To be eligible under the MRCAETS, individuals must be an eligible child, which includes:

• an eligible young person who is a dependant of a member or former member who:
  • is eligible, or was at some point, for the Special Rate Disability Pension (SRDP) under section 199 of the MRCA;
  • is eligible, or was at some point, for payment of an ‘Additional Disablement Amount’ under section 220A of the MRCA;
  • suffers an impairment that constitutes 80 or more impairment points under Part 2 of Chapter 4 of the MRCA due to one or more service injuries or diseases;  
  • was a dependant of the member in respect of whom section 12 of the MRCA applies.
• a VEA eligible child; or
• a VEA eligible grandchild (limited to the Long Tan Bursary).

An eligible young person (is someone who is:

• under 16 years old; or
• between 16 and 25, undertaking full-time education (including an Australian Apprenticeship, Traineeship or cadetship) and
• not ordinarily engaged in full-time work on his or her own account.

A student may be eligible for the MRCAETS under the ‘EYP pathway’ if they both meet the definition of an eligible young person and they are a dependant of a veteran who satisfies the relevant eligibility criteria as outlined above. See 9.5.2.3 for guidance on assessing whether a person is a dependant.  

A VEA eligible child is someone who is:  

• a child of a veteran who is receiving (or was receiving prior to their death) a disability compensation payment under the VEA:
  • at the special rate (formerly known as T&PI)
  • at the Extreme Disablement Adjustment (EDA) rate
  • at an increased rate because of multiple amputations, or multiple amputations and blindness in one eye, or  
• a child of a veteran whose death was war-caused or defence-caused, or  
• a child of a veteran who was an Australian prisoner of war and is now deceased.  

A child of veteran is someone who is:

• under 16 years old; or
• Between 16 and 25, undertaking full-time education (including an Australian Apprenticeship, Traineeship or cadetship), and
• wholly or substantially dependent on an eligible veteran (or was prior to their death)

A student may be eligible for MRCAETS under the ‘VEA eligible child’ pathway if they both meet the definition of child of a veteran and are wholly or substantially dependent on a veteran who satisfies the relevant eligibility criteria as outlined above. See 9.5.2.3 for guidance on assessing whether a person is a dependant.  

A student who is 25 years or older is still eligible for the MRCAETS where:

• before turning 25, the person begun a course of education or training provided under the scheme; and
• the person turns 25 before finishing the course; and
• after turning 25, the person continues the course in order to finish it.

For more information on the eligible young person definition, see section 7.9 of the MRCA Policy Manual 7.9.1 Who is an Eligible Young Person? | CLIK.

From 1 July 2026, the VCES was closed with all existing recipients transferred to the MRCAETS. The MRCA was amended to incorporate the former VCES eligibility framework. As a result, students who would previously have been eligible for the VCES are now eligible under the MRCAETS, with the eligibility criteria retained in the Act. 

Because the new MRCAETS framework brings together multiple eligibility pathways, including VEA eligible children and eligible young people, there are circumstances where a person may meet more than one underlying eligibility type. In these cases, the most appropriate eligibility pathway should be automatically applied based on which is most beneficial to the student. 

There are two main considerations when determining what is most beneficial for a student: work status and taxation. Information on these topics is set out blow. These considerations inform an eligibility hierarchy that is applied automatically. 

Work Status

Previously VCES eligibility rules will be continued under the MRCAETS. This includes the ability for VEA eligible children to undertake full-time work while studying, as the full-time work restrictions that apply to eligible young people do not apply to this cohort. 

Taxation 

The MRCA taxation rules will apply to all payments made under the MRCAETS. Under the MRCA, payments made as a result of a veteran’s death are exempt from income tax. This means that payments made to VEA eligible children as a dependant of a deceased veteran will be treated as non-taxable. 

Eligibility hierarchy 

To ensure the most beneficial eligibility is applied, the eligibility hierarchy is set out below (from highest to lowest): 

• VEA Double Orphan (tax-free, no full-time work restriction) 
• VEA Death Accept (tax-free, no full-time work restriction) 
• MRCA Death Accept (tax-free) 
• VEA – TPI, EDA, SDA, POW (no full-time work restriction)
• MRCA – SRDP, MPI, ADA. 

How dual eligibility is managed 

Where a student could potentially meet more than one eligibility type, the eligibility which is most beneficial should apply automatically. In practice this means: 

• Full-time work will only impact students with MRCA inherited eligibility. The restriction does not apply to inherited VEA eligibility. 
• Eligibility based on being a dependant of a deceased veteran (i.e. Death Accept) takes precedence, ensuring tax-free payment status applies.

