Please Note
Legislative changes which commenced on 1 July 2026 have impacted the information contained in this section.
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.
Claims received prior to 1 July 2026 will continue to be considered under the legislation which the claim was submitted.
In accordance with changes that commenced on 1 July 2026, claims which have previously been accepted under the VEA or DRCA do not have to re-tested under the MRCA. However, any aggravation of a pre-existing condition that is claimed from 1 July 2026 will need to be determined separately under the MRCA, regardless of whether the original condition occurred under the VEA or DRCA.
These arrangements are supported by amendments to subsection 7(2) of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 on 1 July 2026 as follows:
7(2) On and after the date of commencement, the MRCA applies to an aggravation of, or a material contribution to, a person’s injury or disease, or a sign or symptom of a person’s injury or disease:
(a) whether the aggravation or material contribution occurs before, on or after that date; and
(b) whether the aggravation or material contribution relates to defence service rendered by the person before, on or after that date.
Refer to Chapter 3.2.7 of the MRCA Policy handbook for further information regarding the acceptance of claims for aggravations under the MRCA.
For claims lodged prior to 1 July 2026
For claims lodged prior to 1 July 2026, Initial liability for a condition cannot be accepted under both the MRCA and the DRCA, or the MRCA and the VEA. This is because the period of service covered by the MRCA does not overlap with those covered by the VEA or DRCA. Further, where an accepted DRCA condition has been aggravated by post-1 July 2004 defence service (ie after the MRCA commencement date), liability for that aggravation may not be accepted under the DRCA. Rather, the aggravation itself, if accepted, becomes a service injury or disease under the MRCA.
Where an accepted VEA condition has been aggravated by MRCA service, different rules apply depending on when the aggravation occurred. In short, there cannot be a MRCA aggravation of a condition under the VEA, except in a limited scenario (see 12.6). While a condition accepted under the DRCA that is aggravated by service after 1 July 2004 may be considered as a MRCA aggravation, where a condition that has been accepted under both the VEA and the DRCA is aggravated by post -1 July 2004 service, it is treated as a VEA Application for Increase (AFI), and the policy set out in 12.6 applies.
This is because the condition, having been accepted under the VEA, requires the application of all the transitional provisions relating to the aggravation of VEA conditions during MRCA service, regardless of the fact that it is also an accepted DRCA condition (see sections 7 and 9 of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (Transitional Provisions)). The Transitional Provisions require that a condition accepted under the VEA must be considered as an AFI under the VEA unless a choice was made prior to 1 July 2013 to consider it under the MRCA. As an aggravation of a DRCA condition after 1 July 2004 is considered under section 7(2) of the Transitional Provisions, and section 7(2) is subject to section 9 of the Transitional Provisions (under section (2A)), this means a condition that has been accepted under both the VEA and DRCA that is aggravated by service after 1 July 2004 must be considered as a VEA AFI.