Royal commission findings prompt veterans entitlements overhaul to streamline claims processing without reducing benefits

Legislation to simplify the way veterans' entitlements are processed is being introduced to parliament on Wednesday, with the government assuring those who are already receiving payments will not have their benefits altered.

However, the changes, prompted by interim findings from the Royal Commission into Defence and Veterans' Suicide, are being branded a "bandaid" solution by advocates critical of the current system.

In August 2022, the royal commission warned legislation governing compensation and rehabilitation for veterans and their families was "so complicated that it adversely affects the mental health of some veterans and can be a contributing factor to suicidality".

Under the revised Veterans' Entitlements, Treatment and Support (Simplification and Harmonisation) Bill 2024, all new compensation claims from July 1, 2026 will be dealt with under a single piece of legislation, regardless of when or where the veteran served.

Veterans' Affairs Minister Matt Keogh insists current DVA clients will not be affected by the overhaul while some may even benefit from the introduction of the new harmonised system.

"This is a huge step forward for Australia's veteran community and will benefit our current and former service personnel for generations to come — this legislation will ensure a better future for Defence personnel, veterans and families," he said.

"No one is under any detriment under this legislation, they keep receiving what they're already getting, but … all new claims will be dealt with under one single piece of legislation which will mean that it's easier for veterans and families to know what they're entitled to.

"Most importantly it means for some veterans that have never had access to a gold card, they may now be able to qualify for a gold card going forward."

Former soldier Stuart McCarthy, a vocal campaigner against the Department of Veterans' Affairs, says the overhaul simply perpetuates the existing toxic system.

"Retaining the Military Rehabilitation and Compensation Act (MRCA) with only bandaid bill amendments to the liability-based, inherently adversarial and complex legislation and calling that 'reform' is a pathetic response to the royal commission's recommended reforms."

Other changes include a new Additional Disablement Amount (ADA), similar to the existing Extreme Disablement Adjustment (EDA) to compensate veterans who are Age Pension age or older and who have a high degree of incapacity due to service-related conditions.

The funeral allowance will increase to $3,000 for previous automatic grant categories under the Veterans' Entitlements Act, and the availability of reimbursement of funeral expenses up to $14,062 for all service-related deaths.

Labor says this year's federal budget sets aside an additional $222 million for veteran and family entitlements across the two years from the commencement of the new legislation.