You may be able to receive an additional tax-free lump sum for each eligible young person who is dependent on you for economic support if you have been: assessed at 80 or more impairment points, and paid, or entitled to be paid, PI compensation. This additional amount is payable for each eligible young person who … Read more

Yes, but only in limited circumstances.  If DVA Permanent Impairment (PI) compensation (non-economic loss) becomes payable to you, you will receive a letter asking for you to advise DVA in writing if you intend to take action or proceedings against the Commonwealth for damages for that non-economic loss. The amount payable under common law in … Read more

If you are entitled to receive an amount of DVA Permanent Impairment (PI) compensation, the weekly periodical payment will be paid to you on a fortnightly basis. You can then choose to convert this amount to a lump sum, or a combination of periodic payment and lump sum depending on the percentage of impairment assessed … Read more

You will have six months from the date the DVA Permanent Impairment (PI) offer was made to you to convert any periodic payment into a lump sum. DVA can extend this time limit if there are special circumstances. Until a choice is made, periodic payments will continue to be made on a fortnightly basis. These … Read more

It is not mandatory for you to seek financial before choosing to convert a periodic PI payment into a lump sum amount. However, the Department of Veteran’s Affairs (DVA) strongly recommend that you seek advice from suitably qualified people. This is important if you do not have experience in managing the amount of money being … Read more

If you are awarded DVA Permanent Impairment (PI) compensation on the basis of 50 or more impairment points, you can be reimbursed for advice from a suitably qualified financial adviser. The payment is to help you get advice on which payment option best suits your individual circumstances, i.e. ongoing periodic payment or lump sum. The … Read more

The only MRCA payment affected by your choice is the bereavement payment made to a wholly dependent partner or an eligible young person on your death.  The bereavement payment is equal to twelve times the weekly rate of the DVA Permanent Impairment (PI) periodic payments a member was receiving or entitled to receive. Lump sum … Read more

DVA Permanent Impairment (PI) payments, whether taken as a lump sum or periodic payments, are tax-free.  For further information, please contact the Australian Taxation Office (ATO). Last updated:  20 August 2025

Normally your entitlement for DVA Permanent Impairment (PI) payments will be considered during the needs assessments carried out after DVA accepts liability for your conditions (that is, after your conditions are determined to be causally related to your MRCA service), or at other times as your circumstances change. Last updated:  20 August 2025