Incapacity Policy Manual
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual
1. Legislation and Definitions
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/1-legislation-and-definitions
1.1 Legislation
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/1-legislation-and-definitions/11-legislation
1.2 What is incapacity for work?
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/1-legislation-and-definitions/12-what-incapacity-work
1.3 Scenarios where compensation may be payable
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/1-legislation-and-definitions/13-scenarios-where-compensation-may-be-payable
1.4 Incapacity changes from 1 July 2026
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/node/86846
2. Investigating Entitlement to Incapacity Payments
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments
2.1 Format of an incapacity claim
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/21-format-incapacity-claim
2.2 No payment without liability
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/22-no-payment-without-liability
2.3 Standard of Proof
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/23-standard-proof
2.4 Claim must be determined in writing
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/24-claim-must-be-determined-writing
2.5 Power to request information
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/25-power-request-information
2.6 Medical certificates
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/26-medical-certificates
2.7 Medical discharges and ADF Medical Boards
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/27-medical-discharges-and-adf-medical-boards
2.8 Incapacity payments for periods of medical treatment
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/28-incapacity-payments-periods-medical-treatment
2.9 Incapacity payments to attend medical appointments (that are not treatment) is not payable
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/29-incapacity-payments-attend-medical-appointments-are-not-treatment-not-payable
2.10 Two or more conditions, all potentially totally incapacitating
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/210-two-or-more-conditions-all-potentially-totally-incapacitating
2.11 Where several conditions combine to produce incapacity
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/211-where-several-conditions-combine-produce-incapacity
2.12 Incapacity overtaken or removed by a later injury
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/212-incapacity-overtaken-or-removed-later-injury
2.13 Dual eligibility under the VEA and DRCA or MRCA
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/213-dual-eligibility-under-vea-and-drca-or-mrca
2.14 Aggravations
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/214-aggravations
2.15 Voluntary discharge/Retirements to prevent further injuries
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/215-voluntary-dischargeretirements-prevent-further-injuries
2.16 Incapacity payments when a person is not in employment
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/216-incapacity-payments-when-person-not-employment
2.17 Retrospective periods (arrears) of incapacity
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/217-retrospective-periods-arrears-incapacity
2.18 ‘Top-up’ payments
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/218-top-payments
2.19 Overseas residence
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/219-overseas-residence
2.20 Incapacity payments and rehabilitation
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/220-incapacity-payments-and-rehabilitation
2.21 Payments when a person is entitled to incapacity payments but the final amount payable is under investigation - interim payments
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/221-payments-when-person-entitled-incapacity-payments-final-amount-payable-under-investigation-interim-payments
2.22 Payment when a person accesses Leave Without Pay (LWOP)
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/2-investigating-entitlement-incapacity-payments/222-payment-when-person-accesses-leave-without-pay-lwop
3. General Provisions to Calculate Normal Weekly Earnings (NWE) or Normal Earnings (NE)
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/3-general-provisions-calculate-normal-weekly-earnings-nwe-or-normal-earnings-ne
3.1 Service giving rise to injury
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/3-general-provisions-calculate-normal-weekly-earnings-nwe-or-normal-earnings-ne/31-service-giving-rise-injury
3.2 Legislation
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/3-general-provisions-calculate-normal-weekly-earnings-nwe-or-normal-earnings-ne/32-legislation
3.3 Maximum and minimum compensation rates
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/3-general-provisions-calculate-normal-weekly-earnings-nwe-or-normal-earnings-ne/33-maximum-and-minimum-compensation-rates
3.4 Amounts excluded from NWE and NE
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/3-general-provisions-calculate-normal-weekly-earnings-nwe-or-normal-earnings-ne/34-amounts-excluded-nwe-and-ne
3.5 Adjustments to NWE and NE
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/3-general-provisions-calculate-normal-weekly-earnings-nwe-or-normal-earnings-ne/35-adjustments-nwe-and-ne
3.6 Allowances
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/3-general-provisions-calculate-normal-weekly-earnings-nwe-or-normal-earnings-ne/36-allowances
3.7 NWE/NE calculation period
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/3-general-provisions-calculate-normal-weekly-earnings-nwe-or-normal-earnings-ne/37-nwene-calculation-period
3.8 NWE in relation to 'transitional' (i.e. pre-SRCA) cases
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/3-general-provisions-calculate-normal-weekly-earnings-nwe-or-normal-earnings-ne/38-nwe-relation-transitional-ie-pre-srca-cases
3.9 Types of service
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/3-general-provisions-calculate-normal-weekly-earnings-nwe-or-normal-earnings-ne/39-types-service
4. DRCA Only - Statutory Minimum Earnings Rate
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/4-drca-only-statutory-minimum-earnings-rate
5. Method of Calculating NE/NWE by Service Type
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type
5.1 SRCA - Person who is still serving – quick reference table
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/51-srca-person-who-still-serving-quick-reference-table
5.2 SRCA - Service giving rise to injury is Permanent Forces (PF) or Continuous Full-Time Service (CFTS)
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/52-srca-service-giving-rise-injury-permanent-forces-pf-or-continuous-full-time-service-cfts
5.3 DRCA - Service giving rise to injury is Part-time Reserve
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/53-drca-service-giving-rise-injury-part-time-reserve
5.4 MRCA - Person who is still serving – quick reference table & Service giving rise to injury is Part-Time Reserve
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/54-mrca-person-who-still-serving-quick-reference-table-service-giving-rise-injury-part-time-reserve
5.5 MRCA - Service giving rise to injury is Permanent Forces (PF) or Continuous Full-Time Service (CFTS) - Currently in PF or CFTS – Section 91
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/55-mrca-service-giving-rise-injury-permanent-forces-pf-or-continuous-full-time-service-cfts-currently-pf-or-cfts-section-91
5.6 MRCA - Service giving rise to injury is Permanent Forces (PF) - Currently in Reserve service – Section 104
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/56-mrca-service-giving-rise-injury-permanent-forces-pf-currently-reserve-service-section-104
5.7 MRCA - Service giving rise to injury is CFTS - Currently in part-time Reserve service – section 109 or S111-114
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/57-mrca-service-giving-rise-injury-cfts-currently-part-time-reserve-service-section-109-or-s111-114
5.8 SRCA - Person who has discharged – quick reference table
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/58-srca-person-who-has-discharged-quick-reference-table
5.9 DRCA - Service giving rise to injury is Permanent Forces (PF) or Continuous Full-Time Service (CFTS)
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/59-drca-service-giving-rise-injury-permanent-forces-pf-or-continuous-full-time-service-cfts
5.10 SRCA - Service giving rise to injury is Part-time Reserves – Employed or has employable skills
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/510-srca-service-giving-rise-injury-part-time-reserves-employed-or-has-employable-skills
5.11 SRCA - Service giving rise to injury is Part-time Reserves – not employed and no employable skills
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/511-srca-service-giving-rise-injury-part-time-reserves-not-employed-and-no-employable-skills
5.12 MRCA - Person who has discharged – quick reference table
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/512-mrca-person-who-has-discharged-quick-reference-table
5.13 MRCA - Service giving rise to injury is Permanent Forces (PF) – Section 141 & 164
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/513-mrca-service-giving-rise-injury-permanent-forces-pf-section-141-164
5.14 MRCA - Service giving rise to injury is Continuous Full-time Service (CFTS) – Section 144 or 147-149 & Section 168 or 170-173)
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/514-mrca-service-giving-rise-injury-continuous-full-time-service-cfts-section-144-or-147-149-section-168-or-170-173
5.15 MRCA - Service giving rise to injury is Part-time Reserves – Engaged in civilian work - Section 154-155
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/515-mrca-service-giving-rise-injury-part-time-reserves-engaged-civilian-work-section-154-155
5.16 MRCA - Service giving rise to injury is Part-time Reserves – Not engaged in civilian work - Section 161
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/516-mrca-service-giving-rise-injury-part-time-reserves-not-engaged-civilian-work-section-161
5.17 Calculating Earnings from Self-employment
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/5-method-calculating-nenwe-service-type/517-calculating-earnings-self-employment
6. Cadets and Declared Members
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/6-cadets-and-declared-members
7. Maximum Rate Weeks, Hours Used in Calculations and Part Week Calculations
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations
7.1 Legislation
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/71-legislation
7.10 Commencement of a week
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/710-commencement-week
7.11 Compensation for Part of a week or day
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/711-compensation-part-week-or-day
7.2 When a person is continuously incapacitated
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/72-when-person-continuously-incapacitated
7.3 Calculating maximum rate (compensation) weeks
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/73-calculating-maximum-rate-compensation-weeks
7.4 Payments received in service
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/74-payments-received-service
7.5 Calculation of maximum rate (compensation) weeks for Reserve Force members
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/75-calculation-maximum-rate-compensation-weeks-reserve-force-members
7.6 Compensation during a week when the maximum rate week period ceases
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/76-compensation-during-week-when-maximum-rate-week-period-ceases
7.7 Person has been incapacitated for a cumulative period exceeding 45 weeks
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/77-person-has-been-incapacitated-cumulative-period-exceeding-45-weeks
7.8 Normal Weekly Hours
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/78-normal-weekly-hours
7.9 Actual hours used in calculations
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/7-maximum-rate-weeks-hours-used-calculations-and-part-week-calculations/79-actual-hours-used-calculations
8. Ability to Earn and Actual Earnings
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings
8.1 'AE' – DRCA
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/81-ae-drca
8.2 Actual Earnings – MRCA
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/82-actual-earnings-mrca
8.3 Indexation of AE (including deemed AE)
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/83-indexation-ae-including-deemed-ae
