Scenarios for Single Ongoing Act Consultation

All the scenarios are based on existing benefits should the claim be made today (Current Outcome) vs what would happen should the claim be made post transition (Future Outcome).

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Harry – DRCA initial claim for compensation

Harry is 73 with only DRCA reserve service and hasn’t lodged a claim before. Harry has been a carpenter all his life and now lodges a claim for his knee and back conditions.

Under the current legislation:

• The knee and back conditions were rejected as military service did not significantly contribute to the condition.

Under the proposed new legislation:

• The knee and back conditions are accepted based on the Statement of Principles (SOPs) showing that service had a material contribution to his condition.
• Harry is provided with a White card for the treatment of his accepted service‑related conditions.

Key Points:

• MRCA conditions only require a material contribution, whereas under DRCA some claims require the higher level of contribution of ‘significant’.
• Under the DRCA, each liability claim needs to be assessed, using available medical information.
• The Statements of Principles are a set of known factors that can connect a condition to a person’s service – reducing the evidentiary burden on the veteran, medical providers, and claims delegates.
• Following the acceptance of conditions as service related, veterans will undertake a ‘needs assessment’ to establish which benefits may assist them, such as rehabilitation or permanent impairment payments.

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David – Current DRCA incapacity payments

David is 56 and is receiving incapacity payments under the DRCA, along with a Commonwealth funded superannuation payment. While his circumstances aren’t changing what is happening to his payment?

Under the current legislation:

• David currently receives DRCA incapacity payments of $1,394.18 gross per fortnight.

Under the proposed new legislation:

• David will be transferred to MRCA incapacity payments of $2,231.08 gross per fortnight.

Key Points:

• On commencement of the single ongoing Act all DRCA incapacity payment recipients will be automatically transferred and receive incapacity payments under MRCA. 
• There are three primary differences between the DRCA and the MRCA incapacity payments: 
  • The MRCA bases the starting salary on the current pay rate for the eligible rank and pay level, 
  • MRCA does not reduce your incapacity payments by a further 5% for a notional contribution to superannuation, and 
  • The MRCA includes a remuneration loading allowance (currently $183.45 per week) to compensate for the loss of non-salary benefits a person receives while serving in the ADF. 

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John – VEA/DRCA smoking with ADA

John is 78 with a 17 year old dependent. He has accepted service-related conditions under both VEA and DRCA on 90% Disability Compensation Payment (DCP). John has suffered a heart attack from his years of smoking and now lodges a claim for Ischaemic Heart Disease.

Under the current legislation:

• John’s current rate of DCP 90% is $541.04 per fortnight.
• John’s Ischaemic Heart Disease is accepted under both VEA & DRCA as service‑related due to his history of smoking.
• John’s VEA DCP is increased to the Extreme Disablement Adjustment (EDA) rate ($933.20 per fortnight).
• John is issued a gold card.
• John is offered a DRCA Permanent Impairment (PI) payment of $136,243.89.
• John accepts the DRCA lump sum and his final payments are:
  • DRCA lump sum of $136,243.89,
  • DCP EDA payment offset by $661.81 (by DRCA lump sum) reducing his EDA payment to $271.39 per fortnight.

Under the proposed new legislation:

• John continues to receive 90% DCP payment ($541.04 per fortnight) – this payment is grand parented.
• John’s Ischaemic Heart Disease is accepted as service-related under the MRCA.
• John’s impairment from previously compensated conditions is 54 points.
• John’s new assessment is 81 points.
• John will be paid Permanent Impairment compensation of $269.18 per fortnight or he can elect to receive an age based Lump sum of $57,954 (takes into account payments under previous Acts).
• John is eligible for Additional Disablement Amount (ADA) of $122.98 per fortnight (takes into account payments under previous Acts and any Commonwealth funded superannuation).
• John’s dependent is eligible for assistance under the MRCA education and training scheme (MRCAETS).
• As John has over 80 impairment points and an eligible young person (dependent), John receives an additional PI payment of $104,291.61.
• John is issued a gold card.
• John’s new payments are:
  • $933.20 per fortnight ($541.04 DCP, $269.18 PI, $122.98 ADA) and a lump sum of $104,291.61 (EYP payment);

or

• $664.02 per fortnight ($541.04 DCP and $122.98 ADA); and a lump sum of $162,245.61 ( $57,954.00 PI and $104,291.61 EYP payment).

Key Points:

• To ensure veterans with VEA or DRCA service are not disadvantaged under the single ongoing Act, the MRCA will be amended so that service-related smoking up to 31 December 1997 can be considered for the acceptance of a condition.
•  A new benefit, the ADA, will be introduced under the MRCA to ensure continued support for severely disabled, ageing veterans. This benefit is similar to the EDA benefit previously available under the VEA.
• The maximum ADA amount will be offset by other compensation payments received across the three Acts and any Commonwealth funded superannuation being received.
• The dependants of deceased ADA veterans will be eligible for death benefits under the MRCA.

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Mary – DRCA PI less than 10%

Mary is 55 has DRCA only service and has accepted service-related conditions for her ankle and tinnitus. No Permanent Impairment (PI) compensation is payable, as each condition did not meet the required DRCA payment threshold. She has requested a reassessment of these conditions.

Under the current legislation:

• Mary’s conditions are assessed individually under the DRCA and does not meet the threshold for a PI payment.
• No PI payment is payable.

Under the proposed new legislation:

• Under the MRCA’s whole of person PI assessment, Mary’s previously accepted conditions meet the minimum payable threshold.
• Mary’s new assessment is 19 points.
• Mary will be paid Permanent Impairment compensation of $96.42 per fortnight or she can elect to receive an age based lump sum of $49,608.09.

Key Points:

• Under the current DRCA PI arrangements, each condition is assessed separately and impairment ratings from individual conditions are not combined.
• In some cases, this results in no compensation being paid, as the minimum 10% impairment threshold per condition is not met.
• Under the MRCA, permanent impairment assessments take into account a veteran’s whole-of-person impairment and combines impairments arising from individual service-related conditions.

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Sue Ann – DRCA PI with new condition

Sue Ann is 47 who has DRCA accepted service-related conditions and Permanent Impairment (PI) payments totalling $278,000. Sue Ann has a new condition for her left ankle which she also requests a PI assessment.

Under the current legislation:

• Sue Ann’s claim for osteoarthritis of her left ankle is accepted under the DRCA.
•  Sue Ann’s PI assessment of her ankle is assessed independently of her other accepted conditions under the DRCA.
• Sue Ann receives a DRCA PI payment of $35,751.94.

Under the proposed new legislation:

• Sue Ann’s claim for osteoarthritis of her left ankle is accepted under the MRCA.
• Sue Ann’s impairment from previously compensated conditions is 64 points.
• Sue Ann’s new assessment is 68 points.
• No additional PI is payable to Sue Ann as there is not a 5-point increase of impairment.
• Sue Ann is issued a gold card. 

Key Points:

• Veterans who have received PI payments under the DRCA will see a difference in how PI is calculated under the MRCA, due to the whole-of-person impairment assessment and the age-adjusted permanent impairment payment.
• DRCA veterans who meet the 60 impairment points and the MRCA threshold test (accepted MRCA condition or 5-point worsening) will receive a Veteran Gold Card to access treatment for all conditions.

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Jack – DRCA pension age

Jack has just turned pension age (67) and has received Permanent Impairment (PI) compensation and incapacity payments under the DRCA. Jack is also in receipt of Commonwealth funded superannuation payments. Jack has just lodged a new claim for a mental health condition.

