EXPLANATORY STATEMENT
Military Rehabilitation and Compensation (Special Assistance—Crisis Payments) Instrument 2026
EMPOWERING PROVISION
The Military Rehabilitation and Compensation Commission (the Commission) makes this instrument under section 424 of the Military Rehabilitation and Compensation Act 2004 (the Act).
PURPOSE
This Military Rehabilitation and Compensation (Special Assistance—Crisis Payments) Instrument 2026 (the Instrument) provides eligible veterans with special assistance in the form of a crisis payment. The crisis payment is a one-off payment intended to provide immediate financial assistance to a veteran facing acute financial hardship following an involuntary departure of their home in certain circumstances, including:
- fleeing domestic violence, or
- following a lawful period in custody or psychiatric confinement.
The payment is designed to assist eligible veterans to re-establish their existing residence or establish a new residence, after involuntary departure of their residence has occurred. The crisis payment is a non-taxable, 'one-off' non-refundable payment.
BACKGROUND
The special assistance under the Instrument was previously provided under the Veterans’ Entitlements (Special Assistance – Crisis Payments) Instrument 2025 (the VEA Instrument) authorised under section 106 of the Veterans’ Entitlements Act 1986 (the VEA) to eligible veterans receiving a pension entitlement from the Department of Veterans’ Affairs (DVA), including a Service Pension, an Invalidity Service Pension, a Partner Service Pension or an Income Support Supplement.
By way of section 12AA of the VEA, section 106 of the VEA closes to new claims and applications for special assistance on 1 July 2026, following the commencement of the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025 (the VETS Act). The VETS Act also consolidates and simplifies section 424 of the Act, which is the enabling provision under which this instrument is made.
It was intended that special assistance under the VEA Instrument would be continued, despite the consolidation of the veterans’ portfolio legislation under one Act, to ensure a continuation, where possible, of the policy enabled by the VEA Instrument under the Act. A new standalone instrument under the Act is therefore required to give effect to this.
The policy enabled by the Instrument replicates the VEA Instrument, including the eligibility criteria, application requirements and the amount of the special assistance. The special assistance may be provided to a veteran receiving a pension entitlement under Part III of the VEA. Part III of the VEA continues and is not affected by the VETS Act. In making a standalone instrument under section 424 of the Act, there has been no expansion of the special assistance to other veterans, including to veterans receiving compensation under the Act.
OVERVIEW
Section 424 of the Act provides that the Commission may, in the circumstances and subject to the conditions prescribed in a legislative instrument, grant assistance or benefits of the kind, and the amount or value, that it considers reasonable.
The Instrument provides special assistance by way of a crisis payment to a veteran receiving a pension entitlement under Part III of the VEA, who resides in Australia and who is suffering acute financial hardship. The following must also apply:
- the veteran, after spending at least 14 days in lawful custody, is released, and
- they contact the DVA, or claim the crisis payment, within 7 days after being released, or
- has left, or cannot return to, their home because of an extreme circumstance, and
- the extreme circumstance makes it unreasonable to expect they remain in, or return to, the home, and
- they have established, or intend to establish, a new home, or
- have been subjected to domestic or family violence by a family member of the veteran, and
- at the time of the violence, they were living with that family member, and
- the family member leaves, or is removed from, the veteran’s home because of the violence, and
- the veteran remains living in their home after the family member leaves or is removed.
A veteran is not eligible for a crisis payment if:
- the Commission is satisfied the circumstances described in the instrument were brought about to obtain a crisis payment, or
- the veteran is eligible for a disaster relief payment for an extreme circumstance.
The amount of special assistance is worked out in accordance with Part 5 of the Instrument.
EXPLANATION OF PROVISIONS
Section 1 states the name of the Instrument.
Section 2 provides that the Instrument commences on 1 July 2026.
Section 3 sets out the authority for the Military Rehabilitation and Compensation Commission making the Instrument, namely section 424 of the Act.
Section 4 provides the definitions. The definition of “liquid assets” was required to be updated because the definition of qualifying eligible termination payment no longer exists in the Income Tax Assessment Act 1936. The instrument is updated to reflect the updated definition of employment termination payment and ensures that payment is not counted in a person’s liquid assets.
Section 5 provides the meaning of contacted the Department.
Section 6 provides eligibility for crisis payment if released from gaol or psychiatric confinement.
Section 7 provides eligibility for crisis payment if extreme circumstances force departure from home.
Section 8 provides eligibility for crisis payment if a person remains in home after removal of a family member for abusive behaviour.
Section 9 provides when a crisis payment is not payable in addition to disaster relief payment.
Section 10 sets out the requirements for how to claim, including the provision of information or documents to assist with establishing eligibility for the crisis payment. Where the application and accompanying documents constitute personal information, all information is collected, used, and disclosed in accordance with the Privacy Act 1988 as outlined in the privacy statement provided to the veteran when they make an application for the crisis payment.
Section 11 sets out the requirements for making of a claim.
Section 12 provides the claimant must be in Australia.
Section 13 sets out the requirements for withdrawing a claim.
Section 14 sets out the process for investigation of a claim.
Section 15 provides how the Commission is to decide a claim.