To be eligible to receive MRCAETS benefits, a child must either be: 

• an eligible young person (dependant of a veteran with underlying MRCA eligibility) or 
• a VEA eligible child (dependant of a veteran with underlying VEA eligibility). 

While all students must be a dependant of an eligible veteran to be eligible for MRCAETS benefits, there are slight differences in dependency standards as outlined below.

Under the MRCA, a dependant means a related person of the member:

• who is wholly or partly dependent on the member; or
• who would be wholly or partly dependent on the member but for an incapacity of the member that resulted from an injury or disease or an aggravation of an injury or disease.

A related person can be:

• a child, step-child, grandchild, brother, sister, half-brother or half-sister of a deceased member, member or former member; or
• a child or step-child of the member’s partner;
• a person in respect of whom the member stands in the position of a parent; or in unusual circumstances
• the member's partner.

However, the related person must also be an eligible young person wholly or partly dependent on the deceased member, member or former member for economic support (or would have been wholly or partly dependent but for the incapacity of the member because of an injury or disease for which liability has been accepted under the MRCA).

When an eligible young person is wholly dependent under the MRCA 

An eligible young person is automatically considered to be wholly dependent on the member or former member if:

• they live with the member or former member, 
• they would be living with the member or former member but for a temporary absence of the member or the young person,
• they would be living with the member or former member but for an absence of the member or young person due to illness or infirmity, or 
• where the member or former member is liable to provide child support under the Child Support (Assessment) Act 1989 for the young person. Where child support is provided other than under a Child Support Agency arrangement, a level of dependency can still be established on a case-by-case basis. 

Where a child is not automatically deemed as dependent under section 17 of the MRCA, additional documentation may be required to establish dependency. Suitable evidence could take the form of a statutory declaration by the veteran or applicant, a guardianship order, evidence of payment by Service Australia of FTB to the member of member’s spouse on behalf of the child, a custody order, etc.

Step-children as eligible young people 

The list of dependants in section 15(2) includes a step-child. The child must also be wholly or partly dependent (this refers to economic dependency) on the member. If the step-child’s parents separate, the child will lose entitlements to MRCAETS benefits unless the child remains wholly or partly dependent on the member or former member, or the separation is due to family and domestic violence. 

If the child continues to live with the member or former member after the separation, the child is eligible to receive MRCAETS benefits based on continued dependency.

Absences due to illness or family and domestic violence 

An eligible young person may continue to be considered dependent on an eligible member where the young person or former member are permanently absent from the home for reasons of illness or where the absence is due to family and domestic violence (see 9.5.2.4). 

Dependant VEA eligible child

To be considered a VEA eligible child, the individual must be a child of a veteran who meets the relevant eligibility criteria. For the purposes of the MRCA, a person is taken to be a child of a veteran where they are wholly or substantially dependent on the veteran. 

A child will also be taken to be wholly or substantially dependent on a veteran where the veteran has a legal obligation to maintain the child

Under section 17 of the MRCA, an eligible young person may continue to be considered wholly dependent on an eligible member in circumstances where the person or the eligible member has left or been removed from their home due to circumstances of family or domestic violence. This exception does not apply to VEA eligible children.

Temporary Absence

Where an individual (eligible young person or member) is temporarily absent for reasons of family or domestic violence, the person continues to be wholly dependent on the member. 

Absence due to illness/infirmity

An eligible young person can continue to be considered wholly dependent on the member if the dependant’s or the member’s absence from the home is due to an illness or infirmity. The illness or infirmity causing the absence can be either the member’s or the dependent persons. 

The delegate should seek appropriate evidence linking the illness or infirmity with the absence. Evidence to substantiate a separation based on abuse caused by illness would be considered on a case-by-case basis. It could include a current protection order, medical (including psychological) evidence, witness statements or statutory declarations.

As an example, satisfactory evidence may include a statutory declaration outlining the reason for leaving the home supported by report from a GP which indicates person is seeking assistance for mental health following family or domestic violence. 

If it is established that a person is absent due to illness or infirmity, then they may be considered wholly dependent for the period which the illness or infirmity prevents return to the home. This may be short-term due to physical illness, or indefinite for psychological reasons. 

Absence under a protection order 

The term ‘protection order’ encompasses several situations including: 

• A restraining order
• A domestic violence order (DVO)
• Apprehended Violence Order (AVO)
• Apprehended Domestic Violence Order (ADVO)
• Apprehended Personal Violence Order (APVO), and,
• Child protection orders. 

A protection order results generally results in an individual being unable to remain in or return to the home for a set period. This means either the member or the dependent is unable to continue to live in the home for the duration of the protection order. 

As the member or dependent is unable to return to the home for the period, the absence is temporary in nature regardless of any statements regarding the likely permanency of the separation. 

In these circumstances the dependent may continue to be considered wholly dependent from the date of absence for the duration of the protection order, or for a period of 24 months, whichever is greater. 

This applies regardless of whether the dependent is identified as the alleged perpetrator or as the person who requires protection (noting that there are often cross claims where both individuals in a relationship are subject to orders identifying them as perpetrator). 

Delegates are advised to read this provision together with Section 9.5.2.3 (Dependants) and Section 9.5.2.2 (Inherited Eligibility Hierarchy), which now form the complete decision making pathway for dependency and inherited eligibility under MRCAETS.

 Claims for the MRCAETS must be made in accordance with section 319 of the MRCA. As assistance under the MRCAETS is included in the definition of compensation under section 5 of the Act, claims may be made either in writing or orally. 

Section 320 of the MRCA outlines who may make a claim. A claim may be made by the person entitled to the compensation, or on that person’s behalf by: 

• the person’s legal representative, with the person’s approval, 
• another person approved by the Commission, where the person is unable, due to physical or mental incapacity, to approve another person to act on their behalf, or 
• where the person is under 18: 
  • by the person’s parent or guardian, 
  • by someone approved by the person’s parent or guardian, or 

  • if there is not a parent or guardian of the person alive, willing and able to make or approve someone to make a claim, by another person approved by the Commission

     

To be eligible for benefits under the Schemes a student must generally be undertaking study within Australia or have made application or been accepted to study within Australia.

The Commission may waive this requirement if the circumstances of the student are held to be exceptional.

Overseas study

Allowances are paid at the living away from home rate to a student who has been awarded a place within a formal overseas exchange scheme or who has received a scholarship to study overseas. This benefit is payable for the duration of the approved period of overseas study.

A student may receive benefits under the MRCAETS if they are undertaking:

1. general primary or secondary education; or
2. a tertiary course of education or study that would qualify the student for a youth allowance under Part 2.11 of the Social Security Act 1991 (SSA); or
3. a course of tertiary study that would not qualify the student for a youth allowance under Part 2.11 of the SSA, but which:
   1. the Commission considers essential for achievement of the student’s vocational aim; and
   2. no other tertiary course that would qualify the student for a youth allowance under Part 2.11 of the SSA is suitable or available.

Courses that would qualify the student for Youth Allowance 

A student will be eligible to receive education allowances for a full-time course of study if it is a course that would qualify them for youth allowance – this includes courses offered online. Approved courses are those listed in the Student Assistance (Education Institutes and Courses) Determination 2019. https://www.legislation.gov.au/F2009L04345/latest/text

The courses set out in the Determination include: 

Secondary courses, including: 

• Accredited secondary courses through a secondary school or TAFE, higher education institution or special school
• English as a Second Language (ESL) courses
• Preparatory courses for tertiary education 
• School-based apprenticeships or traineeships
• International Baccalaureate
• Tertiary courses, including: 

Pre-vocational courses:

• ESL courses 
• Vocational Education and Training (VET) courses 
• Associate degrees or diplomas
• Diplomas or advanced diplomas
• Bachelor degrees (including honours) 
• Bridging study for overseas-trained professionals 
• Graduate certificate or diploma courses 
• Masters qualifying courses 
• Approved Masters by coursework programs 
• Combined courses comprised of approved courses specified in Schedule 2 or 3 of the Determination Open learning
• Accelerator programs. 

The Determination includes Schedules listing approved courses. Schedule 2 lists the general types of tertiary courses that are approved (i.e. Bachelor, Masters bridging course). Schedule 3 lists approved ‘Masters’ courses.

Doctorate or PhD level Courses

PhD level courses (with the one exception of Juris doctor courses) are not included as approved tertiary courses in the Determination F. They are not courses that qualify a student for youth allowance and, therefore, a student undertaking these courses will generally not qualify for payments under the Schemes.

The one exception to this is where the Commissions approve a course of study on the basis it is essential to achieve the student’s vocational aim. In such an instance, the student must provide DVA with a letter from the university or study institution stating the course is essential to achieving their vocational aim. In most instances, study at a PhD or Masters level is not considered essential.

Honours Courses

Study at an Honours level is normally considered to be a continuation of an approved Bachelor course. The delegate should confirm that the Honours course offered is a continuation of the Bachelor degree to assist in determining whether education allowance can be paid.

Minimum duration of a course of study

There is no minimum duration for a course of study conducted by an approved institution. 