Under the current legislation:

• At age pension age (67) Jack’s incapacity payments ceased.
• Jack’s mental health condition is assessed as service-related under the DRCA.
• Jack is assessed for a DRCA PI payment of $66,120.39.

Under the proposed new legislation:

• At age pension age (67) Jack’s incapacity payments ceased.
• Jack’s mental health condition is assessed as service-related under the MRCA.
• Jack’s impairment from previously compensated conditions is 20 points.
• Jack’s new assessment is 73 points with a lifestyle rating of 6, (this includes worsening of previously compensated service-related lower limb conditions and hearing loss and tinnitus which was not previously payable).
• Jack will be paid Permanent Impairment compensation of $439.58 per fortnight or he can elect to receive an age based lump sum of $157,677.35 (takes into account payments under previous Acts).
• Jack is eligible for the Additional Disablement Amount (ADA) but is not payable due to his level of PI and Commonwealth funded superannuation payments he receives.
• Jack is issued a gold card.

Key Points:

• Under the single ongoing Act, a MRCA PI assessment will incorporate all service-related conditions and will compensate for any worsening of previously compensated conditions or any condition not previously been compensated. 
• A new benefit, the ADA, will be introduced under the MRCA to ensure continued support for severely disabled, ageing veterans.
• The maximum ADA amount will be offset by other compensation payments received under the three Acts and any Commonwealth funded superannuation being received.
• Veterans who are granted the ADA benefit will receive a gold card, even if their ADA payment is fully offset by other compensation.

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Andrew – DRCA incapacity

Andrew is 58 and is currently a DRCA client who has received Permanent Impairment (PI) compensation for his service-related orthopaedic conditions. However, he is no longer able to work. Andrew lodges a claim for incapacity payments.

Under the current legislation:

• Andrew is granted a DRCA incapacity payment.
• Andrew’s incapacity payment (Able Seaman (AB) PG 3-0) of $2,690.61 gross per fortnight reducing to 75% after 45 weeks.

Under the proposed new legislation:

• Andrew is granted a MRCA incapacity payment.
• Andrew’s incapacity payment (Able Seaman (AB) PG 3-0) of $3,501.02 gross per fortnight reducing to 75% after 45 weeks.

Key Points:

• From the commencement of the single ongoing Act, new claims for incapacity payments will be granted under the MRCA.
• There are three primary differences between the DRCA and the MRCA incapacity payments:
  • The MRCA bases the starting salary on the current pay rate for the eligible rank and pay level,
  • The MRCA does not reduce your incapacity payments by a further 5% for a notional contribution to superannuation, and
  • The MRCA includes a remuneration loading allowance (currently $183.45 per week) to compensate for the loss of non-salary benefits a person receives while serving in the ADF. 

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Bruce – VEA general rate reassessment

Bruce is 68 and accepted service-related conditions under the VEA and is receiving a 40% Disability Compensation Payment (DCP) payment. Bruce’s service-related conditions have worsened and he lodges a claim for a reassessment.

Under the current legislation:

• Bruce’s current rate of DCP 40% is $244.74 per fortnight.
• Following a reassessment, Bruce’s DCP payment is increased to 60% ($363.26 per fortnight).
• Bruce’s compensation has increased by $118.52 per fortnight.

Under the proposed new legislation:

• Bruce continues to receive his 40% DCP ($244.74 per fortnight) – this payment is grand parented.
• Bruce’s impairment from previously compensated conditions is 20 points.
• Bruce’s new assessment is 35 points.
• Bruce will be paid Permanent Impairment compensation of $125.58 per fortnight or he can elect to receive an age based lump sum of $42,083.23 (takes into account payments under previous Acts).
• Bruce’s new payments are:
  • $370.32 per fortnight ($244.74 DCP and $125.58 PI); or
  • $244.74 per fortnight (DCP) and a lump sum of $42,083.23.

Key Points:

• Veterans receiving DCP under the VEA will continue to receive their payments under ‘grand parenting’ arrangements. Their payments will continue to be indexed. 
• There will be no more ‘Applications for Increase’ for DCP under the single ongoing Act.  Instead, veterans can be assessed for permanent impairment and compensated for any worsening of their conditions under the MRCA.
• Under the MRCA, veterans can choose how they receive their permanent impairment payments. They can choose between fortnightly payments or an age-based lump sum (or a combination of both).
• It is not shown in this scenario, but if Bruce ceases work due to his service-related conditions, he will also be eligible for Incapacity payments in addition to his Permanent Impairment Payments.

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Tony - NLHC

Tony is 59, receiving a 20% Disability Compensation Payment (DCP) payment in respect of his VEA service-related conditions. Tony is lodging a claim to access treatment for his cancer condition.

Under the current legislation:

• Tony continues to receive his 20% DCP of $126.22 per fortnight).
• Tony’s claim for Non-Liability Health Care (NLHC) for the treatment of his cancer condition is accepted under the VEA.
• Tony can use his white card to access treatment for his cancer condition.
• Tony can lodge a claim for the cancer condition to determine whether the Commonwealth has liability for his condition.

Under the proposed new legislation:

• Tony continues to receive his 20% DCP ($126.22 per fortnight) payment – this payment is grand parented.
• Tony's claim for NLHC for the treatment of his cancer condition is accepted under the MRCA.
• Tony can use his white card to access treatment for his cancer condition.
• Tony can lodge a claim for the cancer condition to determine whether the Commonwealth has liability for his condition.

Key Points:

• Currently all Non-Liability Health Care (NLHC) is legislated in the VEA.  From 1 July 2026 this will be shifted to the MRCA. While NLHC claims will be made under the MRCA under the single ongoing Act, in practice veterans will not see any change to their entitlements.

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Toby – VEA/DRCA never previously claimed

Toby is 50 and has service covered by both the VEA and DRCA. Toby has not claimed anything previously from DVA and wants to lodge a claim for conditions of hearing loss, tinnitus, and solar keratosis he contends to be related to his service in the ADF.

Under the current legislation:

• Liability for hearing loss, tinnitus and solar keratosis is considered under the VEA and the DRCA.
• Toby is issued a white card for the treatment of any accepted service-related condition/s.
• VEA – the level of impairment for the VEA condition/s is calculated and a rate of Disability Compensation Payment (DCP) is paid to Toby.
• DRCA – when Toby requests an assessment for Permanent Impairment (PI) compensation his level of DRCA impairment is assessed. Based on the level of impairment a lump sum is calculated and the effects on his DCP is established. If Toby accepts the PI offer then the offset amount on his DCP is enacted.

Under the proposed new legislation:

• Liability for hearing loss, tinnitus and solar keratosis is considered under the MRCA.
• Toby is issued a white card for the treatment of any accepted service-related condition/s.
• Following the acceptance of Toby’s condition/s as service-related, a ‘needs assessment’ is undertaken to establish what other benefits he could access to further assist him, such as Rehabilitation or Permanent Impairment payments.
• Following a request from Toby for PI compensation his impairment level is calculated and a compensation offer is made.

Key Points:

• Veterans lodging compensation claims under the single ongoing Act will have their claims assessed and paid under the MRCA, regardless of what service the condition relates to.

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Xavier – Service Pension

Xavier has service covered by all three Acts, with Qualifying Service (QS) from his Afghanistan service. Xavier is currently receiving 100% Disability Compensation Payment (DCP) for his VEA service-related conditions and has just turned 60 and lodges a claim for service pension.

Under the current legislation:

• Xavier continues receiving his 100% DCP of $600.30 per fortnight.
• Xavier meets the eligibility criteria for service pension under the VEA.
• Xavier has his rate of service pension calculated and commences receiving service pension of $1,096.70 (maximum single rate).

