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

EXPLANATORY STATEMENT

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

EMPOWERING PROVISION

The Veterans’ Entitlements, Treatment and Support Legislation Amendment (Simplification and Harmonisation) Regulations 2026 (Regulations) are authorised by:

1.    Section 24 of the Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (CTPA)
2.    Section 440 of the Military Rehabilitation and Compensation Act 2004 (MRCA)
3.    Section 9 of the Papua New Guinea (Members of the Forces Benefits) Act 1957 (PNGA)
4.    Section 216 of the Veterans’ Entitlements Act 1986 (VEA)

PURPOSE

The purpose of the Regulations is to amend the:

1.    Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Regulations 2020 (CTP Regulations)
2.    Military Rehabilitation and Compensation Regulations 2020 (MRC Regulations)
3.    Papua New Guinea (Members of the Forces Benefits) Regulation 2016 (PNG Regulations)
4.    Veterans’ Entitlements Regulations 1986 (VE Regulations)

to implement reforms to the veterans’ rehabilitation and compensation entitlements arising out of the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025 (VETS Act).

OVERVIEW

CTP Regulations

Subsection 24(1) of the CTPA provides that the Governor-General may make regulations prescribing matters of a transitional nature arising out of the enactment of the MRCA or the CTPA. The CTP Regulations deal with the offsetting of certain lump sum compensation payments against the weekly Special Rate Disability Pension, by describing the method of converting lump sums to a weekly amount. The CTP Regulations also provide for the indexation of the weekly amount that is determined by that conversion.

From 1 July 2026 following commencement of the VETS Act, a new Additional Disablement Amount (ADA) is introduced into the MRCA. New subsection 14A(2) of the CTPA provides that the maximum weekly amount of ADA must be reduced by the sum of previous payments of a lump sum paid under sections 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 CTPA.

Regulations are inserted into the CTP Regulations to provide a method to convert DRCA lump sums to a weekly amount, for the purpose of offsetting the new ADA, and the indexation of the weekly amount that is determined by that conversion. For consistency in methodology, minor amendments are made to the existing regulations relating to the method of converting lump sum amounts for the purposes of paragraph 24(3)(b) of the CTPA.

MRC Regulations

Section 440 of the MRCA provides that the Governor-General may make regulations prescribing matters required or permitted by the MRCA to be prescribed or that are necessary or convenient to be prescribed, for carrying out or giving effect to the MRCA.

The MRC Regulations prescribe a range of matters including, relevantly, employment support for former Australian Defence Force (ADF) members, the application of VE Regulations to reviews by the Veterans’ Review Board (the Board) for original determinations made under the MRCA, and the provision of information by the Repatriation Commission for specified purposes.

From 1 July 2026, following the commencement of applicable parts of the VETS Act, all rehabilitation programs are transitioned to the MRCA. The Regulations amend the MRC Regulations by removing obsolete references to rehabilitation programs provided under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA) and the Veterans Vocational Rehabilitation Scheme.

The VETS Act also inserts new provisions in the MRCA relating to the Board and the Repatriation Commission. To accommodate these changes, the Regulations repeal various regulations in the VE Regulations and remakes them in the MRC Regulations. Unnecessary references to the application of the VE Regulations have been removed.

The VETS Act also amends subsection 409(2) of the MRCA to allow the Repatriation Commission to provide information to the Department of Defence for a purpose of the Department of Defence, and to the Australian Defence Force for a purpose of the Australian Defence Force. The regulations remove unnecessary purposes for which the Repatriation Commission may provide information, because the amended provisions provide the necessary authority to give this information.

PNG Regulations

Section 9 of the PNGA provides that the Governor‑General may make regulations, not inconsistent with the PNGA, prescribing all matters which are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the PNGA.

The PNG Regulations establish a compensation and treatment scheme for indigenous inhabitants of Papua New Guinea who served in the ADF during the Second World War. The PNG Regulations provide disability pension and treatment benefits to members for war-caused conditions and other benefits, and benefits to a member’s dependants.

The Regulations amend the PNG Regulations to reflect the transfer of the decoration allowance from the VEA to the MRCA upon the commencement of the VETS Act on 1 July 2026. The Regulations also make minor amendments to the existing regulations to reflect obsolete references to the Administrative Appeals Tribunal following the commencement of the Administrative Review Tribunal Act 2024.

VE Regulations

Section 216 of the VEA provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which are by the Act required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The Regulations repeal various regulations because they are being moved into the MRC Regulations following the commencement of the VETS Act or are no longer required. The regulations also make minor editorial updates to refer to the correct paragraph numbers.

SUNSETTING

These Regulations contain measures that will remain in force within a principal instrument that is exempt from sunsetting, being the amendments to the PNG Regulations and the VE Regulations set out Schedule 1.

