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Permanent impairment compensation

Permanent impairment (PI) compensation is a tax-free payment for the lasting effect of accepted service-related conditions on your body, mind and lifestyle. Since 1 July 2026 the MRCA covers all new claims, whenever you served.

Official information checked 2 Oct 2026 · Links tested

Quick answer

Editorial

What it is

Official

Tax-free 'non-economic loss' compensation. It is based on your total impairment points (0–100) and a lifestyle rating (0–7).

Minimum

Official

10 impairment points. Only 5 points are needed for hearing loss, loss of fingers or toes, or loss of taste or smell.

How much

Official

Up to $447.39 a week: the maximum rate, effective 1 July 2026. Most people get less, because the amount depends on your impairment points, lifestyle rating and type of service. You can take it weekly, as a lump sum, or (at higher levels) a mix.

How to claim

Official

Usually picked up at your needs assessment after your condition is accepted. You fill in D2670 Lifestyle Rating form.

Who is eligible

Official

You may get PI compensation if a condition accepted as related to your ADF service:

  • causes an impairment (physical, mental or both);
  • is likely to continue indefinitely; and
  • has stabilised (is not expected to change much).

Since the MRCA applies to all claims from 1 July 2026, veterans previously covered only by the VEA or DRCA claim PI under the MRCA too.

Claim lodged before 1 July 2026 and still not decided? VEA disability compensation claims and DRCA permanent impairment claims that were lodged but not decided before 1 July 2026 are still assessed under those Acts, not the MRCA. Payments you were already getting continue under their own rules.

Source: DVA – Permanent impairment payments under the MRCA; CLIK – Permanent impairment transitional rules

How it is calculated (GARP M)

Official
  1. A doctor assesses how your accepted conditions affect your day-to-day functioning.
  2. DVA combines all accepted conditions into one impairment rating (0–100 points) using GARP M (the Guide to Determining Impairment and Compensation).
  3. You complete the D2670 Lifestyle Rating form. DVA turns it into a lifestyle rating of 0–7.
  4. DVA uses impairment, lifestyle and your type of service (warlike/non-warlike or peacetime) to find a compensation factor. This is multiplied by the maximum weekly rate.

80 or more points gives the maximum, unless you also have conditions accepted under the VEA or DRCA.

Source: DVA – Permanent impairment payments under the MRCA

Rates (from 1 July 2026)

Official

Maximum MRCA PI rate: $447.39 a week, effective 1 July 2026 (indexed each 1 July; unchanged at the 20 September 2026 indexation). This is the most anyone can get, not a standard amount. Examples using the higher 'expected' factors in GARP M:

Impairment pointsWarlike/non-warlike (weekly)Peacetime (weekly)
80+$447.39$447.39
60$314.52$241.59
50$238.01$132.87
30$138.69$77.40
20$99.32$55.48
10$49.66$27.74

These are guides only, not all possible amounts. If you have 80+ points and dependent children, you may get an extra tax-free lump sum of $115,175.42 for each eligible young person (rate from 1 July 2026). From 1 July 2026 this can be split between primary carers.

Already had VEA or DRCA compensation? DVA counts past VEA Disability Compensation Payments and DRCA PI lump sums when working out MRCA PI, so you aren't paid above the MRCA maximum. Even with a high points score, the amount actually paid can be lower than the table suggests. DVA says the 80-point maximum applies if you don't have an accepted VEA or DRCA condition.

Source: DVA – Permanent impairment payments under the MRCA; DVA – Compensation payment rates for MRCA

If your condition hasn't stabilised: interim compensation

Official

If you meet the minimum points and your impairment is likely to be lifelong, but it isn't stable yet, you may get an interim PI payment. It uses a minimum lifestyle factor. DVA reassesses it once all conditions are stable, and you may get more then.

Source: DVA – Permanent impairment payments under the MRCA

Weekly, lump sum or a mix

Official

PI is first paid fortnightly. DVA then sends a notice of your payment choices. You generally have 6 months from that notice to choose, in writing, to convert some or all of it to a lump sum. The 6 months doesn't start until any review of the decision (VRB, ART or reconsideration) is finished.

