defence services
Harmonisation (VET) Act
From 1 July, veterans who are covered under the DRCA Act will become eligible for a range of additional benefits and entitlements. These changes may affect the level of support available and how your overall compensation and financial position is structured, making it important to understand what the updates mean for your individual circumstances.
DVA Changes Explained and What It Means For You
From 1 July 2026, Australia’s veterans’ compensation system will undergo its most significant reform in decades.
The changes are driven by the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act (VETS Act).
It was introduced as part of the Australian Government’s response to the Royal Commission into Defence and Veteran Suicide. [defence.gov.au]
The goal is simple:
- Create a clearer, more consistent and easier-to-navigate system for veterans and their families. [dva.gov.au]
What Changes on 1 July 2026?
A Move to One Main System
From 1 July 2026:
- The Veterans’ Entitlements Act 1986 (VEA) will close to new claims
- The Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) will also close to new claims
- All new compensation and rehabilitation claims will be assessed under an improved Military Rehabilitation and Compensation Act 2004 (MRCA) [dva.gov.au], [dva.gov.au]
This means a single, streamlined system going forward, rather than three overlapping Acts.
What Happens to Existing DVA Payments?
If you are already receiving payments under the VEA or DRCA:
- Your payments will continue unchanged
- Payments will remain indexed over time as normal [dva.gov.au]
This is known as “grandfathering”, your existing entitlements remain protected under the current framework.
Why Is the System Changing?
The Royal Commission identified that the current system:
- Is complex and difficult to navigate
- Uses multiple laws with different rules
- Can create delays and inconsistent outcomes
The VETS Act aims to:
- Simplify access to entitlements
- Improve consistency in decision-making
- Enable faster and more effective support delivery [defence.gov.au]
10 Key Improvements Under the 2026 DVA Changes
1. A Single Claims System
All new claims will be assessed under a modernised MRCA, making it easier to:
- Understand entitlements
- Navigate the system
- Access support [dva.gov.au]
2. Additional Support for Older Veterans (ADA)
A new benefit, the Additional Disablement Amount (ADA), will support veterans:
- Of Age Pension age
- With high levels of permanent impairment
It acts as a safety net, similar to the previous Extreme Disablement Adjustment (EDA). [dva.gov.au]
3. Faster Access Through Presumptive Conditions
Certain conditions with known links to service may be accepted more quickly using presumptive decision-making, reducing delays in claims processing.
4. Increased Access to Household and Personal Support
Eligibility for:
- Household services
- Attendant care (personal care support)
will be expanded, helping more veterans remain independent.
5. Improved Travel Benefits
Veterans will have consistent access to higher travel reimbursement rates, including:
- Private vehicle travel to treatment
This improves access to healthcare and support services.
6. Increased Funeral Benefits
Under the new framework:
- A standard funeral contribution will be available
- Higher payments apply where death is service-related
These benefits are provided under MRCA where eligibility criteria are met. [dva.gov.au]
7. More Consistent Payments for Families
Payments relating to:
- Dependent children
- Education support
- Bereavement assistance
will be standardised and simplified, improving access and clarity.
8. Automatic Transition for Some Veterans
Some veterans, such as those receiving DRCA incapacity payments, will:
- Automatically transition to MRCA arrangements
- Potentially receive more beneficial payment structures [dva.gov.au]
9. Fairer Medical Assessment Rules
If medical guidelines (Statements of Principles) change during your claim:
- The version that is most beneficial to you may be applied
This helps ensure fairer outcomes based on current medical evidence.
10. Financial Advice for Major Decisions
In some situations, veterans may be required to obtain independent financial advice before accepting large lump sum payments, supporting long-term financial stability
Unsure If These Changes Affect You?
These new changes can be daunting.
At Apex Financial Services Group we can help walk you through what these changes mean for you. We ensure you make fully informed decisions about your financial future by helping you understand what these changes mean for you and your future.
FAQs: DVA Changes 2026
What are the DVA changes in 2026?
The Australian Government is introducing a simplified system where all new claims are assessed under an updated MRCA, replacing the current multi‑Act system. [dva.gov.au]
When do the new DVA laws start?
The changes take effect from 1 July 2026. [defence.gov.au]
Will my current DVA payments stop?
No. If you are already receiving payments under VEA or DRCA, they will continue unchanged and remain indexed. [dva.gov.au]
What happens if I lodge a claim before 1 July 2026?
Your claim will be assessed under the current legislation (VEA or DRCA), even if it is finalised after that date. [defence.gov.au]
What happens if I lodge a claim after 1 July 2026?
All new claims will be assessed under the updated MRCA system. [dva.gov.au]
What is the Additional Disablement Amount (ADA)?
It is a new payment for older veterans with significant impairment, designed to continue support under the new system. [dva.gov.au]
Will the new system be better for veterans?
The reforms aim to make the system simpler, more consistent and easier to access, improving outcomes for veterans and families. [dva.gov.au]
Do I need to do anything now?
Not necessarily, but understanding how the timing of your claim fits into the new system is important for making informed decisions.