Ch 5 Permanent Impairment

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment

Last amended

5.1 Overview

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/51-overview

5.2 Entitlement to Permanent Impairment Compensation

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

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

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

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

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

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

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

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

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

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

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

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

Last amended

5.3 When is an Impairment Likely to Continue Indefinitely?

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/53-when-impairment-likely-continue-indefinitely

5.3.1 Have regard to

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/53-when-impairment-likely-continue-indefinitely/531-have-regard

5.3.2 The duration of the impairment

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/53-when-impairment-likely-continue-indefinitely/532-duration-impairment

5.3.3 The likelihood of improvement

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/53-when-impairment-likely-continue-indefinitely/533-likelihood-improvement

5.3.4 All reasonable rehabilitative treatment

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/53-when-impairment-likely-continue-indefinitely/534-all-reasonable-rehabilitative-treatment

5.3.5 Any other relevant matters

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/53-when-impairment-likely-continue-indefinitely/535-any-other-relevant-matters

5.4 When is an Impairment Stable?

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/54-when-impairment-stable

Last amended

5.5 Unreasonable Refusal to Medical Treatment, Examination or Rehabilitation Program

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/55-unreasonable-refusal-medical-treatment-examination-or-rehabilitation-program

5.6 Calculating Amount of PI Compensation Payable

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/56-calculating-amount-pi-compensation-payable

Last amended

5.6.1 Initial Permanent Impairment Compensation Payment

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/56-calculating-amount-pi-compensation-payable/561-initial-permanent-impairment-compensation-payment

5.6.2 Additional PI Compensation Payment

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/56-calculating-amount-pi-compensation-payable/562-additional-pi-compensation-payment

Last amended

5.6.3. Age of medical evidence

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/56-calculating-amount-pi-compensation-payable/563-age-medical-evidence

Last amended

5.6.4 Reassessment of Tinnitus

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/56-calculating-amount-pi-compensation-payable/564-reassessment-tinnitus

Last amended

5.7 Date from which Permanent Impairment Compensation is Payable

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/57-date-which-permanent-impairment-compensation-payable

5.7.1 Initial Permanent Impairment Compensation Payment

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/57-date-which-permanent-impairment-compensation-payable/571-initial-permanent-impairment-compensation-payment

5.7.2 Additional Permanent Impairment Compensation Payment for a new condition

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/57-date-which-permanent-impairment-compensation-payable/572-additional-permanent-impairment-compensation-payment-new-condition

5.7.3 Additional Permanent Impairment Compensation Payment for deterioration of accepted conditions

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/57-date-which-permanent-impairment-compensation-payable/573-additional-permanent-impairment-compensation-payment-deterioration-accepted-conditions

5.8 Interim Permanent Impairment Compensation

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/58-interim-permanent-impairment-compensation

Last amended

5.8.1 Eligibility criteria for interim permanent impairment payments

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/58-interim-permanent-impairment-compensation/581-eligibility-criteria-interim-permanent-impairment-payments

Last amended

5.8.2 Number of impairment points required for interim PI to be payable

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/58-interim-permanent-impairment-compensation/582-number-impairment-points-required-interim-pi-be-payable

Last amended

5.8.3 Amount of interim permanent impairment payable

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/58-interim-permanent-impairment-compensation/583-amount-interim-permanent-impairment-payable

5.8.4 Determination of lifestyle rating where interim PI is payable

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/58-interim-permanent-impairment-compensation/584-determination-lifestyle-rating-where-interim-pi-payable

5.8.5 Examples

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/58-interim-permanent-impairment-compensation/585-examples

5.8.6 Recalculation of whole PI payment when interim condition stabilised

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/58-interim-permanent-impairment-compensation/586-recalculation-whole-pi-payment-when-interim-condition-stabilised

5.8.7 Offering Interim Payments

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/58-interim-permanent-impairment-compensation/587-offering-interim-payments

5.8.8 Worked Examples of Multiple Interim Payments - prior to 1 July 2013

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/58-interim-permanent-impairment-compensation/588-worked-examples-multiple-interim-payments-prior-1-july-2013

