9.5.2.12 Orphans Pensions and Death Benefits

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).