Note for CLIK Users
Initial Liability is the first step in the compensation process for veterans and/or their families. It establishes whether the Commonwealth is liable for an injury, illness or death. Establishing liability is necessary to access subsequent support services and compensation for the condition under DVA legislation.
All compensation claims lodged from 1 July 2026 will be determined under the Military Rehabilitation and Compensation Act 2004 (MRCA), regardless of service. The Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans’ Entitlements Act 1986 (VEA) are being closed to new compensation claims, although Qualifying Service and resultant Gold Card eligibility and income support (i.e. service pension) will remain under the VEA. However, all compensation claims and claims relating to the worsening of conditions made after 1 July 2026 are assessed under the MRCA.
Claims received prior to 1 July 2026 will continue to be considered under the legislation under which the claim was submitted, as will any review or reconsideration of a claim made before 1 July 2026.
Importantly, any decisions made under the VEA or the DRCA before 1 July 2026 will not require re-assessment to re-establish liability or compensation entitlements. Effectively, conditions that have been accepted under the DRCA and the VEA will become ‘MRCA conditions’ from 1 July 2026. Any benefits previously received will be ‘grandfathered’.
Where a claim has previously been rejected, an individual can submit a new claim under the MRCA from 1 July 2026. However, the previously rejected claim’s appeal timeframes must have expired and the new claim must be supported by new/additional evidence, which may include the application of the new Presumptive Liability arrangements (discussed in more detail below).
Several changes are also being made to improve the operation of the MRCA from 1 July 2026, which are also discussed below. These changes, combined with other changes being made to the broader legislative framework, are designed to reduce complexity of claims for veterans, improve processing times and provide earlier access to treatment and compensation.
New Head of Liability – Presumptive Liability
Presumptive Liability will allow claims for certain conditions lodged from 1 July 2026 to be accepted, effectively on an ‘automatic’ basis, where there is a formal diagnosis and where relevant criteria are met (unless causation outside service is proven or exclusions under the MRCA apply).
There are components under the Presumptive Liability umbrella, including the following arrangements that operated prior to 1 July 2026:
- Streamlined/Straight Through Processing
- Sequela conditions
- F-111 Deseal/Reseal workers
- Point Cook Firefighters
- Firefighter mustering
- Defence Abuse
- Occupational Diseases
Conditions and service requirements that are covered under the current instrument (which will be consolidated under the Presumptive Liability banner) include:
ADF firefighters who participated in firefighting training at Royal Australian Air Force Base Point Cook between 1 January 1957 and 31 December 1986
cancers prescribed for Australian Defence Force firefighters
specified conditions for F-111 Deseal/Reseal workers who were employed at RAAF Base Amberley between 1976 and 1994
certain specified diseases and employment exposures
other ‘decision-ready’ conditions previously specified under DVA policy.
Importantly, where criteria for presumption are not met, normal assessment of liability will apply so claims will still be assessed and may be accepted through standard liability arrangements.
New Head of Liability - Medical Event on Duty
The inclusion of new subsections 27(da) and 28(1)(ea) in the MRCA will allow for an injury or death to be accepted as a service injury or a service death on the basis that it occurred while the member was ‘on duty’ at the time the incident occurred, regardless of whether or not it resulted from the performance of those duties.
In such cases, there will be no requirement to assess these claims using the Statements of Principles (SoPs). However, the usual exclusions under the MRCA will still be applicable, including conditions relating to a serious default or wilful act, a serious breach of discipline or a condition that was not declared at enlistment or linked to tobacco use (after 1 January 1998).
Tobacco Use
From 1 July 2026, claims relating to conditions arising from tobacco use prior to 1 January 1998 may be accepted as service-related under the MRCA.
Conditions that relate to service only due to smoking that commenced or increased on or after 1 January 1998 are still excluded and the claim would not be successful.
Claims associated with tobacco use before that date can only be accepted if the smoking habit commenced or increased due to service.
Injuries or Deaths Arising from Treatment
Amendments have been made to the MRCA to clarify issues arising from medical treatment paid for by the Commonwealth (i.e. DVA or Defence) and where an injury, aggravation of a condition or death occurs because of the treatment.
Where the condition being treated is an ‘accepted ‘condition, liability for consequences of that treatment may be accepted. However, where the condition being treated is not one that has been accepted as related to the veteran’s service, then liability may only be accepted for any unintended consequences of the treatment. This will also include preventative treatment (i.e. the treatment does not need to be for a pre-existing condition).
Application of SoPs at Review
Where the Repatriation Medical Authority amends or updates a SoP while a review of the veteran’s claim is ongoing, changes will ensure that the version of the SoP that is most beneficial to the veteran’s situation can be applied (whether the earlier or amended version) at the review stage. This means that either the SoP that applied at the time of the primary determination or the new SoP that takes effect during the review may be applied, whichever is most beneficial to the claimant.
Note - Further information in connection with all the above changes will be included in the relevant CLIK chapter or sub-chapter
Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos