The VETS Act (Veterans' Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025) passed Parliament on 13 February 2025, received Royal Assent on 20 February 2025, and takes effect from 1 July 2026.
Currently, Australia has three separate Acts governing veterans' compensation: the VEA (1986), DRCA (1988), and MRCA (2004). This has been confusing for veterans and created inconsistent outcomes.
From 1 July 2026, the system simplifies. All new compensation claims will be lodged under one improved MRCA, regardless of when the veteran served. The VEA and DRCA close to new compensation claims.
Existing payments continue unaffected. If you currently receive VEA or DRCA payments, these are grandparented — they continue and are indexed as usual.
Income support (Service Pension, ISS, Veteran Payment) remains under the VEA. The changes apply to compensation claims only.
DRCA incapacity payments automatically transition to the more generous MRCA system on 1 July 2026.
The review pathway also simplifies: all veterans now use VRB then ART (the single review pathway). DRCA veterans gained access to the VRB from 21 April 2025.
The improved MRCA includes whole-of-person impairment assessment, which means smaller individual impairments that previously fell below thresholds can now contribute to your overall rating.