5.12.7.1 New recipient arrangements

A new section 80A of the MRCA facilitates a new arrangement whereby the additional lump sum under section 80 can be directed towards the person(s) with the primary care responsibility of a veteran’s dependent eligible young person . This changes previous arrangements before 1 July 2026, where the section 80 payment was directed to the veteran in all cases, because delegates did not previously have discretion to consider varying family and care arrangements.

What claims do the new arrangements apply to?

These new arrangements apply only in relation to claims for compensation under the MRCA from 1 July 2026. In respect of claims before 1 July 2026, delegates may only consider the veteran as the recipient of the section 80 payment (even if the claim is determined after 1 July 2026) and only where the veteran has eligible dependants on the relevant date (see Chapters 5.12.1 to 5.12.6). Eligibility under section 80 is still only considered in respect of young persons who meet the definition of eligible young person and dependant of the veteran on the relevant date. Delegates should be aware that there has been no change to the definitions of ‘dependant’ and ‘eligible young person’.

Can the section 80 payment be paid more than once in respect of the same young person?

Section 80 only makes provision for the section 80 payment once, in respect of the same dependent eligible young person. Where the veteran received section 80 payments in relation to a claim before 1 July 2026, the entitlement under section 80 is extinguished and another person(s) cannot become eligible to receive a portion of the section 80 compensation later. Veterans who have received the additional lump sum cannot be considered for the section 80 payment for a second time, despite the change in arrangements on 1 July 2026.

Example 1 – claim under the MRCA before 1 July 2026

A veteran makes a claim for compensation under the MRCA on 1 March 2026. On 2 July 2026, a determination is made that the veteran suffers 80 impairment points. Evidence is provided that on the relevant date, the veteran has a dependent eligible young person, who he shares care responsibility with his ex-spouse. As the claim was made before 1 July 2026, the delegate cannot consider the ex-spouse as a possible entitled person for a portion of the section 80 payment. The veteran is the recipient of the full section 80 payment in respect of his dependent eligible young person. 

Example 2 – claim under the MRCA after 1 July 2026

A veteran makes a claim for compensation under the MRCA on 15 July 2026. On 30 August 2026, a determination is made that the veteran suffers 80 impairment points. Evidence is provided that on the relevant date, the veteran has a dependent eligible young person, who he shares care responsibility with his ex-spouse. Additional evidence is provided that the care arrangement is divided equally between the veteran and his ex-spouse. The veteran asks the delegate to pay the total section 80 payment to him. As the claim was made after 1 July 2026, and there are two entitled persons, the delegate cannot pay the total section 80 payment to the veteran despite his request. The delegate must consider and apply the new recipient arrangements for the section 80 payment (see Chapter 5.12.7.2).

Can another person, other than the veteran, claim compensation under the MRCA?

Section 80 is only enlivened following a veteran’s claim for compensation and a determination that they suffer a degree of impairment of 80 points or more. Without the veteran making a claim and the necessary impairment assessment and determination occurring, delegates are not required to consider whether there are dependent eligible young persons in the veteran’s care, or another person’s, care. It follows, that another person (other than the veteran) would not usually be the claimant for the section 80 payment under the MRCA.

Once it is determined that a veteran with eligible dependants suffers an impairment of 80 impairment points, delegates must take the necessary steps as soon as possible to identify whether there are other entitled persons. This is to ensure that the other person is aware of their possible entitlement under the MRCA as early as possible in the claim timeline and can assist in providing the necessary evidence to determine the appropriate dollar amounts for all entitled parties.