Under the proposed new legislation:

• Xavier continues receiving 100% DCP payment ($600.30 per fortnight) – this payment is grand parented.
• Xavier meets the eligibility criteria for service pension under the VEA.
• Xavier has his rate of service pension calculated and commences receiving service pension of $1,096.70 (maximum single rate).

Key Points:

• The single ongoing Act will only impact future compensation and rehabilitation claims.  Income Support claims, including Service Pension, will continue to be determined under the VEA.

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Paul – Reservist 1971 Act

Paul is 74 with reserve service covered by the 1971 Act (preceding the current DRCA). Paul was not payable any Permanent Impairment (PI) compensation for previous claims relating to his knee and back conditions. He has lodged a liability claim for PTSD which he has been suffering with since the early 1980s.

Under the current legislation:

• Paul’s mental health condition is assessed as service-related under the 1971 Act.
• This is no PI for these conditions under the 1971 Act.

Under the proposed new legislation:

• Paul’s mental health condition is assessed as service-related under the MRCA.
• Paul requests a PI assessment.
• Paul’s impairment from previously compensated conditions is 0 points (as Paul has not received any compensation payments).
• Paul’s new assessment is 72 points and a Lifestyle rating of 6.
• Paul will be paid Permanent Impairment compensation of $663.58 per fortnight or he can elect to receive an age based lump sum of $174,422.
• Paul is eligible for the Additional Disablement Amount (ADA) of $269.62 per fortnight (takes into account payments under previous Acts). 
• Paul is issued with a gold card.
• Paul’s new payments are:
  • $933.20 per fortnight ($663.58 PI and $269.62 ADA); or
  • $269.62 per fortnight (ADA) and a PI lump sum of $174,422.00.

Key Points:

• Veterans covered under the 1971 Act are not able to be paid compensation for a range of conditions.
• Under the single ongoing Act, veterans with coverage under the older 1971 Act will be able to claim under the MRCA and potentially receive compensation that they previously weren’t able to receive.
• A new benefit, the ADA, will be introduced under the MRCA to ensure continued support for severely disabled, ageing veterans.

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Aaron – VEA TPI new condition

Aaron is a 75 year old TPI veteran who has early-stage Alzheimer’s disease. He lodges a claim for the condition to see whether there is anything additional he can access.

Under the current legislation:

• Aaron’s Alzheimer’s condition is accepted under the VEA as service-related due to his history of smoking.
• Aaron’s Disability Compensation Payment (DCP) TPI ($1,729.20 per fortnight) payment continues.
• Aaron holds a gold card.
• Aaron is not eligible for any further payments.
• Aaron currently accesses a number of services under Veterans Home Care (VHC).

Under the proposed new legislation:

• Aaron’s Alzheimer’s condition is accepted under the MRCA as service-related due to his history of smoking.
• Aaron’s Disability Compensation Payment (DCP) TPI ($1,729.20 per fortnight) payment continues – this payment is grand parented.
• Aaron holds a gold card.
• Taking into account payments under previous Acts, Aaron is not payable any further Permanent Impairment (PI) compensation under the MRCA.
• Aaron will be able access Household Services (HHS) under the MRCA which provides services up to a maximum value of $573.61 per week.

Key Points:

• To ensure veterans with VEA or DRCA service are not disadvantaged under the single ongoing Act, the MRCA will be amended so that service-related smoking up to 31 December 1997 can be considered for the acceptance of a condition.
• In some cases, DCP recipients won’t be eligible for additional compensation under the MRCA as they have already reached the maximum amount of compensation payable.
• The rate of the VEA TPI payment is above the MRCA maximum weekly rate, therefore TPI veterans will not be able to access further compensation payments under the single ongoing Act.
• VEA veterans with service-related conditions can access the MRCA Household Services program which provides a more extensive list of services than that currently available under the Veterans Home Care (VHC).

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Margaret – DRCA/VEA TPI death due to service related condition

Margaret is a 46 year old TPI veteran with coverage under both VEA and DRCA, who passes away due to a service-related condition. What is available to Margaret’s partner and dependent son aged 18?

Under the current legislation:

• Margaret’s dependants would be eligible for a combination of benefits under both the VEA and the DRCA.
  • VEA Benefits
    • Automatic war widower pension (WWP) of $1,116.30 per fortnight.
    • Automatic funeral benefit of $2,000.
    • Gold card for her partner and son while still studying.
    • VEA Education Scheme (VCES) payment of $459.80.
  • DRCA Benefits
    • DRCA death benefit split between partner and son of $617,130.59.
    • Defence Act payment of $168,275.34.
    • Child payments of $339.44 per fortnight while studying.
    • Funeral Benefit of up to $14,062.53.
    • No treatment card or education benefits.
• Final Amounts
  • DRCA death benefit split between partner and son of $617,130.59.
  • Defence Act payment of $168,275.34.
  • DRCA Child payments of $339.44 per fortnight while studying.
  • Funeral Benefit of up to $14,062.53.
  • VEA WWP $234.83 per fortnight offset due to DRCA lump sum.
  • VEA gold card for widow and son while still studying.
  • VEA education scheme (VCES) payment of $459.80.

Under the proposed new legislation:

• As Margaret is a TPI veteran her dependants are automatically granted death benefits under the VEA.
• Her dependants can lodge a claim under the MRCA for death benefits.
• Margaret’s death is determined as service-related, and her dependants will receive:
  • Wholly Dependent Partner (WDP) payment of $1,116.30 per fortnight or her partner can elect to receive an age based lump sum of $696,211.11 (or a combination)
  • Additional Death Benefit under the MRCA of $171,942.09
  • Eligible Young Person (EYP) lump sum payment of $104,291.61
  • Eligible Young Person (EYP) payment of $346.92 per fortnight while still studying
  • Funeral benefits of up to $14,062.53
  • Gold card for her partner and son while still studying.
  • Access to the MRCA Education and Training scheme (MRCAETS) payment of $459.80

Key Points:

• Automatic provision of war widow/ers pension to the partners of deceased veterans in receipt of DCP Above General Rate will continue to be granted and paid under the VEA. 
• Where the death of a veteran is service related, dependants can claim death benefits under the MRCA. MRCA death benefits include the option to convert periodic payments into an age-based lump sum, and an additional lump sum for service-related deaths.

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Kevin – Death benefits Deseal Reseal and VEA smoking

Kevin was 80 when he passed away due to bladder cancer. Kevin was receiving 100% Disability Compensation Payment (DCP) with coverage under the VEA and the F-111 Deseal / Reseal provisions of DRCA.  His wife lodges a compensation claim for death.

Under the current legislation:

• Kevin’s death is determined to be related to service via smoking (VEA) and the F-111 Deseal / Reseal provisions within the DRCA.
• Kevin’s partner would be eligible for a combination of death benefits (with offsetting applied) under both the VEA and the DRCA. 
• Benefits available by Act
  • VEA Benefits
    • War Widower Pension (WWP) of $1,116.30 per fortnight.
    • Funeral benefit of $2,000
    • Gold card
  • DRCA Benefits
    • DRCA death benefit of $617,130.59
    • Defence Act payment of $68,132.07
    • Funeral Benefit of up to $14,062.53
    • No treatment card
• Final Amounts
  • Total lump sum compensation of $685,262.66
    • DRCA death benefit of $617,130.59
    • Defence Act payment of $68,132.07
  • Funeral Benefit of up to $14,062.53
  • VEA WWP $0 – fully offset due to the DRCA death benefit
  • VEA gold card

Under the proposed new legislation:

• Kevin’s death is determined to be related to service via the F-111 Deseal / Reseal provisions which have been included in the MRCA (claim would also be successful as a result of smoking).
• Kevin’s dependant would be offered:
  • Total lump sum compensation of $267,680.90 (if the lump sum is taken)
    • Wholly Dependent Partner (WDP) $1,116.30 per fortnight or his partner can elect to receive an age based lump sum of $214,300.98 (or a combination)
    • Additional death benefit of $53,379.92.
  • Funeral benefit of up to $14,062.53
  • Gold card

Key Points:

• A new presumptive liability mechanism will be included in the MRCA.  This will allow for acceptance of certain conditions outside of the SoP system, including conditions associated with F-111 Deseal / Reseal under the DRCA, to ensure ongoing entitlement for these veterans.
• All future claims from dependants following the death of a veteran will be assessed and paid compensation under the MRCA. Benefits may also include access to the Gold Card for treatment, and access to education and training for eligible dependants.
• The MRCA WDP compensation is offered as weekly payments which can be converted to an age-based lump sum.

