Initial Liability

Liability is the first step in the compensation process. You can receive supports and services once liability is accepted. 

What is Initial Liability?

Initial Liability is the first step in the compensation process for veterans and/or their families. It establishes whether or not the Commonwealth is liable for an injury, illness or death. Establishing liability is necessary to access support services and compensation under DVA legislation. Currently, you would claim for liability under either the MRCA or the DRCA. The VEA has a slightly different model based on claims for Disability Compensation Payments and medical treatment.

What will happen from 1 July 2026?

Claims lodged from 1 July 2026 for compensation and rehabilitation will only be considered by DVA under an improved MRCA. 

Importantly, you will not need to re-establish liability/compensation entitlements for conditions which have already been accepted (under any Act).

Further information on claiming under the MRCA can be obtained via the following link - How to claim under the MRCA.

Current MRCA veterans

If you are currently receiving benefits under the MRCA, these will continue unchanged.  

If your service falls under the MRCA, claiming for benefits under MRCA will not change. 

Current DRCA veterans

Liability claims under the MRCA are generally determined with the use of Statement of Principles (SoPs), which contain causative “factors” linked to the development of specific medical conditions. 

SoPs are based on medical-scientific evidence and are determined by the RMA, an independent statutory body comprising medical practitioners. 

From 1 July 2026, all claims will be assessed using the MRCA SoP system. 

Current VEA veterans

Coverage for all types and periods of service in the VEA, including warlike, non-warlike, peacekeeping, operational, hazardous, and British nuclear test defence will be continued in the MRCA. 

Defence service as defined in Part IV of the VEA (as distinct from peacetime service under the MRCA) is being brought forward into the MRCA, together with the associated benefits. 

Compensation coverage for certain designated peacekeeping missions under the VEA will be continued under the MRCA, including for certain police members. 

Previously accepted DRCA/VEA conditions 

From 1 July 2026, the improved MRCA will recognise previously determined compensable medical conditions, so there will be no need to re-establish liability for conditions already accepted under the old Acts. 

Any additional compensation due to the person (for either a new service-related condition or for a deterioration of DRCA or VEA conditions) would be paid under the MRCA, regardless of under which Act the conditions were originally compensated.

Other changes to the MRCA

Tobacco Use 

Currently under the MRCA, liability cannot be accepted where the injury, disease or death, aggravation or material contribution is related to defence service only because of the person’s use of tobacco products.

Veterans with service prior to 1 January 1998 were the exception to this rule as a smoke-free policy wasn’t enacted across Government until the mid-1980’s. 

From 1 July 2026, claims relating to tobacco use prior to 1 January 1998 may be accepted as service related if eligible. 

This addition to the MRCA ensures veterans with VEA or DRCA service are not disadvantaged.

Medical event on duty

From 1 July 2026 the definition of service injury is being amended to allow for an injury to be accepted on the basis that it occurred while the person was ‘on duty’ as a defence member (such as heart attacks and strokes), regardless of whether or not the injury was caused by the member’s duties. 

Previously, such conditions would have required a ‘causal’ connection to a veteran’s service via the Statements of Principles.

Presumptive Liability 

The MRCA is also being amended to allow the Commission to specify a list of injuries or diseases that may be accepted on a ‘presumptive’ basis where they are known to have a common connection with military service, without needing to refer to the Statements of Principles (SoPs).

This means, in many cases, veterans will no longer need to provide as much, or any, evidence for a claim to be accepted.

‘Presumptive’ conditions/categories covered under the existing compensation framework will also be carried across to the MRCA, including:

• conditions for ADF firefighters who participated in firefighting training at Royal Australian Air Force Base Point Cook between 1 January 1957 and 31 December 1986;
• cancers prescribed for Australian Defence Force firefighters under subsection 7(8) of the DRCA; 
• specified conditions for F-111 Deseal/Reseal workers at RAAF Base Amberley between 1976 and 1994; 
• conditions covered by the Safety, Rehabilitation and Compensation (Defence-related Claims) (Specified Diseases and Employment) Instrument 2017;
• other conditions currently specified under Departmental policy.

‘Accrued rights’ at review

The Repatriation Medical Authority (RMA) updates the Statement of Principles (SoP) when new medical evidence is available. 

From 1 July 2026, if you have a claim that has been determined but is within the timeframe for review and the SoP is in the process of being updated, the most beneficial version of the SoP will be applied.

Needs Assessments

When liability is accepted under the MRCA, the veteran will undergo a needs assessment to identify the types of compensation, rehabilitation, and other assistance they may need. 

A needs assessment is a discussion between the claimant and a DVA delegate to identify the types of benefits, services and support the claimant may require. A needs assessment can be completed at any time after liability has been accepted. 

From 1 July 2026, all new accepted liability claims will undergo a needs assessment.

Injuries or death arising from treatment

Currently, if a person receives medical treatment for a service-related condition paid for by the Commonwealth and the person incurs an injury as an unintended consequence of that treatment, the resultant injury or disease can be considered a service injury or service disease. It is the same for a treatment of an injury or disease that results in death.

From 1 July 2026, the resultant injury or disease can be considered a service injury or service disease whether or not the original condition that was being treated was service related. 

Additional Resources

There is a range of additional resources available on the Legislation Reform website covering a variety of topics. These include: Permanent Impairment, Incapacity Payments and Rehabilitation. 

There are individual pages for different veteran cohorts including VEA veterans, DRCA veterans, MRCA veterans and family members of veterans.