5.9 Deferrals

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/59-deferrals

5.10 Advising the Claimant

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/510-advising-claimant

Last amended

5.10.1 PI claims and withdrawals

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/510-advising-claimant/5101-pi-claims-and-withdrawals

Last amended

5.11 Converting Weekly Amounts to Lump Sum

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/511-converting-weekly-amounts-lump-sum

5.11.1 Options for Conversion of Periodic Payments to Lump Sum

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/511-converting-weekly-amounts-lump-sum/5111-options-conversion-periodic-payments-lump-sum

5.11.2 Calculation of a Lump Sum Payment

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/511-converting-weekly-amounts-lump-sum/5112-calculation-lump-sum-payment

5.11.3 Electing a Lump Sum - Special Circumstances

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/511-converting-weekly-amounts-lump-sum/5113-electing-lump-sum-special-circumstances

Last amended

5.11.4 Payment of Lump Sum and when Interest Rates are Payable

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/511-converting-weekly-amounts-lump-sum/5114-payment-lump-sum-and-when-interest-rates-are-payable

5.12 Additional Payment for Severe Impairment

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/512-additional-payment-severe-impairment

Last amended

5.12.1 Subsection 80(1) - Eligibility for additional compensation payments

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/512-additional-payment-severe-impairment/5121-subsection-801-eligibility-additional-compensation-payments

5.12.2 Subsection 80(2) - Finding the relevant date

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/512-additional-payment-severe-impairment/5122-subsection-802-finding-relevant-date

5.12.3 Subsection 80(2) - Dependant

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/512-additional-payment-severe-impairment/5123-subsection-802-dependant

5.12.4 Subsection 80(2) - Eligible Young Person

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/512-additional-payment-severe-impairment/5124-subsection-802-eligible-young-person

5.12.5 Subsection 80(3) - Children born alive after but conceived before and adopted children

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/512-additional-payment-severe-impairment/5125-subsection-803-children-born-alive-after-conceived-and-adopted-children

5.12.6 Section 80(3) - IVF consideration

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/512-additional-payment-severe-impairment/5126-section-803-ivf-consideration

Last amended

5.13 Financial and Legal Advice for Permanent Impairment Compensation Payments

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/513-financial-and-legal-advice-permanent-impairment-compensation-payments

5.14 Claimants Instituting Action for Damages (Common Law Action)

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/514-claimants-instituting-action-damages-common-law-action

Last amended

5.15 Payment of Private Insurance Benefits

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/515-payment-private-insurance-benefits

5.16 Determining Level of Impairment and Lifestyle Effects

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/516-determining-level-impairment-and-lifestyle-effects

Last amended

5.16.1 GARP M - The Approved Guide

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/516-determining-level-impairment-and-lifestyle-effects/5161-garp-m-approved-guide

5.16.2 R&C ISH

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/516-determining-level-impairment-and-lifestyle-effects/5162-rc-ish

Last amended

5.16.3 Lifestyle Ratings

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/516-determining-level-impairment-and-lifestyle-effects/5163-lifestyle-ratings

5.16.4 Self-Assessed Lifestyle Ratings

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/516-determining-level-impairment-and-lifestyle-effects/5164-self-assessed-lifestyle-ratings

5.16.5 Use of psychologists

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/516-determining-level-impairment-and-lifestyle-effects/5165-use-psychologists

5.17 Additional benefits associated with permanent impairment payments

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/517-additional-benefits-associated-permanent-impairment-payments

Last amended

5.17.1 Pensioner Education Supplement

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/517-additional-benefits-associated-permanent-impairment-payments/5171-pensioner-education-supplement

5.17.2 Energy Payments

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/517-additional-benefits-associated-permanent-impairment-payments/5172-energy-payments

5.18 Payment Practices

Note for CLIK Users

Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.

Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts. 

Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.

After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA. 

The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA. 

Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.

Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.

Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.

In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).

The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.

Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK

Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-5-permanent-impairment/518-payment-practices