Note for CLIK Users
Under changes commencing on 1 July 2026, all new claims for Permanent Impairment (PI) compensation will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of service or when the condition occurred.
Any outstanding claims for disability compensation under the Veterans’ Entitlements Act 1986 (VEA) and/or claims for PI under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) which are lodged but not determined before 1 July 2026 will continue to be assessed and determined under those Acts.
Veterans in receipt of PI payments under the MRCA do not need to do anything in preparation for the changes.
After commencement, veterans with DRCA/VEA eligibility can make claims for PI under the MRCA. However, compensation will only be payable where the degree of impairment has increased by at least five impairment points under the MRCA.
The arrangements are being supported by updates to the Guide to Determining Impairment & Compensation (GARP M). Specifically, the changes will include a new methodology that will be used to find a starting point or ‘baseline impairment’ rating under the MRCA where compensation for a veteran’s impairment has previously been paid under the VEA and/or DRCA.
Other changes commencing on 1 July 2026 include new provisions that will enable payments made in accordance with section 80 of the MRCA to be split between the veteran and other primary carers of an Eligible Young Person. This change will apply to claims for compensation lodged under the MRCA from 1 July 2026.
Processes for determining the ‘date of effect’ for PI compensation are also being simplified by allowing treating doctors to provide a meaningful estimate of when an impairment met the requisite criteria of being permanent and stable.
Other changes will enable legal personal representatives to convert the weekly amount of PI compensation that would have been payable to a deceased veteran to a lump sum (excluding any amount for lifestyle effects) where the veteran dies before being able to make a choice to convert their PI weekly entitlement. This change for legal personal representatives will apply in respect of a person who dies on or after 1 July 2026, irrespective of when the claim for compensation under the MRCA was lodged.
In relation to claims lodged from 1 July 2026, veterans will be able to nominate a bank account for the payment of their compensation that is a bank account not maintained by them (i.e. their solicitor’s account).
The 1 July 2026 changes are expected to simplify claiming processes for veterans, provide greater clarity for delegates (and medical assessors) and reduce the time taken to commence compensation.
Note - Additional information on each of the above topics will be made available in the relevant Chapters/sub-chapters in CLIK
Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos