5.12 Additional Payment for Severe Impairment

Note: Section 80 of the MRCA was amended on 1 July 2026 to allow for different recipient arrangements of the additional lump sum payment, as well as to allow for veterans previously covered under the old VEA Act and/or the old DRCA Act to be considered for the payment, where they have eligible dependants on the relevant date.

The policy located in Chapter 5.12.7 applies to claims for compensation under the MRCA from 1 July 2026 and contains information relating to those new arrangements.

The policy content in Chapters 5.12.1 to 5.12.6 predominantly applies to claims for compensation under the MRCA before 1 July 2026. 

However, some content remains current. For example, the information about dependants in Chapter 5.12.3, eligible young person in Chapter 5.12.4, children conceived in Chapter 5.12.5 and IVF in Chapter 5.12.6 may still apply to claims for compensation under the MRCA from 1 July 2026.

Key points

Veterans will be eligible for an additional tax-free lump sum for each dependant who is also an eligible young person, if they have been:

• assessed at 80 or more impairment points, and
• paid, or entitled to be paid, PI compensation.

This additional amount is payable to the veteran in respect of each person who is both, a dependant of the veteran and eligible young person, at the relevant date.

What is the relevant date?

The relevant date is the later of the following:

• the date the Commission determines when the veteran's impairment reached at least 80 or more impairment points,
• where a single service-related condition results in the veteran reaching 80 impairment points, the date the liability claim was lodged,
• where more than one condition resulted in the veteran reaching 80 impairment points, the date the most recent liability claim was lodged for one of those conditions (refer to 5.12.2 Subsection 80(2) - Finding the relevant date | CLIK for further information).

Who is a dependant?

A dependant is a related person who is wholly or partly dependent on the veteran for economic support or would be dependent on the veteran but for the veteran’s service-related incapacity.

A related person includes only those specified in section 15, and includes, but is not limited to:

• biological, step or foster children,
• grandchildren,
• parents,
• partners, etc.

Please see 5.12.3 Subsection 80(2) - Dependant | CLIK  for further information.

Who is an eligible young person?

An eligible young person is either:

• conceived or born alive, on or before, the relevant date and born alive after the relevant date,
• adopted or have adoption proceedings in place on or before the relevant date.

They must also be either:

• aged under 16 years,
• aged between 16 and 25 years old, in full-time education and not working full time.

Please see 5.12.4 Subsection 80(2) - Eligible Young Person | CLIK for further information.

What amount is payable?

• The amount payable under section 80 is indexed annually. Historical and current payment rates can be found in the ‘Payment Rates’ section of the Compensation and Support Reference Library - Payment Rates | CLIK.
• The applicable payment rate will be as of the date the delegate determines compensation is payable under section 80.
• The additional amount is payable only once for each EYP of the veteran. 

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