How Will Your DRCA Incapacity Payments Change Under the New Legislation?

If you’re currently receiving incapacity payments under the Defence-related Claims Act (DRCA), significant changes are coming that will likely increase your payments.

Current vs. Proposed Payments: A Real Example

Take David’s case as an illustration:

• Current situation: David (56) receives DRCA incapacity payments of $1,394.18 gross per fortnight alongside his Commonwealth funded superannuation payment.
• Under new legislation: David will automatically transfer to MRCA (Military Rehabilitation and Compensation Act) incapacity payments of $2,231.08 gross per fortnight.

That’s an increase of $836.90 per fortnight—over $21,700 annually.

Three Key Differences Between DRCA and MRCA Payments

The substantial increase stems from three primary differences in how payments are calculated:

1. Updated Salary Basis: MRCA uses the current pay rate for your eligible rank and pay level rather than your historical salary.
2. No Superannuation Reduction: MRCA doesn’t apply the additional 5% reduction for notional superannuation contributions that DRCA does.
3. Remuneration Loading: MRCA includes a remuneration loading allowance (currently $183.45 per week) to compensate for lost non-salary benefits you received while serving.

What You Need to Know

• The transition will be automatic when the single ongoing Act commences
• No action is required on your part to receive the increased payment
• Your payment method and schedule should remain the same

If you have questions about how these changes will affect your specific situation, contact KSC Claims for personalised information about your claim.