Motor Vehicle Compensation Scheme 2026

Contents

1 Name #

This instrument is the Motor Vehicle Compensation Scheme 2026.

2 Commencement #

This instrument commences the day after it is registered.

3 Authority #

This instrument is made under section 212 of the Act.

4 Definitions #

Note: Some expressions used in this instrument are defined in the Act, including the following:

(a) Commission (section 5);

(b) impairment (section 5).

In this instrument:

Act means the Military Rehabilitation and Compensation Act 2004.

claim means the claim referred to in paragraph 212(1)(c) of the Act.

driver-trained occupational therapist means a person who is:

(a)registered under the National Law in the occupational therapy profession; and

(b)qualified to assess the effect of a person’s medical condition on their capacity to drive a motor vehicle.

eligible person means a person to whom subsection 212(1) of the Act applies.

motor vehicle means a car designed for use on sealed roads.

National Law means the Health Practitioner Regulation National Law set out in the Schedule to the Health Practitioner Regulation National Law Act 2009 (Qld), as it applies (with or without modification) as a law of a State or Territory.

Scheme means this instrument.

5 Schedules #

Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

6 Application of Part #

(1)This Part applies to an eligible person only if a mobility report in respect of the person’s claim has been given to the Commission.

(2)In this Part:

mobility report means a written report prepared by a driver-trained occupational therapist that:

(a)describes the mobility needs of the person having regard to the following:

(i)the person’s impairment;

(ii)whether the person can drive or be transported in a motor vehicle without driving or other modifications;

(iii)the extent to which the person is independently mobile;

(iv)the extent to which the person requires assistance from another person to be mobile;

(v)all means of transport reasonably available to the person at their usual residence; and

(b)identifies the kinds of modifications or vehicle features or kind of motor vehicle (as the case requires) that, in the author’s professional opinion, would be necessary to meet the person’s mobility needs; and

(c)provides reasons for the opinion referred to in paragraph (b).

7 When Commonwealth liable to modify motor vehicle #

(1)The Commonwealth is liable to modify a motor vehicle for an eligible person if all of the following apply:

(a)the person owns or has the use of a motor vehicle;

(b)the vehicle is roadworthy and capable of being modified;

(c)the person cannot, in a safe manner, drive or be transported in the vehicle unless the vehicle is modified;

(d)any person with an interest in the motor vehicle (if any) consents to the vehicle being modified.

Note: The Commonwealth’s liability under this section is subject to section 12.

(2)Where the Commonwealth is liable under subsection (1), the Commission must compensate the eligible person under section 8.

8 Amount of compensation—modifications #

(1)The amount of compensation payable under this section is the amount the Commission considers reasonable to enable the motor vehicle to be modified so that it meets the mobility needs of the person.

(2)In determining an amount of compensation under subsection (1), the Commission must have regard to the following:

(a)the nature of the person’s impairment and its effect on their mobility;

(b)the most cost-effective way to modify the vehicle, including (without limitation) the type and cost of:

(i)the proposed driving devices or other modifications;

(ii)alternative driving devices or modifications that are suitable, reasonably available, and cost-effective;

(c)any other matter that the Commission considers relevant.

9 When Commonwealth liable to purchase or subsidise motor vehicle #

(1)The Commonwealth is liable to purchase or subsidise the purchase of a motor vehicle for an eligible person if the Commission is satisfied that:

(a)the person is non-mobile because of their impairment; and

(b)the person requires the use of a motor vehicle for mobility; and

(c)where the person owns or has the use of an existing motor vehicle—

(i)that vehicle does not meet their mobility needs; and

(ii)subsection (2) does not apply; and

(d)with regard to alternative transport options—

(i)there are no alternative transport options that can meet the person’s mobility needs; or

(ii)it is not cost-effective for the person to utilise alternative transport options to meet their mobility needs.

Note: The Commonwealth’s liability under this section is subject to section 12.

(2)For subparagraph (1)(c)(ii), this subsection applies if:

(a)the Commonwealth is not liable to modify the vehicle under section 7 because a person described in paragraph 7(1)(d) has refused consent; and

(b)the Commission is satisfied that it is unreasonable, in all of the circumstances, for that person to refuse consent.

(3)For the purposes of subsection (1), the Commission must have regard to the person’s mobility report, and may have regard to any other matter that it considers relevant.

(4)Where the Commonwealth is liable under subsection (1), the Commission must compensate the eligible person under section 10.

10 Amount of compensation—purchase or subsidy #

(1)The amount of compensation payable under this section is the amount that the Commission considers reasonable to enable the person to acquire (and modify, if necessary) a motor vehicle that meets the person’s mobility needs.

