Liability – What You Need to Know
From 1 July 2026, the VETS Act simplifies how DVA decides whether a condition is related to military service (known as “liability”). The aim is to make the system easier, fairer, and more consistent for all veterans.
Going forward, all new compensation claims will be assessed under a single system—the MRCA. This replaces the previous overlap between VEA and DRCA and creates one set of rules for everyone.
What this means for you
If you already have accepted conditions under VEA or DRCA, nothing changes for those conditions. They are automatically recognised, and you do not need to go through the process of proving them again.
If you submit a new claim after 1 July 2026, it will be considered under the updated MRCA rules—even if your service occurred many years ago.
Overall, the system is being streamlined so claims are simpler to understand and easier to process.
A simpler path to having conditions accepted
The new system introduces a clearer pathway for deciding claims. Where possible, conditions will first be assessed under presumptive rules (which are faster). If that doesn’t apply, a new rule called “Medical Event on Duty” will be considered, followed by standard medical rules if needed.
This means there are more ways for a condition to be accepted, not fewer.
New: “Medical Event on Duty”
One of the most important changes is that some conditions can now be accepted simply because they happened while you were on duty.
For example, events such as heart attacks or strokes may be accepted if they occurred while you were performing ADF duties, even if they were not directly caused by your job.
This removes the need to prove complex medical connections in many cases and makes the process more straightforward.
Other important improvements
There are also several practical changes that make the system fairer:
- Injuries or complications from Defence-provided medical treatment may now be accepted, even if the original condition was not service-related
- Tobacco-related conditions can still be considered in some cases, particularly where smoking started or increased before 1998
- If medical guidelines change during a review, the most favourable version can be used to support your case
- New pathways exist for recognising service-related deaths, including those linked to on-duty events or treatment
What this means overall
These changes are designed to:
- Make claims faster and less complicated
- Provide more flexible pathways for acceptance
- Reduce the need for complex medical evidence
- Ensure fairness for veterans regardless of when they served
In simple terms
Nothing is being taken away.
Instead, from 1 July 2026, the system is becoming simpler, more consistent, and easier to navigate, with new options—like “medical events on duty”—making it easier for many conditions to be recognised as service‑related.