Parliament passes new veterans’ legislation
Vetaffairs April 2025 - Australian Parliament House

On 13 February, the Parliament passed the Veterans’ Entitlements, Treatment and Support (Simplification and Harmo­nisation) Act 2025 (the VETS Act). 

The Royal Commission into Defence and Veteran Suicide recommended the Government simplify and harmonise the framework for veteran rehabilitation, compensation and other entitlements in its Interim Report in August 2022. 

The legislation means that from 1 July 2026, the Veterans’ Entitlements Act 1986 (VEA) and the Safety, Rehabilitation and Compensation (Defence-related claims) Act 1988 (DRCA) will close to new com­pensation claims. All claims received from 1 July 2026 will be determined under an improved Military Rehabilita­tion and Compensation Act (MRCA). 

Payments being received under the VEA and DRCA prior to 1 July 2026 will be grand-parented – this means they will continue uninterrupted (and will continue to be indexed). 

The VETS Act does not change the existing arrangements for income support payments such as the Energy Supplement, Income Support Supple­ment or Service Pension. Veterans with Qualifying Service will also continue to be eligible for the Gold Card at age 70. 

The start date of the new arrange­ments gives veterans, families and advocates time to understand how they might be impacted and make plans for their individual circumstances. 

Consolidating the legislation into one Act will result in a system where it is easier for veterans and families to understand their entitlements. A single Act for all new claims will also be sim­pler to administer, benefiting veterans and families over time through claims being processed in a consistent and timely way. 

The Act will implement a range of improvements: 

  1. A new Additional Disablement Amount (ADA), similar to the Extreme Disablement Adjustment (EDA) available under the VEA, will be intro­duced. Like the EDA, the ADA will compensate veterans who are of Age Pension age or older and who have a high degree of incapacity due to service-related conditions. The ADA will be subject to the same offsetting arrangements that exist for the Spe­cial Rate Disability Pension (SRDP) under the MRCA, taking account of Commonwealth-funded military superannuation payments. 
  2. The Repatriation Commission will be able to specify injuries and diseases that can be accepted on a presumptive basis where they are known to have a common connection with military service. 
  3. DRCA veterans with high levels of impairment may, for the first time, be able to qualify for Special Rate Disability Pension and a MRCA Gold Card (subject to meeting the relevant MRCA criteria). 
  4. Eligibility for household services and attendant care will be expanded to VEA veterans. 
  5. The higher travel reimbursement amount, regardless of kilometres, will be available to all veterans when a private vehicle is used to travel for treatment. 
  6. The automatic granting of VEA funeral benefits will be retained, with the benefit increasing to $3,000; and funeral expenses up to $14,062 for all service-related deaths will be reimbursed. 
  7. Allowances and other payments will be standardised, including acute sup­port packages, education schemes, and additional compensation for chil­dren of severely impaired veterans. 
  8. Veterans receiving DRCA incapacity payments will automatically transi­tion to MRCA incapacity payments on the date of commencement. 
  9. Where the Repatriation Medical Authority updates a Statement of Prin­ciples (SOP) between the veteran’s primary and reviewable decision, the version of the SOP which is most ben­eficial to the veteran’s circumstances will be applied. 
  10. The Repatriation Commission will be able to determine circumstances where a vulnerable veteran must receive financial advice before receiv­ing a lump sum payment, helping recipients make the right decisions. 

Part of the VETS Act comes into effect earlier, from 21 April – a single pathway of review through the Veterans’ Review Board – read more on page 5. 

The VETS Act – more information 

We are committed to making it easier for you to navigate the veterans’ compensation system. A range of resources and scenarios can be found on the dedicated Legislation Reform page on the DVA website.

You may wish to seek the advice of a compensation claims advocate and can stay up to date by following our social media channels and subscribing to our regular monthly newsletter, e-news.