Additional Disablement Amount (ADA) (from 1 July 2026)
From 1 July 2026, the VETS Act introduces a new payment called the Additional Disablement Amount (ADA) under the MRCA.
This change is part of a broader effort to simplify the system and make support more consistent across all veterans. It also ensures that veterans with higher levels of impairment continue to be supported as they age.
What is the Additional Disablement Amount (ADA)?
ADA is a new, tax‑free payment designed to support veterans who:
- Are at or above age pension age
- Have a high level of service‑related impairment
It is similar to the previous Extreme Disablement Adjustment (EDA) under the VEA, acting as a safety net for older veterans whose conditions significantly affect their daily life.
Importantly, ADA is not treated as income for income support purposes.
Who is it for?
ADA is generally aimed at veterans who:
- Have reached age pension age
- Have a high impairment level (70+ points with a lifestyle impact)
- Are no longer receiving incapacity payments or SRDP
- Are not already receiving certain higher‑rate VEA payments (like TPI or EDA)
👉 In simple terms:It supports older veterans with significant impairment who may no longer receive other major compensation payments.
What makes ADA simpler
One important feature is that:
- There is no additional “threshold test” required for ADA eligibility
This makes it easier to access compared to some other benefits.
How is ADA calculated?
ADA works alongside other payments, not on top of them.
The amount can be reduced (offset) by things like:
- Disability Compensation Payments (DCP)
- Permanent Impairment (PI) payments
- Commonwealth superannuation (partially offset)
👉 This means the final amount depends on your overall circumstances.
Additional benefits
If a veteran qualifies for ADA, they may also receive:
- A Gold Card (EDA‑style)
- Access to education support for dependants
- Compensation support for dependants following death, regardless of cause
These benefits help provide broader family support and long‑term security.
What has not changed
- Existing payments under VEA and DRCA are protected and continue unchanged
- ADA is an additional option, not a replacement
- The goal remains to provide ongoing support where it is most needed
What this means overall
These changes are designed to:
- Support veterans as they age with service‑related conditions
- Provide a clear, consistent safety net
- Simplify access to benefits under one system
Frequently Asked Questions
What is ADA in simple terms?
It is a tax‑free support payment for older veterans with high levels of impairment.
Do I need to apply for ADA?
Eligibility depends on your circumstances under MRCA. In some cases, it may follow from updated assessments or new claims.
Can I receive ADA and other payments?
ADA can be reduced by other payments, so it works alongside them rather than being added on top.
Is ADA taxable or counted as income?
No. It is tax‑free and not treated as income for income support purposes.
Is ADA the same as EDA?
It is similar in purpose, but sits under the MRCA and is designed to provide a consistent approach for all veterans.
Who benefits most from ADA?
Veterans at age pension age with significant, long‑term impairment, particularly those no longer receiving incapacity payments.
In simple terms
Nothing is being taken away.
Instead:
ADA provides a clear, ongoing safety net for older veterans with high levels of impairment, ensuring continued support under a simpler and more consistent system.