(2)In determining an amount of compensation under subsection (1), the Commission:

(a)must have regard to the most cost-effective option; and

(b)where the person owns or has the use of an existing motor vehicle—must deduct the trade-in value of the vehicle (if any) or such other amount that it considers appropriate to reflect the value of the vehicle; and

(c)may have regard to any other matter that it considers relevant.

(3)Without limiting subsection (1), the Commission may determine an amount of compensation less than the full cost required to acquire and modify a motor vehicle if:

(a)the person expresses (whether through the mobility report or otherwise) a preference for a particular vehicle or feature; and

(b)in the Commission’s opinion, that vehicle or feature is, or the modifications required for the vehicle are, more than what is necessary to meet the mobility needs of the person.

(4)Where subsection (3) applies, the eligible person is liable (as between the person and the Commonwealth) for the balance of the costs to acquire and modify the vehicle.

11 When Commonwealth liable—other compensation #

(1)If an eligible person has received compensation under another provision of the Scheme, the Commonwealth is liable to compensate that person for:

(a)the cost of insurance insofar as it relates to modifications provided under the Scheme; and

(b)the cost of repairs to any modifications provided under the Scheme.

(2)If the Commonwealth is liable under this section, the Commission must compensate the person by paying an amount that the Commission considers reasonable to cover:

(a)for paragraph (1)(a)—the cost of insurance solely attributable to the modifications;

(b)for paragraph (1)(b)—the cost of repairs to the modifications only, after deducting any amount payable towards the cost of repairs under any other law, agreement or understanding.

12 No liability where assistance previously received under Scheme or other law #

(1)The Commonwealth is not liable to modify a motor vehicle for an eligible person under this Part if the person received under the Scheme or any other law:

(a)a payment or any other form of assistance for the modification of a motor vehicle; or

(b)modifications to a motor vehicle,

within the period of 8 years before making a claim.

(2)The Commonwealth is not liable to purchase or subsidise the purchase of a motor vehicle for an eligible person under this Part if the person received under the Scheme or any other law:

(a)a payment or any other form of assistance for the purchase of a motor vehicle; or

(b)a motor vehicle,

within the period of 8 years before making a claim.

13 When Commonwealth liable—exceptional circumstances #

(1)Despite anything else in this Part, the Commonwealth is liable to provide compensation specified in subsection (2) to an eligible person if the Commission is satisfied, having regard to the person’s mobility report, that there are exceptional circumstances justifying the provision of the compensation.

(2)For subsection (1), the compensation is one or more of the following, as the Commission determines in each case:

(a)modifying a motor vehicle;

(b)purchasing a motor vehicle;

(c)subsidising the purchase of a motor vehicle.

(3)Where the Commonwealth is liable under this section, the Commission must compensate the eligible person under section 8 or section 10, as the case requires.

14 Obligation to register and insure vehicle #

(1)If a person receives a motor vehicle under this Scheme, the person must:

(a)register the motor vehicle; and

(b)take out and maintain comprehensive insurance relating to the motor vehicle that covers at least the market value of the motor vehicle.

(2)If a person fails to comply with subsection (1), the Commission may take that failure into account when determining the amount of any compensation under Part 2.

15 Responsibility for maintenance, operating costs etc.#

(1)Subject to section 11, the Commonwealth is not liable for any costs associated with any compensation provided to an eligible person under the Scheme.

(2)Without limiting subsection (1), costs associated with compensation include:

(a)running or operating costs;

(b)maintenance, garaging, insurance and registration costs;

(c)repair costs.

1 Definitions #

In this Schedule:

commencement day means the day this instrument commenced.

former scheme means the Motor Vehicle Compensation Scheme 2025.

2 Modification etc. provided under former scheme #

For the purposes of the Scheme:

(a)a modification provided under the former scheme is taken to be a modification provided under the Scheme; and

(b)a motor vehicle provided under the former scheme is taken to be a motor vehicle provided under the Scheme.

3 Savings provision—claim made and not determined under former scheme #

(1)This item applies to a claim made under the former scheme and not determined before the commencement day.

(2)Despite the repeal of the former scheme by Schedule 2 of this instrument, the provisions of the former scheme apply to that claim as if those provisions had not been repealed.

Motor Vehicle Compensation Scheme 2025 #

1 The whole of the instrument

repeal the instrument

Sourced from the Federal Register of Legislation at legislation.gov.au, © Commonwealth of Australia, licensed under CC BY 4.0. Compilations may have been reformatted.

Key facts