If you have an injury, disease, or condition that occurred during or after 1 July 2004, which is accepted as related to your ADF service, and:
it causes an impairment likely to continue indefinitely,
and the condition has stabilised,
then you may be eligible for a PI payment—covering both impairment and lifestyle impact.
Australian Veterans who reach the Permanent Impairment (PI) rating threshold of 80 Impairment Points under the Military Rehabilitation and Compensation Act (MRCA) are entitled to the maximum DVA payout available.
Here’s a detailed breakdown of the current entitlements: $580,834.95 Lump Sum* $108,567.57 Per Eligible Dependant* 29 Aug 2024.
You may qualify for an interim PI payment if:
your impairment is likely permanent,
it meets the MRCA’s minimum threshold,
but a final assessment can’t be made because the condition hasn’t stabilised yet.
Once stabilised, your payment may be reassessed for any additional compensation.
Generally, at least 10 impairment points are required.
Exceptions: 5 points are sufficient for hearing loss, loss of fingers/toes, or loss of taste/smell.
- All accepted conditions are combined to determine a total impairment rating (0–100 points).
A lifestyle rating (0–7) is also assessed.
These two are combined with your type of service (e.g., warlike or non‑warlike) to calculate your compensation via GARP M.
The higher the impairment and lifestyle impact, the greater the compensation.
Accordion Content
If you’re assessed at 80 or more impairment points and have no accepted VEA or DRCA conditions, you receive maximum compensation for your DVA Permanent Impairment (PI) payment.
If chosen as a lump sum, it’s adjusted for age.
If your impairment increases by at least 5 points, you can apply for a reassessment, which may result in additional Permanent Impairment compensation.
When you have been approved for a claim of Permanent Impairment (PI) it is very important to get advice from an experienced Licensed Financial Adviser. Each individuals circumstances vary and it is because of this, that each individual may well have a different answer. These DVA decisions have lifetime consequences, so it is important to get the right unbiased advice at the time of decision making.
Permanent Impairment Compensation entitlements under MRCA are tax free whether taken as a lump sum or pension, however this decision always needs advice and guidance from a Licenced Financial Adviser at the time to confirm against current legislation at the time of the offer.
Advisers who are listed on the ADF Financial Advice Referral Program have made a range of written declarations to the Department of Defence including that, in connection with the Program:
- They will at no times be under the direct or indirect influence of a financial product manufacturer; and
- The only means by which they will receive remuneration from the provision of financial advice to ADF members and their families is through the charging of genuine fees for service and will not charge or receive commissions, trailing commissions, asset-based fees for service, bonuses (of whatever description) and any other form of remuneration as defined by law or that could reasonably give rise to a conflict between the adviser’s interests and the interests of the adviser’s clients.
Compensation is based on multiplying the maximum weekly rate by a compensation factor (determined by impairment and lifestyle ratings). Different rates apply for warlike/non‑warlike versus peacetime service.
As of 1 July 2025, the maximum weekly rate is $431.84.
Example: 80 impairment points = full maximum compensation (factor 1.00).
Yes — fortnightly (periodic) payments, a lump sum, or a combination.
A lump sum is calculated using age-based conversion factors, with specific tables by age and gender.
DVA PI payments do not count as income for Service Pension or Income Support Supplement (ISS) purposes.
They are also not counted as income in most social security income tests, unless you’re under financial hardship rules.
Permanent Impairment (PI) claims are generally considered during a needs assessment once DVA accepts liability.
You can also request PI compensation in writing anytime.
Different compensation factor tables apply depending on your type of service:
Warlike/non-warlike service (or equivalent VEA conditions) uses one set of factors.
Peacetime service uses another, usually resulting in a slightly lower compensation factor.
Yes. As of 1 July 2025, here are the weekly compensation factors and dollar rates for warlike/non-warlike service:
| Impairment Points | Factor | Weekly Rate (from 1 Jul 2025) |
|---|---|---|
| 80 | 1.00 | $431.84 |
| 75 | 0.929 | $401.18 |
| 50 | 0.532 | $229.74 |
| 10 | 0.111 | $47.93 |
For peacetime service, the rates are lower—for instance, at 75 points the factor is 0.887, yielding $383.04 per week.
A lifestyle rating (0–7) reflects how your condition affects daily life (relationships, mobility, community, work, etc.). That rating is combined with your impairment points to determine the exact compensation factor from the GARP M tables.
Veterans choose how the lifestyle rating is determined:
Option 1: Self-assessment via a form.
Option 2: DVA uses the higher shaded rating consistent with your impairment.
Option 3: Complete a full questionnaire for a more thorough rating.
Option 4: No input—DVA assigns based on Impairment level
If you choose a lump sum instead of periodic payments, the weekly rate is multiplied by an age-based actuarial factor.
Use your age at your next birthday (not current age).
For example, a $330.12/week rate multiplied by the factor for a 34-year-old male (1,288.6) gives about $425,392.63.
Yes … you can appeal or request a review if you believe your impairment or lifestyle rating is incorrect.
The decision-maker will inform you of the appeal process and time limits when issuing the compensation decision.
In all decisions and determinations DVA related it is important to remember that your decisions will have lifetime implications and the legislation is complex.
It is very important that when you are faced with making a decision around your DVA entitlements, you seek advice from a Licensed Financial Adviser. This is why the DVA provides funds for this to occur and require it prior to many form lodgements.
We are a listed adviser to the ADF Financial Services Consumer Centre linked here.
We offer a complimentary and obligation-free 10 minute phone discussion to explore likely advice needs prior to committing to an initial appointment. Information discussed will be general advice only.