Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020

Administered by Department of Veterans' Affairs

Legislation au F2020L00296 Regulations In force Legislative Instrument

Legislation content

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020

made under the

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004

Compilation No. 2

Compilation date: 1 July 2026

Includes amendments: F2026L00821

About this compilation

This compilation

This is a compilation of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020 that shows the text of the law as amended and in force on 1 July 2026 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).

Application, saving and transitional provisions

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Presentational changes

The Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.

Selfrepealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

 

 

 

Contents

Part 1—Preliminary

1 Name

3 Authority

5 Definitions

Part 2—Matters arising out of the enactment of the MRCA

6 Paragraph 24(3)(b) of the Act—method of converting lump sum amounts under sections 24, 25 and 27 of DRCA into weekly amounts

7 Weekly amount to be indexed

7A Subsection 122(2) of the Act—method of converting lump sum amounts under sections 24, 25 and 27 of DRCA into weekly amounts

7B Weekly amount to be indexed

Part 3—Matters arising out of the enactment of Schedule 3 to the Simplification Act

8 Continued effect of certain instruments

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

 

Part 1—Preliminary

 

1  Name

  This instrument is the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020.

3  Authority

  This instrument is made under the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.

5  Definitions

Note 1: A number of expressions used in this instrument are defined in the Act, including the following:

(a) DRCA;

(b) MRCA;

(c) Simplification Act.

Note 2: Expressions used in this instrument that are defined in the MRCA have the same meanings as they have in that Act. For example:

(a) compensation;

(b) Special Rate Disability Pension.

  In this instrument:

Act means the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004.

Part 2—Matters arising out of the enactment of the MRCA

 

6  Paragraph 24(3)(b) of the Act—method of converting lump sum amounts under sections 24, 25 and 27 of DRCA into weekly amounts

 (1) For the purposes of paragraph 24(3)(b) of the Act, this section sets out the method of converting into a weekly amount the sum of any previous payments of a lump sum to a person under sections 24, 25 and 27 of the DRCA.

Note: Subsection 14(2) of the Act provides that the maximum weekly amount of a Special Rate Disability Pension that could be payable to a person must be reduced by the sum of any previous payments of a lump sum to the person under section 24, 25 or 27 of the DRCA, converted to a weekly amount in accordance with regulations made for the purposes of paragraph 24(3)(b) of the Act.

 (2) For the purposes of subsection (1), and subject to section 7, the method is:

where:

aged based number means the number that is advised by the Australian Government Actuary by reference to the age of the person on the day on which the lump sum amount was paid to the person under section 24, 25 or 27 of the DRCA, and the gender of the person.

current lump sum amount means the amount worked out in accordance with subsection (3).

 (3) The current lump sum amount means the amount worked out using the following formula:

where:

maximum amount means the maximum amount specified in subsection 24(9) of the DRCA, as indexed in accordance with section 13 of that Act.

previous lump sum amount means the sum of any amounts previously:

 (a) assessed as payable to the person under sections 24, 25 and 27 of the DRCA; and

 (b) paid as a lump sum or lump sums.

relevant financial year means the financial year in which an amount of compensation was paid to the person under section 24, 25 or 27 of the DRCA.

7  Weekly amount to be indexed

 (1) For the purposes of subsection 14(2) and paragraph 24(3)(b) of the Act, the weekly amount worked out under section 6 of this instrument is the weekly amount by which the maximum weekly amount of a Special Rate Disability Pension (SRDP) must be reduced in the first financial year in which the SRDP is payable.

Note: Section 203 of the MRCA provides the day from which an SRDP is payable.

 (2) In the second and subsequent financial years in which the SRDP is payable, the indexation provisions of section 404 of the MRCA apply to the weekly amount worked out under section 6 of this instrument as if a reference to dollar amount in section 404 of the MRCA were a reference to that weekly amount.

7A  Subsection 122(2) of the Act—method of converting lump sum amounts under sections 24, 25 and 27 of DRCA into weekly amounts

 (1) This section is made for the purposes of subsection 122(2) of the Act and provides, for the purpose of subsection 14A(2) of the Act, a method of converting into a weekly amount the sum of any previous payments of a lump sum to a person under section 24, 25 or 27 of the DRCA.

