The Three DVA Acts Explained, and What Changes on 1 July 2026

If you've ever tried to figure out which DVA legislation applies to your claim, you're not alone. Australia's veteran compensation system currently runs across three separate Acts, each with different rules, different entitlements, and different ways of assessing the same types of injuries. It's confusing by design, if not by intention.

The good news is that from 1 July 2026, this three-Act system is being replaced by a single Act. All new claims will go through one piece of legislation. But until then, and even after that date for existing claims, understanding which Act covers you matters. It affects what you can claim, how your compensation is calculated, and what options you have if your claim is refused.

This article explains each of the three Acts in plain English, helps you work out which one applies to your service, and breaks down what the 2026 changes actually mean for you.

The three Acts: a quick overview

Three separate pieces of legislation currently govern DVA compensation claims.

The complication is that many veterans have service that spans multiple Acts. If you joined in 1998 and left in 2010, you could have conditions covered under DRCA, VEA, and MRCA depending on when each condition arose and what type of service it relates to.

How to work out which Act covers you

The key question isn't when you served. It's when your condition arose and what type of service it relates to.

Service entirely after 30 June 2004

If all your ADF service was after 30 June 2004, the MRCA covers everything. This includes both peacetime and operational service. You don't need to worry about the VEA or DRCA for your own claims.

Service entirely before 1 July 2004

If all your service was before 1 July 2004, either the VEA, the DRCA, or both will apply, depending on the type of service your condition relates to.

The general rule: the DRCA covers most peacetime service, while the VEA covers service that involved elevated risk, including deployments, warlike service, non-warlike service, and certain qualifying peacetime service.

There are specific nuances here. Peacetime service before 7 April 1994 is generally only covered by the VEA if you completed three years of continuous full-time service, or if you were medically discharged. Peacetime service on or after 7 April 1994 can be VEA-covered in some circumstances, particularly if it was continuous full-time service since before 22 May 1986.

You can be eligible under both Acts for the same period of service, which means you might claim the same condition under different legislation depending on which gives you the better outcome. This is one of the areas where getting the right advice matters, because the entitlements and calculation methods differ significantly.

Service spanning 1 July 2004

This is the most common scenario for veterans transitioning now or in recent years. You may have conditions covered under two or even all three Acts.

The rule is straightforward in principle: conditions related to service before 1 July 2004 go under VEA or DRCA, conditions related to service after 30 June 2004 go under MRCA. But a condition that started before 2004 and worsened after 2004 creates complexity. You can't claim the same condition under both MRCA and VEA/DRCA simultaneously, but you can claim different conditions under different Acts.

Why it matters: the key differences between the Acts

The three Acts aren't just different labels for the same thing. They differ in how they assess your claim, what compensation you receive, and what happens if your claim is refused.

Statements of Principles

Statements of Principles (SoPs) are the medical-scientific documents that list the known causes of each condition DVA recognises. For your claim to be accepted, your circumstances generally need to fit at least one factor in the relevant SoP.

SoPs apply to claims under the VEA and MRCA. They do not apply to claims under the DRCA. This is a critical distinction. DRCA claims are assessed on a broader "on the balance of probabilities" basis without needing to match a specific SoP factor.

In practice, this means some conditions that are difficult to get accepted under VEA or MRCA (because the SoP factors are narrow) might be easier to establish under DRCA, and vice versa.

Standard of proof

The VEA and MRCA each use two different standards of proof depending on your type of service.

Permanent impairment

This is where the Acts diverge most noticeably in terms of what you receive.

A veteran with multiple conditions often ends up better off under MRCA's combined assessment and lifestyle rating system than under DRCA's condition-by-condition approach. But a veteran with a single severe condition might sometimes fare better under DRCA. The maths depends on your specific situation.

Incapacity payments

If your accepted conditions stop you from working, all three Acts can provide income-replacement payments, but the rules differ.

MRCA incapacity payments are calculated based on your normal earnings (what you would have earned if you hadn't been injured), reduced by any amount you're actually earning or could earn. You receive up to 100% of normal earnings for the first 45 weeks, then 75% after that. CSC invalidity pensions are offset against MRCA incapacity payments.

DRCA incapacity payments currently follow a similar but older calculation model. From 1 July 2026, veterans receiving DRCA incapacity payments will automatically transition to the more beneficial MRCA system.

VEA doesn't have incapacity payments in the same sense. Instead, it provides a Special Rate (TPI) pension for veterans who are totally and permanently incapacitated. The TPI requires you to meet the "alone test," meaning your accepted conditions alone (not combined with non-service conditions) must prevent you from working. The MRCA has no equivalent "alone test" for its incapacity payments or SRDP.

Gold Card access

What changes on 1 July 2026

The Veterans' Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025, known as the VETS Act, was passed by Parliament on 13 February 2025. It's the biggest reform to veteran compensation legislation in Australia's history.

The VEA and DRCA close to new claims

From 1 July 2026, you can't lodge a new compensation or rehabilitation claim under the VEA or DRCA. All new claims, regardless of when you served, will be assessed under an improved version of the MRCA.