Section 16 provides that the Commission may grant a claim.
Section 17 sets out how the claimant must be notified of the decision.
Section 18 provides the date of effect of a decision.
Section 19 provides the formula for working out the amount of crisis payment.
Section 20 addresses garnishees or similar orders.
Section 21 provides that the crisis payment is not payable to a person whilst in lawful custody.
Section 22 provides a person’s right to request a review of a decision.
Section 23 sets out the Commission’s duty if a request for review is made.
Section 24 provides that a person must receive a written notice of decision when a request for review is submitted.
Section 25 provides that a person whose interests are affected by a decision can apply for review of the decision by the Administrative Review Tribunal.
Consultation
In respect of the VETS Act, the Department of Veterans’ Affairs undertook extensive consultation with stakeholders, including three rounds of public consultation on the simplification and harmonisation of veterans’ portfolio legislation. The outcome of this process produced strong support from veterans, ex-service organisations and other stakeholders and informed the pathway to establish the Act as the sole, ongoing scheme for veterans’ compensation and rehabilitation from 1 July 2026. This included that special assistance be provided for under the Act from 1 July 2026.
By transferring the ability to grant special assistance to the Act, the Commission can continue to grant reasonable benefits to a veteran, despite the closure of new claims and applications for special assistance under the VEA from 1 July 2026 because of the VETS Act. This supports a harmonised and integrated system for the provision of special assistance under a single, ongoing Act into the future.
Further consultation specific to this Instrument was deemed unnecessary, because the policy enabled by the Instrument replicates the VEA Instrument, and ensures a continuation of the same benefit for otherwise eligible veterans, but for the commencement of the VETS Act on 1 July 2026.
Collection, use and disclosure of personal information
There are formal requirements for applying which must be adhered to, as well as requirements for withdrawing an application. The application for a crisis payment must be investigated by the Secretary before it is submitted to the Commission for a decision. With the consent of participants, personal information is sought from applicants to facilitate a decision, via an application form, as to the eligibility of the applicant. Information required for assessing eligibility for the payment is collected using two different forms depending on why the payment is being sought: one for extreme circumstances such as severe financial hardship or domestic and family violence, and the other for prison/hospital release.
Paragraph 10(2)(c) and subsection 14(3) require the applicant to provide information that will aid in establishing their eligibility for the payment. Without this requirement, it is not possible to establish eligibility as required under sections 6, 7 and 8. The applicant is also able to submit further information in addition to the application form as they see fit – this allows for a level of flexibility that is appropriate for the sensitive and difficult circumstances surrounding an application. The provisions are considered necessary and appropriate because the decision maker requires this information to assess the eligibility of the applicant for the payment.
Personal information is collected, used and disclosed in accordance with the Privacy Act 1988.
Human rights implications
This instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment A.
Making the instrument
The instrument is made by the Military Rehabilitation and Compensation Commission.
Approved by
Military Rehabilitation and Compensation Commission
Rule-maker
Attachment A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Military Rehabilitation and Compensation (Special Assistance—Crisis Payments) Instrument 2026
This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (the recognised rights).
Overview of the Disallowable Legislative Instrument
The Military Rehabilitation and Compensation (Special Assistance—Crisis Payments) Instrument 2026 (the Instrument) is made by the Military Rehabilitation and Compensation Commission under section 424 of the Military Rehabilitation and Compensation Act 2004 (the Act).
The Instrument continues the policy enabled by the Veterans’ Entitlements (Special Assistance – Crisis Payments) Instrument 2025 (the VEA Instrument) by providing a one-off payment for eligible veterans facing acute financial hardship. The Instrument mirrors the VEA Instrument in similar terms and applies to applications made under the Act from 1 July 2026, following commencement of the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025 (the VETS Act).
The Instrument specifies the eligibility criteria, application requirements and payment of the special assistance. Where a veteran is dissatisfied with a decision in respect of the crisis payment, a review of decision is available to the applicant as provided for in the Instrument.
Human rights implications
The Instrument engages and promotes the following human rights:
- The right to social security under article 9 of the International Covenant on Economic Social and Cultural Rights.
- The right to privacy as contained in article 17 of the International Covenant on Economic, Social and Cultural Rights.
The right to social security
The right to social security requires that a system be established under domestic law, and that public authorities must take responsibility for the effective administration of the system. The social security scheme must provide a minimum essential level of benefits to all individuals and families that will enable them to acquire at least essential health care, basic shelter and housing, water, sanitation, foodstuffs, and the most basic forms of education.
The Instrument promotes the right to social security by allowing the Repatriation Commission to provide a once-off payment, providing immediate financial assistance to eligible people in limited circumstances who are experiencing acute financial hardship assistance following an involuntary departure of their home or following a period of lawful custody.
Right to privacy
The instrument limits the right to privacy by requiring that an application for crisis payment must be accompanied by authorisation from the veteran for the Repatriation Commission to seek relevant information from the applicant in order to assess the eligibility of the applicant for the payment.
Conclusion
This Legislative Instrument is compatible with human rights because it promotes the right to social security.
Military Rehabilitation and Compensation Commission
Rule-Maker