New Veterans framework passed

The transition to MRCA from 1 July 2026

Australia has overhauled the Veterans’ compensation system. Parliament passed the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025 (VETS Act) on 13 February 2025, with Royal Assent on 20 February 2025. The reforms shift new claims to an improved Military Rehabilitation and Compensation Act 2004 (MRCA) and streamline reviews and governance. 

What changes on 1 July 2026?

From 1 July 2026, the Veterans’ Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) close to new claims. Any new rehabilitation or compensation claim made on or after that date will be decided under MRCA. Payments already being made under VEA/DRCA before 1 July 2026 will continue under grandfathering provisions.

To reduce complexity, the initial review of DRCA decisions moved to the Veterans’ Review Board (VRB) from 21 April 2025 (rather than the ART/AAT pathway). VRB decisions can then be appealed to the Administrative Review Tribunal (once established). This aligns review processes across the schemes. 

The VETS Act seeks to improve entitlements within MRCA. Highlights include:

Additional Disablement Amount (ADA): compensation for Veterans of Age Pension age with a high degree of incapacity (similar to the VEA’s EDA). 

Presumptive conditions: the Repatriation Commission can list injuries/diseases accepted on a presumptive basis where there’s a known connection to service. 

Expanded eligibility for Household Services and Attendant Care. 

Travel for treatment: the higher private-vehicle reimbursement rate available to all Veterans (regardless of kilometres). 

Funeral benefits: automatic VEA funeral benefit increased to $3,000, plus reimbursement up to $14,062 for all service-related deaths. 

Standardised payments: including acute support packages, education schemes, and additional compensation for children of severely impaired Veterans. 

Most-beneficial SoP rule: if a Statement of Principles changes between primary and reviewable decisions, the version most beneficial to the Veteran applies.

The MRCA framework will merge the MRCC into the Repatriation Commission to reduce duplication. The Act also establishes the Defence and Veterans’ Services Commission, with provisions commencing 29 September 2025, implementing a recommendation of the Royal Commission into Defence and Veteran Suicide. 

What this means for you and your claim

• Already receiving VEA/DRCA payments? Those continue, there is no need to re-apply.
• Considering a new claim before 1 July 2026? It will be made under the current Act(s).
• Claiming on/after 1 July 2026? You’ll lodge under MRCA and benefit from the unified pathway and enhancements.
• Undetermined claims at commencement will be handled under the transitional provisions in the Act and Explanatory Memorandum. Getting your evidence in order now can help avoid delay or confusion in that handover.

Practical steps to get claim-ready

1. Map your conditions: list diagnosed injuries/illnesses and service periods/roles that may connect them to service.
2. Collect evidence: service and medical records, specialist reports, treatment histories, incident reports, witness statements.
3. Document functional impact: work capacity, activities of daily living, home-care needs as this supports Household Services/Attendant Care and impairment assessments under MRCA.
4. Review benefits that may change (e.g., ADA eligibility, travel reimbursements, funeral benefits) and consider timing in light of the 1 July 2026 switch-over.
5. Plan for reviews: understand the VRB pathway and timeframes if you need to challenge a decision.

At StandTo Legal we act for ADF members, Veterans and families across claims strategy, evidence preparation, lodgement, and reviews/appeals. If you’re unsure what the next steps are, or what actions are best suited to your needs, we’ll assess your options and map a practical path so your claim is accurate, complete and filed at the right time.

This article is general information, not legal advice. For advice about your circumstances, please contact our team.