New DVA Laws: What the 2026 Changes Mean for Veterans & ADF Members

Australia’s military compensation system is about to undergo its most significant reform in decades. 

The new Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2024 (VETS Act) will soon come into force. This means the way compensation and rehabilitation claims are assessed by the Department of Veterans’ Affairs (DVA) will fundamentally change from 1 July 2026. 

While the reforms are designed to simplify the system, they also raise important questions about timing, entitlements and strategy for current and former members of the ADF. 

Why the DVA system is changing 

For many years, veterans have had to navigate three separate pieces of legislation: 

• Veterans’ Entitlements Act 1986 (VEA)  
• Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA)  
• Military Rehabilitation and Compensation Act 2004 (MRCA)  

Each Act has its own rules, tests, and benefits. This has created a system that is: 

• difficult to understand  
• inconsistent in outcomes  
• slow to process claims.  

These issues were heavily criticised during the Royal Commission into Defence and Veteran Suicide, which called for urgent reform. 

The VETS Act is the Government’s response to those findings. 

What is changing on 1 July 2026? 

From 1 July 2026, the system will move to a single legislative framework. 

In practical terms, this means: 

• All new claims will be assessed under the Military Rehabilitation and Compensation Act 2004 (MRCA)  
• The VEA and DRCA will close to new claims  
• The MRCA will become the primary system for compensation, rehabilitation and treatment. 

This includes claims for: 

• physical injuries  
• psychological conditions (including PTSD)  
• illnesses and diseases  
• aggravations of existing conditions  
• permanent impairment. 

As outlined in the reform materials, the goal is to create a simpler, more consistent system for future claims. 

What happens to existing entitlements? 

One of the most important points is that current entitlements are protected. 

If you are already receiving benefits under the VEA or DRCA: 

• your payments will continue  
• you will not be forced to move to MRCA  
• your existing rights are “grandfathered”.  

This is a critical safeguard built into the reforms. 

Will the new system be better? 

In theory, a single system should make things easier. 

Potential benefits include: 

• Less confusion about which legislation applies  
• More consistent decision-making  
• Modernised definitions, particularly for mental health conditions  
• A stronger focus on rehabilitation and long-term support. 

However, it’s important to understand that “simpler” does not always mean “better” for every individual. 

The way compensation is calculated under MRCA is different to the VEA and DRCA, especially when it comes to: 

• permanent impairment assessments  
• lump sum compensation  
• eligibility thresholds. 

Why Timing Matters More Than Ever 

The transition to a single system creates a critical window between now and 1 July 2026. 

Depending on your circumstances: 

• You may be better off lodging a claim before July 2026 under the current legislation  
• Or it may be appropriate to wait and proceed under MRCA  

There is no one-size-fits-all answer. 

The right approach depends on factors such as: 

• your service history  
• the type of injury or condition  
• when symptoms developed  
• the potential value of your entitlements under each Act.  

This is where early advice becomes particularly important. 

What Veterans and ADF Members should do now 

If you are currently serving, or have previously served, it is worth thinking about your situation now – not later. 

We recommend: 

• Reviewing any injuries or conditions you have not yet claimed  
• Considering whether those claims should be lodged before July 2026  
• Getting clarity on how your entitlements may differ under each system  
• Ensuring your medical evidence is properly prepared. 

Waiting until after the transition may limit your options. 

A period of change and opportunity 

There is no doubt these reforms are intended to improve the system over time. 

But large-scale legislative change can also bring: 

• uncertainty during transition  
• potential delays while new processes are implemented  
• differences in how claims are assessed and valued. 

Understanding where you stand now can make a significant difference to your long-term outcome. 

How We Can Help 

At Tindall Gask Bentley, we have more than 20 years’ experience advising current and former members of the ADF across all areas of military compensation. 

We can assist you to: 

• understand which legislation applies to your situation  
• assess whether to lodge a claim before 2026  
• prepare and strengthen your claim with the right evidence  
• ensure you are not missing out on entitlements.  

If you are unsure how the upcoming DVA changes affect you, now is the time to get advice. 

Contact our Military Compensation team today on 1800 730 842 for a free, no-obligation discussion, or complete our online enquiry form and we will be in touch.