The VETS Act Explained: What It Means for Your Compensation and Support
Australian veterans, navigating the claims system should not feel like a maze. Starting from 1 July 2026, the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025, known as the VETS Act, will consolidate three complex Acts into one unified law called the Military Rehabilitation and Compensation Act (MRCA). This reform aims to make entitlements clearer, faster to access, and more veteran-friendly. This post outlines what changes are coming, what will remain the same, and why these updates are important for you and your family.
What the VETS Act changes and what it preserves
From 1 July 2026, all new compensation and rehabilitation claims will be managed under the improved MRCA. The Veterans’ Entitlements Act 1986 (VEA) and Defence-related Compensation Act (DRCA) will no longer accept new claims. However, veterans who already receive payments under these frameworks will continue to receive the same benefits without any interruption. This continuity is protected under what is referred to as 'grandparenting' provisions.
Veterans with existing VEA or DRCA payments, including Gold Card holders and their dependents, will continue to receive income support, health and travel allowances, and funeral benefits at the same indexed rates.
Why this matters to veterans
Simplified access: Veterans will no longer need to navigate across three separate legal frameworks. The new system will provide one consistent and modern path for claims and support.
Faster claim handling: By eliminating duplicate systems and processes, claim assessments and reviews are expected to be quicker.
Additional support for serious conditions: A new feature called the Additional Disablement Amount (ADA) will provide increased fortnightly payments to veterans who experience significant impairment and are of pension age.
Protection of current entitlements: There will be no reduction or loss of current benefits. This includes income support pensions, supplement payments, Gold Card eligibility and indexed benefits.
Key enhancements coming your way
Presumptive liability
Veterans will not be required to prove that service caused their injury for conditions already recognised by the Repatriation Commission. These conditions will be accepted automatically unless there is clear evidence to the contrary.
Family and care payments
Support for families is expanding. This includes broader eligibility for Household Services, Attendant Care, travel reimbursements and funeral costs. Funeral assistance will increase to a standard $3,000 or up to $14,639 for higher-cost cases where full reimbursement is allowed.
Independent oversight through a new Commission
A new Defence and Veterans’ Services Commission will be created. This body will be responsible for systemic improvements and suicide prevention efforts. It is expected to begin operating from 29 September 2025 and will undergo a formal review in August 2025.
What matters to you today and what to plan for
If you currently receive benefits under the VEA or DRCA, your payments will continue unchanged. You will also be able to submit new claims under the MRCA if your condition worsens or you develop a new service-related illness after July 2026.
Veterans nearing retirement or already of pension age should review their entitlements, as the new ADA may offer increased financial support compared to current options.
If you are responsible for supporting a child or dependent, rest assured that MRCA will maintain the same definitions and support levels previously provided under the VEA.
Practical actions for veterans and families
• Review your potential claim needs ahead of July 2026
• Organise and keep copies of medical records and supporting documentation
• Attend community sessions or speak with advocates from organisations like RSL and DFWA
• Stay informed about the new Commission’s updates and changes to oversight practices
Why this matters in the long run
This reform is about more than paperwork. It is about reshaping how veterans access the compensation and care they earned. By moving into one streamlined legal pathway, veterans and their families will experience less confusion, quicker decisions, and more consistent support.
A clearer system also ensures that future generations of veterans do not face the same delays and inconsistencies that many have endured in the past. The VETS Act represents a generational shift toward more respectful and efficient service delivery for those who have served Australia.
References
DVA. (2025). The VETS Act – what it is and what it will do. Retrieved from https://www.dva.gov.au
Australian Parliament House. (2024). Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Bill 2024. Retrieved from https://www.aph.gov.au
The Mandarin. (2025, February 17). Laws pass to simplify veterans’ claims.
News.com.au. (2025, February 13). Lambie’s relief at changes for veterans.
RSL Australia. (2025). Veterans’ Entitlements Bill background and timeline. Retrieved from https://www.rslaustralia.org
