Navigating Change: How does the Vets Act affect tri-Act veterans?
Mar 15, 2025
Veterans’ compensation can be complex, especially when service spans multiple Acts. Let’s explore how the proposed legislation changes will affect veterans like John through a detailed case study.
John’s Background
John is a 48-year-old veteran with service coverage across all three Acts (VEA, DRCA, and MRCA). He currently receives:
10% Disability Compensation Payment (DCP)
A previous Permanent Impairment (PI) payment of $15,000 under DRCA
John has now lodged a new claim for hearing loss and tinnitus related to his VEA service in East Timor.
Current Legislation vs. Proposed Legislation
Let’s compare how John’s claim would be processed and compensated under both systems:
Current Legislation Outcome
Current Entitlement
Amount
Initial DCP rate (10%)
$66.96 per fortnight
Assessment outcome
Hearing loss and tinnitus assessed under VEA
New DCP rate (40%)
$244.74 per fortnight
Net increase
$177.78 per fortnight
New Legislation Outcome
Proposed Entitlement
Amount
Grand-parented DCP (10%)
$66.96 per fortnight
Assessment pathway
Hearing loss and tinnitus assessed under MRCA
Previous impairment points
15 points
New assessment
28 points
PI compensation options
$115.32 per fortnight OR age-based lump sum of $66,482.74*
*The lump sum takes into account payments under previous Acts
John’s Final Payment Options Under Proposed Legislation
Option
Regular Payment
Lump Sum
Option 1
$182.28 per fortnight ($66.96 DCP + $115.32 PI)
None
Option 2
$66.96 per fortnight (DCP only)
$66,482.74 (PI lump sum)
What This Means for Veterans
The proposed changes represent a significant shift in how veterans’ claims are processed and paid:
Single Act Assessment: All new claims will be assessed under MRCA regardless of when or where the service occurred
Payment Flexibility: Unlike VEA’s DCP payments, MRCA allows veterans to choose between ongoing payments or age-adjusted lump sums
Protection of Existing Benefits: Current DCP rates are grand-parented, protecting veterans’ existing entitlements
Financial Implications for John
Under the current system, John would receive an additional $177.78 per fortnight, bringing his total to $244.74 per fortnight.
Under the proposed system, John has two options:
Receive slightly more ($182.28 vs $177.78) on a fortnightly basis
Opt for a substantial lump sum of $66,482.74 while maintaining his base DCP payment
This case study demonstrates how the proposed changes provide veterans with greater flexibility in managing their compensation. Veterans considering their options should seek financial advice to determine which payment structure best suits their individual circumstances and long-term financial goals.
KSC Claims is here to assist veterans with the transition of the Vets Act. Reach out today to understand more.
Disclaimer: KSC is not affiliated with the Department of Veterans Affairs or Australian Defence Force.
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