2.13 Dual eligibility under the VEA and DRCA or MRCA

2.13.1 VEA offsetting

A person entitled to incapacity payments under the DRCA or MRCA may also be receiving a Disability Compensation Payment (DCP) under the VEA.

Incapacity payments are paid for an incapacity for service or work, whilst the General Rate of DCP is paid based on the degree to which a person’s VEA conditions effect their functionality and lifestyle, this is referred to as the incapacity resulting from their conditions. The General Rate of DCP does not take into account a person’s ability to undertake remunerative work.

Whilst the two payments appear to be awarded based on different criteria, offsetting of the VEA DCP will apply if the two sources of compensation are paid for the same incapacity. Same incapacity under the VEA does not refer to an injury or disease itself, rather, to the effects of an injury or disease. Incapacity under the VEA is not referring to an incapacity for work and therefore has a different meaning to an incapacity for service or work as defined under the DRCA or the MRCA. For more information see 2.7 Different Medical Labels (Diagnosis) for the Same Incapacity | CLIK

Note: Where a person eligible for DRCA incapacity payments is also receiving the Special Rate (TPI) of DCP under the VEA, separate considerations apply. Please refer to section 2.13.5 below.

2.13.2 VEA, DRCA and MRCA

Section 15 of the Military, Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (CATP) states that where a person is eligible for incapacity payments under the MRCA and loss of earnings under the VEA, or incapacity payments under the DRCA, they are only entitled to incapacity payments under the MRCA.

In this transitional scenario where a person is only entitled to incapacity payments under the MRCA, delegates should only list the MRCA conditions contributing to the incapacity on the VEA clearance. This is because, by way of the CATP, the person is receiving MRCA incapacity payments in respect of MRCA conditions. In other words, the veteran is not receiving compensation under the MRCA in relation to conditions accepted under the DRCA or VEA.

While a veteran cannot have the same condition accepted under the VEA and the MRCA, delegates are reminded that offsetting applies for the same incapacity under the VEA and does not refer to an injury or disease itself, rather, to the effects of an injury or disease. Where a person is in receipt of the DCP under the VEA the delegates will need to complete a clearance in relation to the MRCA incapacity payments.

Similar to the special considerations required where a person is eligible for DRCA incapacity payments and the Special Rate of DCP under the VEA, there are additional considerations required where a person is eligible for MRCA incapacity payments.

Examples

1. Incapacity eligible:

A person has VEA accepted conditions of bilateral knee osteoarthritis with onset 1/1/2003, is on 80% of the General Rate of DCP and remains at work, with minor difficulties. Later, the person has liability accepted for lumbar spondylosis with onset of 1/1/2017 under MRCA. The person ceases work on 1/4/2017 and submits an incapacity claim. The medical evidence indicates that a combination of the lumbar spondylosis and knee osteoarthritis has made the person unfit to continue their employment. Policy would support acceptance of incapacity claim under MRCA but the person would fail the eligibility requirements for the Special Rate payment under the VEA.

2. Special Rate eligible:

A person has VEA accepted conditions of bilateral knee osteoarthritis with onset 1/1/2003, is on 80% of the General Rate of DCP. Later, the person has liability accepted for lumbar spondylosis with onset of 1/1/2017 under MRCA. The person submits an application for increase and the medical evidence demonstrates that the member has been totally unfit for work since ceasing employment in 2015. As this occurred prior to any contribution by MRCA conditions, the eligibility criteria is met and the person is eligible for Special Rate, but not eligible for incapacity payments under the MRCA.

2.13.3 Incapacity payments and clearances

Incapacity payments are usually paid against one service-related condition in the processing system, although several service-related conditions may contribute to the person’s incapacity for work. Delegates need to send a clearance to the offsetting team for every person where there is a VEA DCP being paid. This is because offsetting applies to the DCP if compensation under the DRCA or MRCA is paid for the same incapacity. As noted above, same incapacity under the VEA does not refer to an injury or disease itself, rather, to the effects of an injury or disease and does not have the same meaning as incapacity for DRCA and MRCA purposes. The delegate who is determining the offsetting under the VEA will determine whether the compensation under the DRCA or MRCA is being paid for the same incapacity however, this relies on having accurate information in relation to the condition/s that the compensation is being paid for.