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Joe – Death benefits DRCA only

Joe is 47 when he passes away with coverage under the DRCA. Joe has a partner and three children under the age of ten. His partner lodges a claim for his death.

Under the current legislation:

• Joe’s death is determined as service-related under the DRCA.
• Joe’s dependants receive:
  • Total lump sum compensation of $985,692.47
    • Maximum payment under the DRCA of $617,130.59
      • $524,561.00 to the partner
      • $30,856.53 for each child held in trust
    • Defence Act payment
      • $68,132.07 to partner
      • $100,143.27 for each child
  • Fortnightly child payment, $339.44 fortnightly for each dependent child while studying.
  • Funeral benefit up to $14,062.35

Under the proposed new legislation:

• Joe’s death is determined as service-related under the MRCA.
• Joe’s dependants would be offered:
  • Total lump sum compensation of $1,149,097.96 (if the lump sum is taken)
• Wholly Dependent Partner (WDP) payment of $1,116.30 per fortnight, or his partner can elect to receive an age based lump sum of $697,609.15 (or combination).
• Additional Death Benefit (ADB) payment of $161,242.43
• Joe’s children will receive Eligible Young Person (EYP) lump sum of $96,745.46 (for each child).
• Funeral Benefit of up to $14,062.35
• Joe’s children will receive Eligible Young Person (EYP) payment of $346.92 per fortnight (for each child)
• Gold cards for Joe’s partner and children while studying
• Access to the MRCA Education and Training scheme, $326.40 per year for each primary school aged child

Key Points:

• All future claims from dependants following the death of a veteran will be assessed and paid compensation under the MRCA. 
• DRCA lump sum compensation to dependants is a fixed amount which is split between all eligible dependants. There is no treatment or education assistance provided to the DRCA dependants.
• Under the single ongoing Act, dependants will be eligible to claim under the MRCA and may receive:
  • an age-adjusted lump sum payment
  • a Gold Card for DVA-funded treatment, and 
  • their child/ren can access the MRCA education scheme and will receive a Gold Card while they are studying.

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Karen – DCP and SP no change in circumstances

Karen is 72, receiving 80% Disability Compensation Payment (DCP) and a service pension. As a veteran with qualifying service over 70 she holds a gold card. Karen’s circumstances are stable and she has no changes in her circumstances and is wondering how this affects her.

Under the current legislation:

• Karen’s 80% DCP ($481.78 per fortnight) and Service Pension remains unchanged unless there is a change in her circumstances.

Under the proposed new legislation:

• Karen continues on her 80% DCP ($481.78 per fortnight) – this payment is grand parented.
• No impacts to service pension.
• No impact on her gold card.
• Karen may access the MRCA Household services for rehabilitation assistance related to her accepted service-related conditions.
• Any future claim Karen lodges in relation to compensation will be determined and paid under the MRCA.

Key Points:

• The single ongoing Act will only impact future compensation and rehabilitation claims. Income Support claims, including Service Pension, will continue to be determined under the VEA.
• The single ongoing Act will only impact clients if they make a claim after the commencement date, as any new claim will be assessed and paid under the MRCA.

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William – Death benefits existing VEA WW

William was 84 when he passed away in 2005, his partner has been receiving the war widow’s pension under the VEA since that time, including a gold card for any health treatment she may require. How do these changes affect William’s widow?  
Under the current legislation:

• No changes

Under the proposed new legislation:

• No changes

Key Points:

• The single ongoing Act will only impact clients if they make a claim after the commencement date.
• Dependants who have received benefits prior to the commencement date of the Single Ongoing Act will not have access to any additional benefits under the Single Ongoing Act.

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Darren – Previous DRCA PI, no new claims

Darren is 49 and has received a number of Permanent Impairment (PI) payments under the DRCA for his service-related conditions. Darren doesn’t have any new claims how does this affect him?

Under the current legislation:

• No changes

Under the proposed new legislation:

• No changes

Key Points:

• The single ongoing Act will only impact future compensation and rehabilitation claims. Income Support claims, including Service Pension, will continue to be determined under the VEA.
• Veterans who have received PI payments under the DRCA will see a difference in how PI is calculated under the MRCA, due to the whole-of-person impairment assessment and the age-adjusted permanent impairment payment. However, they may have access to a gold card for the treatment of all conditions.

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Jasper – AFP / British Nuclear Testing

Jasper is 82 and worked for the Australian Federal Police in Maralinga during the British Nuclear Tests. Jasper lodges a claim for a gold card.

Under the current legislation:

• Jasper’s claim is lodged and determined under the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006. 
• Jasper is issued a gold card.

Under the proposed new legislation:

• No changes.
• Jasper’s claim is lodged and determined under the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006. 
• Jasper is issued a gold card.

Key Points:

• The single ongoing Act will only impact future compensation and rehabilitation claims determined under the VEA, the DRCA or the MRCA. 

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Julie – MRCA no change in circumstances

Julie is 39 and has been serving with in the RAAF since 2006, with only MRCA coverage. Julie has previously received Permanent Impairment (PI) compensation payments under the MRCA for a service-related condition. How does the Single Ongoing Act affect Julie?

Under the current legislation:

• Currently covered by the MRCA.

Under the proposed new legislation:

• No changes.

Key Points:

• Commencement of the single ongoing Act will have very little impact on veterans who are currently only eligible under the MRCA. Current MRCA veterans will continue to be compensable under the MRCA, with some improvements to benefits like transport reimbursement, and the addition of the ADA benefit.

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Marie – 3 Act coverage new VEA condition

Marie is 48 with coverage across all three Acts and is currently on 10% Disability Compensation Payment (DCP) and has received a Permanent Impairment (PI) payment of $15k under the DRCA. Marie lodges a new claim for hearing loss and tinnitus related to her VEA service in East Timor.

Under the current legislation:

• Marie’s current rate of DCP 10% is $66.96 per fortnight.
• Marie’s hearing loss and tinnitus are assessed as service-related under the VEA.
• Following an assessment, Marie’s DCP rate is increased to 40% DCP ($244.74 per fortnight).
• Marie’s compensation increased by $177.78 per fortnight.

Under the proposed new legislation:

• Marie’s current DCP rate of 10% DCP ($66.96 per fortnight) is grand parented.
• Marie’s hearing loss and tinnitus are assessed as service-related under the MRCA.
• Marie’s impairment from previously compensated conditions is 15 points.
• Marie’s new assessment is 28 points.
• Marie will be paid Permanent Impairment compensation of $115.32 per fortnight or she can elect to receive an age based lump sum of $66,482.74 (takes into account payments under previous Acts).
• Marie’s new payments are:
  • $182.28 per fortnight ($66.96 DCP and $115.32 PI); or
  • $66.96 per fortnight (DCP) and a PI lump sum of $66,482.74.