The PNG Regulations are prescribed in item 45A of the table in section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015 and are not subject to sunsetting pursuant to paragraph 54(2)(b) of the Legislation Act 2003. The PNG Regulations apply only to a specific and limited number of former members of the forces and dependents that meet the eligibility criteria under the Papua New Guinea (Members of the Forces Benefits) Act 1957. This class of beneficiaries will continue to diminish with time and as such, the scheme established by the Act and its subordinate instruments apply only to a “closed class”. The PNG Regulations need to remain in force for as long as affected persons remain eligible for treatment and it is therefore appropriate that they are exempt from sunsetting.

The VE Regulations are prescribed in item 65 of the table in section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015 and are not subject to sunsetting pursuant to paragraph 54(2)(b) of the Legislation Act 2003. From 1 July 2026, the VEA closes to new compensation claims with all claims for compensation being determined under the MRCA.  Compensation payments and entitlements determined before 1 July 2026 will be protected by grandparenting and will continue under the VEA. Accordingly, the VE Regulations applies only to a “closed class” and for limited purposes. Therefore, the VE Regulations will need to remain in force while the affected veterans and other recipients continue to receive support for their VEA compensable conditions, including for treatment. It is therefore appropriate that they are exempt from sunsetting.

CONSULTATION

The Department of Veterans’ Affairs undertook extensive consultation with stakeholders in the development of the VETS Act, including three rounds of public consultation on the simplification and harmonisation of veterans’ portfolio legislation. The outcome of this process revealed strong support from veterans and other stakeholders and informed the pathway to establish an improved MRCA as the sole, ongoing scheme for veterans’ compensation and rehabilitation from 1 July 2026.

Consequential changes to the MRC Regulations, CTP Regulations, PNG Regulations and VE Regulations are required to reflect the changes enabled by the VETS Act and ensure a continuation of the policy underlying existing regulations.

DOCUMENTS INCORPORATED-BY-REFERENCE

The Regulations incorporate Australian Government Actuary advice provided to DVA from time to time into the MRC Regulations for the purpose of age adjusting lump sum payments under subsections 6(2) and 7A of the CTPA (as amended).  

The advice can be accessed on the DVA’s webpage in the Consolidated Library of Information and Knowledge (CLIK): https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/actuary-tables-used-age-adjusting-lump-sum-payments.

The Regulations incorporate the Administrative Review Tribunal Rules 2024 into the MRC Regulations for the purpose of prescribing the fees for witnesses summoned to appear before the Board. The rules are available on the Federal Register of Legislation website.

HUMAN RIGHTS STATEMENT

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

The Regulations engage and promote the following human rights:

• The right to social security, under article 9 of the International Convention on Economic, Social and Cultural Rights (ICESCR).
• The right to a fair hearing, under article 14(1) of the International Covenant on Civil and Political Rights (ICCPR).
• The right to work, under article 6 of the ICESCR.

The right to social security

The provisions included in the regulations engage the right to social security under article 9 of the ICESCR, which states that “States Parties … recognise the right of everyone to social security, including social insurance”. General Comment 19 by the Committee on Economic, Social and Cultural Rights sets out the essential elements of the right to social security, including “States parties should … ensure the protection of workers who are injured in the course of employment or other productive work”.

The amendments to the CTP Regulations promote the right to social security as they promote access to social security by providing for methods to convert of lump sums of compensation into weekly amounts to determine the amount of compensation payable. The amendments to the PNG Regulations also promote the right to social security by ensuring a continuation of existing benefits following the commencement of the VETS Act.

The right to a fair hearing

Article 14(1) of the ICCPR relevantly provides that “all persons shall be equal before the courts and tribunals. In the determination of […] rights and obligations in a suit at law, everyone shall be entitled to a fair and public hearing by a competent, independent and impartial tribunal established by law”.

Following the commencement of the VETS Act, amendments to the VE Regulations and the MRC Regulations are required to ensure that the Board continues to operate efficiently and effectively as a merits review body. The provisions promote access to a fair hearing by facilitating the reimbursement of various expenses relating to the review process, consistent with the aims stated in article 14(1) of the ICCPR.

The right to work

Article 6 of the ICESCR provides that the right to work includes the right of everyone to the opportunity to gain a living by work which a person freely chooses or accepts.  This includes ensuring that technical and vocational guidance and training programs, policies and techniques are available to achieve steady economic, social and cultural development and full and productive employment under conditions safeguarding fundamental political and economic freedoms to the individual.

The amendments to the MRC Regulations have no impact on a person’s access to assistance to transition into civilian work under Division 3, such as resume writing, assistance translating ADF skills, job interview coaching and mentoring. These are technical amendments to reflect the transition of rehabilitation programs to the MRCA following the commencement of the VETS Act. The provisions continue to support and engage veterans’ right to work.  

