VETS Act 2026: Complete Guide for Australian Veterans

On 1 July 2026, the largest overhaul of Australian veteran legislation in decades took effect. The Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2024, known as the VETS Act, merged three separate compensation laws into one. If you served in the ADF, this change affects you, whether you’re mid-claim, already receiving payments, or haven’t lodged anything yet.

This guide covers what actually changed, what stays the same, and what to do now.

What the VETS Act actually does

Since 1971, ADF compensation has operated across three separate Acts: the Veterans’ Entitlements Act 1986 (VEA), the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA), and the Military Rehabilitation and Compensation Act 2004 (MRCA). Each Act applied to different service periods, different conditions, and had different rates, rules, and assessment frameworks. Working out which one applied to you was one of the most common sources of confusion and under-claiming in the entire system.

The VETS Act doesn’t replace all three immediately. It closes the VEA and DRCA to new claims from 1 July 2026 and routes all new claims through an improved version of the MRCA. Existing payments under VEA and DRCA continue. The legislation that governs your current accepted conditions doesn’t change. What changes is the pathway for any new claim you lodge from that date forward.

Who the VETS Act affects

The answer is: every veteran, in different ways.

What changes on 1 July 2026

A single claims pathway

From 1 July 2026, all new claims go through the MRCA. There is no longer a choice between Acts for new conditions. This removes a major strategic complexity but also removes the ability to use the VEA’s reasonable hypothesis standard for new peacetime claims in the way advocates currently do.

DRCA veterans get Gold Card access

This is the biggest single benefit for veterans currently under DRCA. Under the old system, DRCA veterans could not access the DVA Gold Card through the permanent impairment pathway. From 1 July 2026, any new claim lodged under the improved MRCA can contribute to the 60 impairment point threshold for a Gold Card. If you’re a pre-2004 veteran who has never had a Gold Card and has accepted conditions, this is the most important change to understand.

The Additional Disablement Amount

The VETS Act introduces a new payment called the Additional Disablement Amount (ADA), designed to better support older veterans whose service injuries have worsened significantly with age. The ADA provides supplementary compensation for veterans where their impairment rating has increased substantially since their original permanent impairment assessment. DVA will provide further details on the specific qualifying thresholds before commencement.

Expanded presumptive liability

Presumptive liability means DVA accepts certain conditions as service-related without requiring you to prove the connection through a Statement of Principles. The VETS Act expands the list of conditions covered by presumptive liability, with particular focus on conditions linked to specific operational service and hazardous deployments. The expanded list includes additional cancers linked to service exposures and mental health conditions for veterans with qualifying combat service.

Whole of person assessment

The VETS Act moves toward a whole of person approach to permanent impairment assessment, rather than assessing each condition in strict isolation. In practical terms, this means assessors are directed to consider how all of a veteran’s accepted conditions interact and compound each other when determining impairment ratings and lifestyle effects. This is consistent with how GARP M already works in theory, but the legislative reinforcement should reduce the instances where delegates assess conditions too narrowly.

Single review pathway

From 21 April 2025 (already in effect), DVA decisions go to the Veterans’ Review Board (VRB) for reconsideration, then to the Administrative Review Tribunal (ART) for further appeal. The old AAT pathway is closed. If you have an appeal in progress, check with your advocate about which pathway applies to your specific matter.

Simplified dependants framework

Surviving dependants currently navigate different compensation structures depending on whether their partner served under VEA, DRCA, or MRCA. The VETS Act creates a unified framework. For dependants who haven’t yet lodged a claim, the post-July 2026 pathway will generally be more straightforward.

What does not change

This is where misinformation has caused real anxiety in the veteran community. RSL Australia and other organisations have publicly warned that incorrect information is circulating about veterans losing existing payments. To be direct:

• Your existing DVA pension or incapacity payments will not be cut. Every payment currently received under VEA or DRCA is fully grandparented. DVA will not reduce, reassess, or cancel any existing payment as a result of the VETS Act.
• Your accepted conditions stay accepted. Conditions already accepted under VEA or DRCA remain accepted. You do not need to re-prove them.
• Your Gold Card or White Card stays. If you currently hold a DVA health card, it is not affected.
• Statements of Principles still apply. SoPs continue to govern how conditions are accepted under the improved MRCA. The RMA continues its role. SoPs in force at commencement remain in force.
• GARP M continues as the assessment framework. Your impairment rating process does not change.