Need more time? DVA can extend the 6 months, before or after it runs out, if there are special circumstances. DVA's policy gives examples such as deployment, illness or hospital stays, the death of a partner or family member, losing your job, or not yet having had financial advice. You need to ask and give a reason. If you don't choose in time and no extension is granted, weekly payments continue. Once you make a choice, it's final.

Your weekly PI as a share of the maximumYour options
Under 10%100% weekly, or 100% lump sum
10% to 20%100% weekly, 100% lump sum, or 50% lump sum and 50% weekly
Above 20%100% weekly, 100% lump sum, or 25%, 50% or 75% lump sum (the rest weekly)

Lump sums are age-adjusted using life expectancy tables (no adjustment for men up to 30 or women up to 35). With 50+ points, DVA will repay up to $3,397.18 for financial and legal advice combined. PI is tax-free either way.

Source: DVA – Permanent impairment payments under the MRCA; CLIK – Options for converting periodic payments to a lump sum; CLIK – Electing a lump sum and special circumstances; DVA – Compensation payment rates for MRCA

How to claim

Official
  1. Get your condition accepted (liability claim in MyService).
  2. DVA does a needs assessment. This is required before MRCA compensation is paid, including for former VEA/DRCA-only veterans. PI is normally considered here.
  3. Go to the medical assessment DVA arranges.
  4. Complete and return the D2670 Lifestyle Rating form.
  5. Answer DVA's letter asking if you intend to sue the Commonwealth (common law).
  6. Choose weekly, lump sum or a mix within 6 months.

Source: DVA – Permanent impairment payments under the MRCA; DVA – Needs assessment

Common pitfalls

Guidance
  • Common law rights: once you get PI for a condition, you lose the right to sue the Commonwealth for non-economic loss for it. Common law damages for non-economic loss against the Commonwealth are capped at $177,000 for actions started from 1 July 2026 (the cap was $110,000 for actions started before then). DVA's public PI page still shows $110,000, but DVA's policy manual (CLIK) sets out the $177,000 cap.
  • Earlier VEA/DRCA payments are deducted: past VEA Disability Compensation Payments and DRCA PI lump sums are counted when working out MRCA PI, so a high points score doesn't guarantee an unreduced payment.
  • Lump sum and income tests: a lump sum can affect Service Pension or Centrelink payments. Get advice first.
  • Bereavement payment: a partner or child gets 12 times the weekly rate on your death only if you are on weekly PI, not a lump sum.
  • Missing the 6-month deadline generally leaves you on weekly payments. DVA can extend the time in special circumstances, but you have to ask.

Source: DVA – Permanent impairment payments under the MRCA; CLIK – Common law damages (MRCA); CLIK – Special circumstances

If your condition gets worse

Official

You can claim more PI if your impairment rises by at least 5 points (from a worse condition or newly accepted conditions), up to the maximum. This also applies to veterans covered only by the VEA and/or DRCA before 1 July 2026.

Source: DVA – Permanent impairment payments under the MRCA

If you disagree

Official

Apply to the Veterans’ Review Board within 12 months of an MRCA decision. Then the Administrative Review Tribunal. Related: SRDP (PI reduces it), incapacity payments.

Source: DVA – Compensation review pathway (VEA & MRCA)

Disputes about a permanent impairment assessment go to the VRB, which sends them to online dispute resolution first.

Common situations & what helps

Guidance

Common situations veterans run into, and practical steps that may help. This is general guidance, not a promise of an outcome. Always check the official rule linked under each one.

Several conditions, none big on its own

The situation: You have a few accepted conditions, and each one seems minor on its own.

What helps: DVA combines all your accepted conditions into one impairment rating. The minimum is usually 10 impairment points in total. It is 5 points for hearing loss, loss of fingers or toes, or loss of taste or smell. Combined points don't simply add up, and DVA works out the total for you.