Conclusion

The Regulations are compatible with human rights and are consistent with the right to social security, the right to a fair hearing and the right to work. To the extent that the Regulations limit any human rights, those limitations are reasonable, necessary and proportionate.

EXPLANATION OF PROVISIONS

Section 1 states the name of the Regulations.

Section 2 provides that the instrument commences on 1 July 2026.

Section 3 sets out the authority for the Governor-General to make the Regulations under the CTPA, MRCA, PNGA and the VEA.

Section 4 provides that the Regulations specified in a schedule to the Regulations are amended or repealed as outlined by the terms of the relevant schedule. Any other item in a schedule has effect according to its terms.

Schedule 1 – Amendments

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

Item 1 repeals and substitutes the title of regulation 6.

Item 2 repeals and substitutes the note in subregulation 6(1) to outline the effect of subsection 14(2) of the CTPA to assist the reader understand the interaction between that Act and the regulation.

Item 3 repeals the definition (including the note) of aged based number and substitutes the definition of aged based number to be the number advised by the Australian Government Actuary by reference to the age of the person on the day the lump sum amount for section 24, 25 or 27 of the DRCA was paid to the person, and the gender of the person.

Item 4 adds regulation 7A and 7B. Regulation 7A provides the method of converting lump sum amounts under sections 24, 25 and 27 of the DRCA into weekly amounts for the purposes of offsetting DRCA payments against the ADA under section 14A of the CTPA. Regulation 7B deals with the indexation of the weekly amount in regulation 7A, being the weekly amount by which the maximum weekly amount of ADA must be reduced in the first financial year in which the ADA is payable. Subsequent financial years of indexation are dealt with in subregulation 7B(2), being the application of the indexation provisions in section 404 of the MRCA. This method replicates the method used for the purposes of converting DRCA lump sum amounts under regulation 6 for Special Rate Disability Pension purposes.

Military Rehabilitation and Compensation Regulations 2020

Item 5 repeals and substitutes paragraph 18C(d) with a new paragraph specifying that to be granted assistance to transition into civilian work, the person is not undertaking an approved rehabilitation program. This removes redundant references to rehabilitation programs provided under the DRCA and the Veterans Vocational Rehabilitation Scheme under the VEA, as on 1 July 2026 all rehabilitation programs will be transitioned to the MRCA.

Item 6 repeals and substitutes paragraph 18F(3)(b) to remove the reference to subregulation (4). This is a technical amendment due to Item 7 (below) that does not impact the function of 18F, which puts limits on the provision of assistance for employment support for former ADF members in Part 3A of the MRC Regulations.

Item 7 repeals subregulation 18F(4) to remove redundant references to rehabilitation programs provided under the DRCA and the Veterans Vocational Rehabilitation Scheme under the VEA. With rehabilitation programs being provided under the MRCA from 1 July 2026, subregulation 18F(4) is no longer needed.

Item 8 repeals Part 4, which concerns the application of certain provisions of the VE Regulations on reviews by the Board of original determinations. This part is no longer needed as the Board’s review provisions have been moved from the VEA to the MRCA by the VETS Act.

Item 9 inserts a new Part 5A titled ‘Expenses and allowances etc.’. This new part will re-enact the substance of regulations from the VE Regulations that were applied to the MRC Regulations by Part 4 (see Item 8).

Division 1 – Veterans’ Review Board

Regulation 21A deals with the procedure for the form of a summons for a person to give evidence or produce documents. Paragraph (a) provides that a summons may be served in accordance with Form 1 in Schedule 1 (see Item 14). Paragraph (b) provides that the summons may be served on the person by delivering a copy to the person personally and showing the person the original at the same time.

This regulation is substantively the same as regulation 10 of the VE Regulations, which is being repealed by Item 26.

Regulation 21B provides that the prescribed amount for the purposes of section 353N(3)(a) and (b) is $1000. This regulation is substantively the same as regulation 8A of the VE Regulations, which is being repealed by Item 21.

Regulation 21C prescribes travelling expenses for the purpose of obtaining medical evidence submitted by the Board.  This regulation also prescribes travelling expenses relating to an attendant for the purpose of accompanying an applicant travelling to obtain medical evidence. It provides that the travelling expenses will be reasonable cost of travel or accommodation incurred by the applicant or attendant.

Regulation 21D prescribes travelling expenses for the purpose of applicants attending a hearing of a review. This regulation also prescribes travelling expenses relating to an attendant for the purposes of accompanying an applicant travelling to attend the hearing. It provides that the travelling expenses will be reasonable cost of travel or accommodation incurred by the applicant or attendant. This regulation also provides for travelling expenses for a person entitled to make a claim under subsection 320(2) of the MRCA.