Key Points:

• Veterans lodging compensation claims under the single ongoing Act will have their claims assessed and paid under the MRCA, regardless of what service the condition relates to.
• In contrast to VEA DCP payments, veterans can choose to receive their MRCA PI payments as weekly amounts (paid fortnightly) or convert the payment to an age-adjusted lump sum (or a combination of both).

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Adam - VEA DCP new condition with ADA

Adam is 77 and receiving 100% Disability Compensation Payment (DCP) under the VEA. Adam has been diagnosed with lung cancer likely to be related to smoking he took up during his Vietnam service. Adam lodges a claim for his cancer.

Under the current legislation:

• Adam’s current rate of DCP 100% is $600.30 per fortnight.
• Adam’s cancer condition is assessed as service-related under the VEA.
• Adam’s impairment has increased from 60 points to 82 points with a lifestyle rating of 6.
• Adam’s DCP is increased to Extreme Disablement Adjustment (EDA) ($933.20 per fortnight).
• Adam is issued a gold card.
• Adam’s compensation increased by $332.90 per fortnight.

Under the proposed new legislation:

• Adam’s current DCP rate of 100% DCP ($600.30 per fortnight) is grand parented.
• Adam’s cancer condition is assessed as service-related under the MRCA.
• Adam’s impairment from previously compensated conditions is 60 points.
• Adam’s new assessment is 82 points with a lifestyle rating of 6.
• Adam will be paid Permanent Impairment compensation of $209.92 per fortnight or he can elect to receive an age based lump sum of $47,651.84 (takes into account payments under previous Acts).
• Adam is eligible for the MRCA Additional Disablement Amount (ADA) and receives a payment of $122.98 per fortnight (takes into account payments under previous Acts and any Commonwealth funded superannuation).
• Adam is issued a gold card.
• Adam’s new payments are:
  • $933.20 per fortnight ($600.30 DCP, $209.92 PI, and $122.98 ADA); or
  • $723.28 per fortnight ($600.30 DCP and $122.98 ADA) and a PI lump sum of $47,651.84.

Key Points:

• To ensure veterans with VEA or DRCA service are not disadvantaged under the single ongoing Act, the MRCA will be amended so that service-related smoking up to 31 December 1997 can be considered for the acceptance of a condition.
• VEA benefits like EDA will no longer be available under the single ongoing Act.
• A new benefit, the ADA, will be introduced under the MRCA to ensure continued support for severely disabled, ageing veterans.
• The maximum ADA amount will be offset by other compensation payments received across the three Acts and any Commonwealth funded superannuation being received.
• The dependants of deceased ADA veterans will be eligible for death benefits under the MRCA.

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Anthony – VEA EDA and HHS

Anthony is 85 and receiving an EDA Disability Compensation Pension (DCP). Anthony’s conditions are stable, and has no changes in his circumstances. However, Anthony is seeking an increase in his household support.

Under the current legislation:

• Anthony’s Extreme Disablement Adjustment (EDA) DCP ($933.20 per fortnight) remains unchanged unless there is a change in his circumstances.
• Anthony accesses household and gardening support via the Veterans Home Care.

Under the proposed new legislation:

• Anthony EDA DCP ($933.20 per fortnight) is grand parented.
• Following an Occupational Therapist (OT) assessment Anthony can access up to $573.61 a week of OT recommended services under the Household services program.

Key Points:

• The single ongoing Act will only impact future compensation and rehabilitation claims. Income Support claims, including Service Pension, will continue to be determined under the VEA.
• Automatic provision of war widow/ers pension to the partners of deceased veterans in receipt of DCP Above General Rate will continue to be granted and paid under the VEA. 
• Additionally, where the death of a veteran is service related, dependants can claim death benefits under the MRCA. The MRCA death benefits include the option to convert periodic payments into an age-based lump sum, and an additional lump sum for service-related deaths.
• VEA veterans with service-related conditions can access the MRCA Household Services program which provides a more extensive list of services than that currently available under the Veterans Home Care (VHC).

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Gabby – DRCA new claim for incapacity

Gabby is 47 and is unable to continue civilian work due to her accepted DRCA service-related conditions. Gabby lodges a claim for incapacity payment (noting that Gabby is receiving a Commonwealth funded superannuation pension) to provide ongoing compensation for lost wages.

Under the current legislation:

• Gabby is eligible for DRCA incapacity payments and based on her equivalent salary, her payments are:
  • Based on rank and pay (AB 4-0) of $2,849.72 gross per fortnight (amount at discharge + WPI indexation)
  • Less Commonwealth funded superannuation, and
  • less 5% notional superannuation deduction
• Gabby would receive DRCA incapacity payment of $2,008.78 gross per fortnight for the first 45 weeks then the rate drops to 75%.

Under the proposed new legislation:

• Gabby is eligible for MRCA incapacity payments and based on her equivalent salary, her payments are:
  • Based on rank and pay (AB 4-0) of $3,293.64 gross per fortnight (equivalent to current military salary)
  • Plus remuneration loading of $366.90 per fortnight
  • Less Commonwealth funded superannuation deduction
• Gabby would receive MRCA incapacity payments of $2,962.02 gross per fortnight for the first 45 weeks then drops to 75%.

Key Points:

• From the commencement of the single ongoing Act, new claims for incapacity payments will be granted under the MRCA.
• There are three primary differences between the DRCA and the MRCA incapacity payments:
  • The MRCA bases the starting salary on the current pay rate for the eligible rank and pay level,
  • The MRCA does not reduce your incapacity payments by a further 5% for a notional contribution to superannuation, and
  • The MRCA includes a remuneration loading allowance (currently $183.45 per week) to compensate for the loss of non-salary benefits a person receives while serving in the ADF.    

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Matthew – VEA worsening with ADA

Matthew is 68 and receiving 50% Disability Compensation Payments (DCP) for his VEA service-related conditions. Matthew’s conditions have worsened as he has aged, and lodges a claim for the worsening of all conditions.

Under the current legislation:

• Matthew’s current rate of DCP 50% is $304.00 per fortnight.
• Mathew’s impairment points have increased to 70 points with a lifestyle rating of 6.
• Matthew is eligible for Extreme Disablement Adjustment (EDA) rate ($933.20 per fortnight) of DCP.
• Matthew is issued a gold card.
• Matthew’s compensation has increased by $629.20 per fortnight.

Under the proposed new legislation:

• Matthew 50% DCP payment ($304.00 per fortnight) is grand parented.
• Matthew’s impairment from previously compensated conditions is 30 points.
• Matthew’s new assessment is 70 points with a lifestyle rating of 6.
• Matthew receives Permanent Impairment compensation of $444.82 per fortnight or he can elect to receive an age based lump sum of $149,056.09 (takes into account payments under previous Acts).
• Matthew is eligible for Additional Disablement Amount (ADA) and is payable at $184.38 per fortnight (takes into account payments under previous Acts and any Commonwealth funded superannuation).
• Matthew is issued a gold card.
• Matthew's new payments are:
  • $933.20 per fortnight ($304.00 DCP, $444.82 PI, and $184.38 ADA) ; or
  • $488.38 per fortnight ($304.00 DCP and $184.38 ADA) and a lump sum of $149,056.09.

Key Points:

• Veterans receiving DCP under the VEA will continue to receive their payments under ‘grand parenting’ arrangements.  Their payments will continue to be indexed. 
• There will be no more ‘Applications for Increase’ in DCP under the single ongoing Act.  Instead, veterans can be assessed for permanent impairment and compensated for any worsening of their conditions under the MRCA.

