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Military Compensation MRCA Manuals and Resources Library
Policy Manual
- Ch 7 Compensation for Death
Date amended:
External
Note for CLIK Users
Under changes commencing on 1 July 2026, the Veterans’ Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence- related Claims) Act 1988 (DRCA) are being closed to new claims. From that date, all new claims for death will be determined under the Military Rehabilitation and Compensation Act 2004 (MRCA), irrespective of when the veteran died or when they served.
Claims lodged before this date will continue to be assessed and determined under the DRCA or VEA. Importantly, there will be no additional compensation payable for dependants who received compensation in respect of the veteran’s death prior to 1 July 2026.
Existing ‘automatic grant’ categories (and entitlements) under the VEA are being preserved under ‘grand-parenting’ provisions and will continue to apply.
Dependants in these categories will also have the option to claim under the MRCA where the veteran’s death occurred on or after 1 July 2026.
For veterans with DRCA eligibility, the dependants of those with high levels of impairment (i.e. 80 or more impairment points) will, for the first time, be eligible for dependant compensation under the MRCA following the veteran’s death, irrespective of the cause of death.
Changes are also commencing on 1 July 2026 that will allow claims to be accepted under the MRCA where the veteran was ‘on duty’ at the time of their death, without the need to establish a causal relationship with service via the Statements of Principles.
Payments for funeral expenses are also changing from 1 July 2026. All veterans will now be eligible for the higher rate of reimbursement for funeral expenses available under the MRCA in situations where:
the death is caused by the veteran’s service,
the veteran was assessed with 80 or more impairment points,
the veteran was eligible for the Special Rate Disability Pension under the MRCA at some point, or
the veteran was eligible for the Additional Disablement Amount under the MRCA at some point after 1 July 2026.
The funeral benefit arrangements provided under the VEA are also being transferred to the MRCA from 1 July 2026 with the rate increased to $3,000 (not indexed). This includes automatic payment to the estate of the deceased veteran in the same situations that ‘auto-grant’ eligibility under the VEA currently applies, as well as other circumstances where a claim can be submitted, currently prescribed under the VEA. For example, where the veteran dies in indigent circumstances or while staying in (or travelling to or from) a hospital or other institution.
A claim can be submitted for the higher rate of reimbursement for funeral expenses even where an automatic payment of $3,000 has been made, but the maximum amount payable will be reduced by the $3,000 already received.
Other eligibility requirements and existing categories of entitlement that currently exist under the MRCA will continue to apply.
Together, these changes will create a single framework for deaths which occur on or after 1 July 2026 that is simpler to administer, and which leads to greater consistency of outcomes for the families of deceased veterans.
Note: Additional guidance for each entitlement type — including partner compensation, child benefits, funeral expenses, treatment eligibility and transitional arrangements — will be updated across the relevant CLIK chapters and sub-chapters.
Also note that information videos covering the 1 July 2026 legislative reform changes are available via the following link Information Videos
What is covered by this Chapter?
This chapter provides information on death benefits available under the MRCA. In particular it addresses the following matters:
- In what circumstances compensation following death is available (see [glossary:7.4);
- who may be entitled to compensation following death (see 7.5); and
- details of the compensation that is available (see 7.7).