8.4 AE when a person is actually in employment
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/84-ae-when-person-actually-employment
8.5 Fluctuating Earnings
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/85-fluctuating-earnings
8.6 Self-employment
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/86-self-employment
8.7 Earnings from commissions
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/87-earnings-commissions
8.8 Earnings from advance payments
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/88-earnings-advance-payments
8.9 Continuing payments and AE while a person is on pregnancy/maternity leave
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/89-continuing-payments-and-ae-while-person-pregnancymaternity-leave
8.10 Paid Leave
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/810-paid-leave
8.11 Sick Leave
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/811-sick-leave
8.12 Salary Sacrifice
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/812-salary-sacrifice
8.13 Scholarships
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/813-scholarships
8.14 Voluntary Work
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/814-voluntary-work
8.15 Private Insurance Benefits
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/815-private-insurance-benefits
8.16 Person Receives a Bonus
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/816-person-receives-bonus
8.17 Redundancy/severance payments
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/817-redundancyseverance-payments
8.18 Deeming AE when a person is not in employment or is underemployed
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/818-deeming-ae-when-person-not-employment-or-underemployed
8.19 Application of deemed AE to a new period of incapacity
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/8-ability-earn-and-actual-earnings/819-application-deemed-ae-new-period-incapacity
9. Superannuation
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation
9.1 Legislation
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/91-legislation
9.2 Reducing incapacity payments by superannuation benefits
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/92-reducing-incapacity-payments-superannuation-benefits
9.3 Key dates affecting treatment of superannuation benefits and incapacity benefits
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/93-key-dates-affecting-treatment-superannuation-benefits-and-incapacity-benefits
9.4 Employer Benefit or Employee Benefit?
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/94-employer-benefit-or-employee-benefit
9.5 Defence Force Retirement and Death Benefits Scheme (DFRDB)
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/95-defence-force-retirement-and-death-benefits-scheme-dfrdb
9.6 Military Superannuation and Benefits Scheme
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/96-military-superannuation-and-benefits-scheme
9.7 ADF Super and ADF Cover
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/97-adf-super-and-adf-cover
9.8 Reducing incapacity payments by superannuation benefits that have been ‘received’
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/98-reducing-incapacity-payments-superannuation-benefits-have-been-received
9.9 Preservation age
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/99-preservation-age
9.10 Notional Superannuation Contributions ('SC' amount) - DRCA only
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/910-notional-superannuation-contributions-sc-amount-drca-only
9.11 Reducing incapacity payments by superannuation benefits when a person has multiple periods of service (and multiple sources of superannuation)
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/9-superannuation/911-reducing-incapacity-payments-superannuation-benefits-when-person-has-multiple-periods-service-and-multiple-sources-superannuation
10. Taxation on Incapacity Payments
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/10-taxation-incapacity-payments
10.1 Warlike and non-warlike service
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/10-taxation-incapacity-payments/101-warlike-and-non-warlike-service
10.2 Reserve earnings
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/10-taxation-incapacity-payments/102-reserve-earnings
10.3 Redemptions
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/10-taxation-incapacity-payments/103-redemptions
10.4 Lump sum arrears of incapacity payments and recovery of VEA/Centrelink/internal debt
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/10-taxation-incapacity-payments/104-lump-sum-arrears-incapacity-payments-and-recovery-veacentrelinkinternal-debt
11. Reduction, Suspension and Cessation of Incapacity Payments
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/11-reduction-suspension-and-cessation-incapacity-payments
11.1 Reduction of payments when a person is maintained in hospital
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/11-reduction-suspension-and-cessation-incapacity-payments/111-reduction-payments-when-person-maintained-hospital
11.2 Suspension of benefits
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/11-reduction-suspension-and-cessation-incapacity-payments/112-suspension-benefits
11.3 Ceasing payments when a person is imprisoned after conviction of an offence
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/11-reduction-suspension-and-cessation-incapacity-payments/113-ceasing-payments-when-person-imprisoned-after-conviction-offence
11.4 Ceasing incapacity payments at Age Pension age
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/11-reduction-suspension-and-cessation-incapacity-payments/114-ceasing-incapacity-payments-age-pension-age
11.5 Conversion of small amounts of compensation to a lump sum payment/redemptions
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/11-reduction-suspension-and-cessation-incapacity-payments/115-conversion-small-amounts-compensation-lump-sum-paymentredemptions
12. SRCA only - Compensation Under the 1930 or 1971 Act
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/12-srca-only-compensation-under-1930-or-1971-act
13. SRCA only - Former Members
Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.
Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/incapacity-policy-manual/13-srca-only-former-members