Veterans’ Affairs Legislation Amendment (Miscellaneous Measures No. 2) Act 2026

No. 31, 2026

An Act to amend the law relating to veterans’ affairs and military rehabilitation and compensation, and for related purposes

Contents

1 Short title 2

2 Commencement 2

3 Schedules 3

Schedule 1—Amendments 4

Part 1—Review pathway 4

Military Rehabilitation and Compensation Act 2004 4

Part 2—Compensation for dependants of deceased veterans 7

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 7

Part 3—Funeral compensation 10

Military Rehabilitation and Compensation Act 2004 10

Part 4—Access to MRCA education scheme 12

Military Rehabilitation and Compensation Act 2004 12

Part 5—Additional disablement amount 13

Military Rehabilitation and Compensation Act 2004 13

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 13

Veterans’ Entitlements Act 1986 14

Part 6—Victoria Cross allowance and decoration allowance 15

Veterans’ Entitlements Act 1986 15

Part 7—Service injuries, diseases and deaths arising from treatment 16

Military Rehabilitation and Compensation Act 2004 16

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 17

Part 8—Treatment for serving members 18

Military Rehabilitation and Compensation Act 2004 18

Part 9—Direct deductions 19

Military Rehabilitation and Compensation Act 2004 19

Part 10—Application and transitional provisions 20

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 20

Veterans’ Affairs Legislation Amendment (Miscellaneous Measures No. 2) Act 2026

No. 31, 2026

An Act to amend the law relating to veterans’ affairs and military rehabilitation and compensation, and for related purposes

[Assented to 1 April 2026]

The Parliament of Australia enacts:
1 Short title

This Act is the Veterans’ Affairs Legislation Amendment (Miscellaneous Measures No. 2) Act 2026.
2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information Commencement information Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 1 April 2026
2. Schedule 1, Part 1 Immediately after the commencement of Part 2 of Schedule 3 to the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025. 1 July 2026
3. Schedule 1, Part 2 Immediately after the commencement of Schedule 7 to the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025. 1 July 2026
4. Schedule 1, Parts 3 to 6 Immediately after the commencement of Schedule 2 to the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025. 1 July 2026
5. Schedule 1, Part 7 Immediately after the commencement of Schedule 1 to the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025. 1 July 2026
6. Schedule 1, Parts 8 to 10 Immediately after the commencement of Schedule 2 to the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025. 1 July 2026

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 2

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Amendments

Military Rehabilitation and Compensation Act 2004

 1 Section 352C

Repeal the section, substitute:

 352C Notice of application

The Board must, as soon as practicable after receiving an application for review, give written notice of the application to:

 a

in any case—the Commission; and

 b

the Chief of the Defence Force, in either of the following cases:

 i

for an application relating to a service injury or disease—if the applicant was a member at the time the application was made;

 ii

for an application relating to a person’s service death—if the person was a member at the time of death.

 2 Subsection 352G(1)

Repeal the subsection, substitute:

 1

The parties to a review are:

 a

the applicant for the review; and

 b

the Commission; and

 c

if the Chief of the Defence Force gives the Board a notice under subsection (1A)—the Chief of the Defence Force.

 1A

The Chief of the Defence Force may, as soon as practicable after receiving notice of an application to which paragraph 352C(b) applies, give written notice to the Board electing to be a party to the review.

 3 Subsection 353B(1)

Repeal the subsection, substitute:

Notice of decision

 1

The Board must give a copy of its decision under section 353A to:

 a

in any case—each party to the review; and

 b

unless the Chief of the Defence Force is a party to the review—the Chief of the Defence Force, in either of the following cases:

 i

for an application relating to a service injury or disease—if the applicant was a member at the time the decision was made;

 ii

for an application relating to a person’s service death—if the person was a member at the time of death.

 4 Paragraph 353B(3)(a)

Repeal the paragraph, substitute:

 a

a person notified under subsection (1) may, within 28 days after the day a copy of the decision is given to the person, make a request to the Board for a written statement of the Board’s reasons for its decision; and

 5 Paragraph 353C(10)(a)

Repeal the paragraph, substitute:

 a

in any case—give notice of the dismissal to each party to the review; and

 aa

unless the Chief of the Defence Force is a party to the review—give notice of the dismissal to the Chief of the Defence Force, in either of the following cases;

 i

for an application relating to a service injury or disease—if the applicant was a member at the time of the dismissal;

 ii

for an application relating to a person’s service death—if the person was a member at the time of death; and

 6 Paragraph 353C(10)(b)

Omit “the notice must include”, substitute “include in the notice”.

 7 Subsections 353R(3), (4) and (5)

Repeal the subsections, substitute:

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004

 3

An application under subsection (1):

 a

must be lodged at a place approved by the Commission under subsection 323(2); and

 b

is taken to have been made on a day determined under subsection 323(2).

 8 Subsection 12(4)

Omit “has received compensation”, substitute “has made a claim or application for compensation that has not been finally determined, or has received or is receiving compensation,”.

