The Military Rehabilitation and Compensation Act 2004 (MRCA) provides support and compensation to current and former members of the Australian Defence Force (ADF) for service-related injuries, diseases, and deaths. However, not all claims are eligible. There are specific exclusions under the MRCA that may prevent liability from being accepted. These exclusions are outlined below.
1. Serious Default or Wilful Act
Under paragraph 32(1)(a) of the MRCA, a claim will not be accepted if the injury or disease resulted from a member’s serious default or wilful act, unless the injury results in a serious and permanent impairment.
- This exclusion does not apply to claims for death.
- It also does not apply to cadets under 16 years of age.
- The “reasonable satisfaction” standard of proof is used to determine if this exclusion applies.
2. Serious Breach of Discipline
Under paragraph 32(1)(b), liability is excluded where the injury or disease arose due to a serious breach of discipline, unless it led to serious and permanent impairment.
- Death claims are not excluded under this provision.
- Again, the “reasonable satisfaction” standard of proof applies.
3. Intentionally Self-Inflicted Injury or Disease
Paragraph 32(1)(c) excludes liability where the injury or disease was intentionally self-inflicted while the person was a member.
- This does not include injuries resulting from gross negligence (although those may fall under the “serious default or wilful act” exclusion).
- Death claims are not excluded here.
- Liability can still be accepted if the injury caused serious and permanent impairment.
4. Serious and Permanent Impairment Exception
For the above exclusions under section 32(1), an exception applies only if the injury or disease has resulted in both:
- Serious impairment, and
- Permanent impairment.
This is a high threshold and must be established with sufficient medical evidence. Impairment is not the same as incapacity for work — though the latter may be relevant.
5. Injuries from Reasonable and Appropriate Counselling
Under section 33, no liability arises if an injury or disease resulted from reasonable and appropriate counselling about a person’s performance. This applies, for example, where a member is given feedback or warnings in the course of their duties, and suffers a psychological reaction.
6. Wilful and False Representation
Section 34 excludes liability for injury, disease or death if a person:
- Knowingly made a false declaration denying a pre-existing injury or disease;
- Or falsely claimed to have had a condition which they did not;
- And the false statement was made in connection with their ADF service.
This exclusion does not apply to cadets under the age of 16.
7. Exclusions Relating to Travel
Under MRCA, exclusions relating to travel apply more broadly than under the Veterans’ Entitlements Act (VEA). Travel-related exclusions can apply under:
- Sections 27, 28 and 30 — not just for specific journey provisions.
- These apply only during peacetime service.
- They do not apply during warlike or non-warlike service.
- Cadets under 18, if under adult supervision, are also not subject to these exclusions.
8. Exclusion Related to Use of Tobacco Product
Section 36 states that liability cannot be accepted if the injury, disease or death is connected to defence service only because of the person’s use of tobacco products.
- This includes conditions that are aggravated or contributed to by tobacco use.
- There are no exceptions — even if the impairment is serious and permanent.
However, if there are other service-related causes beyond tobacco use, liability may still be accepted.
Final Thoughts
Understanding these exclusions is crucial for anyone navigating the DVA claims process under the MRCA. While the legislation offers strong support for veterans, it also establishes clear boundaries around liability. Knowing where these limits lie — and when exceptions might apply — can help ensure that claims are made accurately and effectively.
If you believe an exclusion may apply to your claim, or if your claim has been rejected under one of these provisions, professional support can help you understand your rights and options.
Contact KSC Claims for a free review of your claims today.
