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10.12 The Motor Vehicle Compensation Scheme (MVCS)

Last amended 
5 October 2021


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The MVCS is a scheme determined by the Military Rehabilitation and Compensation Commission (the MRCC) under section 212 of the MRCA.

The Motor Vehicle Compensation Scheme Instrument is the relevant determination.

The MVCS allows the MRCC to:

  • provide for the reasonable cost of motor vehicle modifications;
  • maintain and/or repair modifications to a motor vehicle;
  • subsidise the purchase of a (initial new or second-hand or replacement) motor vehicle; or
  • provide compensation for the cost of insurance insofar as the insurance relates to any modifications provided under the MVCS.

Where a clinical assessment has been undertaken that has been able to establish the eligible person:

  • is unable to drive or be driven in a motor vehicle in safety and reasonable comfort without modifications; and
  • be considered able to drive or be driven or derive a benefit from using the motor vehicle at least twice a week, given their level of impairment.


Distinguishing features between the Vehicle Schemes

Although the Vehicle Assistance Scheme (VAS) determined under the Veterans’ Entitlements Act 1986 provides similar benefits to the MVCS, the table below summarises the distinguishing features of the two schemes.




Distinguishing features between VAS and MVCS


To assist an eligible veteran, member of the Forces, member of a Peacekeeping Force or Australian mariner, by providing him or her with a motor vehicle, modifying the vehicle as necessary, and assisting with running costs and maintenance.

To provide for the reasonable costs of a vehicle’s modification (and vehicle purchase in some circumstances) required because of injury or disease for which liability has been accepted under the MRCA.


A former member (veteran) with accepted incapacity from specific types of war or defence-caused injury or disease, such as a leg/arm/wrist amputation, paraplegia or a condition of similar severity or effect, and clinically assessed as able to derive benefit from assistance due to those specific accepted conditions.

For an ADF serving or former member who has an accepted condition and has been clinically assessed as being unable to drive or be driven in a motor vehicle in safety and reasonable comfort without modifications.

The person must be considered able to drive or derive a benefit from using the motor vehicle at least twice a week.


  • A new motor vehicle
  • Professionally recommended modifications to the motor vehicle
  • Assistance with running costs and maintenance
  • Professional recommended vehicle modifications
  • Provision of an initial or replacement vehicle with professionally recommended modifications (in some circumstances)
  • Insurance and repairs for the recommended modifications

Responsibility of the Client

  • Registration
  • Stamp Duty
  • Insurance
  • Optional extras
  • Garaging
  • Registration
  • Stamp duty
  • Insurance
  • Optional extras
  • Garaging
  • Maintenance & running costs
DVA Interest in vehicle
  • The client is the legal owner of the vehicle
  • The client is the legal owner of the vehicle
  • DVA has a chattel mortgage interest in all initial and replacement vehicles
  • The vehicle cannot be sold, held as security for a loan, have ownership transferred or otherwise dealt with without DVA agreeing in writing.