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Robert – 3 Act MRCA PI reassessment with ADA

Robert is 67 on Commonwealth funded superannuation retirement benefits with accepted service-related conditions across all three Acts. Robert is currently on 20% DCP and has received $155k in MRCA Permanent Impairment (PI) payments. Robert is seeking a reassessment of his MRCA conditions.

Under the current legislation:

• Robert’s current rate of DCP 20% is $126.22 per fortnight.
• Robert’s new MRCA PI assessment is 73 impairment points with a Lifestyle rating of 6.
• Robert receives a MRCA PI payment of $146.64 per fortnight or he can elect to receive an age based lump sum of $50,876.75 for his MRCA worsening. (takes into account previous payments).
• Robert is issued a gold card.
• Robert’s current payments are:
  • $272.86 per fortnight ($126.22 DCP and $146.64PI); or
  • $126.22 per fortnight (DCP) and a lump sum of $50,876.75

Under the proposed new legislation:

• Robert’s 20% DCP ($126.22 per fortnight) is grand parented.
• Robert’s impairment from previously compensated conditions under the VEA is 10 points.
• Robert’s new assessment is 73 points.
• Robert will be paid Permanent Impairment compensation of $264.14 per fortnight or he can elect to receive an age based lump sum of $91,643.02 (takes into account payments under previous Acts).
• Robert is eligible for the Additional Disablement Amount (ADA) but payment is reduced to zero (takes into account payments under previous Acts and any Commonwealth funded superannuation).
• Robert is issued a gold card.
• Robert’s new payments are:
  • $390.36 per fortnight ($126.22 DCP and $264.14 PI); or
  • $126.22 per fortnight (DCP) and a lump sum of $91,643.02.

Key Points:

• Under the single ongoing Act, a MRCA PI assessment will incorporate all service-related conditions and will compensate for any worsening of previously compensated conditions.
• A new benefit, the ADA, will be introduced under the MRCA to ensure continued support for severely disabled, ageing veterans.

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Edward – Death benefits DRCA occupational diseases

Following Edward’s death (due to malignancy) at the age of 53, his spouse lodges a claim related to his death which she contends is related to his service in the ADF.

Under the current legislation:

• Liability for Edward’s death is accepted under the DRCA Specified Diseases provisions. 
• Edward’s spouse is granted death benefits under the DRCA:
  • $617,130.59 (lump sum)
  • Defence Act $68,012.07 (lump sum)
  • Funeral benefit of up to $14,062.53

Under the proposed new legislation:

• Liability for Edward’s death is accepted under a new provision in the MRCA. 
• Edward’s spouse would be granted benefits under the MRCA.
  • Wholly Dependent Partner (WDP) payment of $1,116.30 per fortnight or his partner can elect to receive an age based lump sum of $676,554.39 (or combination)
  • Additional Death Benefit (ADB) payment of $159,705.21 (lump sum)
  • Funeral benefit of up to $14,062.53
  • Edward’s spouse is issued a gold card

Key Points:

• A new presumptive liability mechanism will be included in the MRCA. This will allow for acceptance of certain conditions outside of the SoP system, including the occupational diseases list from the DRCA, to ensure ongoing entitlement for these veterans.
• All future claims from dependants following the death of a veteran will be assessed and paid compensation under the MRCA. Benefits may also include access to the Gold Card for treatment, and access to education and training for eligible dependants.

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Jessica – MRCA PI in progress at date of her death

Jessica is 50 and had lodged a MRCA Permanent Impairment (PI) claim for her accepted service-related malignant condition. Unfortunately, while the claim is being processed, Jessica passes away. What happens to her claim?

Under the current legislation:

• Jessica’s MRCA PI assessment is 50 points with a lifestyle rating of 4.
• Jessica’s PI payment calculation is calculated only up to Jessica’s date of death.
• A fortnightly entitlement of $240.64 (unable to convert to a lump sum) is paid up until Jessica’s date of death.

Under the proposed new legislation:

• Jessica’s MRCA PI assessment is 50 points with a lifestyle rating of 0.
• Jessica’s PI payment is calculated as a fortnightly entitlement $200.94 and will be converted to lump sum of $114,174.11 payable to her estate.

Key Points:

• Currently where a veteran passes away during consideration of a MRCA permanent impairment claim, any payment is calculated at the weekly rate up to the date of death.
• Under the Single Ongoing Act, the MRCA is being amended to allow the estate to convert the payment to a lump sum based on the life tables, noting that lifestyle ratings are not included in the calculation.

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George - DRCA new condition with PI

George is 51 with DRCA service. George has previously received Permanent Impairment (PI) payments under the DRCA totalling $56k and lodges a claim for a knee condition and later for permanent impairment. 

Under the current legislation:

• George’s knee condition is accepted as service-related under the DRCA.
• George’s DRCA PI assessment for his knee condition is 20% impairment.
• George receives a PI payment of $64,878.04.

Under the proposed new legislation:

• George’s knee condition is accepted under the MRCA.
• George’s impairment from previously compensated conditions is 20 points.
• George’s new assessment is 40 points.
• George receives a MRCA PI of $89.94 per fortnight or he can elect to receive an age based lump sum of $46,401.66 (takes into account payments under previous Acts).

Key Points:

• Veterans lodging compensation claims under the single ongoing Act will have their claims assessed and paid under the MRCA, regardless of what service the condition relates to.
• Under the MRCA, permanent impairment assessments take into account a veteran’s whole-of-person impairment and combines impairments arising from individual service-related conditions. 

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Fred – VEA EDA no changes with transport

Fred is 77 and receiving Extreme Disablement Adjustment (EDA) Disability Compensation Payment (DCP) and service pension. Currently Fred’s situation is stable and has no further claims other than some travel claims when travelling to his medical provider.

Under the current legislation:

• Fred’s EDA DCP ($933.20 per fortnight), and service pension remains unchanged unless there is a change in his circumstances.
• VEA transport – Fred’s normal trip is a 25km round trip to his doctor:
  • 25kms private vehicle at 0.418c per km = $10.45
  • $5.00 parking
  • Fred is paid a total $15.45

Under the proposed new legislation:

• Fred’s EDA rate of DCP continues ($933.20 per fortnight) – this payment is grand parented.
• Fred’s service pension is not impacted.
• MRCA transport– Fred’s normal trip is a 25km round trip to his doctor:
  • 25km private vehicle at 0.68c per km = $17.00
  • $5.00 parking 
  • Fred is paid a total $22.00

Key Points:

• The single ongoing Act will only impact future compensation and rehabilitation claims. Income Support claims, including Service Pension, will continue to be determined under the VEA.

• The single ongoing Act aligns transport benefits under the MRCA system. 

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  Roger – DRCA PI new assessment

  Roger is 44 and has received multiple DRCA Permanent Impairment (PI) payments to the value of $377k. Roger lodges a new PI claim for an ankle injury that was previously accepted as service-related under the DRCA. 

  Under the current legislation:

  • Roger’s ankle is assessed under the DRCA with a 10% impairment.
  • Roger is provided with a DRCA PI lump sum of $34,317.52.

  Under the proposed new legislation:

  • Roger’s impairment from previously compensated conditions is 66 points.
  • Roger’s new assessment is 70 points.
  • No additional PI is payable to Roger as there is not a 5-point increase of impairment.
  • Roger is not eligible for a gold card has he does not meet the MRCA Threshold test.