This includes claims for conditions you haven't claimed before, even if they relate to service in the 1990s or earlier. It also includes claims for worsening of conditions already accepted under VEA or DRCA.

Existing payments are protected

If you're already receiving payments under VEA or DRCA, nothing changes. Your Disability Compensation Payments, pensions, and allowances continue at the same rate and keep being indexed. This is called "grandfathering."

The one exception: if you're receiving incapacity payments under DRCA, those will automatically transition to the more generous MRCA incapacity payment system on 1 July 2026. You don't need to do anything for this to happen.

Claims already in progress continue under the old rules

If you lodged a claim before 1 July 2026 and it hasn't been decided yet, it will be assessed under whichever Act you claimed under. You don't need to re-lodge under the MRCA.

New pathways open up

Several significant improvements come with the transition.

• DRCA veterans can access Gold Card for the first time. If you've only ever had conditions accepted under DRCA, you've never had a pathway to Gold Card. From 1 July 2026, you can lodge new claims or claim worsening under the MRCA, and if your combined impairment reaches 60 points under GARP M, Gold Card becomes available.
• The "alone test" for TPI is effectively eliminated. Under the VEA, you need to prove your accepted conditions alone prevent you from working. Many veterans have been refused TPI because their non-service conditions also contribute to their incapacity. Under the MRCA, incapacity payments and the Special Rate Disability Pension (SRDP) don't have this requirement. VEA veterans who've been knocked back for TPI because of the alone test may find the MRCA pathway gives them a better outcome.
• Previously refused claims get a fresh pathway. If you had a condition refused under VEA or DRCA in the past, you can lodge a new claim for that same condition under the MRCA from 1 July 2026. The condition will be assessed under MRCA criteria, which may include updated SoP factors or different assessment rules.
• SoPs will apply to all new claims. Currently, DRCA claims aren't assessed against SoPs. From 1 July 2026, because all new claims go through MRCA, SoPs will apply. For most veterans this is neutral or positive, but in some edge cases where a condition was easier to establish under DRCA's broader assessment, the SoP requirement could make it harder.
• A new Additional Disablement Amount (ADA) is being introduced under the improved MRCA for veterans over pension age with a high degree of impairment. It's similar to the VEA's Extreme Disablement Adjustment (EDA), ensuring this type of support continues once the VEA closes to new claims.
• Presumptive liability conditions that currently exist under VEA and DRCA will carry across to the MRCA. The Commission will also be able to specify new conditions for presumptive acceptance where they're known to have a common connection with military service.

The single review pathway is already in effect

One change didn't wait until 1 July 2026. From 21 April 2025, all compensation decisions, including those under DRCA, can be reviewed by the Veterans' Review Board (VRB) as the first level of external review. Previously, DRCA decisions went straight to the Administrative Review Tribunal (ART), which is more adversarial and typically requires legal representation. The VRB is a more veteran-friendly setting.

What should you do before 1 July 2026?

The clock is ticking. Here's what you should be thinking about.

• Lodge any VEA or DRCA claims you've been sitting on. If you have conditions you haven't claimed and your service was before 1 July 2004, you can still lodge under VEA or DRCA until 30 June 2026. In some cases, the older Acts may be more favourable for specific conditions or circumstances, particularly where the DRCA's broader assessment (without SoPs) works in your favour. After 30 June, your only option is the MRCA.
• Review any previously refused claims. If you had a claim refused under VEA or DRCA and you exhausted your appeal options, 1 July 2026 gives you a fresh opportunity. You'll be able to lodge a new claim for the same condition under the MRCA, assessed under current SoP factors and MRCA rules.
• Check your permanent impairment assessment. If you're a VEA or DRCA veteran and you haven't been assessed under GARP M before, a new methodology is being developed to translate your existing impairment ratings into a baseline MRCA rating. Understanding where you sit could reveal whether claiming worsening after 1 July 2026 might push you past key thresholds — like 60 points for Gold Card, or 50 points for SRDP eligibility.
• Understand the incapacity payment transition. If you're on DRCA incapacity payments, you'll automatically move to the MRCA system. In most cases this is beneficial, but the offsetting rules around CSC invalidity pensions and VEA Disability Compensation Payments are complex. Make sure you understand how the transition affects your total income.
• Don't panic. The government has been clear that no veteran will see a reduction in current payments. The transition is designed to be beneficial or neutral. But "beneficial or neutral" still means you need to understand the new system to make the most of it.

The bottom line

The three-Act system has been a source of confusion, inconsistency, and missed entitlements for decades. A veteran injured doing the same job as another veteran could receive different compensation simply because of when they served. The VETS Act aims to fix that.

But simplification doesn't mean simple. The transition creates questions about timing, which pathway to use, and how existing entitlements interact with new claims under the improved MRCA.

If you're not sure how the changes affect your situation, or you want help deciding whether to lodge under the current Acts before 30 June 2026 or wait and claim under the MRCA, talk to us. We're helping veterans work through these decisions now, so they're in the best position when the changeover happens.