What Is MRCA? Military Rehabilitation and Compensation Act Explained | Advocates Online

DVA Reform 2026

What Is MRCA?
The Plain-English Guide.

MRCA stands for the Military Rehabilitation and Compensation Act 2004. From 1 July 2026, it is the sole Act under which all new DVA claims are lodged in Australia. Here is what it means, what it covers, and what every veteran needs to know — in plain English.

🕒 8-minute read ✓ Reviewed by VAPSA-accredited advocates 📅 Updated July 2026

The foundation

What is MRCA?

MRCA stands for the Military Rehabilitation and Compensation Act 2004. It is the primary piece of Australian legislation governing the compensation, rehabilitation, and treatment of current and former members of the Australian Defence Force (ADF) who sustain injuries, illnesses or conditions related to their service.

Before 1 July 2026, three separate Acts governed DVA claims — the VEA, the DRCA, and the MRCA — depending on when a veteran served and the nature of their condition. From 1 July 2026, that changed. MRCA is now the sole framework under which all new DVA claims are lodged, regardless of when you served.

The most important thing to understand about MRCA

MRCA is not new — it has existed since 2004. What is new from 1 July 2026 is that it now applies to all new claims, including those from veterans who served entirely before 2004. If you have a condition that has never been claimed, MRCA is now your pathway regardless of your service dates.

Where the name comes from

The Military Rehabilitation and Compensation Act takes its name from its three primary functions — rehabilitation (helping veterans recover function and return to work), compensation (financial recognition of the lasting effect of service-related conditions), and the broader military context in which it operates. It is administered by the Department of Veterans' Affairs (DVA) and the Military Rehabilitation and Compensation Commission (MRCC).

1 July 2004

MRCA introduced

The Military Rehabilitation and Compensation Act 2004 came into effect, primarily covering ADF service from 1 July 2004. Three acts now operated simultaneously — VEA, DRCA, and MRCA.

Before 1 July 2026

Three-act system

New claims lodged under VEA, DRCA or MRCA depending on service dates and condition type. Complex and often confusing for veterans to navigate.

1 July 2026 — Now

MRCA as the sole framework

All new DVA claims lodge under MRCA. VEA and DRCA closed to new lodgements. Existing claims under VEA and DRCA continue unchanged.

The framework

What does MRCA cover?

MRCA covers four interconnected areas — liability, compensation, rehabilitation, and treatment. Together these form the complete framework for what a veteran with a service-related condition is entitled to receive.

Liability

DVA's formal acceptance that your injury, illness or condition is related to your service. Liability must be accepted before compensation, treatment, or health card access flows for that condition. Initial liability is the gateway to all other MRCA entitlements.

Compensation

Financial payments recognising the effect of accepted conditions — including permanent impairment lump sums, incapacity payments for lost earnings, and other payments. The MRCA compensation framework is more comprehensive than the VEA in several key areas.

Rehabilitation

Both medical rehabilitation (treatment, therapy, and recovery support) and vocational rehabilitation (retraining, workplace modifications, supported employment). The MRCA rehabilitation framework is significantly more comprehensive than what was available under the VEA.

Treatment

DVA-funded health care for accepted conditions including GP, specialist, hospital, allied health, dental, optical and pharmacy. The White Card and Gold Card pathways continue under MRCA for veterans who meet the relevant criteria.

What conditions does MRCA cover?

MRCA covers any diagnosable physical or psychological condition that can be connected to ADF service through the relevant Statement of Principles (SoP). This includes but is not limited to:

  • Psychological conditions — PTSD, anxiety, depression, adjustment disorder, moral injury
  • Musculoskeletal conditions — back injury, knee injury, shoulder, hip, ankle
  • Neurological conditions — traumatic brain injury, hearing loss, tinnitus
  • Cardiovascular conditions — hypertension, heart disease
  • Respiratory conditions — asthma, sleep apnoea
  • Skin conditions — solar keratosis, skin cancer, dermatitis
  • Gastrointestinal conditions — IBS and related conditions
  • Cancer — malignant melanoma, non-melanoma skin cancer, and other service-linked cancers
  • Chronic pain and chronic fatigue
  • Conditions linked to specific service exposures — Agent Orange, asbestos, noise, chemicals

Psychological conditions are equal to physical ones under MRCA

One of the most important features of MRCA is that psychological conditions — including PTSD — are assessed on exactly the same basis as physical injuries. There is no lesser standard, no additional burden, and no assumption that mental health claims are less valid. This principle is fully embedded in the MRCA framework.

Understanding the acts

MRCA vs VEA vs DRCA — what is the difference?

Understanding the three Acts and how they relate to each other is essential for any veteran navigating the DVA system. Here is the plain-English comparison.

