Question 1

What are DVA incapacity payments?

Accepted Answer

Incapacity payments are the DVA benefit that replaces your lost income when accepted service-related conditions prevent you from working at full capacity. Unlike permanent impairment (which compensates for lasting effects), incapacity payments compensate for economic loss right now. They are available under the MRCA and DRCA.

Question 2

How are incapacity payments calculated?

Accepted Answer

DVA calculates the gap between your normal earnings (ADF salary at discharge) and your actual or assessed civilian earnings. During the first 45 weeks, you receive 100% of this gap. After 45 weeks, the percentage depends on how many hours you work relative to your normal hours, ranging from 75% (not working) to 100% (working full hours at reduced capacity). Superannuation and VEA DCP offsets are then deducted.

Question 3

How does superannuation affect incapacity payments?

Accepted Answer

The Commonwealth-funded portion of your CSC invalidity pension is offset dollar-for-dollar against incapacity payments. For MSBS, the employer benefit pension is 100% Commonwealth-funded. For DFRDB, approximately 85% is Commonwealth-funded. ADF Cover invalidity benefits are also 100% offset. A substantial CSC pension can reduce incapacity payments to zero.

Question 4

What happens after the first 45 weeks?

Accepted Answer

After 45 weeks, DVA adjusts the percentage of your normal earnings used in the calculation based on your return-to-work status. If you are not working at all, the base drops to 75% of your normal earnings. If you are working full hours but at reduced pay, DVA uses 100%. This is designed as a return-to-work incentive — working more hours keeps a higher percentage.

Question 5

What changes from 1 July 2026?

Accepted Answer

From 1 July 2026, all new incapacity claims are under the MRCA regardless of when you served. DRCA recipients are automatically transitioned. VEA General Rate DCP will no longer be offset against incapacity payments (only above-general-rate DCP is offset). DRCA veterans can be assessed for SRDP for the first time.

Question 6

Can I work and still receive incapacity payments?

Accepted Answer

Yes. Partial incapacity is covered. Payments are based on the gap between your normal earnings and your actual earnings. Working reduces the payment but does not disqualify you. In fact, the post-45-week adjustment incentivises return to work by keeping a higher earnings percentage as you work more hours.

Question 7

How accurate is this calculator?

Accepted Answer

This calculator provides estimates using the CSC invalidity pension formulas for DFRDB, MSBS, and ADF Cover, plus simplified versions of the MRCA section 131 incapacity formula. DVA's actual calculation may assess your earning capacity differently, and individual circumstances may produce different results. Treat these as informed estimates, not guarantees.

DVA Incapacity Payment Calculator

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