5.7.3 Additional Permanent Impairment Compensation Payment for deterioration of accepted conditions

Claims lodged prior to 1 July 2026

Additional MRCA PI compensation under subsection 71(2) of the MRCA for a deterioration of a condition is payable from the later of:

1. the date of the MRCA PI claim (oral or in writing) for compensation; or

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

Note: The required increased degree of impairment under section 71(2) of the MRCA is 5 impairment points.

Change in arrangements from 1 July 2026 following commencement of the VETS Act – section 71(2) claims

Claims lodged after 1 July 2026 

Additional MRCA PI compensation under subsection 71(2) of the MRCA for a deterioration of a condition is payable from the later of:

1. the date of the MRCA PI claim (oral or in writing) for compensation; or

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

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

Note: The required increased degree of impairment under section 71(2) of the MRCA is 5 impairment points.

Example

A veteran with old DRCA accepted conditions only makes a claim for MRCA PI compensation for a deterioration of an accepted condition on 12 August 2026. The medical practitioner estimates that the veteran’s impairment became permanent and stable on 30 July 2026.

In this instance, the delegate compares the date of the MRCA PI claim with the date of the medical practitioner’s estimation, and takes the later of the two dates, being 12 August 2026. As the later date is the MRCA PI claim date, permanent impairment compensation is payable from 12 August 2026.