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Policy Manual
Ch 9 Other Benefits under the Military Rehabilitation and Compensation Act 2004
- 9.4 Motor Vehicle Compensation Scheme (MVCS)
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 for compensation and rehabilitation.
Claims for travel expenses that would previously have been payable under the VEA or DRCA will instead be payable under the Military Rehabilitation and Compensation Act 2004 (MRCA) from that date.
For those with eligibility under the VEA, the changes will result in a higher rate of reimbursement per kilometre travelled ($0.68 under the MRCA compared with $0.44 under the VEA). The MRCA is also being amended to remove the 50-kilometre return trip requirement that currently applies under both the MRCA and the DRCA, meaning a larger proportion of veterans will be able to claim expenses associated with travel by private vehicle.
With the closing of the VEA and the DRCA on 1 July 2026, access to the Vehicle Assistance Scheme (VAS) for new applicants will cease. From that date, all new claims for motor vehicle compensation will instead be considered under the Motor Vehicle Compensation Scheme (MVCS). However, those with eligibility that has already been established under the VAS will continue to receive assistance under that scheme via ‘grand parenting’ arrangements.
Assessment under the MVCS will require lodgement of a new claim for benefits on or after 1 July 2026 and will be subject to the eligibility criteria and conditions under that scheme.
Those who are already eligible under the MRCA will not be impacted by the changes.
The changes are expected to simplify claiming processes and lead to greater consistency of outcomes for veterans, irrespective of when they served or when they were injured or became ill.
Note: Additional information on this (and other) topics will be made available in the relevant CLIK chapters and sub‑chapters soon.
Information videos covering the 1 July 2026 legislative reform changes are also available via the following link Information Videos
The MVCS is determined by the Military Rehabilitation and Compensation Commission (the MRCC) under Section 212 of the Military Rehabilitation and Compensation Act 2004 (the MRCA). MRCA Instrument No. 2 of 2004 is the relevant determination and can be found in the CLIK Legislation Library or at http://www.mrcs.gov.au/legislation/mrc_legislation.htm.