Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this handbook.
From this date, the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) were closed to new claims, and the Military Rehabilitation and Compensation Act 2004 (MRCA) became the single Act providing coverage for veterans, regardless of service.
For incapacity claims, the changes mean that all new claims for incapacity payments will be determined under the MRCA from that date.
Most veterans receiving incapacity payments under the DRCA immediately before this date were automatically transitioned to MRCA incapacity payment arrangements, with no requirement to reapply or notify the Department.
Content relating to DRCA incapacity eligibility has been retained for reference purposes. This manual will be reviewed and updated over the coming months to reflect the MRCA as the single ongoing Act with all incapacity payments claimed and determined under the MRCA, regardless of the person service.
Introduction
The policy contained in this manual relates to incapacity payments under both the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Military Rehabilitation and Compensation Act 2004 (MRCA). Unless stated in the manual, the policy is equally applicable to both. Where the policy differs, the manual contains a subheading outlining the policy separately under each Act.