Dear ESORT members,
In a significant milestone for the veteran community, Parliament passed the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2024 (the VETS Act) on 13 February 2025.
The Royal Commission into Defence and Veteran Suicide’s Interim Report highlighted that the veterans’ claims system is too complex and hard to navigate.
The VETS Act, once it takes effect from 1 July 2026, will mean that the existing tri-Act system will be replaced with a single Act: an improved Military Rehabilitation and Compensation Act 2004 (MRCA). Importantly, there will be no reduction in benefits currently received by DVA clients.
The new system will make it easier for veterans and families to understand what supports and compensation they are entitled to. It will also make claims-processing less complicated for DVA staff.
The legislation will commence on 1 July 2026 to ensure veterans and families have enough time to understand how they might be affected and make plans for their individual circumstances. Training will also be provided to ex-service organisation advocates and DVA staff.
In the meantime, you’ll find information about Legislation Reform on our website including a range of scenarios, factsheets and frequently asked questions that will help veterans and families to understand how the changes may affect them. Please note that DVA staff cannot give individualised advice on this matter.
During the passage of the VETS Act through the Senate, the Bill was amended to include a new Schedule 9 which amends the Defence Act 1902 (Defence Act) to establish the Defence and Veterans’ Services Commission (the Commission). The establishment of the Commission was recommended by the Royal Commission into Defence and Veteran Suicide in recommendation 122 of its Final Report. The relevant provisions establishing the Commission commence on 29 September 2025.
The amendments include two important review provisions in relation to the establishment of the Commission.
The first of these is Section 5 of the VETS Act, which provides that the Senate Foreign Affairs, Defence and Trade Legislation Committee will review the legislation establishing the Commission and report by 29 August 2025. As you would be aware, on 17 January 2025, the Government appointed Mr Michael Manthorpe PSM as the Interim Head of the Defence and Veterans’ Service Commission. Mr Manthorpe will work with the Senate and the Government during this period on the review of the legislation prior to its commencement.
The second of these review provisions is new Section 110ZLE of the Defence Act, which provides for an independent review of the operation of this Part to be undertaken 36 months after commencement of the relevant provisions on 29 September 2025.
These review processes will provide the opportunity for the veteran community to be further consulted on this important legislation.
Lastly, in addition the passage the VETS Act through Parliament, I would like to take this opportunity to draw your attention to a motion that was passed by the Senate on 13 February 2025 supporting a Foreign Affairs, Defence and Trade References Committee inquiry into advocacy services for veterans. I will provide further information about this process in due course.
I would like to thank all the veterans, Defence personnel, families, advocates and experts who have been involved in the legislation reform process. Your feedback has genuinely been vital in developing the pathway to, and the nuance of, this legislation. Legislation reform is a concrete step towards improving how we deliver services, in response to the Royal Commission.
Yours sincerely
Alison Frame
Secretary
Department of Veterans’ Affairs
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