Note: Subsection 14A(2) of the Act provides that the maximum weekly amount of Additional Disablement Amount that could be payable to a person must be reduced by the sum of any previous payments of a lump sum to the person under section 24, 25 or 27 of the DRCA, converted to a weekly amount in accordance with regulations made for the purposes of subsection 122(2) of the Act.

 (2) For the purposes of subsection (1) of this section, and subject to section 7B of this instrument, the method is:

where:

aged based number means the number that is advised by the Australian Government Actuary by reference to the age of the person on the day on which the lump sum amount was paid to the person under section 24, 25 or 27 of the DRCA, and the gender of the person.

current lump sum amount means the amount worked out in accordance with subsection (3).

 (3) The current lump sum amount means the amount worked out using the following formula:

where:

maximum amount means the maximum amount specified in subsection 24(9) of the DRCA, as indexed in accordance with section 13 of that Act.

previous lump sum amount means the sum of any amounts previously:

 (a) assessed as payable to the person under sections 24, 25 and 27 of the DRCA; and

 (b) paid as a lump sum or lump sums.

relevant financial year means the financial year in which an amount of compensation was paid to the person under section 24, 25 or 27 of the DRCA.

7B  Weekly amount to be indexed

 (1) For the purposes of subsections 14A(2) and 122(2) of the Act, the weekly amount worked out under section 7A of this instrument is the weekly amount by which the maximum weekly amount of Additional Disablement Amount must be reduced in the first financial year in which the Additional Disablement Amount is payable.

 (2) In the second and subsequent financial years in which the Additional Disablement Amount is payable, the indexation provisions of section 404 of the MRCA apply to the weekly amount worked out under section 7A of this instrument as if a reference to dollar amount in section 404 of the MRCA were a reference to that weekly amount.

Part 3—Matters arising out of the enactment of Schedule 3 to the Simplification Act

 

8  Continued effect of certain instruments

 (1) If:

 (a) before the review pathway commencement day, an instrument was made under, or for the purposes of, subsection 170B(1) of the old VEA; and

 (b) immediately before the review pathway commencement day, the instrument is in force;

the instrument continues to have effect, on and after the review pathway commencement day, as if it had been made under subsection 353P(1) of the MRCA.

 (2) In this section:

old VEA has the same meaning as in section 25 of the Act.

review pathway commencement day has the same meaning as in section 25 of the Act.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

 

Endnote 2—Abbreviation key

 

ad = added or inserted

orig = original

am = amended

p = page(s)

amdt = amendment

para = paragraph(s)/subparagraph(s)

C[x] = Compilation No. x

/subsubparagraph(s)

ch = Chapter(s)

pres = present

cl = clause(s)

prev = previous

cont. = continued

(prev…) = previously

def = definition(s)

pt = Part(s)

Dict = Dictionary

r = regulation(s)/Court rule(s)

disallowed = disallowed by Parliament

reloc = relocated

div = Division(s)

renum = renumbered

ed = editorial change

rep = repealed

exp = expires/expired or ceases/ceased to have

rs = repealed and substituted

effect

s = section(s)/subsection(s)

gaz = gazette

/rule(s)/subrule(s)/order(s)/suborder(s)

LA = Legislation Act 2003

sch = Schedule(s)

LIA = Legislative Instruments Act 2003

SLI = Select Legislative Instrument

(md) = misdescribed amendment can be given

SR = Statutory Rules

effect

sub ch = SubChapter(s)

(md not incorp) = misdescribed amendment

sub div = Subdivision(s)

cannot be given effect

sub pt = Subpart(s)

mod = modified/modification

underlining = whole or part not

No. = Number(s)

commenced or to be commenced

Ord = Ordinance

 

 

Endnote 3—Legislation history

 

Name

Registration

Commencement

Application, saving and transitional provisions

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020

24 Mar 2020 (F2020L00296)

25 Mar 2020 (s 2(1) item 1)

 

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Amendment (Review Pathway) Regulations 2025

26 Mar 2025 (F2025L00427)

21 Apr 2025 (s 2(1) item 1)

Veterans’ Entitlements, Treatment and Support Legislation Amendment (Simplification and Harmonisation) Regulations 2026

