VETS Act 2026: What Changes for DVA Claims on 1 July

From 1 July 2026, every new DVA compensation and rehabilitation claim goes through a single improved MRCA framework. The Veterans’ Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) close to new claims on that date. If you’ve been putting off a claim or wondering which Act applies to your service, the answer gets simpler: it’s MRCA, for everyone.

The Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2024 — the VETS Act — passed Parliament on 13 February 2025 and received Royal Assent on 20 February 2025. It is the largest structural reform of Australia’s veteran entitlements system since the original Repatriation Act. The core provisions commence on 1 July 2026.

This page covers everything: what changes, what doesn’t, who benefits most from claiming before or after 1 July, and what you should do right now.

What the VETS Act actually does

Australia’s veteran compensation system has run on three separate Acts for decades. The VEA (1986), DRCA (1988), and MRCA (2004) each have different eligibility rules, different assessment methods, different benefits, and different appeal pathways. Which Act covers your claim depends on when you served and, in some cases, what kind of service you did.

The Royal Commission into Defence and Veteran Suicide found this complexity was so severe it contributed to veteran suicidality. Recommendation 1 of the Interim Report called for urgent simplification. The Productivity Commission had already identified the same problem in 2019, finding the system was “not fit for purpose.”

The VETS Act fixes this by making the MRCA the single ongoing framework. It improves the MRCA in several areas, closes VEA and DRCA to new compensation claims, and extends benefits that were previously locked to one Act — like the Gold Card and Special Rate Disability Pension — across the board.

What changes on 1 July 2026

All new claims go through MRCA

Every new initial liability, permanent impairment, incapacity, and rehabilitation claim lodged from 1 July 2026 goes under the MRCA. This applies regardless of when you served. Pre-1971 veterans, VEA-era veterans, DRCA-era veterans, and post-2004 MRCA veterans all claim through the same system.

You no longer need to work out which Act applies. Your advocate doesn’t need to lodge under the correct one. It’s all MRCA.

A new section 24A of the MRCA provides that any condition previously accepted under VEA or DRCA is automatically considered a service-related condition under the MRCA. You don’t need to re-establish liability. If DVA already accepted your PTSD under DRCA in 2012, that acceptance carries across. You can make a claim under MRCA for worsening of that condition without a new liability application.

VEA and DRCA close to new compensation claims

No new compensation or rehabilitation claims can be lodged under VEA or DRCA from 1 July 2026. If you’ve already lodged a claim before that date, it will still be determined under the existing legislation, even if DVA’s decision comes months later.

VEA is only closing to compensation and rehabilitation claims. Several VEA provisions remain open:

• Income support payments continue: Service Pension, Income Support Supplement, Veteran Payment, Energy Supplement.
• Veterans with Qualifying Service continue to be eligible for the Gold Card at age 70.
• Automatic grants of War Widow(er)’s pension and Gold Cards to dependants of certain deceased VEA veterans continue.
• Existing Disability Compensation Payments under VEA continue and are indexed normally.

DRCA veterans gain Gold Card access

This is one of the most significant changes in the VETS Act. Previously, there was no Gold Card pathway under DRCA at all. From 1 July 2026, DRCA veterans can access a Gold Card through several routes:

DRCA veterans gain access to the Special Rate Disability Pension

The Special Rate Disability Pension (SRDP) was previously only available to MRCA veterans. From 1 July 2026, DRCA veterans meeting these criteria become eligible:

• Receiving incapacity payments under MRCA (DRCA incapacity recipients automatically transition).
• Assessed with 50 or more impairment points under GARP M.
• DVA confirmation from treating specialists that you cannot work more than 10 hours per week.
• DVA confirmation that rehabilitation is unlikely to improve your ability to work.

A critical difference from VEA TPI: SRDP has no “alone test.” Under VEA, the Special Rate requires that your accepted conditions alone prevent you from working. SRDP under MRCA has no such test. If you were knocked back for VEA TPI because of the alone test, SRDP may be a viable pathway.