Element VEA DRCA MRCA
Full name Veterans' Entitlements Act 1986 Defence-Related Claims Act 1988 Military Rehabilitation and Compensation Act 2004
Primary service period Pre-1 July 2004. Warlike and non-warlike service. 1 July 1988 to 30 June 2004. Peacetime service. All service from 1 July 2004. All new claims from 1 July 2026.
New claims from July 2026 Closed Closed Open — all new claims
Existing claims Continue unchanged Continue unchanged Continue unchanged
Psychological conditions Covered — some limitations Covered — occupational focus Fully equal to physical conditions
Rehabilitation Limited provisions Occupational rehabilitation Comprehensive — medical and vocational
Permanent impairment GARP-based assessment PIG-based assessment WPI + lifestyle rating — more transparent
Gold Card pathway TPI, Special Rate, EDA, age provisions Limited pathway Through impairment thresholds and accepted conditions

You can have claims under more than one Act

If you served before and after 2004, you may have existing entitlements under VEA or DRCA and new claims under MRCA. This is not uncommon. An advocate can map your full service history and ensure nothing is missed. The assessment is always free.

Is MRCA better than VEA?

In several key areas — yes. The rehabilitation provisions under MRCA are stronger. Psychological and physical conditions are treated equally. The permanent impairment framework is more transparent, using a Whole Person Impairment (WPI) rating combined with a lifestyle rating that together determine the compensation amount. The single-act structure is also simpler to navigate than the previous three-act system.

For some veterans with pre-2004 warlike service, certain specific VEA provisions — particularly around presumptive liability for specific conditions — may have been more favourable. An advocate can assess what this means for your individual situation.

Your situation

Who does MRCA apply to?

From 1 July 2026, MRCA applies to every ADF veteran, current serving member, and reservist who has a new condition to claim — regardless of when they served. Here is how it breaks down by situation.

If you have never lodged a DVA claim

MRCA is your pathway — regardless of when you served. If you served in the 1970s, 1980s, or 1990s and have conditions that were never claimed, the window has changed but the door is not closed. Speak to an advocate about whether your conditions can be connected to service under MRCA.

If you have existing VEA or DRCA claims

Nothing changes. Your existing accepted conditions continue under the Act they were originally lodged under. Your entitlements, payments, and health card coverage are not affected. If your conditions have worsened, a supplementary claim or reassessment may be warranted — speak to an advocate.

If you are still serving

All new DVA claims from 1 July 2026 will be lodged under MRCA. The most valuable thing you can do before your discharge date is document every condition in your Defence medical records while you still have access. Book a pre-discharge consultation with Advocates Online before you discharge.

If you are a reservist

Reservists may be eligible under MRCA depending on the nature of the service they were rendering at the time of injury or onset. The service category (SERCAT) at the time of the relevant service affects eligibility. An advocate can assess your specific situation.

Served before 2004 and never claimed?

The VEA window has closed — but your pathway is not necessarily closed. Many veterans in this situation still have a viable pathway under MRCA. Speak to an advocate before assuming the door is shut. The conversation is free — call 1300 559 421 or book online.

The process

How to lodge a claim under MRCA

The process for lodging a claim under MRCA is the same regardless of when you served. Here is what it involves — and why speaking to an advocate before you start makes a significant difference to the outcome.

  1. Speak to a VAPSA-accredited advocate first

    Before you touch DVA's MyService portal, speak to an advocate. An advocate will assess which conditions are claimable under the relevant Statement of Principles, what evidence you need, and the strongest way to present your claim. This assessment is always free.

  2. Gather your service and medical records

    Your ADF service history, postings, medical records, and any documentation of conditions during or after service. The more complete this is, the stronger your claim. Request your full service record from Defence Records as early as possible.

  3. Obtain a current medical report

    A report from your treating practitioner — GP, specialist, or psychologist — documenting your condition and explicitly connecting it to your service. This is the most important piece of evidence in any DVA claim.

  4. Your advocate prepares the Statement of Facts

    A Statement of Facts presents your evidence in the format DVA decision-makers use to assess claims. It addresses the specific Statement of Principles factors for each condition and makes the service connection unmistakably clear.

  5. Lodge through DVA's MyService portal

    All new MRCA claims are lodged through DVA's MyService portal. Your advocate guides you through this process and ensures the claim is submitted correctly with all required documentation.

  6. DVA assesses your claim and issues a determination

    DVA assigns a delegate who assesses your claim against the relevant SoP factors. If liability is accepted, entitlements begin. If rejected, your advocate advises on review options — internal review, Veterans Review Board, or Administrative Review Tribunal.

The legal test

Standard of proof under MRCA

One of the most important — and most misunderstood — aspects of MRCA is the standard of proof. Unlike civil litigation, veterans' law applies different standards depending on the type of service. Understanding which standard applies to your claim significantly affects how it should be prepared and presented.