In completing clearances, this does not mean that the delegate should necessarily include all conditions listed on a medical certificate, especially where these conditions change over time. The delegate will need to consider the chronology of incapacity and ensure they are only listing the incapacitating conditions that resulted in payment of incapacity payments. If, for example, a new condition listed on a medical certificate did not actually increase the overall level of incapacity, that condition should not be listed on the clearance as they are not receiving compensation for that condition. See 2.13.3.1 below for further guidance on considering medical certificates.

The consideration of the conditions to include on a clearance will be different depending on whether the delegate is completing the initial clearance when the person is receiving incapacity payments for the first time compared to completing a clearance where a person has been receiving ongoing incapacity payments over a number of months or years.

Initial clearance

Clearly establishing the condition/s that give rise to the entitlement to receive incapacity payments is an important step in determining which conditions to include on the initial clearance that delegates complete before commencing incapacity payments. This will set the basis for any offsetting of the persons DCP.

This is where delegates need to consider the chronology of the persons incapacity and the medical evidence as a whole.

Example:

Bob has 16 conditions accepted under the MRCA, as well as 8 conditions accepted under the VEA prior to his discharge from service.

He is medically separated from service, with the DM042 Medical Transition from the Defence Force CSC Certificate of Capacity listing 13 conditions as the separating conditions. These are a mixture of MRCA and VEA accepted conditions as well as non-accepted conditions.

The MECRB decision clearly lists the separating conditions as lumbar spondylosis and cervical spondylosis, with PTSD, major depressive disorder (MDD), alcohol use disorder, and ADHD noted as non-separating conditions that are present. All of these conditions except the ADHD are accepted under the MRCA.

Following his discharge, Bob provides two medical certificates from his treating doctors to support his incapacity for work;

• his GP has listed a mixture of non-accepted and VEA/MRCA accepted conditions as causing his total incapacity for work, including the lumbar spondylosis, cervical spondylosis, PTSD, major depressive disorder (MDD) and alcohol use disorder. The certificate lists other MRCA accepted conditions including tinnitus and hearing loss but does not list the ADHD.

• his treating psychiatrist has listed PTSD and MDD as causing his total incapacity for work.

The delegate considers the evidence as a whole and is satisfied that Bob is totally unfit for work and entitled to incapacity payments under the MRCA from his discharge date and that the conditions that DVA is paying compensation for under the MRCA are his lumbar spondylosis, cervical spondylosis, PTSD, major depressive disorder (MDD) and alcohol use disorder as these were the conditions noted on his MECRB decision as well as being included on medical certification from two doctors following his discharge.

While other MRCA conditions are listed on the certificate provided by his GP, these conditions cannot be considered to be contributing to his incapacity for work for compensation purposes as the evidence indicated that he was incapacitated by other conditions prior to these conditions appearing on the medical evidence. While there are VEA accepted conditions listed on the medical certificate from the GP, compensation under the MRCA is not paid for these conditions.

Even though there were non-compensable conditions noted on both the MECRB and DM042, the MECRB clearly stated that the separating conditions were his MRCA accepted conditions and therefore he is entitled to compensation following his discharge based on this.

As Bob is receiving a DCP, the delegate completes a clearance prior to commencing payments noting the conditions for which Bob is receiving compensation under the MRCA for as lumbar spondylosis, cervical spondylosis, PTSD, major depressive disorder (MDD) and alcohol use disorder.

Note: the DM042 is a helpful piece of evidence to review when considering the conditions that have led to a persons medical separation from the ADF however, delegates need to remember that this form is used for CSC purposes in assessing a persons invalidity classification following medical separation. CSC can only assess retiring impairments and have different legislative requirements to DVA. In considering a DM042, delegates need to weight up the other evidence related to a medical separation, including the MECRB decision and service medical records, in determining the separating conditions and any entitlement to compensation for an incapacity for work following separation where there is conflicting information.

Ongoing clearance

Once a clearance has been completed and a person’s DCP is being offset due to their receipt of ongoing incapacity payments, delegates will be required to periodically complete new clearances where the persons rate of incapacity payments changes or where there are new conditions contributing to the incapacity for service or work.

Example 1:

Joe is medically separated from service due to left and right knee osteoarthritis which are conditions accepted under the DRCA. This is confirmed through his MECRB decision that notes these as the separating conditions. While he has other accepted conditions at the time, these are minor and do not contribute to his incapacity for work. Following discharge his treating doctor provides medical certificates confirming that he is unfit for all work as a result of his left and right knee osteoarthritis. As Joe is also receiving a DCP the delegate completed a clearance noting the conditions for which Joe is receiving incapacity payments under the DRCA as his left and right knee osteoarthritis.

Several years later Joe has Major Depressive Disorder (MDD) accepted under the DRCA. His treating doctor adds this condition to his medical certificates, which also continues to list the left and right knee osteoarthritis.

While the medical certificate now includes his MDD, his left and right knee osteoarthritis have not changed and there is no evidence that indicates they are not still causing him to be unfit for all work. As he was already unfit for all work due to his left and right knee osteoarthritis therefore his MDD cannot be contributing to his incapacity for work for compensation purposes. The MDD would not be added to the clearance.

Example 2:

Jill is medically separated from service due to lumbar spondylosis which is an accepted condition under the DRCA. She also has anxiety disorder accepted under the DRCA but this is well controlled through treatment and not listed on her MECRB decision as a separating condition. Jill provides a medical certificate from her treating doctor that notes the lumbar spondylosis causes a partial incapacity for work and she is suitable for part-time sedentary roles. As Jill is receiving a DCP the delegate completes a clearance before commencing payments, noting the condition for which Jill is receiving incapacity payments under the DRCA is lumbar spondylosis.

She participates in RTW rehabilitation and secures an office job 3 days per week. She continues to receive top-up incapacity payments while she is working.

4 years after discharge her anxiety disorder deteriorates and she has to cease working. Her lumbar spondylosis has not changed. Her treating doctor provides a new medical certificate confirming that Jill is unfit for all work due to her lumbar spondylosis and anxiety disorder. The delegate will complete a new clearance at this time which will list both the lumbar spondylosis and anxiety disorder as the conditions causing her incapacity for work as she is receiving compensation for both these conditions.

In cases where a person continues to receive incapacity payments after being assessed as eligible for SRDP, only the incapacitating conditions relevant to the incapacity payments are included in the clearance request.

Where a condition later ceases to be a cause of incapacity and compensation is not being paid for that condition, a new clearance should be requested.

2.13.3.1 Medical certificates

While a medical certificate certifying a person incapacitated for work should only list the conditions that are causing that incapacity, in reality there are times that a person’s treating doctor will list all their DVA accepted conditions on certificates to ensure their ongoing entitlement to payments. It is unlikely that all accepted conditions have incapacitated a person at the same time and instead only some of these conditions would have initially led to the persons entitlement to incapacity payments. The delegate will need to consider the chronology of incapacity and ensure they are only listing the incapacitating conditions that resulted in payment of incapacity payments. This may require the delegate to consider other evidence on file regarding the persons separation from their ADF employment and any work history following separation.

Where after reviewing the file, seeking clarification from the persons treating doctor and seeking review or advice from internal DVA supports, a delegate is satisfied that it is all the conditions listed on the medical certificate that are contributing to the incapacity it is appropriate to list all conditions on the clearance.

Where the incapacitating conditions listed on medical certificates change over time, it is not sufficient to simply list all of the conditions on the clearance, without further considerations. Delegates must consider whether those additional conditions have changed the level of incapacity and therefore contribute to the overall level of incapacity. Where they do, the delegate may list the additional conditions on the VEA clearance, for example where the additional conditions now mean that the person is unfit for all work. Where they do not, they should not be included on the VEA clearance. This is a crucial step, as offsetting reduces a veteran’s compensation entitlements under the VEA and must only be applied when compensation under the DRCA is being paid for the same incapacity as the VEA DCP.

Example

A person has five accepted conditions under DRCA. The person is determined as having a total incapacity for work under the DRCA as a result of three of those conditions and therefore, is eligible for incapacity payments. The person is also receiving a General Rate of DCP under the VEA. When completing the clearance, the delegate should only list those three conditions as contributing to the persons incapacity.