 9 Paragraph 12(5)(b)

Repeal the paragraph, substitute:

 b

the first-mentioned person:

 i

has made an application that has not been finally determined for a pension that is payable under section 13 of the VEA in respect of the death; or

 ii

is receiving a pension that is paid under section 13, 13A or 13B of the VEA in respect of the death; and

 c

before the date of commencement, the first-mentioned person had not been eligible for compensation under Chapter 5 of the MRCA in respect of the death.

 10 Subsection 12(6)

Repeal the subsection, substitute:

Note 1: If the person has made a claim or application for such compensation under the relevant Act that has not been finally determined, the relevant Act may continue to apply in relation to the claim or application (see section 88 or 89).

Note 2: In some circumstances, even if this subsection applies to a person, the person may not be entitled to a lump sum payment under paragraph 234(1)(a) of the MRCA: see subsection (5B) of this section.

Note: If paragraph (5A)(b) or (c) of this section does not apply in relation to the person, the person is not entitled to compensation payable under paragraph 234(1)(a) of the MRCA, or any other provision of Part 2, 3 or 4 of Chapter 5 of the MRCA (see subsection (4) of this section).

 5A

Subsections (4) and (5) do not apply to a person in relation to compensation under Part 2, 3 or 4 of Chapter 5 of the MRCA for a particular matter if:

 a

(a) before the date of commencement, the person was eligible for compensation for that matter under the DRCA or the VEA (the relevant Act); and

 b

in a case in which the person has made a claim or application for compensation for that matter under the relevant Act—that claim or application has been finally determined; and

 c

the person has not received, and is not receiving, compensation for that matter under the relevant Act; and

 d

the relevant Act (as in force after the date of commencement) does not authorise a claim or application for compensation for that matter.

 5B

A person is not entitled to the amount of compensation payable under paragraph 234(1)(a) of the MRCA in respect of the death of another person if:

 a

the death occurred before the date of commencement; and

 b

the death was war-caused, or defence-caused, within the meaning of the VEA; and

 c

paragraphs (5A)(a), (b) and (c) of this section apply in relation to the person; and

 d

before the date of commencement:

 i

the person was eligible for compensation in respect of the death under section 13 of the VEA; and

 ii

the person was not eligible for compensation in respect of the death under section 17 of the DRCA or section 233 of the MRCA.

 6

Subsection (6A) applies if:

 a

a member dies on or after the date of commencement; and

 b

compensation is being paid to a wholly dependent partner of the member under section 13A of the VEA in respect of the death of the member; and

 c

(c) a claim for compensation (the MRCA claim) in respect of the partner is made under section 319 of the MRCA; and

 d

the Commonwealth becomes liable to pay compensation under section 233 of the MRCA in respect of the partner.

 6A

If this subsection applies:

 a

from the time the Commission or the Board makes a decision to grant the MRCA claim, pension is no longer payable to the partner under section 13A of the VEA in respect of the death; and

 b

despite paragraph 234(5)(b) of the MRCA, the weekly amount under paragraph 234(1)(b) of the MRCA is payable to the partner from the date of the decision to grant the MRCA claim until the partner’s death.

 11 At the end of section 12

Add:

Nil or negative amount of compensation or pension

Note: The amount of compensation may be nil or a negative amount due to offsets under this Act, the VEA, the MRCA or another law.

Military Rehabilitation and Compensation Act 2004

 10

(10) For the purposes of this section, a person is taken to receive compensation (including a pension) even if the amount of the compensation payable is nil or a negative amount.

 12 Section 266A

Repeal the section.

 13 At the end of section 267A

Add:

 3

If the Commonwealth is liable to pay compensation in respect of a deceased member’s funeral under both sections 266 and 268AC, the amount of compensation under section 266 must be reduced by the amount of compensation paid under section 268AC in respect of the deceased member’s funeral.

 14 Paragraphs 268AA(a), (b) and (c)

After “Part II”, insert “or IV”.

 15 Paragraph 268AA(c)

Omit “the member was incapacitated from a war-caused injury or a war-caused disease”, substitute “of incapacity”.

 16 Subsection 268AB(3)

Repeal the subsection, substitute:

 3

This subsection applies in respect of a deceased member if the member died in indigent circumstances.

 17 Subparagraph 268AB(5)(a)(iii)

Omit “from a war-caused injury or a war-caused disease”.

 18 Paragraph 268AB(5)(b)

After “Part II”, insert “or IV”.

 19 Subparagraph 268AB(5)(b)(ii)

Omit “from a war-caused injury or a war-caused disease”.

 20 After paragraph 268AC(1)(a)

Insert:

 ab

the Commonwealth is not liable to pay compensation in respect of the deceased dependant’s funeral under section 268AA or 268AB; and

 21 Subparagraph 268AC(3)(c)(i)

Omit “war-caused”, substitute “a war-caused death”.

 22 Subparagraphs 268AC(3)(c)(ii) and (iii)

After “Part II”, insert “or IV”.

 23 Subparagraph 268AC(3)(c)(iii)

Omit “the member was incapacitated from a war-caused injury or a war-caused disease”, substitute “of incapacity”.

Military Rehabilitation and Compensation Act 2004

 24 Subsection 258(1A)

Omit “paragraph (1)(a)”, substitute “subparagraph (1)(a)(iii)”.

