If you currently have accepted conditions under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) but do not qualify for Permanent Impairment (PI) payments, the upcoming Vets Act changes could make a significant difference to your compensation.
Current vs proposed assessment: a real example
Consider Mary’s situation:
- Current assessment under DRCA: Mary (55) has accepted service-related conditions for her ankle and tinnitus, each assessed individually. Neither condition meets the required 10% threshold for payment. Result: no permanent impairment payment.
- Under new legislation (MRCA): Mary’s conditions are assessed using a whole-of-person approach. Her combined impairment rating is 19 points. Result: Mary qualifies for either $96.42 per fortnight or a lump sum of $49,608.09.
Key differences in assessment methods
The improvement in Mary’s case comes from a fundamental difference in how permanent impairment is evaluated:
- DRCA (current): each condition is assessed separately, impairment ratings from different conditions are not combined, and you must meet a minimum 10% threshold per individual condition.
- MRCA (proposed): uses a whole-of-person impairment assessment, combines impairments from all service-related conditions, and applies a lower effective threshold when conditions are combined.
What this means for you
If you have multiple service-related conditions that individually fall below the 10% DRCA threshold, you may soon qualify for compensation that was previously unavailable to you.
The Vets Act closes the Veterans’ Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) to new claims from 1 July 2026. From this date, all compensation and rehabilitation claims will be determined under a single ongoing Act, the improved Military Rehabilitation and Compensation Act 2004 (MRCA). The MRCA recognises that multiple minor conditions can collectively have a significant impact on quality of life and earning capacity.
See how the Vets Act changes affect you
For personalised information about how these changes might affect your specific circumstances, our expert team can guide you through what the new legislation means for your claim.