Key Points
- The new act, effective from 1 July 2026, is called the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2024 (VETS Act).
- It seems likely that all new claims after 1 July 2026 will be processed under an improved Military Rehabilitation and Compensation Act (MRCA), closing new claims under VEA and DRCA, with existing payments continuing.
- Research suggests that for resubmitted claims, conditions will be assessed using the MRCA framework, potentially simplifying the process.
- The evidence leans toward existing VEA and DRCA assessments being reassessed under MRCA’s guide for impairment points, not directly converted.
The New Act and Its Implications
The VETS Act aims to streamline veterans’ compensation by consolidating claims under an improved MRCA from 1 July 2026. This means new claims, including resubmissions for worsening conditions, will use MRCA’s assessment methods, potentially making the process more consistent. Existing payments under VEA and DRCA will continue without reduction, ensuring financial certainty.
Impairment Points Translation
If you have assessments under VEA (using disability percentages) or DRCA, for new claims under the VETS Act, your conditions will likely be reassessed using the MRCA’s Guide to Determining Impairment and Compensation (GARP M) to determine impairment points. This reassessment ensures a uniform approach, though it may involve a fresh evaluation rather than a direct conversion.
Comparison with MRCA
The VETS Act differs from the current MRCA by making it the sole act for new claims, closing VEA and DRCA to new submissions, and standardizing processes. This aims to reduce complexity and improve consistency in outcomes for veterans.
Survey Note: Detailed Analysis of the Veterans’ Harmonisation Act and Its Implications
This note provides a comprehensive examination of the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2024 (VETS Act), effective from 1 July 2026, and its implications for resubmitting claims to the Department of Veterans’ Affairs (DVA) for the veteran community, particularly concerning impairment points under the Veterans’ Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA). The analysis also compares the new act with the Military Rehabilitation and Compensation Act 2004 (MRCA).
Background and Legislative Context
The VETS Act was passed by the Australian Parliament on 13 February 2025, in response to the Interim Report of the Royal Commission into Defence and Veteran Suicide, which highlighted the complexity of the current tri-Act system (VEA, DRCA, and MRCA) (Parliament passes new veterans’ legislation). The act aims to simplify and harmonize the framework for veteran rehabilitation, compensation, and entitlements, effective from 1 July 2026. This reform addresses the need for a more navigable system, as evidenced by public consultations and legislative materials (Veterans’ Legislation Reform).
Key Provisions of the VETS Act
From 1 July 2026, the VETS Act will close VEA and DRCA to new compensation claims, with all new claims processed under an improved MRCA. Existing payments under VEA and DRCA prior to this date will be grandparented, ensuring continuity without reduction, and indexed annually for inflation (The VETS Act – what it is and what it will do). This grandparenting arrangement provides financial certainty, as outlined in various DVA communications (Historic Reform for Veterans’ and Families Benefits passes the Parliament).
Transitional provisions, detailed in Schedule 7 of the Explanatory Memorandum, address how undetermined claims on the commencement date will be handled, ensuring a smooth transition (The Bill – what it is and what it will do). Additionally, veterans under DRCA will gain access to appeal DVA decisions to the Veteran Review Board from early April 2025, enhancing review pathways (Veterans’ entitlements harmonisation act passed by parliament).
Implications for Resubmitting Claims
Resubmitting claims likely refers to submitting new claims or claims for worsening conditions. After 1 July 2026, all such claims will be processed under the improved MRCA, using its assessment methodologies. The DVA has emphasized that veterans have time before this date to decide whether to lodge claims under the current system, given the complexity of individual circumstances (Veterans’ Legislation Reform – Frequently asked questions). For example, claims for worsening pre-existing conditions received after 1 July 2026 will be considered under MRCA, ensuring consistency (The VETS Act – what it is and what it will do).
This shift aims to simplify the claims process, making it easier for veterans and advocates to navigate, as noted in ministerial statements (New legislation to simplify and harmonise veteran compensation). However, the exact process for resubmissions may depend on whether the claim relates to new conditions or existing ones, with the latter potentially requiring reassessment under MRCA guidelines.
Translation of Impairment Points Under VEA and DRCA
The user’s query regarding impairment points under VEA and RDCA (assumed to be DRCA, given context) requires clarification on how these assessments translate under the new act. Under the current system, VEA uses the Guide to the Assessment of Rates of Veterans’ Pensions (GARP V), assessing disability as a percentage, while DRCA uses the Guide to the Assessment of the Degree of Permanent Impairment 2023, and MRCA uses the Guide to Determining Impairment and Compensation (GARP M), which measures impairment in points (Our guides to assess compensation).
