VETS Act 2026: What to Do Before 1 July

On 1 July 2026, the VEA and DRCA close to new compensation and rehabilitation claims. Every new claim lodged from that date is assessed under an improved MRCA. Your existing payments don’t change. But the rules for new claims do, and depending on your situation, that’s either better for you or worse.

This article tells you exactly what’s changing, who wins under the new system, who might want to get claims in before the deadline, and what you should do in the next three months.

What actually changes on 1 July 2026

• One Act for all new claims. The VEA, DRCA, and MRCA currently operate as three separate compensation systems. From 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. From 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. The improved MRCA gives the Repatriation Commission the ability to specify conditions that can be accepted without SoP evidence. The specific conditions haven’t been listed yet.
• 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 should consider claiming before 1 July 2026

Not everyone needs to rush. For most MRCA veterans (service after 1 July 2004), the changes are neutral or positive. The veterans who should think carefully about timing are those currently 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 is uncommon but possible. If you have a single, high-severity DRCA condition and you’re not sure whether claiming before or after 1 July produces a better result, get specific advice before lodging.

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. If you have unclaimed conditions that you’d prefer assessed under the VEA’s pension framework rather than the MRCA’s lump-sum/periodic framework, lodge before 1 July 2026.

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) closes on 30 June 2026. PAMT allows you to receive DVA-funded treatment for certain conditions while your claim is being assessed, before liability is accepted. If you have a condition that qualifies for PAMT (mental health conditions, cancer, certain musculoskeletal conditions), lodging your claim before 30 June 2026 lets you access PAMT while waiting for the decision.

This doesn’t mean you lose access to treatment. NLHC mental health coverage continues regardless. But for physical conditions covered by PAMT, the 30 June deadline is real.

Who benefits from waiting until after 1 July 2026

DRCA veterans with multiple conditions below individual thresholds

If you have several DRCA conditions that each score below the individual PI threshold, they currently attract no PI payment because each fails 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. There’s no point lodging a TPI claim under the VEA now if the alone test will fail again. Wait for 1 July and apply 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. Lodging after 1 July 2026 means your claim 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, waiting until 1 July and 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 right now

If you’ve never claimed

Start now regardless of the deadline. A full entitlement review identifies every condition you can claim. Whether those claims are lodged before or after 1 July depends on which legislation produces the better outcome for your specific situation. But the evidence gathering, medical appointments, and claim preparation take time. Don’t wait until June to start.

If you have accepted conditions but no PI assessment

Lodge your PI claims as soon as possible. PI assessment is not affected by the VETS Act in the same way liability claims are. 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 have VEA or DRCA claims and aren’t sure about timing

Get specific advice. The before-vs-after question depends on your individual combination of conditions, current impairment points, service dates, and which benefits you’re already receiving. There’s no single right answer.

If your conditions have worsened since your last assessment

Lodge reassessment claims. If your conditions have deteriorated, a reassessment can increase your impairment points regardless of which legislation applies. If the reassessment after 1 July 2026 results in a 5-point increase for a DRCA veteran, it triggers MRCA eligibility for Gold Card assessment.

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

This is the push. The legislative change creates real consequences for timing decisions. Understanding which system works better for you requires time and advice, and that clock is ticking.

What doesn’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 assessment methodology. PI assessments continue to use the same criteria.
• 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 whether to claim before or after 1 July 2026, book a free discovery call. We’ll review your specific conditions, current entitlements, and impairment points, and tell you which timing produces the better outcome.

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 if I lodge a claim before 1 July but it isn’t decided by then?

If your claim is lodged (received by DVA) before 1 July 2026, it will be assessed under the legislation that applied at the date of lodgement. You don’t need the decision to be made before 1 July. The lodgement date determines which Act applies.

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

If you lodge a claim before 1 July 2026, it’s assessed under the relevant current Act (VEA or DRCA). If you lodge a new claim after 1 July 2026, it’s 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. The improved MRCA gives the Repatriation Commission the power to specify these conditions. The specific list hasn’t been published yet. This takes effect from 1 July 2026.

Should I wait for presumptive liability before claiming?

If your condition is already well-supported by evidence and SoP factors, there’s no advantage in waiting. Presumptive liability removes the evidence burden, but if your evidence is already strong, the outcome is the same. Waiting only delays your payment.

What’s PAMT and why does it matter that it’s closing?

Provisional Access to Medical Treatment lets you receive DVA-funded treatment for certain conditions while your liability claim is being processed. It closes on 30 June 2026. NLHC mental health coverage is unaffected, but physical conditions currently covered by PAMT will require an accepted liability claim for DVA-funded treatment after that date.