Date amended:
External

This chapter provides guidance for delegates investigating and determining compensation claims under the Military Rehabilitation and Compensation Act 2004 (MRCA) where a person is entitled to compensation and has, or may have, a right to recover damages in relation to the same injury, same cause of action or service death. This chapter also specifies the circumstances in which a person cannot take common law action.

Key points

  • The MRCA contains provisions (broadly, sections 389, 401 and 402) dealing with the recover and barring of compensation when a veteran or a dependant recovers damages at common law for the same cause of action (which includes the same service death),
  • A cause of action will be the same cause of action as a damages award, if it is the same condition arising from the same causal events, or the same death, in the case of dependants,
  • Actions for damages at common law may include actions against third parties (other than the Commonwealth) and, in limited circumstances, actions against the Commonwealth:
    • Under the MRCA, veterans may bring an action for damages more generally against third parties (other than the Commonwealth),
    • Veterans may only bring an action for damages against the Commonwealth for non-economic loss, if they are entitled to MRCA permanent impairment compensation. This is because the MRCA is intended to be the primary means for veteran's obtaining compensation for conditions related to service, rather than in an action against the Commonwealth,
    • For dependants bringing an action for damages for a service death, the MRCA does not limit an action for damages against the Commonwealth, as it does for veterans i.e. the action is not limited to just non-economic loss. Furthermore, the dependant may bring such an action against the Commonwealth, regardless of whether a veteran (before they died) instituted an action against the Commonwealth for non-economic loss,
  • The Commonwealth can choose to instigate or take over a claim against a third party in relation to a cause of action that is compensable under the MRCA,
  • All common law action can affect compensation payable (including treatment eligibility) under the MRCA for the same cause of action. The cessation, recovery or repayment of all of certain types of compensation can result from the choice to pursue a claim at common law. It is for this reason that all veterans and their dependants are required to be informed of the compensation.

Note: From 1 July 2026, the MRCA may also apply to recover and bar compensation under the DRCA and the Disability Compensation Payment under the VEA, in certain circumstances. Please refer to Chapters 4.2 to 4.5 of the 'Liabilities Arising Apart From this Act' Policy Manual for more information.