A new medical certificate is later provided, listing all five DRCA accepted conditions as contributing to the incapacity. When completing the clearance, the delegate needs to consider whether the additional conditions are contributing to the incapacity for work. If the level of incapacity as a result of the original three conditions has not changed i.e. the three conditions still cause total incapacity regardless of the additional conditions, the additional conditions cannot be considered to be contributing to the incapacity. If all five conditions were listed on the clearance in this example, the veteran’s DCP may be offset or reduced incorrectly and this needs to be avoided.

Delegates should refer to 2.10 and 2.11 of this manual for further information on considerations where several conditions contribute to the incapacity.

Offsetting and new accepted liability

In circumstances where medical evidence is provided with a mix of compensable and non-compensable conditions (including those with liability pending), a delegate needs to be satisfied that the veteran is incapacitated for the compensable conditions to be eligible for incapacity payments, regardless of the other conditions. The offsetting clearance will then only contain the compensable incapacitating conditions. In cases where liability is later accepted for the prior non-compensable conditions, the delegate will need to consider any changes to the conditions that we are paying incapacity payments for, from the date of the liability determination forwards only. This is because we have already determined to pay incapacity payments on the conditions accepted at that time based on the evidence provided. It is not appropriate to revisit our original decision. The delegate will need to consider whether the newly accepted condition changes the level of incapacity and can be considered as contributing to the incapacity for work. It would only be appropriate to revisit a previous offsetting decision if there was clearly an error made by the delegate in completing or actioning a clearance.

Example

An original medical certificate is provided with incapacitating conditions of major depressive disorder (MDD) and lumbar spondylosis from 5 April 2024. The veteran only has lumbar spondylosis accepted from 1 October 2017, MDD is still pending liability. The delegate is satisfied the veterans back is incapacitating them due to evidence confirming the veteran was unable to maintain his current employment due to the physical lifting requirements. Incapacity payments are commenced, and an offsetting clearance is generated containing the condition of lumbar spondylosis. On 29 August 2025 the veterans MDD liability claim is accepted and backdated to 8 November 2017. The delegate reviews current evidence and determines that whilst the lumbar spondylosis was partially incapacitating the veteran, due to a combination of both the lumbar spondylosis and MDD the veteran is incapacitated for all work and therefore the MDD is also now contributing to the incapacity. A new offsetting clearance is generated containing MDD and lumbar spondylosis as incapacitating conditions from 29 August 2025. As the delegate was originally satisfied that incapacity payments could be paid based solely on the back condition, it would be inappropriate and detrimental to the veteran to backdate the inclusion of the newly accepted condition on any new offsetting clearance.

2.13.3.2 Delegate responsibilities

In order for the offsetting team to establish whether offsetting applies to the DCP, the delegate determining the incapacity entitlement must provide sufficient information via the clearance, confirming the actual condition/s for which incapacity payments are being paid. Failure to do so, may result in offsetting being applied incorrectly to reduce a veteran’s compensation entitlements under the VEA, effectively over-offsetting their compensation. The offsetting team will then assess whether the compensation (in the form of incapacity payments) being paid under the DRCA or the MRCA is being paid for the same incapacity under the VEA and whether the persons DCP should be offset.

2.13.4 Person can request cessation of DRCA compensation payments

Depending on individual financial circumstances, a person may choose to receive payment under the VEA only, rather than receiving DRCA incapacity payments and a reduced (offset) VEA DCP i.e. in situations where a person is also receiving a superannuation pension.

Section 43 of the DRCA enables a person to request, in writing, that their DRCA payments are ceased. This will result in any offset to their VEA DCP for the same condition/s being removed. DRCA payments can be ceased prospectively only i.e. from the date the request is received. A retrospective request cannot be made.

This request can be revoked at any point (noting that this is applied prospectively and doesn't revive any entitlement for the period DRCA payments were ceased).

The request to cease DRCA payments under Section 43, or subsequently revoke that request, must be in writing.