  Key Points:

  • Veterans who have received multiple larger PI payments under the DRCA will be impacted. They are unlikely to receive a large payment under the MRCA due to the whole-of-person impairment assessment and the age-adjusted permanent impairment payment calculations under the MRCA. However, they may have access to other benefits such as increased incapacity payments and the Veteran Gold Card for the treatment of all conditions.
  • DRCA veterans with 60 or more impairment points will be entitled to receive a Gold Card if they meet the MRCA threshold test. The threshold test requires that they have a MRCA accepted condition, or have been assessed with a 5-point worsening under the MRCA.

  VEA clients who access the travel for transport scheme will see changes to what they get paid, and in most cases, will see an increase.

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Barry – DRCA PI multiple lower limb conditions

Barry is 66 and has received separate 10% DRCA Permanent Impairment (PI) payments totalling $62k for both knees. His knees have worsened, and he is lodging a new PI claim for the worsening.

Under the current legislation:

• Barry’s previous DRCA assessment - 10% impairment of each knee.
• Barry’s new DRCA assessments - 20% impairment of each knee (10% worsening of each knee).
• Barry receives separate lump sum payments for each knee, totalling $55,317.79.

Under the proposed new legislation:

• Barry’s impairment from previously compensated conditions is 20 points.
• Barry’s new assessment is 26 points.
• Barry will be paid Permanent Impairment compensation of $24.30 per fortnight or he can elect to receive an age based lump sum of $8,718.78 (takes into account payments under previous Acts).

Key Points:

• Under the current DRCA PI arrangements, each condition is assessed separately and impairment ratings from individual conditions are not combined.
• Under the MRCA, permanent impairment assessments take into account a veteran’s whole-of-person impairment.

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Greg – VEA death benefits arising from new condition

Greg is a 60% Disability Compensation Payment (DCP) VEA veteran who passed away aged 60, due to melanoma of the skin. Greg’s partner lodges a claim for compensation as she believes his death is related to his service. Greg is survived by his partner and his 16 year old child.

Under the current legislation:

• Greg’s death due to melanoma of the skin is determined to be service-related under the VEA.
• Greg’s dependents are granted:
  • War Widow’s Pension of $1,116.30 per fortnight
  • Funeral benefit of $2,000
  • Veterans Children Education Scheme (VCES) of $399.20 per fortnight
  • Gold cards for Greg’s partner and child while studying

Under the proposed new legislation:

• Greg’s death due to melanoma of the skin is determined to be service-related under the MRCA.
• Greg’s dependents are granted:
  • Wholly Dependent Partner (WDP) payment of $1,116.30 per fortnight or an age-based lump sum of $664,986.13 (or combination)
  • Additional Death Benefit of $152,908.87 (service-related death)
  • Funeral benefit of up to $14,062.53
  • Eligible Young Person (EYP) lump sum payment of $104,291.61
  • Eligible Young Person (EYP) payment of $346.92 per fortnight
  • MRCA Education and Training Scheme (MRCAETS) of $399.20 per fortnight
  • Gold cards for Greg’s partner and child while studying

Key Points:

• All future claims from dependants following the death of a veteran will be assessed and paid compensation under the MRCA. Benefits may also include access to the Gold Card for treatment, and access to education and training for eligible dependants.
• Major changes for families of deceased veterans will be the ability to access an age-based lump sum, an additional death benefit (for service-related deaths), lump sum payments for eligible children, and an increased funeral benefit under the MRCA.   

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Erin – DRCA PI with new condition and PI claim

Erin is 62 with only DRCA service and has received multiple DRCA Permanent Impairment (PI) payments totalling $321k. Erin lodges a new claim for a shoulder condition followed by a PI claim.

Under the current legislation:

• Erin’s shoulder condition is accepted as service-related under the DRCA.
• Erin receives a DRCA PI payment of $43,067.98.

 Under the proposed new legislation:

• Erin’s shoulder condition is accepted as service-related under the MRCA.
• Erin’s impairment from previously compensated conditions is 70 points.
• Erin’s new assessment is 79 points.
• Erin will be paid PI compensation of $48.08 per fortnight, or she can elect to receive an age based lump sum of $21,270.59 (takes into account payments under previous Acts).
• Erin is issued a gold card.

Key Points

• Under the current DRCA PI arrangements, each condition is assessed separately and impairment ratings from individual conditions are not combined.
• Under the MRCA, permanent impairment assessments take into account a veteran’s whole-of-person impairment.
• DRCA veterans with 60 or more impairment points will be entitled to receive a Gold Card if they meet the MRCA threshold test. The threshold test requires that they have a MRCA accepted condition, or have been assessed with a 5-point worsening under the MRCA.

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Barney – 3 Act, payments VEA/MRCA, new VEA service condition

Barney is 44 with service spanning all three Acts and accepted service-related conditions under all three. Barney is currently receiving 20% Disability Compensation Payment (DCP), and has received MRCA Permanent Impairment (PI) totalling $26k, he has not received any DRCA payments as his DRCA condition is under the payable threshold. Barney is still working and has a mental health condition he wants to claim from his VEA earlier service.

Under the current legislation:

• Barney’s current rate of DCP 20% is $126.22 per fortnight.
• Barney’s mental health condition is accepted as service-related under the VEA.
• Barney’s DCP is increased to 90% ($541.04 per fortnight).
• Barney’s compensation increased by $414.82 per fortnight.

Under the proposed new legislation:

• Barney’s 20% DCP ($126.22 per fortnight) is grand parented.
• Barney’s mental health condition is accepted as service-related under the MRCA.
• Barney’s impairment from previously compensated conditions is 10 points.
• Barney’s new assessment is 61 points.
• Barney will be paid Permanent Impairment compensation of $362.90 per fortnight orhe can elect to receive an age based lump sum of $211,952.32.
• Barney is issued a gold card.
• Barney’s new payments are:
  • $489.12 per fortnight ($126.22 DCP and $362.90 PI); or
  • $126.22 per fortnight (DCP) and a lump sum of $211,952.32.

Key Points:

• Veterans receiving the VEA DCP will continue to receive their payments under ‘grandparenting’ arrangements. Their payments will continue to be indexed. 
• Veterans lodging compensation claims under the single ongoing Act will have their claims assessed and paid under the MRCA, regardless of what service the condition relates to.

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Steve – current TPI, death not claimed

Steve is a married TPI veteran who passes away at the age of 76.

Under the current legislation:

• As Steve is a TPI veteran his partner is automatically granted the following benefits:
  • War Widow’s Pension (WWP) $1,116.30 per fortnight
  • Funeral Benefit of $2,000
  • a gold card

Under the proposed new legislation:

• Steve’s partner has not lodged a MRCA claim.
• As Steve is a TPI veteran his partner is automatically granted the following benefits:
  • War Widow’s Pension (WWP) $1,116.30 per fortnight
  • Funeral Benefit of $3,000
  • a gold card

Key Points:

• Automatic provision of war widow/ers pension to the partners of deceased veterans in receipt of DCP Above General Rate will continue to be granted and paid under the VEA. 
• Where the death of a veteran is service related, dependants can claim death benefits under the MRCA. The MRCA death benefits include the option to convert periodic payments into an age-based lump sum, and an additional lump sum for service-related deaths.

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Charlie – Special Rate (TPI) DCP no change in circumstances

Charlie is 69, receiving Special Rate Disability Compensation Payment (DCP), a Service Pension, and holds a gold card. Charlie’s circumstances are stable and he is wondering how the changes may affect him.

Under the current legislation:

• Charlie’s Special Rate DCP ($1,729.20 per fortnight) and Service Pension remains unchanged unless there is a change in his circumstances.

