On 1 July 2026, section 80 of the MRCA was amended by the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025 (VETS Act). These amendments only apply in relation to claims for compensation made under the MRCA from 1 July 2026.
Key changes on 1 July 2026
Section 80 is amended to remove the requirement (in former subsection 80(1)) that a veteran be ‘paid, or entitled to be paid’ permanent impairment compensation, before the additional lump sum can be considered.
Section 80 is amended to facilitate a new arrangement whereby the additional lump sum is directed towards the person(s) with the primary care responsibility of a veteran’s eligible young person or child. This means that for the first time, delegates may divide the additional lump sum in respect of the same eligible young person between the veteran and another person, where the care arrangements are shared (see Chapter 5.12.7.1).
Who is considered a person with primary care responsibility as well as the portion of the additional lump sum they are entitled to, is determined under a legislative instrument, namely, the Military Rehabilitation and Compensation (Payment of Additional Amount) Instrument 2026 (see Chapter 5.12.7.2).
Further amendments facilitate consideration of the additional lump sum for veterans previously covered exclusively under the old VEA and/or the old DRCA, where they meet an additional threshold test i.e. the 5-point worsening test or the new MRCA condition test (see Chapter 5.12.7.3).
Further amendments to the ‘relevant date’ facilitate delegates’ considerations of the point in time requirement for veterans previously covered under the old DRCA and/or the old VEA Acts who have dependent eligible young persons at that time (see Chapter 5.12.7.4).
Policy support – Delegate Support Framework
Due to the change in arrangements, delegates may require additional policy support over the transition period and should seek tailored policy advice on specific cases (if needed) via the Delegate Support Framework. If needed, policy advice should be sought before the section 80 determination is made. This ensures thorough and consistent decision making, so that potential entitled parties receive their correct compensation entitlement. This also ensures the relevant policy areas remain abreast of how the new policy settings are operating and arears where policy requires further development.