4.3.2 Entitlements affected by third party common law action

As provided in key points in Chapter 4.3, compensation under the MRCA (as well as compensation under the DRCA and the VEA in certain circumstances) may be recovered and barred if damages are recovered from third parties (other than t Commonwealth) for the same cause of action, or same service death (in the case of dependants). 

Where this occurs, the MRCA requires the veteran or dependant to repay the lesser of either:  

What MRCA compensation is affected? 

For veterans recovering damages for the same cause of action, the following compensation is affected: 

Key 1 July 2026 considerations – veterans and dependants receiving compensation under the VEA or the DRCA 

Where a veteran or dependant recovers third party damages after 1 July 2026 for the same cause of action or service death, the MRCA recovers the following in respect of the same cause of action: 

This ensures continuity under the MRCA of the same compensation offsetting/recovery arrangements that existed under the DRCA and the VEA, for dependants receiving entitlements under those Acts, who receive third party damages post 1 July 2026. 

If an old VEA or old DRCA veteran or dependant recovers third party damages before 1 July 2026, the MRCA provisions will not apply. Instead, the respective VEA or DRCA compensation recovery provisions may apply. 

Example – same cause of action 

A current member has a car accident with another driver on a public road on the way to work at Enoggera Barracks and suffers a fractured right ankle. The right ankle fracture is accepted under the VEA following a claim for liability. A VEA DCP is paid at 30% of the General rate. $60,000 in damages is recovered at common law from the insurance company of the at fault driver of the other car after 1 July 2026. In this example, the cause of action is the same as the VEA DCP. The MRCA requires that the VEA DCP for the same cause of action is offset. VEA section 93 requires repayment of VEA medical treatment for the condition. The MRCA also bars any further compensation under the MRCA for the same cause of action. 

Example – different cause of action 

A former member has an accepted service-related lumbar spondylosis under the VEA and receives a VEA DCP at 50% of the General Rate. $100,000 in damages are recovered at common law from a civilian employer for cervical spondylosis after 1 July 2026. In this example, the cause of action is different, and the veteran is not required to repay any of the VEA DCP. There is also no restriction on further MRCA compensation being paid. 

Note: Delegates should be mindful that section 93 of the VEA continues to recover any medical treatment compensation paid under the VEA relating to the same condition or the same service death (in the case of dependants). 

Note: where delegates require additional support, they should seek assistance via the Delegate Support Framework. 

What is same cause of action? 

The cause of action of a damages claim will be the same cause of action for the MRCA context, where there is a commonality of both:  

Delegates may wish to seek medical evidence to determine whether there is commonality of the compensable conditions arising from the same causal events. If the delegate is satisfied that part the damages do not relate to the same cause of action, recovery of damages under the MRCA is limited only up to the proportion of the damages relating to the same cause of action. 

Example – same cause of action 

A current member has a car accident with another driver on a public road on the way to work at Enoggera Barracks and suffers a fractured right ankle. The right ankle fracture is accepted under the MRCA following a claim for liability. $50,000 MRCA permanent impairment compensation is paid. $60,000 in damages is recovered at common law from the insurance company of the at fault driver of the other car. In this example, the cause of action is the same and the amount required to be paid back is $50,000 (the lesser amount). No further compensation under the MRCA is payable for the same cause of action. 

Example – different cause of action 

A former member has an accepted service-related lumbar spondylosis under the MRCA and receives permanent impairment, medical treatment compensation and household services under the MRCA. $100,000 in damages are recovered at common law from a civilian employer for cervical spondylosis. In this example, the cause of action is different, and the veteran is not required to repay any compensation. 

Exclusions 

The MRCA does not recover the following: 

Is compensation barred following a successful damages award?  

clik://legis/MRC-ACTS/MRCA/S402All compensation under the MRCA in respect of the same cause of action is barred following the recovery of damages. The following payments are also barred following the recovery of damages:  

For VEA and DRCA veterans and dependants who recover damages after 1 July 2026 (even if the proceedings were instituted before 1 July 2026), the MRCA bars all compensation under the DRCA, and the Disability Compensation Payment (including War Widow(er)’s Pension and Orphan’s Pension) under the VEA, following the recovery of damages.   

VEA section 93  

As advised earlier, where a VEA veteran, War Widow(er) or Orphan recovers third party damages from 1 July 2026, the MRCA recovers the VEA Disability Compensation payment, War Widow(er)s Pension and Orphan’s Pension. However, section 93 of the VEA continues to apply to recover any medical treatment paid under the VEA in respect of the same condition or same service death.  

Does compensation include medical treatment?  

Compensation under the MRCA includes medical treatment, such that where a veteran or dependant successfully recovers damages for the same cause of action, they may be required to repay medical treatment already paid under the MRCA and then be barred from receiving further medical treatment for the same cause of action.  

What happens to the DVA Health Care Card? 

White card 

Gold Card 

Note: More information is located in Chapter 4.3.4.