Veterans’ Compensation System Set for Major Overhaul with New Legislation
Today, Veterans’ Affairs Minister Matt Keogh will introduce legislation to the lower house aimed at consolidating three existing laws into one, simplifying the claims process for veterans and their families.
This overhaul of the complex laws governing military veterans’ compensation is seen as a “once-in-a-generation opportunity” to rectify the system. The primary recommendation of the Royal Commission into Defence and Veteran Suicide’s interim report was to streamline these rules and implement new legislation by July 2025. The commission found that the convoluted compensation claims process negatively impacted veterans’ mental health.
However, the proposed bill will take effect a year later than recommended, coming into force in July 2026. Mr. Keogh will describe the “mammoth task” of reform as the most significant change in veterans’ entitlements in nearly four decades.
“This is a once-in-a-generation opportunity to get the system right for veterans and families,” he will say. “A system that for too long has caused much unnecessary anxiety for the veteran community. This legislation is a significant step in ensuring a better future for defence personnel, veterans, and families.”
Under the proposed changes, benefits from current schemes will remain unaffected, while new claims will be processed under the new legislation. The Labor government delayed the implementation to gather feedback from veterans and allow time for learning the new framework and upgrading the system.
According to projections from the Department of Veterans’ Affairs in the 2024 federal budget, payments for rehabilitation and compensation claims are expected to increase by $6.5 billion over the next five years. To address a significant backlog, which peaked at 45,000 cases in late 2022, more than 500 additional staff were hired. Now, new claims are being processed within two weeks, and some veterans are receiving support within two months of lodging their claims.
The royal commission’s final report is due in early.
