5.12.7.3 New threshold tests for veterans previously covered under the old VEA and/or the old DRCA

Amendments to section 80 of the MRCA from 1 July 2026 facilitate consideration of the additional lump sum for veterans previously covered exclusively under the old VEA and/or the old DRCA, where they meet an additional threshold test.

Just like veterans who have only ever had coverage under the MRCA, this cohort of veterans are still required to be assessed as suffering an impairment of at least 80 impairment points before the section 80 provisions are enlivened. However, this cohort must also meet one of the following:

• have liability accepted under the MRCA for a new injury or disease, resulting from a claim under the MRCA after 1 July 2026; or

• have a worsening in overall impairment levels of at least five points from the baseline impairment rating because of existing service-related conditions. For information about how the baseline impairment rating is calculated, please see Chapter 5.16.7.

Delegates should be mindful that this additional threshold test is only intended to apply to veterans who, but for legislative reform changes on 1 July 2026, would only have had coverage under the old VEA and/or the old DRCA.

Delegates should also be mindful that, depending on the order of events, this cohort of veterans may be eligible to be considered for the section 80 payment at a different time than the time they are determined as suffering 80 impairment points. For example, there may be instances where a veteran is assessed at 80 impairment points as a result of a claim for compensation under the MRCA after 1 July 2026, and does not meet one of the criteria in the additional threshold tests, but then later does, as a result of an accepted initial liability claim under the MRCA for a new injury or disease. At the time the new condition is accepted under the MRCA, the section 80 threshold tests are met, and the veteran may be considered for the section 80 payment (if there are dependant eligible young persons). The initial liability team may be required to refer the veteran’s matter back to the permanent impairment team to conduct the necessary investigations.

Example – On 30 July 2026, a veteran with only service-related conditions under the old DRCA makes a claim for compensation under the MRCA. On 1 September 2026, a determination is made that the veteran suffers 80 impairment points because of those conditions. However, when comparing this rating with the baseline impairment rating, there has not been an increase of at least 5-points from the baseline impairment rating. On 10 September 2026, the veteran makes a claim for liability under the MRCA for a new condition, which is accepted on 1 October 2026. At this time, the veteran becomes eligible to be considered for the section 80 payment, if there are dependant eligible young persons. This is because they have satisfied both the 80-impairment point threshold test and the new MRCA condition test. The initial liability team should refer the case back to the permanent impairment team to investigate the section 80 payment eligibility further.