Official rule: DVA – Permanent impairment payments under the MRCA

Your condition has got worse

The situation: Your accepted condition is worse than when it was assessed, or a new condition has since been accepted.

What helps: You can lodge a claim for more permanent impairment compensation if your impairment rises by at least 5 points, up to the maximum. This also applies to veterans who were covered only by the VEA or DRCA before 1 July 2026. Recent reports from your treating doctor about the change may help.

Official rule: DVA – Permanent impairment payments under the MRCA

Unsure about a lump sum

The situation: DVA has offered permanent impairment compensation, and you need to choose between weekly payments and a lump sum.

What helps: You have 6 months to choose, and the choice is final. If your rating is 50 points or more, DVA can reimburse advice from a suitably qualified financial adviser and lawyer. A lump sum may affect income-tested payments, so it's worth getting advice before you decide.

Official rule: DVA – Permanent impairment payments under the MRCA

Your condition hasn't settled yet

The situation: Your doctor says your condition may still change, so a final assessment can't be done.

What helps: An interim permanent impairment payment may be possible if you meet the minimum points and the impairment is likely to last indefinitely. DVA reassesses it once all your accepted conditions have stabilised.

Official rule: DVA – Permanent impairment payments under the MRCA

Veteran experiences (10)

Experience
These are real experiences, not rules. Each one is an anonymised summary of a post and the replies in a veterans' community group. Details that could identify anyone have been removed. Outcomes vary, and none of this is DVA policy or advice about your claim. Always check the official rule linked under each one, and talk to a free advocate about your own situation.

GP report seemed to understate the impact

Question

What happened: A veteran preparing to medically separate felt their GP’s PI paperwork understated the impact of their accepted conditions. They wanted to know whether DVA would also consider specialist reports and other medical evidence where the GP report did not fully reflect their day-to-day limitations.

What other veterans said: Several commenters emphasised the value of having a clinician who is familiar with DVA Permanent Impairment reporting and GARP, particularly where the veteran is concerned that functional impacts may be understated.

Check the official rule: DVA – Permanent impairment payments under the MRCA

Psychiatric report light on day-to-day impact

Outcome not known

What happened: A veteran approaching PI assessment had a psychiatric report that supported the accepted diagnoses but provided little detail about the effect of those conditions on everyday life. They were concerned that this could make the lifestyle component of the PI assessment less representative of their actual impairment.

What other veterans said: Some commenters described earlier combined Initial Liability and PI medical reports continuing to be relevant where conditions were already considered permanent and stable, while others completed a separate PI report. The applicable process depends on the existing evidence and claim history.

Check the official rule: DVA – Permanent impairment payments under the MRCA

Second PI assessment and the "worst day" question

Still waiting

What happened: A veteran awaiting a second PI assessment after additional conditions were accepted wanted clarification about how the assessment would be conducted. In particular, they were unsure whether impairment should be described based on their worst days and whether the new assessment would reconsider all accepted conditions.

What other veterans said: Advice in the discussion conflicted. Some suggested describing a 'worst day', while others noted GARP M and some PI forms focus on usual, day-to-day impairment. Answer the assessment questions accurately rather than using a rehearsed 'worst day' approach.

Check the official rule: DVA – Permanent impairment payments under the MRCA

PI claim "ready to investigate": what it means

Question

What happened: A veteran was advised that their MRCA PI claim was 'ready to investigate'. They were unsure what that status meant in practice and whether it indicated that a determination was likely to follow soon.

What other veterans said: Commenters described an evidence-review stage before a PI matter entered the queue for a determining delegate. Several also noted that a delegate may be managing multiple matters, so completion of the medical appointment does not necessarily mean a decision will follow immediately.

Check the official rule: DVA – Claim processing times

Medical report received, waiting on a decision

Question

What happened: DVA advised a veteran that the medical report for their PI claim had been received and that the matter was ready to be assigned for final determination. With the evidence stage complete, the veteran was trying to understand how long the decision stage typically takes.

