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DVA incapacity payments

Incapacity payments cover lost earnings when accepted conditions stop or limit your work. Here's how they're worked out.

Rates and rules checked October 2026

What they are

Incapacity payments replace income you've lost because accepted conditions stop you working or limit your hours. They're worked out as the difference between your normal earnings (what you'd be earning if you weren't injured) and your actual earnings.

How much

  • For the first 45 weeks, you're paid up to 100% of the gap.
  • After that, between 75% and 100% depending on how many hours you work, and 75% if you're not working.
  • Payments are reduced by Commonwealth superannuation and some other payments.
  • They generally stop at Age Pension age.

Changes from 1 July 2026

VEA and TPI veterans can now claim incapacity payments too, and they only reduce the part of your disability pension above the general rate. DRCA incapacity recipients moved to the MRCA automatically.

Incapacity payments or SRDP?

If you have at least 50 impairment points and can't work more than 10 hours a week, you may be offered the Special Rate Disability Pension instead. Compare SRDP.

Common questions

How are DVA incapacity payments calculated?
On the difference between your normal earnings and what you actually earn. You get up to 100% of the gap for 45 weeks, then 75% to 100% depending on your hours, reduced by Commonwealth super and some other payments.
When do incapacity payments stop?
Generally at Age Pension age.

Sources

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