Purpose of the Reform
The Veterans’ Entitlements Treatment and Support (Simplification and Harmonisation) Bill 2024 aims to streamline and unify veterans’ rehabilitation and compensation laws by consolidating them under the Military Rehabilitation and Compensation Act (MRCA). This consolidation is designed to enhance accessibility and fairness in veterans’ benefits.
Key Benefits of the Reform
The Bill extends several significant advantages to veterans previously covered solely by the Veterans’ Entitlements Act (VEA) and the Safety, Rehabilitation and Compensation (Defence-related Claims) Act (DRCA):
- Extended Eligibility for Compensation: Veterans formerly covered by the VEA may now be eligible for lump-sum incapacity compensation payments.
- Enhanced Benefits for DRCA Veterans: DRCA veterans will enjoy increased compensation and additional benefits previously exclusive to the MRCA.
From July 1, 2026, new claims will no longer be accepted under the DRCA and VEA. Instead, all claims will be processed under the MRCA, ensuring a unified and consistent approach to veterans’ benefits.
Proposed Enhancements to the MRCA
1. Introduction of Additional Disablement Amount (ADA)
Akin to the Extreme Disablement Adjustment (EDA) under the VEA, the ADA will provide compensation to veterans of Age Pension age or older who have significant service-related incapacity.
2. Presumptive Liability
The Repatriation Commission will be able to specify certain injuries and diseases as presumptive, automatically linking them to military service without the need for engagement with the Statements of Principles (SOP) system.
3. Consolidation of Benefits
Household and attendant care, travel for treatment, and the automatic granting of VEA funeral benefits will be consolidated under the MRCA.
4. Increased Funeral Allowance
The funeral allowance will increase to $3,000 for automatic grant categories under the VEA, with reimbursement up to $14,062 for service-related deaths.
5. Standardisation of Travel Reimbursement
Veterans using private vehicles for treatment travel will receive higher reimbursement amounts, regardless of distance.
6. Standardisation of Allowances and Payments
The Bill standardises various allowances and payments, including acute support packages, Victoria Cross and decoration allowances, education schemes, prisoner of war ex gratia payments, and additional compensation for children of severely impaired veterans.
7. Enhanced Special Assistance
The Commission’s ability to grant special assistance to veterans and their dependents will be strengthened.
8. Automatic Transition of DRCA Incapacity Payments
Veterans receiving DRCA incapacity payments will transition automatically to MRCA incapacity payments upon the Bill’s commencement.
9. Beneficial Application of SOP Updates
When the Repatriation Medical Authority updates an SOP between a veteran’s primary and reviewable decision, the version most beneficial to the veteran will be applied.
10. Mandatory Financial Advice for Lump Sum Payments
An instrument making power will be introduced, allowing the Commission to require veterans to receive financial advice before receiving lump sum payments.
For further details, you can access the full information here.
Take the Next Step
Navigating the changes brought about by the MRCA Reform 2024 can be complex. To ensure you understand how these reforms impact your entitlements and benefits, schedule a 30-minute call with KSC today. We are here to guide you through the DVA claim process and provide the support you need.