Under the proposed new legislation:

• Charlie continues on his Special Rate DCP ($1,729.20 per fortnight) – this payment is grandparented.
• No impact to his Service Pension
• No impact on his gold card.
• Charlie may access the MRCA Household services for rehabilitation assistance related to his accepted service-related conditions.
• Upon Charlie’s passing, his partner will be granted an automatic war widow’s pension under the VEA.  If his death is related to his service, his partner will also have the ability to claim for compensation for the death under the MRCA.  

Key Points:

• The single ongoing Act will only impact future compensation and rehabilitation claims. Income Support claims, including Service Pension, will continue to be determined under the VEA.
• The single ongoing Act will only impact clients if they make a claim after the commencement date, as any new claim will be assessed and paid under the MRCA.
• Automatic death benefit eligibility under the VEA is not impacted by the single ongoing Act.  

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Leon – Special Rate (TPI) DCP no change in circumstances

Leon is 57, receiving Special Rate Disability Compensation Payment (DCP) and holds a gold card. Leon’s circumstances are stable and he has no changes in his circumstances and is wondering how the change affects him.

Under the current legislation:

• Leon’s Special Rate DCP ($1,729.20 per fortnight) remains unchanged.

Under the proposed new legislation:

• Leon continues on his Special Rate DCP ($1,729.20 per fortnight) – this payment is grand parented.
• No impact on his gold card.
• Leon may access the MRCA Household services for assistance related to his accepted service-related conditions.
• Leon may now be eligible to receive incapacity benefits under MRCA. Incapacity payments are designed to compensation a veteran for the inability, or reduced ability, to earn.
• Upon Leon’s passing, his partner will be granted a war widow’s pension under the VEA. If his death is related to his service, his partner will also have the ability to claim for compensation for the death under the MRCA.  

Key Points:

• From the commencement of the single ongoing Act, new claims for incapacity payments will be granted under the MRCA.
• There are three primary differences between the DRCA and the MRCA incapacity payments:
  • The MRCA bases the starting salary on the current pay rate for the eligible rank and pay level,
  • The MRCA does not reduce your incapacity payments by a further 5% for a notional contribution to superannuation, and
  • The MRCA includes a remuneration loading allowance (currently $183.45 per week) to compensate for the loss of non-salary benefits a person receives while serving in the ADF.
• Automatic death benefit eligibility under the VEA is not impacted by the single ongoing Act.

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Owen – National Service (no previous claims)

Owen is 74 with National Service from 1970 to 1972.  Owen has not lodged any claims with DVA previously and has lodged a claim for back and mental health conditions which he has been suffering with since the early 1980s.

Under the current legislation:

• Owen has no operational service and therefore only has DRCA coverage.
• Owen’s back and mental health conditions are assessed as service-related under the 1971 Act.
• This is no PI for these conditions under the 1971 Act. 
   

Under the proposed new legislation:

• Owen’s back and mental health conditions are assessed as service-related under the MRCA.
• Owen requests a PI assessment.
• Owen’s PI assessment is 60 points and a Lifestyle rating of 5.
• Owen will be paid Permanent Impairment compensation of $437.52 per fortnight or he can elect to receive an age based lump sum of $115,002.
• Owen is issued with a gold card.

Key Points:

• Veterans lodging compensation claims under the single ongoing Act will have their claims assessed and paid under MRCA, regardless of what service the condition relates to.
• Under the single ongoing Act, a MRCA PI assessment will incorporate all service-related conditions (regardless of Act) and will compensate for any worsening of previously compensated conditions.
• DRCA veterans who meet the impairment points and the MRCA threshold test (accepted MRCA condition or 5-point worsening) will receive a Veteran Gold Card to access treatment for all conditions.

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Nick – National Service

Nick is 76 with National service.  Nick was not payable any Permanent Impairment (PI) compensation under 1971 Act (preceding the current DRCA) for his previously accepted knee and back conditions. He has lodged a liability claim for PTSD which he has been suffering with since the early 1980s.

Under the current legislation:

• Nick has no operational service and therefore only has DRCA coverage.
• Nick’s mental health condition is assessed as service-related under the 1971 Act.
• There is no PI compensation payable for mental health conditions under the 1971 Act.

Under the proposed new legislation:

• Nick’s mental health condition is assessed as service-related under the MRCA.
• Nick requests a PI assessment.
• Nick’s impairment from previously compensated conditions is 0 points (as Nick has not received any compensation payments).
• Nick’s new assessment is 76 points and a Lifestyle rating of 6.
• Nick will be paid Permanent Impairment compensation of $737.30 per fortnight or he can elect to receive an age based lump sum of $176,104.11.
• Nick is eligible for the Additional Disablement Amount (ADA) of $195.90 per fortnight (takes into account payments under previous Acts). 
• Nick is issued with a gold card.
• Nick’s new payments are:
  • $933.20 per fortnight ($737.30 PI and $195.90 ADA); or
  • $195.90 per fortnight (ADA) and a PI lump sum of $176,104.11.

Key Points:

• Veterans covered under the 1971 Act are not able to be paid compensation for a range of conditions.
• Under the single ongoing Act, veterans with coverage under the older 1971 Act will be able to claim under the MRCA and potentially receive compensation that they previously weren’t able to receive.
• A new benefit, the ADA, will be introduced under the MRCA to ensure continued support for severely disabled, ageing veterans.

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Lyle – National Service

Lyle is 78 with National Service from 1967 to 1969.  Lyle has previously received Permanent Impairment (PI) compensation under DRCA for bilateral shoulder conditions.  He was unsuccessful in his DRCA PI claim for hearing loss. He has lodged a claim for a back condition. 

Under the current legislation:

• Lyle has no operational service and therefore only has DRCA coverage.
• Lyle’s back condition is assessed as service-related under the DRCA.
• Lyle is offered DRCA PI payment of $75,092.88.

Under the proposed new legislation:

• Lyle’s back condition is assessed as service-related under the MRCA.
• Lyle requests a PI assessment.
• Lyle’s impairment from previously compensated conditions is 10 points.
• Lyle’s new assessment is 63 points with a Lifestyle rating of 5, (this includes worsening of his previously compensated service-related shoulder conditions and compensation for his service-related hearing loss).
• Lyle will be paid Permanent Impairment compensation of $443.19 per fortnight or he can elect to receive an age based lump sum of $95,418.88.
• Lyle is issued with a gold card.

Key Points:

• Veterans lodging compensation claims under the single ongoing Act will have their claims assessed and paid under MRCA, regardless of what service the condition relates to.
• Under the single ongoing Act, a MRCA PI assessment will incorporate all service-related conditions (regardless of Act) and will compensate for any worsening of previously compensated conditions.

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David – Current DRCA incapacity payments

David is 56 and is receiving incapacity payments under the DRCA, along with a Commonwealth funded superannuation payment. While his circumstances aren’t changing what is happening to his payment?

Under the current legislation:

• David currently receives DRCA incapacity payments of $1,394.18 gross per fortnight.

Under the proposed new legislation:

• David will be transferred to MRCA incapacity payments of $2,231.08 gross per fortnight.

Key Points:

• On commencement of the single ongoing Act all DRCA incapacity payment recipients will be automatically transferred and receive incapacity payments under MRCA.
• There are three primary differences between the DRCA and the MRCA incapacity payments:
  • The MRCA bases the starting salary on the current pay rate for the eligible rank and pay level,
  • MRCA does not reduce your incapacity payments by a further 5% for a notional contribution to superannuation, and
  • The MRCA includes a remuneration loading allowance (currently $183.45 per week) to compensate for the loss of non-salary benefits a person receives while serving in the ADF.

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