From 1 July 2026, the way veterans’ compensation claims are decided in Australia changed. The three separate Acts that governed claims for decades have been brought under a single ongoing scheme, an improved version of the Military Rehabilitation and Compensation Act 2004 (MRCA). This is the biggest change to veterans’ compensation in a generation, and it affects anyone thinking about lodging a new claim.
Here is what actually changed, what stayed the same, and what it means for your claim.
What is the VETS Act?
The VETS Act is short for the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act. It was passed by Parliament in early 2025 and commenced on 1 July 2026. It responds directly to recommendations from the Royal Commission into Defence and Veteran Suicide, which found that the old three-Act system was so complex it was part of the harm.
Until 1 July 2026, a claim could fall under any of three Acts depending on when and where you served:
- the Veterans’ Entitlements Act 1986 (VEA)
- the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA)
- the Military Rehabilitation and Compensation Act 2004 (MRCA)
Two veterans with the same condition could receive very different outcomes simply because a different Act applied to them. The VETS Act ends that. From 1 July 2026, there is one system for all new claims.
What changed on 1 July 2026
The core change is straightforward. The VEA and DRCA closed to new claims. Any new compensation or rehabilitation claim lodged from 1 July 2026 is now decided under the improved MRCA, regardless of when you served.
- New claims lodged from 1 July 2026 are assessed under the single improved MRCA.
- Claims lodged before 1 July 2026 continue under the Act that applied when you lodged them.
- There is no longer a choice between Acts for a new condition.
What did not change
This is the part that causes the most worry, and the reassurance is real. If you are already receiving compensation, nothing stops.
- Payments already being received under the VEA or DRCA continue, and continue to be indexed as normal.
- The rules governing your current accepted conditions do not change.
- If you already hold a Gold Card under the VEA, your entitlements are unchanged.
You do not lose anything you already receive. What changes is the pathway for any new condition you claim from 1 July 2026 onward.
Who is most affected
DRCA veterans gain the most
If you served between 1972 and 2004 and your claims have been managed under the DRCA, the new system opens up entitlements that were previously off the table. Under the DRCA there was no Gold Card pathway, no Special Rate Disability Pension, and no whole-of-person impairment assessment. From 1 July 2026, those routes are available through the improved MRCA. For many DRCA veterans this is a genuine expansion of what they can access.
Post-2004 veterans see the least change
If your service began after 2004, your claims already run under the MRCA. The VETS Act improves that system rather than replacing it, so for you the change is mostly a set of enhancements, not a new rulebook.
VEA veterans keep what they have
Existing VEA payments and Gold Cards continue unchanged. From 1 July 2026, a new condition or a worsening condition is handled through the MRCA rather than by applying to increase a VEA payment, which can open access to MRCA rehabilitation supports that were not previously available.
The new Gold Card pathways
One of the most significant practical changes is Gold Card access. If you do not already hold a Gold Card, there are now several pathways to one under the improved MRCA from 1 July 2026, including:
- reaching 60 impairment points under the MRCA impairment assessment
- qualifying for the Special Rate Disability Pension (SRDP)
- becoming eligible for the new Additional Disablement Amount (ADA) for veterans over pension age
For DRCA veterans in particular, none of these pathways existed before. The detail matters, though. Simply having conditions accepted under the old Acts does not automatically qualify you. You generally need a trigger, such as a new accepted condition or a measurable worsening of an existing one, and previous impairment ratings may need to be translated into the MRCA’s assessment framework. This is exactly the kind of situation where getting the assessment right the first time makes a lasting difference.
Should you lodge before or after 1 July 2026?
Because the date you lodge decides which rules apply, timing genuinely matters, and there is no single right answer. For some veterans, the improved MRCA opens entitlements that were never available under the old Acts, so lodging under the new system is the better route. For others, a specific condition may have been assessed more favourably under the older framework. The removal of the choice between Acts simplifies the system, but it also removes a strategic option that experienced advocates and lawyers used to weigh.
If you have a service-related condition you have not yet claimed, this is the moment to review your situation properly rather than guess. The right pathway depends on your service dates, your conditions, and what you already have accepted.
Appeals under the new system
A single review pathway is now in place, giving all veterans the right to have a claim decision reviewed by the Veterans’ Review Board. If your claim has been knocked back, that is not the end of the road. Rejections are a common part of the process, and decisions can be reviewed and appealed. Our appeal pathway checker below walks you through your options.
Knocked back by DVA? See your appeal pathway.
Answer four quick questions to see your likely next step and roughly how long you have to act. This is a guide only, not a determination.
This is a general eligibility guide only and not a determination by the Department of Veterans' Affairs. It does not constitute legal, financial or medical advice. Book a free consultation for a personalised assessment.
How KSC Law can help
The VETS Act is meant to make the system simpler, and over time it will. In the transition, though, the questions of which Act applies, whether to lodge now, and how an old impairment rating carries into the new framework are exactly where claims go wrong. KSC Law was founded by veterans who have lived the system. Our expert team can confirm which pathway suits your circumstances, get the evidence right, and run the claim from start to finish.
The first conversation is free and there is no obligation. Call us on 07 2112 4752 or book a consultation.
This article is general information, not legal advice. Your entitlements depend on your individual service and circumstances.