For claims under the improved MRCA, transitional provisions indicate that conditions accepted under VEA and DRCA are assessed using GARP M to determine impairment points, as outlined in section 13 of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (CTPA) (12.7 Transitional Provisions – Permanent Impairment). This means that for veterans with existing VEA assessments (disability percentages), their conditions will be reassessed using GARP M to calculate impairment points when making new claims under MRCA. Similarly, DRCA conditions, previously assessed under the DRCA PI Guide, will also be evaluated using GARP M for MRCA claims.
For instance, if a veteran has a VEA condition with a 100% disability rating, and they lodge a claim under MRCA for additional compensation, the condition’s impairment will be assessed using GARP M to determine the equivalent points, potentially affecting eligibility for benefits like the Gold Card at 60 impairment points, which requires a claim accepted under MRCA or a 5-point worsening (VEA Veterans). This reassessment ensures uniformity but may involve a fresh evaluation rather than a direct conversion, as evidenced by discussions on combining assessments across acts (r/DVAAustralia on Reddit).
Comparison with Current MRCA
The VETS Act differs from the current MRCA by consolidating the legislative framework into a single act for new claims, closing VEA and DRCA to new submissions, and standardizing various provisions. Enhancements include the introduction of a new Additional Disablement Amount (ADA), similar to VEA’s Extreme Disablement Adjustment (EDA), and presumptive liability for certain conditions, aiming for more consistent outcomes (The VETS Act – what it is and what it will do). This contrasts with the current tri-Act system, where claims could be processed under different acts based on service timing, leading to complexity (Efficiency of Veterans Service Delivery by the Department of Veterans’ Affairs).
The improved MRCA under the VETS Act also introduces standardized allowances, such as travel reimbursements and funeral benefits, enhancing accessibility (New legislation to simplify and harmonise veteran compensation). This reform is designed to benefit veterans by streamlining claims processing and ensuring more timely outcomes, as highlighted in DVA’s commitment to consulting with the veteran community (Veterans’ Legislation Reform).
Detailed Analysis Table
To summarize the key differences and implications, the following table outlines the comparison between the current system and the VETS Act:
| Aspect | Current System (VEA, DRCA, MRCA) | VETS Act (Improved MRCA from 1 July 2026) |
|---|---|---|
| New Claims | Processed under relevant act based on service timing | All new claims under improved MRCA |
| Existing Payments | Continue under respective acts | Grandparented, continue without reduction, indexed annually |
| Impairment Assessment | VEA (GARP V, percentages), DRCA (PI Guide), MRCA (GARP M, points) | All assessed using GARP M for impairment points |
| Appeals | Varies by act, DRCA to gain VRB access from April 2025 | Standardized under MRCA, VRB access for DRCA from April 2025 |
| Additional Benefits | Varies (e.g., EDA under VEA) | Standardized, e.g., ADA similar to EDA, presumptive liability |
Conclusion
The VETS Act represents a significant reform to simplify veterans’ compensation, effective from 1 July 2026, by consolidating claims under an improved MRCA. For resubmitted claims, all new assessments will use the MRCA framework, with VEA and DRCA conditions reassessed using GARP M for impairment points. This ensures consistency but may involve fresh evaluations, potentially affecting outcomes based on individual circumstances. Veterans are encouraged to review DVA resources, including scenarios and FAQs, to understand impacts (Veterans’ Legislation Reform – Resources).
Key Citations
- Parliament passes new veterans’ legislation
- Veterans’ Legislation Reform
- The VETS Act – what it is and what it will do
- The Bill – what it is and what it will do
- Veterans’ entitlements harmonisation act passed by parliament
- Historic Reform for Veterans’ and Families Benefits passes the Parliament
- New legislation to simplify and harmonise veteran compensation
- Veterans’ Legislation Reform – Frequently asked questions
- r/DVAAustralia on Reddit discussion on impairment points
- VEA Veterans information on Gold Card eligibility
- Our guides to assess compensation DVA guides
- 12.7 Transitional Provisions – Permanent Impairment CLIK manual
- Efficiency of Veterans Service Delivery by the Department of Veterans’ Affairs
- Veterans’ Legislation Reform – Resources DVA materials