Reasonable Hypothesis — the more favourable standard

The Reasonable Hypothesis standard applies to veterans with operational, warlike, non-warlike, hazardous, or peacekeeping service. Under this standard, a claim can be accepted if there is a reasonable hypothesis — a plausible connection — between the condition and service. The hypothesis does not need to be the most probable explanation. It simply needs to be reasonable.

This is a significantly lower threshold than Balance of Probabilities and means that less evidence is required to establish the service connection for eligible veterans.

Balance of Probabilities — the standard for other service

The Balance of Probabilities standard applies to other service types — typically peacetime service not covered by the Reasonable Hypothesis test. Under this standard, it must be more likely than not (over 50%) that service caused or contributed to the condition.

Which standard applies to you?

Identifying which standard of proof applies to your specific service history and claim is one of the first things an advocate does. Veterans who served on declared operations — East Timor, Afghanistan, Iraq, peacekeeping missions — have access to the more favourable Reasonable Hypothesis standard. This is not automatic — it must be correctly identified and applied. Speak to an advocate to confirm which standard applies to your situation.

Statements of Principles (SoPs)

Under MRCA, every accepted condition must satisfy the relevant Statement of Principles — a legislative instrument developed by the Repatriation Medical Authority (RMA) that sets out exactly what must be demonstrated for DVA to accept liability for that condition. SoPs are legally binding. If the factors are met, DVA must accept the claim. If they are not met, DVA must reject it.

Building a claim that specifically and demonstrably satisfies the SoP factors is the most important thing an advocate does. Generic claims of service connection without addressing the SoP factors will fail regardless of how deserving the veteran appears.

Read more about SoPs in the AO Plain English Glossary →

Common questions

MRCA — frequently asked questions

MRCA stands for the Military Rehabilitation and Compensation Act 2004. It is the Australian legislation governing compensation, rehabilitation, and treatment for ADF members and veterans with service-related conditions. From 1 July 2026, it is the sole Act under which all new DVA claims are lodged.

The VEA (Veterans' Entitlements Act 1986) primarily covered veterans with pre-2004 warlike and non-warlike service. The MRCA covers all ADF service from 1 July 2004 and from 1 July 2026 is the sole Act for all new claims. MRCA has stronger rehabilitation provisions, treats psychological and physical conditions equally, and has a more transparent permanent impairment framework than the VEA. Existing VEA claims continue unchanged.

Yes — completely. MRCA covers psychological conditions including PTSD, anxiety, depression, adjustment disorder, and complex PTSD on exactly the same basis as physical conditions. There is no lesser standard, no additional burden, and no assumption that mental health claims are less valid. If you have a psychological condition related to your service and have never claimed, MRCA is your pathway. Speak to an advocate →

From 1 July 2026, yes — if you have a new condition to claim that has not been previously lodged, you now lodge under MRCA regardless of when you served. If you have existing accepted conditions under VEA or DRCA, those continue unchanged under the Act they were originally lodged under. If you missed the VEA window, speak to an advocate — many veterans in this situation still have a viable pathway under MRCA.

MRCA covers four main areas: liability (formal acceptance that a condition is service-related), compensation (permanent impairment lump sums, incapacity payments), rehabilitation (medical and vocational support), and treatment (DVA-funded health care including GP, specialist, allied health, hospital, dental, optical, and pharmacy). Read more about DVA claims →

Under MRCA, the standard of proof depends on service type. For operational, warlike, non-warlike, hazardous, and peacekeeping service, the Reasonable Hypothesis standard applies — a plausible connection to service is sufficient. For other service types, the Balance of Probabilities standard applies — meaning it must be more likely than not that service caused the condition. An advocate determines which standard applies to your specific claim.

Speak to a VAPSA-accredited advocate before you lodge anything. An advocate will assess which conditions are claimable, what evidence is needed, and how to present the strongest possible claim. All new MRCA claims are lodged through DVA's MyService portal. The first consultation with Advocates Online is always free — call 1300 559 421 or book online.

The DRCA (Defence-Related Claims Act 1988) covered peacetime ADF service from 1 July 1988 to 30 June 2004. Like the VEA, the DRCA is now closed to new claims from 1 July 2026. Existing DRCA claims continue unchanged. New conditions must be lodged under MRCA.

In several key areas — yes. MRCA has stronger rehabilitation provisions, treats psychological and physical conditions equally, and has a more transparent permanent impairment framework using whole-person impairment and lifestyle ratings. The single-act structure is also simpler. For some veterans with pre-2004 warlike service, specific VEA provisions around presumptive liability may have been more favourable for particular conditions. An advocate can assess what this means for your specific situation.

Existing Gold Card holders are not affected by the July 2026 reform. Your Gold Card continues unchanged. Gold Card pathways continue under MRCA for veterans who reach the relevant disability thresholds or meet other eligibility criteria. If you believe you may qualify for a Gold Card but do not currently have one, speak to an advocate about the MRCA pathways available to you. Book a free consultation →