2.13.5 Person is both Special Rate/Temporary Special Rate/Intermediate Rate under the VEA and incapacitated under the DRCA

As a special case, a veteran who receives incapacity payments under the DRCA may also receive a Special Rate of DCP (TPI) under the VEA, including Temporary Special Rate and Intermediate Rate, on the basis that he/she is totally and permanently incapacitated (TPI). In this case, both the VEA Special Rate payment and the DRCA weekly payments are being made on the same basis, i.e. an incapacity for work. The effect of a VEA Special Rate payment on the DRCA entitlement to incapacity payments is either:

1. Person is receiving Special Rate payment (VEA) for same condition as for DRCA incapacity entitlement

If both Acts are compensating the same injury, and the person is in receipt of a Special Rate (TPI) of DCP under the VEA; the payment is limited (i.e. reduced or ceased) to offset the DRCA payments.

This is a straightforward matter and the principle to be applied is that a person is not entitled to be compensated beyond the value of the loss, by accessing compensation under two Acts for the same injury.

The delegate informs the offsetting team via the normal clearance process that weekly compensation is payable and the Special Rate payment should be ceased or limited accordingly.

2. Person is receiving Special Rate payment (VEA) for condition other than the DRCA condition

Here the principle to be applied is that a person cannot be totally incapacitated more than once. It is not appropriate to compensate for more than 100% of lost capacity.

Where a person suffers successive injuries and they are totally incapacitated as a result of the first injury, there remains no earning capacity to be diminished by the effects of the second injury, and this means a person cannot be further compensated for the subsequent incapacity for work. Therefore, if a person is already receiving the Special Rate payment under the VEA for one injury, there is no further compensation payable under DRCA for a different injury, as the person is already totally incapacitated, this is supported by the case law of Dawkins v Metropolitan Coal (1947) as described below.

The High Court case of Dawkins v Metropolitan Coal (1947) established that once an employee was totally incapacitated for work by a medical condition, a second (or subsequent) condition could not also be regarded as incapacitating, i.e. not while the first one persisted, at least. This is because the first condition has already removed all work capacity. While the subsequent injury may well be of equal severity as the first and be equally capable of preventing employment (i.e. had the first not already been operative), it cannot remove a capacity for employment that has already ceased to exist.

In the Dawkins case, the Court quoted with approval from another case with a similar outcome i.e. Evans v Oakdale Navigation Collieries (1940):

'Of course, if, as the result of the first accident, the workman suffers total disability, it matters not whether he is certified to be suffering from an industrial disease which also has rendered him totally incapacitated, for in such a case there is no capacity for work on which the notional accident can operate;...'

Also, in deciding Dawkins, the Court expressed its own view that:

'In the present case the total incapacity of the worker which existed in 1945 had existed for some years prior to that date as a result of tuberculosis. It could not therefore be said to be the result of fibrosis because one hundred percent incapacity cannot be increased beyond one hundred percent by any supervening cause.'

Dawkins illustrates the principle that an employee may not be totally incapacitated twice-over i.e. simultaneously. One hundred percent incapacity for work cannot be advanced above one hundred per cent. In cases where a person suffers from two or more conditions each separately capable of totally incapacitating him/her, it is only the first of these conditions which is significant for the purposes of compensation.

If an incapacitated person’s DRCA conditions do not make a contribution to their incapacity, they must be solely incapacitated due to their VEA conditions, and the Special Rate payment will therefore be payable.

Therefore, delegates about to determine entitlement to incapacity benefit should first check whether the person is also Special Rate under the VEA, for any cause other than the same injury claimed under the DRCA. If this is the case, weekly incapacity is not payable.

Equally, a delegate about to pay a Special Rate payment should check whether the person is receiving incapacity payments, to ensure if the Special Rate payment should be offset or the incapacity payments ceased depending on which condition is being compensated for under each Act.

In many cases where Incapacity payments and Special Rate payment are concurrently paid for different conditions, the error will be that the different parts of the Department have received contradictory or unclear medical evidence. These cases will likely require cross-Department liaison and good clearances to ensure the correct cause of the incapacity to work is correctly and accurately identified.