Courses that do not lead to a tertiary qualification

Generally, post-schooling courses that do not lead to a recognised tertiary qualification are not eligible for support under the schemes. However, in exceptional circumstances where both: 

1. the course is essential for the achievement of the student's vocational aim, and
2. no other course of tertiary study that would qualify the student for a youth allowance under Part 2.11 of the SSA is "suitable or available"

Some consideration may be given to a non-certificate course to maintain eligibility under the MRCAETS. 

In these cases, the Family Policy team should be contacted to investigate whether MRCAETS support may still be appropriate before any decision is made.

A student is not to be paid benefits under the MRCAETS if they receive a financial benefit in the nature of educational assistance, or income support, from any other Commonwealth Department or agency.

A student who is eligible to receive benefits under the Education Schemes but is instead receiving another mutually exclusive Commonwealth payment may still be eligible for other MRCAETS benefits such as guidance, counselling special assistance and additional tuition.

A student may only be paid a benefit under the Scheme if the Commonwealth educational assistance or income support:

1. is provided (whether directly or indirectly) by the Department or the Commission; or
2. is provided under a scholarship from the Commonwealth known as the Commonwealth Education Costs Scholarship; or
3. is provided under a scholarship from the Commonwealth known as the Commonwealth Accommodation Scholarship; or
4. is a payment received under a grant known as the Commonwealth Practicum Payment.

A student may, subject to eligibility, cease receiving a payment under another Commonwealth benefits scheme and apply for support under the MRCAETS, or cease receiving Education Scheme payments and apply for another Commonwealth payment.

Commonwealth Practicum Payment 

The Commonwealth Practicum Payment (CPP) is a payment intended to assist students studying teaching, nursing, midwifery or social work to manage the costs associated with mandatory placements. It came into effect on 1 July 2025 and is delivered through the Department of Education and the Department of Employment and Workplace Relations. The MRCAETS instrument specifies that CPP is not considered mutually exclusive with support under the Scheme. 

Australian Defence Force Academy Students 

Students studying through the Australian Defence Force Academy (ADFA) receive a fully funded tertiary education plus salary and other financial benefits in return for a minimum period of military service.

According to legal advice received October 2023, the full subsidisation of an ADFA student’s tertiary course, and payment of salary in respect of their full-time employment, should be taken to constitute ‘educational assistance’ and ‘income support’ respectively, provided by the Commonwealth. As such, in accordance with paragraph 2.11 of the Instruments, ADFA students are ineligible for benefits under the Schemes as they are receiving a financial benefit from the Department of Defence. Students studying at ADFA are a unique cohort, and cases where similar questions may be raised as to what constitutes educational assistance and income support should be considered on a case-by-case basis.

DVA will seek clearance from Services Australia before granting assistance under the MRCAETS to a secondary or tertiary student. Where the student is transferring to the MRCAETS from another Commonwealth educational assistance or income support scheme an agreed "cut-off" date must be negotiated with Services Australia.

The seeking of clearances by DVA aims to reduce the incidence of overpayments, and consequential recovery of payments by DVA. However, in instances where a scholarship amount is paid to a person by both DVA and Services Australia for the same period, then the agency who paid it second will be responsible for recovering that amount. This is because eligibility for the scholarships (ceases if the person has received the same amount in the previous 6 or 12 months (depending on the scholarship) that is, where the amount has already been paid by another agency for the same period.

Orphan Pensions under the VEA

From 1 July 2026, all new claims for compensation will be assessed under the MRCA. However, Orphan Pensions granted under the VEA will be grandfathered for existing recipients, and automatic grants may continue to apply in some circumstances. 

This means that some VEA eligible children receiving support under the MRCAETS may also continue to be eligible for an Orphan Pension under the VEA. However, once a student turns 16 the Orphan Pensions are not payable if the student receives an allowance under the MRCAETS. The student (or guardian) will need to choose which payment to receive. 

Death benefits under the MRCA

Under the MRCA, the following compensation is available to an eligible young person on their veteran parent’s death:

• A tax-free lump sum compensation payment.
• A weekly payment.
• A  Veteran Card –  All Conditions (Veteran Gold Card) and
• A MRCA supplement payment.

This assistance is available concurrently with the MRCAETS allowance or other Australian Government student assistance (e.g. Youth Allowance, ABSTUDY, Assistance for Isolated Children) or FTB, regardless of the student’s age (while under 25).

Under the MRCAETS, if a student receives an education allowance under the MRCAETS, that student is, in the absence of a contrary intention, ineligible to receive any other education allowance. 

Essentially, a student may only receive one education allowance at a time under the MRCAETS.