From 1 July 2026, Australia no longer runs three live compensation systems for new claims. The VEA and DRCA closed to new rehabilitation and compensation claims. New claims are determined under an improved Military Rehabilitation and Compensation Act 2004 (MRCA). That is the practical core of the VETS Act.
What is protected
- Payments you were already receiving under VEA or DRCA continue. Periodic rates still index.
- Accepted conditions stay accepted. You do not re-prove liability for an old acceptance just because the Act changed.
- A DRCA lump sum already paid is not clawed back because of the reform.
- If a DRCA or VEA claim was lodged before 1 July 2026 and later accepted, PI for that claim is generally still assessed under the old Act. Worsening claimed after 1 July 2026 is the point where MRCA/GARP M usually takes over.
GARP M is now the impairment tool
Each old Act used a different impairment guide. From 1 July 2026 the Guide to Determining Impairment and Compensation 2026 (GARP M) is the single tool. It includes new chapters so prior VEA/DRCA ratings can be converted to a baseline, and any worsening is measured as an increase from that baseline rather than starting from zero.
MRCA PI shape (weekly, lump, or mix)
Under the improved MRCA, permanent impairment can be paid as a weekly amount (usually fortnightly), converted to an age-based lump sum, or a combination. Extra payment under MRCA section 80 can apply if you have at least 80 impairment points and an eligible young person, on a new accepted condition or a 5-point worsening. Financial advice is required for some veterans before a lump sum. An age-based lump is not automatically the better deal — especially if you are younger. Run the numbers, including what happens for dependants if you die, before you commute.
What this site will not tell you
We will not pick your pathway election or invent a combined impairment score. Those turn on your actual determinations, medical reports, and the GARP M tables in force. Bring the documents. The highest-leverage move for most people in 2026 is: know which Act each live claim sits under, and do not lodge a “new” claim that accidentally restarts a grandfathered payment you already have.
Presumptive liability is the other 1 July change that actually speeds some files: listed conditions with a confirmed diagnosis, lodged from that date, can be accepted without proving a SoP factor. Read that guide before you wait out the 116-day average.