25 June 2026 (F2026L00821)

sch 1 (items 14): 1 July 2026 (s 2(1) item 1)

 

Endnote 4—Amendment history

 

Provision affected

How affected

Part 1

 

Part 1 heading.............

ad F2025L00427

s 2.....................

rep LA s 48D

s 4.....................

rep LA s 48C

s 5.....................

ad F2025L00427

Part 2

 

Part 2 heading.............

ad F2025L00427

s 6.....................

am F2026L00821

s 7A....................

ad F2026L00821

s 7B....................

ad F2026L00821

Part 3

 

Part 3...................

ad F2025L00427

s 8.....................

ad F2025L00427

Schedule 1................

rep LA s 48C

 

 

Overview

The Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020 were enacted under the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004. This Act was introduced to address the need for transitional and consequential provisions in light of the changes brought about by the Military Rehabilitation and Compensation Act 2004 (MRCA). The Regulations were created to provide detailed rules and methodologies to ensure a smooth transition from the previous Defence Rehabilitation and Compensation Act 1900 (DRCA) to the new legislative framework. The objective of these Regulations is to facilitate the conversion of lump sum payments under the DRCA into weekly amounts and to ensure the continued effect of certain instruments made under the old Veterans' Entitlements Act 1986. The Regulations were made by the Parliament of Australia and include provisions for the indexation of weekly amounts to keep pace with inflation.

Scope and Application

The Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020 is a legislative instrument made under the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004. This regulation applies to the conversion of lump sum amounts under sections 24, 25 and 27 of the Defence Rehabilitation and Compensation Act (DRCA) into weekly amounts, as well as the indexation of these amounts. Specifically, it outlines the method of converting these lump sums into weekly amounts and sets the indexation rules for subsequent financial years. The regulation also addresses the continued effect of certain instruments made under the old Veterans' Entitlements Act 1986 (VEA), ensuring their ongoing validity after the commencement of the review pathway under the new Military Rehabilitation and Compensation Act 2004 (MRCA). The regulations extend the application of the Act through subordinate instruments, providing detailed rules and methodologies to facilitate the transition and consequential adjustments necessitated by the enactment of the MRCA and the Simplification Act. The regulation applies nationally across Australia, and there are no stated exclusions or exemptions within the text provided.

Key Provisions

The Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020 establish the framework for managing the effects of the Military Rehabilitation and Compensation Act 2004 (MRCA) and the Veterans’ Entitlements, Treatment and Support Legislation Amendment (Simplification and Harmonisation) Act 2026. The regulations address transitional provisions and the continued effect of certain instruments from previous laws, ensuring a seamless transition to the new legal regime. Section 6 outlines the method for converting lump sum payments under the Defence Rehabilitation and Compensation Act 1900 (DRCA) into weekly amounts, a process necessary for calculating pension reductions. This conversion involves using an age-based number and a formula that includes the maximum amount specified in the DRCA, as indexed. Section 7 mandates the indexing of the weekly amount in subsequent financial years, aligning with the indexation provisions of the MRCA. These regulations impose specific obligations on parties, particularly in the conversion and indexing of pension amounts. They require the use of precise calculations and formulas to determine the impact of previous lump sum payments on current pension entitlements. This includes the necessity for entities to adhere to the age-based numbers provided by the Australian Government Actuary and to apply the specified indexation rules to ensure accurate and fair adjustments to pension amounts. Additionally, the regulations demand that any instruments made under previous acts continue to have effect, subject to the new provisions of the MRCA, ensuring continuity in the treatment of entitlements. Failure to comply with the requirements of these regulations can result in significant consequences. Although the regulations do not explicitly outline specific penalties for non-compliance, breaches of related acts or regulations can lead to enforcement actions by relevant authorities. Penalties for such breaches can include fines and other administrative sanctions. For instance, non-compliance with the Defence Rehabilitation and Compensation Act or the Military Rehabilitation and Compensation Act can lead to penalties under those acts, including fines that can vary based on the severity and nature of the breach. Additionally, civil or criminal liability may arise in cases of intentional or reckless disregard of the regulatory requirements, depending on the specific provisions of the overarching acts.

Legal classification tags

Area of Law
Military Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Repeal & Amendment
Transitional Provisions
Reporting & Disclosure Obligations
Indexation Provisions

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.