Military Rehabilitation and Compensation Act 2004

 25 Subparagraph 220A(b)(iii)

After “Part II”, insert “or IV”.

 26 Subparagraph 220A(b)(iii)

Omit “, 25 or 27”, substitute “or 25”.

 27 Subsection 281(1)(at the end of note 2)

Add “or 282A”.

 28 After section 282

Insert:

 282A Treatment for persons who are eligible for Additional Disablement Amount

A person is entitled to be provided with treatment under this Part for any injury or disease of the person if:

Note: Compensation might be payable in respect of treatment obtained before the Commission determines that the person is entitled to treatment (see section 288A).

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004

 a

the person satisfies the eligibility criteria in section 220A (Additional Disablement Amount), or has satisfied those criteria during some period of the person’s life; and

 b

the treatment is provided to the person after paragraph (a) begins to apply to the person.

 29 At the end of subsection 14A(1)

Add “, excluding any amount by which that fortnightly rate has been increased under section 27 of that Act at that time”.

 30 At the end of section 14A

Add:

then, the maximum weekly amount of Additional Disablement Amount that could be payable to the person at that time must also be reduced by the excess amount mentioned in paragraph (b).

Veterans’ Entitlements Act 1986

 3

For the purposes of section 220C of the MRCA, if:

 a

at a time, a person is receiving a pension under Part II or IV of the VEA at a fortnightly rate that has been increased under section 27 of that Act; and

 b

the sum of one half of that increased fortnightly rate and the maximum weekly amount of Additional Disablement Amount that could be payable to the person at that time, apart from this section, exceeds one half of the fortnightly rate at which a pension is payable from time to time under section 24 of the VEA;

 31 At the end of paragraph 38(1BA)(b)

Add:

; (iv) the veteran concerned satisfies the eligibility criteria in section 220A (Additional Disablement Amount) of the MRCA, or has satisfied those criteria during some period of the veteran’s life.

Veterans’ Entitlements Act 1986

 32 After paragraph 5H(8)(f)

Insert:

Military Rehabilitation and Compensation Act 2004

 fa

a payment under section 230A of the MRCA (Victoria Cross allowance) or under an instrument made under section 230C of the MRCA (decoration allowance);

 33 Subsection 29(1)

Omit “who is a member or former member”.

 34 Subparagraph 29(1)(a)(i)

Omit “injury or disease (whether or not a service injury or a service disease)”, substitute “service injury or service disease”.

 35 Paragraph 29(1)(b)

Omit “for an earlier injury or disease that is not a service injury or service disease”.

 36 Subsection 29(2)

Omit “who is a member or former member”.

 37 Subparagraph 29(2)(a)(i)

Omit “injury or disease (whether or not a service injury or a service disease)”, substitute “service injury or service disease”.

 38 Paragraph 29(2)(b)

Omit “for an earlier injury or disease that is not a service injury or service disease”.

 39 Subsection 29(3)

Omit “who is a member or former member”.

 40 Subparagraph 29(3)(a)(i)

Omit “an injury or disease (whether or not a service injury or disease)”, substitute “a service injury or service disease”.

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004

 41 Subsections 7(3) and (4)

Omit “an unintended consequence”, substitute “a consequence, or an unintended consequence,”.

Military Rehabilitation and Compensation Act 2004

 42 Section 279

Before “A member”, insert “(1)”.

 43 At the end of section 279

Add:

 2

A member may also be entitled to be provided with treatment under this Part for which the member is eligible in accordance with an instrument under section 284A.

 45 At the end of section 284A

Add:

Example: An instrument could be made under this section determining eligibility for non-liability health care treatment under this Part for members or former members, or their dependants.

Military Rehabilitation and Compensation Act 2004

 46 Subsection 431(1)

Omit “weekly compensation”, substitute “compensation that is payable periodically”.

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004

 47 At the end of the Act

Add:

 123 Notices to Chief of Defence Force in connection with Board review

The amendments of the MRCA made by Veterans’ Affairs Legislation Amendment (Miscellaneous Measures No. 2) Act 2026, other than the amendment of section 353R of the MRCA, apply in relation to an application under section 352A of the MRCA for a review by the Board under Part 4 of Chapter 8 of the MRCA that is made on or after the date of commencement.Part 1 of Schedule 1 to the

124 Notice to Commission of travel claim

The amendment of Veterans’ Affairs Legislation Amendment (Miscellaneous Measures No. 2) Act 2026 applies in relation to an application under section 352A of the MRCA for a review by the Board under Part 4 of Chapter 8 of the MRCA that is made before, on or after the date of commencement.section 353R of the MRCA made by Part 1 of Schedule 1 to the

125 Funeral compensation

The amendments of the MRCA made by Veterans’ Affairs Legislation Amendment (Miscellaneous Measures No. 2) Act 2026 apply in relation to a claim for compensation that is made on or after the date of commencement, whether the claim relates to the funeral of a person who dies before, on or after that date.Part 3 of Schedule 1 to the

[Minister’s second reading speech made in—

House of Representatives on 27 November 2025

Senate on 3 March 2026]

(116/25)