Incapacity Payments provide financial support if a condition that DVA has accepted as service-related is stopping you from working, or is reducing how much you can earn. These payments are designed to make up some of the difference between what you can currently earn and what you would have been earning if not for your condition.
You can only claim Incapacity Payments after DVA has accepted liability for your condition. The condition must be the reason (or a significant reason) you cannot work at your normal capacity.
How the payment is calculated:
DVA looks at your "normal earnings" — what you would likely be earning if not for your condition — and compares that to what you can actually earn now. The payment covers a portion of the gap. The exact calculation depends on your individual circumstances and which Act your claim falls under.
Under MRCA, Incapacity Payments can be up to 100% of your normal earnings for the first 45 weeks, then step down to 75% after that (with some exceptions). Under DRCA, the calculation is slightly different. From 1 July 2026, DRCA incapacity payments automatically transition to the MRCA system, which may provide more generous rates.
The Veteran Payment is a separate, temporary payment available specifically for veterans who have lodged a mental health claim and cannot work more than 8 hours per week while the claim is being assessed. If your incapacity is due to a mental health condition and you have not yet had liability accepted, ask DVA about the Veteran Payment.
How to lodge:
Incapacity Payments are claimed using form D1360. This form is available through MyService. You will generally need to provide medical evidence about how your condition affects your ability to work, and evidence of your earnings history.
Incapacity Payments are reviewed periodically. DVA may reassess your situation to check whether your capacity to work has changed.
This is a guide only. Always verify with DVA directly or with a qualified advocate before lodging a claim.