12.1 Overview

Please Note 

Legislative changes which commenced on 1 July 2026 have impacted the information contained in this section. 

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. 

Claims received prior to 1 July 2026 will continue to be considered under the legislation which the claim was submitted. 

For claims involving death, entitlements from 1 July 2026 may vary depending on when the veteran died, when the claim for death was lodged, whether compensation has already been paid in connection with the veteran’s death and whether certain ‘automatic grant’ categories under the VEA apply.

This chapter provides delegates with information regarding the transitional provisions contained within the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (the CTPA).   

The transitional provisions clarify the interaction between the MRCA, the VEA and the DRCA.   

The purpose of the transitional provisions is to prevent anomalies and dual entitlements for people receiving, or eligible to claim, benefits under the MRCA and the VEA and/or the DRCA.  

However, effective 1 July 2026, section 7 of the CTPA was amended to give effect to a new ‘single-Act’ model of compensation which results in the MRCA applying to all injuries, diseases and deaths for claims lodged from that date irrespective of whether that service occurred before or after the MRCA commencement date. This also applies to aggravations and material contributions to injuries or diseases and for injuries, diseases and deaths which result from ADF or other Commonwealth-funded treatment, as well as for loss or damage to medical aids. 

Further amendments to section 12 of the CTPA from 1 July 2026 give effect to new arrangements for the interaction between certain entitlements including Permanent Impairment (PI) compensation under the DRCA, Disability Compensation Payments under the VEA, incapacity payments under the DRCA, compensation for death and funeral expenses and compensation in respect of medical expenses. 

Note that the transitional provisions do not apply to a person whose eligibility for compensation or other benefits arises only under the MRCA.

This chapter is divided into four topics: 

• transitional issues relating to liability; 
• transitional issues relating to permanent impairment (PI) compensation; 
• transitional issues relating to treatment; and 
• transitional issues relating to rehabilitation