VETS Act Transition: Claims Lodged Before and After 1 July 2026

Update, October 2026: the 1 July 2026 deadline has passed. The VEA and DRCA closed to new compensation and rehabilitation claims at 11.59pm on 30 June 2026, so you can no longer lodge a new claim under either Act. Any claim you lodge now is decided under the improved MRCA, whenever you served. Claims lodged before 1 July stay valid and are decided under the Act they were lodged under, and conditions already accepted under any Act carry over. We’ve updated this article so it is accurate now, and kept the before-and-after comparison for veterans who want to understand how their claims are being handled.

On 1 July 2026, the VEA and DRCA closed to new compensation and rehabilitation claims. Every new claim lodged since then is assessed under an improved MRCA. Your existing payments haven’t changed. But the rules for new claims have, and depending on your situation, that’s either better for you or worse.

The Royal Commission into Defence and Veteran Suicide produced 122 recommendations, 104 of which the Government accepted. The VETS Act is a direct result. DVA received 101,157 claims in FY 2024–25 (13% more than the previous year), and approximately 39% of those were dual or tri-Act claims. This article explains what changed, who wins under the new system, why some veterans lodged before the deadline, and what to do now.

What changed on 1 July 2026

• One Act for all new claims. The VEA, DRCA, and MRCA used to operate as three separate compensation systems. Since 1 July 2026, all new claims go through the improved MRCA regardless of when you served.
• Existing payments are grandfathered. If you’re already receiving a VEA Disability Compensation Payment, DRCA lump sum, incapacity payments, or any other existing entitlement, nothing changes.
• Whole-of-person assessment for everyone. The MRCA assesses all conditions together using the Combined Values Chart. This generally produces a higher overall score for veterans with multiple conditions.
• DRCA veterans gain access to SRDP. The Special Rate Disability Pension has never been available to DRCA veterans. Since 1 July 2026, eligible DRCA veterans can be assessed for SRDP for the first time.
• DRCA veterans gain a pathway to the Gold Card at 60 impairment points under the MRCA’s threshold.
• VEA veterans can access SRDP without the alone test. VEA veterans denied TPI can apply for SRDP under the MRCA, which has no alone test.
• Presumptive liability. Listed conditions can now be accepted without proving the link to service, if you have a confirmed diagnosis and your service meets the criteria. DVA has published the list.
• Best SoP version applies. If the RMA updates a SoP between your primary decision and a review, the version most beneficial to you will be applied.
• On-duty injury definition expanded to include injuries that occurred while on duty regardless of whether the injury was caused by the specific duties being performed.

Who had reasons to claim before 1 July 2026

This choice has now passed, but it explains how claims lodged before the deadline are being handled. For most MRCA veterans (service after 1 July 2004), the changes were neutral or positive. The veterans who had to think about timing were those covered under the VEA or DRCA.

DRCA veterans with a single high-scoring condition

Under the DRCA, each condition is assessed individually. Under the MRCA, conditions are combined on a whole-of-person basis using the Combined Values Chart. There’s a specific scenario where the DRCA might produce a better result: if you have one condition that would attract a large DRCA lump sum on its own but would combine with existing MRCA impairment in a way that produces a lower net increase under the Combined Values Chart.

This was uncommon but possible. Any new claim is now decided under the MRCA, so lodging under the DRCA is no longer an option.

VEA veterans who want to lock in a VEA entitlement

Certain VEA-specific benefits (like the General Rate DCP pension structure) aren’t replicated exactly under the MRCA. Veterans who preferred the VEA’s pension framework for unclaimed conditions needed to lodge before 1 July 2026. New claims now go under the MRCA’s lump-sum/periodic framework.

In practice, most VEA veterans are better off under the improved MRCA because the whole-of-person assessment is more favourable and lump sum options provide more flexibility than fortnightly pensions. But individual circumstances vary.

Veterans with PAMT-eligible conditions

Provisional Access to Medical Treatment (PAMT) is still available. It funds treatment for 20 listed conditions while your claim is being decided, including tinnitus, sensorineural hearing loss, osteoarthritis, sprain and strain, fracture, lumbar spondylosis and rotator cuff syndrome. It covers MRCA claims, and DRCA claims lodged before 1 July 2026, submitted up to 30 June 2027. Treatment is funded until your claim is decided or 31 December 2027, whichever comes first.

NLHC mental health coverage continues regardless. For physical conditions on the PAMT list, lodging your claim lets you start funded treatment while you wait.

Who benefits from the rules since 1 July 2026

DRCA veterans with multiple conditions below individual thresholds

If you have several DRCA conditions that each scored below the individual PI threshold, they attracted no PI payment under the DRCA because each failed to meet its own minimum. Under the improved MRCA’s whole-of-person assessment, those same conditions combine into a single CIS. Three conditions at 8 points each might combine to approximately 22 points, which qualifies for a PI payment. Under the DRCA, each scored 8 and none paid out.

VEA veterans who failed the TPI alone test

If you were denied TPI because non-accepted conditions contributed to your inability to work, the MRCA’s SRDP removes that barrier. TPI is no longer open to new claimants. If you’re under pension age, you can ask DVA to assess you for SRDP under the MRCA.

Veterans who want access to lump sum PI

The VEA provides PI as a fortnightly pension, not a lump sum. If you’d prefer a lump sum (or the flexibility to choose between lump sum, periodic, or a combination), the MRCA offers that. Any claim lodged since 1 July 2026 is assessed under the MRCA framework, with lump sum options.

DRCA veterans who want Gold Card access

If you’re a DRCA veteran approaching 60 impairment points, lodging a new condition or worsening claim under the improved MRCA opens the Gold Card pathway. You need either a newly accepted condition or a 5-point worsening to trigger the MRCA assessment.

What you should do now

If you’ve never claimed

Start now. A full entitlement review identifies every condition you can claim. Any claim you lodge now is decided under the MRCA. The evidence gathering, medical appointments, and claim preparation take time, so don’t put it off.

If you have accepted conditions but no PI assessment

Lodge your PI claims as soon as possible. A PI claim lodged now is assessed under the MRCA using GARP M 2026, including for conditions accepted under the VEA or DRCA. If you were already compensated under those Acts, that compensation sets a baseline, and a new payment needs a rise of at least 5 points above it. The earlier you get your CIS established, the sooner you know whether you’re approaching the 50-point (SRDP), 60-point (Gold Card), or 80-point (higher tier) thresholds.

If you lodged VEA or DRCA claims before 1 July

Those claims stay valid and are decided under the Act they were lodged under, including any review of them. If you’re unsure how a pending claim fits with new MRCA claims, get specific advice.

If your conditions have worsened since your last assessment

Lodge a claim for the worsening. Since 1 July 2026 this is an MRCA permanent impairment claim, including for conditions accepted under the VEA or DRCA (it replaced the VEA “Application for Increase”). A new payment needs a rise of at least 5 points above your baseline, and reaching 60 points brings a Gold Card.

If you’ve been meaning to claim but keep putting it off

The deadline has passed, but there is still no time limit on lodging a claim. PI compensation generally can’t be paid from earlier than the date you claimed liability, so putting it off still costs you.

What didn’t change

• Your existing payments. Grandfathered. Continue as normal. Indexed as normal.
• NLHC mental health coverage. Unchanged. Still available with one day of CFTS.
• White Card coverage for accepted conditions. Unchanged.
• Gold Card coverage if you already have one. Unchanged.
• The SoP framework. Conditions are still assessed against Statements of Principles.
• The GARP M approach. MRCA permanent impairment is still assessed under GARP M, now GARP M 2026 for claims lodged from 1 July 2026.
• Your right to appeal. The VRB and ART pathways continue to operate.

What to do next

If you’re a VEA or DRCA veteran and you’re not sure how the change affects your existing conditions or a new claim, book a free discovery call. We’ll review your specific conditions, current entitlements, and impairment points, and tell you what to do next.

Frequently asked questions

Do I need to do anything if I’m already receiving VEA or DRCA payments?

No. Your existing payments are grandfathered and continue without interruption. You don’t need to lodge any paperwork, apply for transfer, or take any action to protect your current entitlements.

Will I be worse off under the new system?

DVA has stated that no veteran should be worse off in their current circumstances. Existing payments are grandfathered. The improved MRCA generally provides more favourable assessment (whole-of-person) and more flexible payment options than the VEA or DRCA. Individual scenarios where a veteran might receive less under the MRCA for a specific condition are uncommon.

What happens to a claim lodged before 1 July that wasn’t decided by then?

If DVA received your claim before 1 July 2026, it is decided under the Act it was lodged under, including any review of it. The decision didn’t need to be made before 1 July. The lodgement date determines which Act applies.

Can I lodge claims under both the old and new systems?

Claims lodged before 1 July 2026 are assessed under the VEA or DRCA. Claims lodged since then are assessed under the improved MRCA. You can have entitlements under multiple Acts simultaneously.

What is presumptive liability and when does it start?

Presumptive liability means certain commonly claimed conditions can be accepted as service-related without requiring evidence against the SoP. DVA has published the list. It applies to claims lodged from 1 July 2026, where you have a confirmed diagnosis and your service meets the criteria for the condition.

Is presumptive liability worth waiting for?

There’s nothing to wait for now. Presumptive liability already applies to claims lodged since 1 July 2026. If your condition is listed and your service meets the criteria, the claim can be decided faster. If not, the standard SoP process applies.

What’s PAMT and is it still available?

Provisional Access to Medical Treatment lets you receive DVA-funded treatment for certain conditions while your liability claim is being processed. It is still available for claims submitted up to 30 June 2027, with treatment funded until your claim is decided or 31 December 2027, whichever comes first. It covers 20 listed conditions, for MRCA claims and DRCA claims lodged before 1 July 2026. NLHC mental health coverage is separate and unaffected.