DVA identifies SRDP eligibility. You can’t “claim” it directly, but you can request an assessment at srdp@dva.gov.au or by calling 1800 VETERAN. Once eligible, you get a 12-month choice period to receive SRDP in lieu of incapacity payments. You must receive financial advice first, and the choice is irreversible.

Whole-of-person impairment assessment

Under the improved MRCA, permanent impairment is assessed on a whole-of-person basis using GARP M. All your accepted service-related conditions contribute to an overall impairment rating on a 0 to 100 point scale that combines medical impairment ratings and lifestyle ratings.

This is a significant change from DRCA, which evaluated each condition separately with individual minimum thresholds. Under DRCA, a condition assessed at less than 10% Whole Person Impairment was non-compensable. Tinnitus, for example, typically rates around 5% WPI and attracted zero compensation under DRCA. Under MRCA’s whole-of-person approach, those 5 points contribute to your overall impairment rating and can push you into higher compensation brackets or Gold Card eligibility.

If you have multiple conditions that individually sat below the DRCA threshold, the combined effect under MRCA could be substantial. Use our PI calculator to estimate the difference.

Presumptive liability for common conditions

The MRCA is being amended to allow the Repatriation Commission to prescribe injuries and diseases that can be accepted on a presumptive basis. If your condition is on the list, DVA can accept liability without requiring you to separately establish a service connection through the Statements of Principles (SoPs).

The specific conditions list has not been published yet. DVA has stated it will appear on their website shortly. This is a major development worth watching. Once published, it will significantly simplify initial liability claims for listed conditions.

Additional Disablement Amount

The Additional Disablement Amount (ADA) is an entirely new benefit that mirrors the VEA’s Extreme Disablement Adjustment (EDA). It’s for veterans over pension age with high impairment who have incapacity. It includes a Gold Card (ADA-embossed) and automatic dependant benefits including education scheme access and death compensation.

One difference to note: the ADA has MRCA offsetting arrangements. Commonwealth-funded superannuation is offset at 60 cents per dollar, and permanent impairment and VEA Disability Compensation Payments are offset dollar-for-dollar. For some veterans, this may result in a different net payment compared to VEA EDA.

Other changes that matter

• "On duty" injury acceptance. The definition of a service injury is being amended to accept injuries that occur while on duty — heart attacks, strokes — regardless of whether they were caused by your duties. If it happened while you were on duty, it’s covered.
• Tobacco use claims. Claims relating to tobacco use prior to 1 January 1998 can be accepted as service-related from 1 July 2026.
• Reservist eligibility expanded. MRCA coverage expands to include all reservists, not just those with continuous full-time service.
• Travel reimbursement. The 50 km round-trip minimum for travel reimbursement is removed, and the higher MRCA rate applies to all veterans.
• Funeral benefits. The funeral allowance increases to $3,000 for automatic grant categories, with reimbursement up to $14,062 for all service-related deaths from 1 July 2026.
• Common law damages cap. Increased from $110,000 to $177,000.
• Incapacity payment transition. All DRCA incapacity payment recipients automatically transition to the more generous MRCA scheme on 1 July 2026 with no action required. The MRCA scheme does not reduce payments by the 5% notional superannuation contribution that DRCA deducts.

What does NOT change

Your existing payments are safe

If you’re currently receiving payments under VEA or DRCA, those payments continue uninterrupted and continue to be indexed normally. No veteran or family member will see a reduction in payments they’re already receiving. The Government has given a clear no-reduction guarantee.

The one change: DRCA incapacity payments automatically transition to MRCA. This is designed to be an improvement — no 5% super deduction — not a reduction.

Your accepted conditions carry across

Section 24A of the MRCA automatically recognises conditions previously accepted under VEA or DRCA as MRCA service-related conditions. You don’t need to re-establish liability. You don’t need to refile anything.

Appeal rights continue (and have improved)

From 21 April 2025, all veterans — including DRCA veterans — can appeal DVA decisions to the Veterans’ Review Board (VRB). Previously, DRCA veterans had to go straight to the Administrative Review Tribunal, which is a more formal and adversarial setting. The VRB is now the first level of external merits review for everyone.