What the 1 July 2026 changeover means for your claims

Before the changeover, the big question was whether to lodge before or after 1 July 2026. That is now settled: the VEA and DRCA closed to new claims on 30 June 2026, so every new claim is assessed under the single improved MRCA. Here is how that lands for different veterans.

If you’re unsure how the changeover affects you, get advice specific to your service history. How each condition is presented under the MRCA can make a real difference to the outcome.

The VETS Act and SRDP

The Special Rate Disability Pension (SRDP), previously known as TPI under VEA, continues under the VETS Act. Veterans who qualify for SRDP on the basis of being incapable of working due to accepted conditions retain that entitlement. The improved MRCA maintains the SRDP pathway and the VETS Act aligns the eligibility criteria more closely across the previously separate Acts.

One important change: veterans who were previously ineligible for SRDP because they were under DRCA can now access it through the improved MRCA pathway on new claims lodged from 1 July 2026. This is another reason why DRCA veterans with significant ongoing incapacity should speak to an advocate about claiming under the MRCA.

What to do now

• Know your service history. Which periods you served in shapes how your conditions are best presented under the MRCA, and, for claims you lodged before 1 July 2026, which Act still governs them.
• List any conditions you haven’t yet claimed. If you have service-related conditions that haven’t been lodged, review them now. They are claimed under the single MRCA, and strong evidence at lodgement is what moves them fastest.
• Check your current permanent impairment rating. If you’re close to the 60-point Gold Card threshold, work out whether new conditions under the improved MRCA would push you over. For DRCA veterans, those points can now count toward the threshold for the first time.
• Talk to an advocate. The intersection of service periods, existing accepted conditions, and new MRCA claims is genuinely complex. A no-win-no-fee advocate costs you nothing to consult.

Frequently asked questions

Will my current DVA payments go down after 1 July 2026?

No. All existing payments under VEA and DRCA are fully grandparented under the VETS Act. DVA will not reduce or reassess any payment you currently receive as a result of the transition. This applies to service pensions, disability pensions, incapacity payments, SRDP, and all health card entitlements.

I'm currently mid-claim. What happens to it?

Claims lodged before 1 July 2026 are assessed under the legislation in force at the time of lodgement. If you lodged under VEA, your claim continues under VEA rules. DVA will not transfer mid-claim matters to the new MRCA framework automatically.

Can I still claim under VEA after 1 July 2026?

No. The VEA and DRCA closed to new claims on 30 June 2026. Any new condition you want to claim now goes through the improved MRCA, regardless of when you served.

Does the VETS Act change which conditions DVA will accept?

The expanded presumptive liability provisions mean some conditions become easier to have accepted without detailed evidence. Existing SoPs remain in force. The VETS Act does not narrow the range of conditions DVA accepts.

I'm a DRCA veteran. What's the biggest change for me?

Access to the Gold Card through the permanent impairment pathway. Under DRCA, impairment points from accepted conditions could not be used to reach the 60-point Gold Card threshold. Under the new MRCA, they can. If you have significant accepted conditions and are not yet on a Gold Card, this is the most important change to discuss with an advocate.

What happened to the AAT? Where do I appeal now?

The Administrative Appeals Tribunal (AAT) was replaced by the Administrative Review Tribunal (ART) on 14 October 2024. DVA decisions now go to the VRB first, then to the ART. If you have a matter currently before the ART (formerly AAT), it continues under ART jurisdiction.

Does the VETS Act affect NLHC (non-liability health care)?

No. Non-liability health care for mental health conditions continues regardless of the VETS Act transition. If you have at least one day of full-time ADF service, you can access free mental health treatment under NLHC. This entitlement is not affected by the legislative changes.