Where a claim for MRCA PI compensation is determined on or after 1 July 2026, the compensation can be paid to:

• any account nominated by the person entitled to receive the compensation, including their solicitor’s account.

Before paying the compensation, delegates should take the necessary steps to be satisfied that the account they are paying the compensation to, is the account intended by the entitled person. This might be done via a bank account form with the signature of the entitled person, for example. 

See 11.7.1 - Payment into Bank Account etc for additional information