VRB decisions can still be appealed to the ART. The internal own-motion review process under section 347 MRCA also continues.

Claims lodged before 1 July are processed under existing Acts

If you lodge a claim before 1 July 2026, it will be determined under the existing legislation. You don’t need to refile under MRCA. DVA’s published guidance confirms this. However, there is some ambiguity in the transitional provisions (Schedule 7 of the Act) about claims lodged but not yet determined at commencement. If you have a claim pending at the transition date, get personalised advice.

Income support stays under VEA

Service Pension, Income Support Supplement, Veteran Payment, and Energy Supplement remain under VEA. These are not affected by the VETS Act.

Non-liability health care continues

Existing NLHC access is explicitly preserved. The transfer from VEA to MRCA is administrative only. Current NLHC arrangements for mental health, cancer, and other specific conditions continue unchanged.

Should you lodge before or after 1 July 2026?

This is the question we get asked most. The answer depends on your specific situation. For a detailed analysis of the strategic timing decision, read our guide to what to do before 1 July 2026. The short version:

DVA cannot provide personalised timing advice. If you’re unsure, book a free discovery call and we’ll assess your specific situation.

The reform timeline

How the VETS Act affects your claim with Clear Path Veterans

If you’re already a CPV client with claims in progress, nothing changes right now. Claims lodged before 1 July 2026 proceed under the existing Act.

If you’re thinking about making a new claim, the timing decision matters. We’re working through every active client’s situation to determine whether lodging before or after 1 July gives the best outcome. If you haven’t heard from us about this, you will.

If you’re not yet a client and want to understand how these changes affect you specifically, book a free discovery call. We’ll look at your service history, your existing accepted conditions, and your potential new claims and give you a clear recommendation on timing.

Frequently asked questions

What is the VETS Act 2026?

The VETS Act (Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2024) is legislation that consolidates Australia’s three veteran compensation Acts into a single improved MRCA framework. It passed Parliament on 13 February 2025 and takes effect on 1 July 2026.

Will my existing DVA payments change?

No. All payments you’re currently receiving under VEA or DRCA continue uninterrupted and continue to be indexed normally. The Government has guaranteed no veteran will see a reduction in current payments. The one change is that DRCA incapacity payments automatically transition to MRCA, which removes the 5% notional superannuation deduction.

Do I need to refile my existing claims under MRCA?

No. Section 24A of the MRCA automatically recognises conditions previously accepted under VEA or DRCA as MRCA service-related conditions. You don’t need to do anything.

Can DRCA veterans get a Gold Card from 1 July 2026?

Yes. DRCA veterans gain Gold Card access for the first time. The main pathway is reaching 60 impairment points under GARP M, either through a new initial liability claim accepted under MRCA or through a 5-point increase from worsening of existing conditions. SRDP and ADA eligibility also come with a Gold Card.

Should I lodge my DVA claim before or after 1 July 2026?

It depends on your specific situation. DRCA veterans with conditions below the 10% WPI threshold or seeking Gold Card and SRDP access will generally benefit from waiting. VEA veterans seeking EDA may benefit from lodging before 1 July. Read our detailed timing guide or book a free call for personalised advice.

What happens to claims lodged before 1 July 2026 but not yet decided?

DVA’s public guidance says claims lodged before 1 July 2026 will be determined under the existing legislation. However, there is some ambiguity in the transitional provisions about undetermined claims at commencement. If you have a pending claim, seek personalised advice.

What is the presumptive liability conditions list?

The VETS Act allows the Repatriation Commission to prescribe conditions that can be accepted without needing to establish a service connection through the SoPs. The list has not yet been published. DVA has said it will appear on the DVA website shortly. This will significantly simplify claims for listed conditions.

Will my VRB appeal rights change?

Your appeal rights continue and have already improved. From 21 April 2025, DRCA veterans gained access to the VRB for the first time. All veterans now follow the same appeal pathway: internal review, then VRB, then ART.