Summary

Where a delegate is about to determine and pay incapacity payments but discovers that the person is already eligible for the Special Rate payment under VEA, including Temporary Special Rate and Intermediate Rate:

if the Special Rate payment is payable in respect of the same condition, the delegate should 'clear' the payment in the usual way. Any effect on the Special Rate payment will be assessed and actioned by the relevant area within the Department.
if the Special Rate payment is payable in respect of a different condition to that accepted under the DRCA, the delegate should determine that incapacity payments may not be made, as the employee already has a prior and continuing loss of 100% of work capacity for other reasons, making further loss impossible. Delegates will need to liaise with the delegate who determined the Special Rate payment to establish which VEA conditions are causing an incapacity for work, and to ensure they first caused the incapacity.

This has the overall effect that a person may access either a Special Rate payment under the VEA or incapacity payments under the DRCA (if entitled), but not both at once.

2.13.6 Scenario matrix

The scenarios described in the following table are intended to guide delegates in dual and tri-act eligibility cases, to determine against which claim and which Act incapacity payments should be made.

The following table and examples may assist delegates in deciding what conditions should be listed on clearances.

VEA DCP	DRCA/MRCA incapacity	Clearance
Accepted conditions: right knee & lumbar spine. 80% of the General Rate.	DRCA accepted conditions: right knee & lumbar spine. Right knee causes total incapacity for work, receiving incapacity payments. Surgery is later required for lumbar spine, and new medical certificate provided lists both right knee and lumbar spine.	Right knee is the only condition required on the clearance. Whilst lumbar spine is listed on the new medical certificate the level of incapacity from the right knee has not changed, incapacity payments under the DRCA are not paid for the lumbar spine.
Accepted conditions: PTSD, depression & lumbar spine. 100% of the General Rate.	DRCA accepted conditions: PTSD, depression & lumbar spine. PTSD & depression cause total incapacity for work, receiving incapacity payments. A new medical certificate is provided and PTSD, depression & lumbar spine are listed.	PTSD & depression are the only conditions required on the clearance. Whilst lumbar spine is listed on the new medical certificate the level of incapacity from the PTSD & depression has not changed, incapacity payments under the DRCA are not paid for the lumbar spine.
Accepted conditions: bilateral shoulders. 100% of the General Rate.	DRCA accepted conditions: bilateral shoulders. Right shoulder causes a partial incapacity for work, no incapacity as a result of the left shoulder, receiving incapacity payments. Surgery is later required for left shoulder, which results in a total incapacity for work for 6 months. The medical certificate only lists the left shoulder, however there is no indication that the right shoulder incapacity has ceased. After 6 months, the incapacity for work as a result of the left shoulder resolves, but a partial incapacity as a result of the right shoulder remains.	The initial clearance should only list right shoulder. At the time of the total incapacity for work and increase in incapacity payments, a new clearance is required, listing both shoulder conditions. Even though the latest medical certificate only lists the left shoulder, the right shoulder is still contributing to the incapacity for work as the condition still remains. After 6 months, when the incapacity from the left shoulder resolves, a new clearance is required, listing only the right shoulder condition.
Accepted conditions: PTSD, depression & lumbar spine. Special Rate of Disability Compensation Payment (TPI)	DRCA accepted conditions: depression & lumbar spine Medical certificate is provided listing PTSD, depression & lumbar spine as the incapacitating conditions. Veteran was determined as TPI due to PTSD alone. Medical evidence shows that the PTSD caused a total incapacity for work prior to the depression & lumbar spine conditions. As PTSD is not accepted under the DRCA, incapacity payments are not payable because the incapacity is due to VEA accepted condition alone.	No clearance is required as there is no entitlement to incapacity payments.
Accepted conditions: PTSD, depression, bilateral shoulders & lumbar spine. Special Rate of Disability Compensation Payment (TPI)	DRCA accepted conditions: PTSD, depression & lumbar spine Combination of PTSD, depression & lumbar spine causes total incapacity for work under DRCA. Veteran already determined as TPI due to the same conditions under the VEA. Incapacity payments are payable as the conditions that are causing the incapacity are the same as the conditions the veteran was determined TPI for.	PTSD, depression & lumbar spine must be listed on the clearance.
Accepted conditions: depression & lumbar spine. 50% of the General Rate	DRCA accepted conditions: depression & lumbar spine; MRCA accepted conditions: PTSD Veteran is medically discharged after a long period of tri-act service. The conditions listed on the MECRB and DM042 as leading to the discharge are depression, lumbar spine and PTSD. After reviewing the evidence, the delegate is satisfied that all conditions are contributing to the incapacity, that section 15 of the CATP applies and incapacity payments are payable under the MRCA only.	PTSD is the only condition required on the clearance as incapacity payments under the MRCA cannot be paid for DRCA conditions. Offsetting may still apply as it is same incapacity rather than same condition that is considered.