Regulation 21E provides that, for the purposes of section 353T of the MRCA, the fees for witnesses (other than the applicant) who are summoned to appear before the Board are entitled to be paid the same fees and allowances as are payable under the Administrative Review Tribunal Rules 2024. This regulation is substantively the same as regulation 12 of the VE Regulations, which is being repealed by Item 26.

Regulation 21F provides for the allowances for members of the Board for the purposes of subsection 359CB(2) of the MRCA. The allowances are those determined by the Renumeration Tribunal in respect of a member and allowances that are payable to a person engaged under the Public Service Act 1999.  

Division 2 – Repatriation Commission

Regulation 21G provides for the allowances payable to appointed members of the Repatriation Commission for the purposes of subsection 360CD(4) of the MRCA.  The allowances are those determined by the Renumeration Tribunal in respect of a member and allowances that are payable to a person engaged under the Public Service Act 1999. 

Division 3 – Specialist Medical Review Council

Regulation 21H provides that the prescribed amount for the purposes of subsection 380CF(2) is $1000. This regulation is substantively the same as regulation 11 of the VE Regulations, which is being repealed by Item 26.

Regulation 21J prescribes the travelling expenses for applicant who has travelled to obtain medical evidence for the purpose of asking the Specialist Medical Review Council to conduct a review. It provides that the travelling expenses will be reasonable cost of travel or accommodation incurred by the applicant or attendant.

Regulation 21K prescribes the travelling expenses for making oral submissions to the Specialist Medical Review Council for the purposes of a review.

Item 10 changes the title of Part 6 to ‘Miscellaneous matters’ and inserts Division 1, titled ‘Provision of information by the Commission’.

Items 11 and 12 amends regulation 22 by repealing item 1 from the table and repealing the note immediately under the table. This item is no longer necessary as the authority for the Commission to give the Defence Department and the Australian Defence Force information for the specified purposes is provided in the MRCA.

Item 13 inserts a new Division 2 of Part 6, titled ‘Commission may accept contributions and invest money held on trust’ and inserts regulations 22A and 22B. These regulations are substantively the same as regulations 14 and 15 of the VE Regulations, which are being repealed by Item 26.

Regulation 22A provides that when the Repatriation Commission accepts contributions, as provided in section 427A of the MRCA, it must be credited to a bank account nominated by the Commission.

Regulation 22B provides that when the Commission is acting as trustee pending application under section 427B it may invest all money vested in the Commission in:

1.    Securities of the Commonwealth
2.    Securities of the States
3.    In loans to local governing bodies in Australia
4.    Upon mortgage of land in Australia of an estate in fee simple or upon mortgage of leasehold interests in such land
5.    In any other manner for the time being allowed by any Act or State Act for the investment of trust funds in Australia.  

Item 14 adds Schedule 1 at the end of the MRC regulations, which contains Form 1 used to summon a person to appear at a hearing of the Board.

Papua New Guinea (Members of the Forces Benefits) Regulation 2016

Item 15 amends subregulation 22(1) to remove the words “entitled to payment of a gratuity, annuity, allowance of addition to pension” and replace them with “also entitled to payment of a decoration allowance”. This is to update the language to make it consistent with the enabling provision in the MRCA.

Item 16 repeals and substitutes subregulation 22(2) to provide that decoration allowance is payable at the same rate and in accordance with the same provisions of the legislative instrument made by the Minister under subsection 230C(1) of the MRCA. This change is necessary to reflect the transfer of decoration allowance from the VEA to the MRCA following the commencement of the VETS Act.

Item 17 removes the obsolete reference to the “Administrative Appeals Tribunal” in regulation 26 and replaces it with the “Administrative Review Tribunal”.

Items 18 and 19 amends subparagraphs 26(f) and 26(g), respectively, to remove the words “a gratuity, annuity, allowance or addition to a pension” and replace them with “decoration allowance”. This is to update the language to make it consistent with the enabling provision in the MRCA.

Item 20 removes the obsolete reference to section 27A of the Administrative Appeals Tribunal Act 1975, which has been repealed, and instead refers to the equivalent section 266 of the Administrative Review Tribunal Act 2024.

Veterans’ Entitlements Regulations 1986

Item 21 repeals regulations 5, 6, 6AA, 6A, 7, 8 and 8A as they are no longer needed

Items 22 to 25 make minor editorial updates to the examples in regulation 9 to refer to the correct paragraph numbers. 

Item 26 repeals regulations 10,11, 12, 13, 13A, 14, 15 and 17. Regulations 10 to 15 are being remade in the MRC Regulations (see items 9 and 13). Regulation 17 is being repealed because it is no longer needed.

Item 27 repeals Form 3 in Schedule 1. This form is being moved into the MRC Regulations (see item 14).

Item 28 repeals Schedule 2 as the subsections of the VEA that supported the Schedule have been repealed by an earlier Act.