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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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