By Kai Baldwin, Founder of BAC · First published 18 April 2026 · Reviewed against DVA sources on 11 September 2026. See sources
Initial Liability is the gateway to the entire DVA system. It's DVA formally accepting that your condition is related to your service. Without it, you can't access treatment or compensation. Get this sorted first.
What is Initial Liability?
Initial Liability is the starting point for everything in the DVA system. It's DVA formally accepting that your medical condition is related to your military service. Without it, you can't access DVA-funded treatment, you can't get compensation, you can't do anything. It's the gateway.
So if you're a veteran or still serving and you've got conditions from your time in, getting Initial Liability accepted is step one. Everything else builds on top of it.
Watch: Initial Liability in 80 Seconds
Why Does It Matter So Much?
Because once a condition is accepted under Initial Liability, you unlock:
DVA-funded medical treatment. GP visits, specialists, allied health, medication. All covered by DVA for that condition. No out-of-pocket.
Permanent Impairment compensation. A lump sum payment based on how much your condition impacts your life. This can be substantial.
Incapacity payments. If your conditions affect your ability to work, there's financial support available.
Initial Liability is the key that unlocks everything else. Without it, you're locked out of the system. With it, you've got access to treatment, support, and compensation. Get it sorted.
Which Legislation Applies? One Act Now
For years there were three Acts covering DVA claims: the Military Rehabilitation and Compensation Act 2004 (MRCA), the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA), and the Veterans' Entitlements Act 1986 (VEA). Which one you fell under depended on when you served, and it changed what you could claim and how much you could get. It was confusing, and it still trips people up.
Since 1 July 2026, that mess is over for new claims. The VETS Act closed the VEA and the DRCA to new claims. Every new claim for compensation or rehabilitation is now decided under one Act, the improved MRCA, no matter when you served. Vietnam, Timor, Afghanistan, or peacetime service in the nineties, it doesn't matter. New claim, MRCA.
Already got conditions accepted under the VEA or the DRCA? You don't lose them and you don't have to fight for them again. A new section 24A of the MRCA treats any condition previously accepted under the old Acts as an accepted MRCA condition, automatically. Any new compensation for those conditions, including a claim that one of them has got worse, is paid under the MRCA. And payments you were already receiving under the old Acts keep going.
Where the three-Act mess still matters is history. A claim lodged before 1 July 2026 is decided under the Act it was lodged under, even if DVA doesn't get to it until 2027. Same goes for reviews: a decision made under the VEA or the DRCA gets reviewed as a decision under that Act. So if you've got old claims in the system, or a knockback you're fighting, don't assume the new rules cover everything. For the full rundown, read what changed on 1 July 2026.
What Conditions Can You Claim?
Any physical or mental health condition connected to your service. That includes conditions caused by service, conditions aggravated by service, and even conditions that developed because of treatment for another service-related condition. The list is longer than most people think. Hearing loss, tinnitus, knee injuries, back injuries, shoulder injuries, PTSD, anxiety, depression, alcohol use disorder, skin conditions. If it's connected to your time in uniform, it's worth looking into.
How BAC Can Help
I go through your full service history and identify every condition that could be eligible. Most veterans are surprised by how many things they can claim for. From there, I coordinate the medical evidence, prepare the claim, and manage the whole process.
Fixed fee. No percentage cuts. You know what it costs upfront and your entitlement stays with you. That's the BAC model.
Sources
- The VETS Act: what it is and what it does (Department of Veterans' Affairs): VEA and DRCA closed to new claims from 1 July 2026, one Act (the improved MRCA) for all new claims, claims lodged earlier decided under the old Acts, existing payments grandparented.
- Veterans' Legislation Reform: Frequently asked questions (Department of Veterans' Affairs): section 24A carry-over of VEA and DRCA accepted conditions, claims received before commencement decided under the old three-Act system, worsening claims determined under the MRCA.
- Initial Liability (Department of Veterans' Affairs): what Initial Liability is and what it unlocks, no need to re-establish liability for already accepted conditions, additional compensation paid under the MRCA, VEA service coverage carried into the MRCA.