How DVA Permanent Impairment Compensation Is Calculated

Under the Military Rehabilitation and Compensation Act 2004 (MRCA), which since 1 July 2026 covers every new compensation claim whenever you served, permanent impairment (PI) compensation is paid for the lasting effect of your accepted conditions once they are permanent and stable. The amount is not arbitrary. It follows a formula set by the legislation and by GARP M 2026, the Guide to Determining Impairment and Compensation. Understanding it helps you prepare for your assessment, read your determination, and decide whether to seek review.

Step 1: your impairment points

Each accepted condition is assessed against the relevant chapter of GARP M and given a rating in impairment points, on a scale of 0 to 100. Where you have more than one condition, the ratings are combined using GARP M's combined values chart, not simply added. Two conditions rated at 20 each combine to 36, not 40.

Three thresholds decide whether anything is payable.

Step 2: your lifestyle rating

Your lifestyle rating, from 0 to 7, measures how your conditions affect day-to-day life across four areas: personal relationships, mobility, recreational and community activities, and employment and domestic activities. DVA's Lifestyle Rating form (D2670) lets you rate yourself, leave the rating to the DVA delegate, or complete the Lifestyle Questionnaire. If you choose nothing, the delegate decides.

Step 3: the compensation factor

DVA looks up your impairment points and lifestyle rating together in GARP M Chapter 23 to find a compensation factor between 0 and 1. Warlike and non-warlike service share one table. Peacetime service has its own table, with markedly lower factors for the same points and lifestyle rating.

Step 4: the weekly amount

The compensation factor is multiplied by the maximum weekly amount. From 1 July 2026 that maximum is $447.39 a week, paid in full at 80 or more impairment points. It is indexed every 1 July. PI compensation is tax-free, whether you take it weekly or as a lump sum.

Step 5: weekly or lump sum

You can keep the weekly amount, or convert some or all of it to a lump sum. The lump sum is the weekly amount multiplied by an actuarial factor for your age, taken from DVA's conversion tables, so the younger you are the larger the lump sum. The tables also differ for men and women.

You have six months from your determination letter to choose, and once made the choice cannot be undone. Under 10% of the maximum weekly amount you can convert the whole amount; between 10% and 20%, 50% or 100%; above 20%, 25%, 50%, 75% or 100%. Your letter sets out the options open to you. If you have 50 or more impairment points, DVA will reimburse the cost of financial and legal advice, up to a capped amount, before you decide.

The extra payment for eligible young persons

If you have 80 or more impairment points, DVA pays an additional lump sum for each eligible young person who depends on you: a child under 16, or aged 16 to 25 in full-time study and not working full time. From 1 July 2026 it is $115,175.42 for each eligible young person, and it can now be split between each of their primary carers.

If you were compensated under the VEA or DRCA before

Since 1 July 2026, VEA and DRCA ratings that you were already compensated for become a baseline under Chapter 26 of GARP M 2026. New MRCA compensation is paid only when your impairment rises at least 5 points above that baseline, and what you have already been paid is taken into account. DRCA permanent impairment claims lodged before 1 July 2026 are still assessed under the DRCA.

What Happens After Assessment?

DVA issues a determination setting out your impairment points, lifestyle rating and compensation. If you think it is wrong, you can apply to the Veterans' Review Board (VRB) within 12 months of the decision letter, and after the VRB to the Administrative Review Tribunal (ART). Check the review rights printed on your letter, because they depend on when the decision was made. In some cases, gathering updated medical evidence is worth doing before you accept the initial assessment.

Frequently asked questions

What is the maximum DVA permanent impairment payout?

The maximum weekly PI amount is $447.39 from 1 July 2026, paid at 80 or more impairment points. There is no single maximum lump sum, because the lump sum depends on your age when you convert. Veterans at 80 or more points can also receive $115,175.42 for each eligible young person.

Can I claim permanent impairment for more than one condition?

Yes. DVA assesses all accepted conditions and combines their ratings using GARP M's combined values chart to produce a single rating. Because ratings are combined rather than added, the total is lower than the sum of the individual ratings: two conditions each rated at 20 combine to 36, not 40.

How long does a DVA permanent impairment assessment take?

In October 2026, DVA’s processing times page showed MRCA permanent impairment claims received in the last 12 months took an average of 171 days, including 47 days waiting on information from outside DVA. A PI claim cannot be finalised until your conditions are permanent and stable and DVA has your doctor's assessment, so the timing also depends on how quickly that evidence comes in.

Can I be reassessed if my condition worsens?

Yes. If an accepted condition worsens, or a new condition is accepted, you can claim further PI. Your overall rating needs to rise by at least 5 points, and what you have already been paid is taken into account, so you receive the increase rather than the full amount again.