Veterans’ Claims on the Rise Due to Economic Woes and System Malfunction

Veterans’ claims have surged dramatically over the past year, driven by what some are calling an “economic crunch” combined with improved processing times at the Department of Veterans’ Affairs (DVA).

Many veterans, once deterred by delays in the claims process, are now filing as they find the DVA’s response times accelerating.

Increased financial pressures from the rising cost of living are a key factor, as some are no longer able to self-manage ongoing needs and are looking to the DVA for timely support amid tightening budgets.

This financial year has seen a 37.1 percent increase in claims compared to the same period last year.

DVA Secretary Alison Frame told a Senate Committee that multiple factors, including heightened awareness of entitlements, economic pressures, and vigilance against potentially unmeritorious claims, have led to the surge.

Veterans can access a variety of benefits through the DVA, including compensation for service-related injuries and health conditions, as well as allowances such as those for attendant care, clothing, and transport.

System Glitch Adds to Unallocated Claims Surge

A recent uptick in unallocated claims stemmed from both rising claim numbers and a system error.

The DVA saw a drop from over 20,000 unallocated claims in September 2022 to under 10,000 this September, but recent months have seen a rise.

Andrew Kefford, deputy secretary of DVA Policy and Programs, explained that between July and mid-October, nearly 6,000 claims that should have gone through an automatic registration process were reverted to a manual one.

“We estimate that was in excess of 3,000 additional hours of work that needed to be undertaken manually,” he told the committee.

This issue now stands resolved.

DVA Clears Backlog Ahead of Schedule

Frame in her opening statement told the Committee that the backlog of 41,800 unallocated claims identified by the Royal Commission had been cleared over a month ahead of the set deadline.

As of Sept. 30, nearly 97 percent of the claims backlog had been resolved. Frame noted that claims were being received at an increased rate, with 79,631 claims on hand as of the reporting date.

Of these, 88 percent had been allocated to a support officer or delegate, with more than half received within the past 200 days.

The DVA has also introduced two recent innovations to improve service efficiency.

Since October, the DVA has trialled a six-month programme allowing radiologists to claim MRI scans for eligible veterans referred by general practitioners without prior DVA approval, cutting down on wait times.

In response to growing demands, the DVA launched an online invoice uploader portal on Sept. 30, which has processed 90 percent of invoices electronically by Oct. 29, with all invoices now being processed within 20 days.

Extra Staff Boost Veteran Claims Processing

To address a backlog in veteran claims, the DVA has retained 500 additional staff in the Client Benefits Division, in line with a Royal Commission recommendation.

The division is now staffed with 1,038 employees.

As of September, there were 79,631 claims, with 88 percent allocated—a significant improvement from the previous year’s 71 percent allocation rate of 75,500 claims, reflecting ongoing efforts to expedite processing.

Call for Oversight Body Before New Legislation

A tense exchange unfolded between the Senator Jacqui Lambie and officials over the lack of an oversight body as the government pushes forward with veteran-related legislative reforms.

Senator Lambie argued that before harmonisation legislation proceeds, an independent oversight body—recommended by the Royal Commission—should already be in place to restore veterans’ trust in the DVA.

She said the proposed legislation, set to begin in July 2026, is being rushed without this key body in operation.

She warned that moving forward without oversight is a “slap in the face” to veterans, who deserve greater confidence in DVA decisions and processes.

Government officials responded, saying they are adhering to Royal Commission timeframes and have prioritised extensive consultations with the veteran community.