5.12.7.2 Identifying eligible recipients and amounts payable

The change in recipient arrangements under the new section 80A of the MRCA, as discussed in Chapter 5.12.7.1, are enabled by a new legislative instrument, the Military Rehabilitation and Compensation (Payment of Additional Amount) Instrument 2026 (the section 80 instrument). 

The section 80 instrument prescribes the criteria and circumstances to whom an additional amount in respect of an eligible young persons payable. If the additional amount is payable to more than one person, the instrument outlines how the payment is apportioned.

Identifying eligible recipients

The section 80 instrument provides that an eligible recipient of the section 80 payment is a person who has care of a veteran’s dependent eligible young person. Care includes both:

• unpaid care on an ongoing regular basis, and

• economic care. 

Care does not include irregular or occasional care. This policy makes it clear that an eligible recipient of the section 80 payment (or a portion thereof) is the person(s) with primary care responsibilities of a veteran’s eligible young person and an ad hoc or occasional arrangement would not meet the definition of care in the section 80 instrument. For example, another person who provides care to a veteran’s eligible young person  one day a month is not intended by the policy to be considered an eligible recipient of the section 80 payment.

What if the veteran is the sole carer of the eligible young person or child?

The section 80 instrument prescribes that if the veteran is the sole carer, the section 80 payment is paid to them in full (like what occurs currently). Delegates would need to conduct sufficient investigation and obtain the necessary evidence to confirm the veteran is the sole carer.

What if the veteran does not provide any economic care to a young person?

Delegates should be mindful that for section 80 to be enlivened, a person still need to meet the definitions of both dependant (of the veteran) and eligible young person, on the relevant date. If there is no economic care provided by the veteran to a person, they cannot be considered a dependant of the veteran, and the section 80 payment cannot be considered at all.

Apportionment methods

The instrument prescribes an even 50/50 split of the lump sum, where there are no written formal or informal agreements in place between entitled parties. This ensures there is a methodology to apportion and pay the lump sum, in the absence of those written agreements. Delegates should not use the 50/50 apportionment methodology until they are satisfied there are no written agreements in place.

50/50 apportionment method

This apportionment method must be considered, where there are no written formal or informal care arrangements in place:

• 50% of the lump sum is payable to the veteran and 50% to the other person who provides care to the eligible young person or child.

  • If there is more than one ‘other person’ (other than the veteran), the other 50% portion is shared equally between those other persons (i.e. the veteran would receive 50% and the other 50% is shared equally).

This 50/50 distribution ensures continuity of payability of a veteran’s compensation while further investigations are underway to identify the other eligible recipients.

Secondary apportionment method based on written agreements

This apportionment method must be considered, where there are written formal or informal care arrangements in place:

• The 50/50 distribution methodology is subject to a proviso:

  • Where there are written formal or informal care arrangements in place at the relevant date, such as in court orders or agreed parenting plans, the payment should be apportioned in accordance with those shared care arrangements.

The intent and purpose of attributing the section 80 payment, is to recognise circumstances where there is more than one person providing care to a veteran’s dependent eligible young person or child. This recognises varying family arrangements and ensures compensation is directed to serve the best interests of the eligible young person or child.

What is considered written formal or informal care arrangements?

The policy allows delegates broad discretion to consider a range of formal and informal written documents to ascertain an eligible person(s) portion of care for compensation purposes.

These might include, but are not limited to, written parenting plans, written custody agreements or written court orders. Other informal agreements (signed/agreed by all parties) might include written statements or diaries showing patterns of care. Delegates need to ensure the evidence provided by potential entitled parties is consistent and agreed, before compensation is paid. This is to ensure correct and consistent decision making, and that entitled parties receive compensation that is reflective of their actual and agreed percentage of care.

Example 1 – informal written care arrangements

A delegate determines a veteran suffers 80 impairment points and obtains relevant evidence to confirm there are two dependent eligible young persons on the relevant date. The veteran advises the delegate that she shares primary care responsibility of her children with her ex-husband. The veteran provides a written statement, signed by both herself and her ex-husband, confirming the children live with the veteran on weekdays, Monday to Friday, and then the children stay with their father on weekends, Saturdays and Sundays. In this example, the section 80 payment in respect of each child is divided between the veteran and her ex-husband in line with the informal written agreement i.e. the veteran’s percentage of care is 70% and the ex-spouse 30%. The delegate can be satisfied that this is the appropriate split of the payment, because the informal written care agreement is signed by both eligible parties.

Example 2 – formal written care arrangements

A delegate determines a veteran suffers 80 impairment points and on the relevant date, has two children who meet the definition of dependant and eligible young person. The veteran advises the delegate that he and his ex-spouse have a formal parenting plan in place and provides the delegate with the relevant documents. The formal parenting plan shows that the veteran has full-time care of the two children on school holidays with his ex-spouse having the children the remainder of the time. The delegate obtains a statement from both the veteran and his ex-spouse where they agree that the veteran (during and around the relevant date period) has full-time care of the children for 12 weeks of the year (or 84 days). In this instance, the veteran is entitled to 23% of the section 80 payment and his ex-spouse is entitled to 77%, in respect of each child.

Example 3 – no written care arrangements

A delegate determines a veteran suffers 80 impairment points and obtains relevant evidence to confirm the veteran has a dependent child with his ex-spouse and on the relevant date, who is also an eligible young person. The veteran does not have custody of his child, but pays regular child support payments through a formal, binding agreement, on and around the relevant date. In this example, the child, whilst not living with the veteran, is wholly dependent on the veteran (by way of section 17 of the MRCA). As there are no formal or informal shared care arrangements in place, the 50/50 distribution method applies. That is, the veteran is entitled to 50% of the section 80 payment and the veteran’s ex-spouse is also entitled to 50%. Before deciding the claim, the delegate may wish to contact the veteran and his ex-spouse to provide information that if they are able to come to an informal written agreement about their percentage of care, that the section 80 payment can be apportioned in line with that agreement. However ultimately, it is open to the delegate to apply the 50/50 apportionment method, if the parties do not provide an informal written care agreement.

Due to the change in recipient arrangements of the section 80 payment on 1 July 2026, delegates need to be mindful and thorough in their evidence gathering, before making a determination and paying the section 80 compensation. This is to ensure potential entitled parties receive the portion of the section 80 payment that is either in line with the 50/50 methodology outlined in the instrument, or, in line with their percentage of care in written agreements (if in place). It follows that delegates must give veterans and other persons who they share care of children, sufficient opportunity to provide evidence in support of their claims.

Where policy support is needed, delegates should seek tailored policy advice on specific cases via the Delegate Support Framework.