VEA DCP

DRCA/MRCA incapacity

Clearance

Accepted conditions: right knee & lumbar spine.

80% of the General Rate.

DRCA accepted conditions: right knee & lumbar spine.

Right knee causes total incapacity for work, receiving incapacity payments.

Surgery is later required for lumbar spine, and new medical certificate provided lists both right knee and lumbar spine.

Right knee is the only condition required on the clearance.

Whilst lumbar spine is listed on the new medical certificate the level of incapacity from the right knee has not changed, incapacity payments under the DRCA are not paid for the lumbar spine.

Accepted conditions: PTSD, depression & lumbar spine.

100% of the General Rate.

DRCA accepted conditions: PTSD, depression & lumbar spine.

PTSD & depression cause total incapacity for work, receiving incapacity payments.

A new medical certificate is provided and PTSD, depression & lumbar spine are listed.

PTSD & depression are the only conditions required on the clearance.

Whilst lumbar spine is listed on the new medical certificate the level of incapacity from the PTSD & depression has not changed, incapacity payments under the DRCA are not paid for the lumbar spine.

Accepted conditions: bilateral shoulders.

100% of the General Rate.

DRCA accepted conditions: bilateral shoulders.

Right shoulder causes a partial incapacity for work, no incapacity as a result of the left shoulder, receiving incapacity payments.

Surgery is later required for left shoulder, which results in a total incapacity for work for 6 months. The medical certificate only lists the left shoulder, however there is no indication that the right shoulder incapacity has ceased.

After 6 months, the incapacity for work as a result of the left shoulder resolves, but a partial incapacity as a result of the right shoulder remains.

The initial clearance should only list right shoulder.

At the time of the total incapacity for work and increase in incapacity payments, a new clearance is required, listing both shoulder conditions. Even though the latest medical certificate only lists the left shoulder, the right shoulder is still contributing to the incapacity for work as the condition still remains.

After 6 months, when the incapacity from the left shoulder resolves, a new clearance is required, listing only the right shoulder condition.

Accepted conditions: PTSD, depression & lumbar spine.

Special Rate of Disability Compensation Payment (TPI)

DRCA accepted conditions: depression & lumbar spine

Medical certificate is provided listing PTSD, depression & lumbar spine as the incapacitating conditions. Veteran was determined as TPI due to PTSD alone. Medical evidence shows that the PTSD caused a total incapacity for work prior to the depression & lumbar spine conditions. As PTSD is not accepted under the DRCA, incapacity payments are not payable because the incapacity is due to VEA accepted condition alone.

No clearance is required as there is no entitlement to incapacity payments.

Accepted conditions: PTSD, depression, bilateral shoulders & lumbar spine.

Special Rate of Disability Compensation Payment (TPI)

DRCA accepted conditions: PTSD, depression & lumbar spine

Combination of PTSD, depression & lumbar spine causes total incapacity for work under DRCA. Veteran already determined as TPI due to the same conditions under the VEA.

Incapacity payments are payable as the conditions that are causing the incapacity are the same as the conditions the veteran was determined TPI for.

PTSD, depression & lumbar spine must be listed on the clearance.

Accepted conditions: depression & lumbar spine.

50% of the General Rate

DRCA accepted conditions: depression & lumbar spine; MRCA accepted conditions: PTSD

Veteran is medically discharged after a long period of tri-act service. The conditions listed on the MECRB and DM042 as leading to the discharge are depression, lumbar spine and PTSD. After reviewing the evidence, the delegate is satisfied that all conditions are contributing to the incapacity, that section 15 of the CATP applies and incapacity payments are payable under the MRCA only.

PTSD is the only condition required on the clearance as incapacity payments under the MRCA cannot be paid for DRCA conditions.

Offsetting may still apply as it is same incapacity rather than same condition that is considered.

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

Last amended

Mon, 10/11/2025 - 12:00pm