What other veterans said: Comments described the PI process moving from the medical report being returned to DVA into a separate delegate-allocation stage. This helps explain why a claim can still remain pending after the medical evidence appears complete.

Check the official rule: DVA – Claim processing times

Same delegate after the PI assessment?

Question

What happened: A veteran completed a PI assessment after previously dealing with a delegate who arranged the assessment paperwork and referral. Once the assessment was finished, they were unsure whether the claim would return to the same delegate or be allocated elsewhere for determination.

What other veterans said: Commenters described claims moving through an opening or evidence-gathering stage before entering a delegate queue. Some had initially believed the person opening the claim was the determining delegate, only to later learn the matter still needed to be allocated.

Check the official rule: DVA – Claim processing times

Reusing an earlier mental health report for PI

Question

What happened: A PI delegate advised a veteran that enough evidence was already available for several accepted conditions, while two conditions required further GP assessment. The veteran was also told that an earlier detailed mental health report might be sufficient for the psychiatric component, raising questions about when existing reports can be reused.

What other veterans said: Comments described situations where a combined mental-health IL/PI report remained part of the PI evidence while separate physical conditions were assessed by a GP. This illustrates that different accepted conditions can reach the PI stage through different medical-report pathways.

Check the official rule: DVA – Permanent impairment payments under the MRCA

Already getting treatment: is a PI referral still needed?

Question

What happened: A veteran waiting for MRCA PI assessment was receiving treatment funding for the same claim. They were unsure whether that existing treatment pathway affected the need for a separate PI referral or whether they would still need to wait for the usual assessment paperwork.

What other veterans said: Other veterans described being asked to complete hearing or tinnitus steps again despite earlier acceptance or compensation, and several were unsure why. The thread highlights the value of asking DVA what specific evidence or assessment is outstanding rather than assuming the earlier process will be reused.

Check the official rule: DVA – Permanent impairment payments under the MRCA

Assessor did not have the MRI and specialist reports

Outcome not known

What happened: A veteran believed important MRI and specialist evidence was not available to the doctor conducting their impairment assessment. The assessment therefore treated the condition differently from the way later specialist evidence described it, leaving the veteran concerned that the impairment rating did not reflect the full medical picture.

Check the official rule: DVA – Permanent impairment payments under the MRCA

What happens at a GP PI assessment

Question

What happened: A veteran preparing for a GP Permanent Impairment assessment wanted to understand what the appointment would typically involve and what information the GP would be expected to assess.

What other veterans said: Veterans described the GP asking how their accepted conditions affect everyday function, and whether more than one condition contributes to the same limitation. Some advice suggested describing only your 'worst day'. GARP M assesses your actual level of impairment against its own criteria, so answer the questions accurately.

Check the official rule: DVA – Permanent impairment payments under the MRCA

Experiences collected October 2026. Got a correction? Use the feedback form.

Official sources

Official
  • legislation.gov.auMilitary Rehabilitation and Compensation Act 2004 (legislation.gov.au)
    View source
  • dva.gov.auDVA – Permanent impairment payments under the MRCA
    View source
  • dva.gov.auD2670 Lifestyle Rating form (PDF)
    View source
  • dva.gov.auDVA – Compensation payment rates for MRCA
    View source
  • dva.gov.auDVA – MyService
    View source
  • dva.gov.auDVA – Needs assessment
    View source
  • vrb.gov.auVRB – How to apply
    View source
  • dva.gov.auDVA – Special Rate Disability Pension
    View source
  • dva.gov.auDVA – What are incapacity payments and how to get them
    View source
  • dva.gov.auDVA – Compensation review pathway (VEA & MRCA)
    View source
  • clik.dva.gov.auCLIK – Options for converting periodic payments to a lump sum
    View source
  • clik.dva.gov.auCLIK – Electing a lump sum: special circumstances
    View source
  • clik.dva.gov.auCLIK – Common law damages under the MRCA
    View source
  • clik.dva.gov.auCLIK – Permanent impairment transitional rules
    View source

All links opened and checked 2026-10-02.