{"id":"F2025L01171","name":"Motor Vehicle Compensation Scheme 2025","slug":"motor-vehicle-compensation-scheme-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":106952,"registerId":"commonwealth-F2025L01171-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary\n\n## 1 Name\n\n  This instrument is the Motor Vehicle Compensation Scheme 2025.\n\n## 2 Commencement\n\n  This instrument commences as follows:\n    (a) Parts 1 and 2 and Schedule 1—on the day after the day the instrument is registered;\n    (b) Schedule 2—at the same time as the Aged Care Act 2024 commences.\n\n## 3 Authority\n\n  This instrument is made under subsection 212(1) of the Military Rehabilitation and Compensation Act 2004.\n\n## 4 Repeals\n\n  The Motor Vehicle Compensation Scheme 2015 (Instrument 2015 No. MRCC 20) is repealed.\n\n#### 5 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) approved program provider (section 41);\n    (b) Commission (section 5).\n  (1) In this instrument:\n\n> Act means the Military Rehabilitation and Compensation Act 2004.\n\n> care institution means any of the following that is not the person’s private home:\n\n    (a) a residential care home (within the meaning of section 10 of the Aged Care Act 2024);\n    (b) a hospital; or\n    (c) a hospice; or\n    (d) a psychiatric institution; or\n    (e) any similar institution, however described, that provides daily care for the person.\n\n> claim means the claim referred to in paragraph 212(1)(c) of the Act.\n\n> eligible person means a person to whom paragraphs 212(1)(a), (b) and (c) of the Act apply.\n\n> initial motor vehicle means the first motor vehicle (whether new or second hand) that an eligible person has received under section 10 of the Scheme.\n\n> interest, in relation to a motor vehicle, means a joint interest in the motor vehicle or other interest but does not include an interest as a mortgagee.\n\n> previous motor vehicle means the last motor vehicle (whether new or second hand) that an eligible person received under section 10 or section 13 of the Scheme, as the case may be.\n\n> replacement motor vehicle means a motor vehicle (whether new or second hand) provided to an eligible person under section 13 of the Scheme as a replacement for a motor vehicle.\n\n> Scheme means this instrument.\n\n## 6 Schedules\n\n> 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.","sortOrder":0},{"sectionNumber":"Part 2","sectionType":"part","heading":"Eligibility and amount of compensation","content":"## Part 1—Preliminary\n\n## 1 Name\n\n  This instrument is the Motor Vehicle Compensation Scheme 2025.\n\n## 2 Commencement\n\n  This instrument commences as follows:\n    (a) Parts 1 and 2 and Schedule 1—on the day after the day the instrument is registered;\n    (b) Schedule 2—at the same time as the Aged Care Act 2024 commences.\n\n## 3 Authority\n\n  This instrument is made under subsection 212(1) of the Military Rehabilitation and Compensation Act 2004.\n\n## 4 Repeals\n\n  The Motor Vehicle Compensation Scheme 2015 (Instrument 2015 No. MRCC 20) is repealed.\n\n#### 5 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) approved program provider (section 41);\n    (b) Commission (section 5).\n  (1) In this instrument:\n\n> Act means the Military Rehabilitation and Compensation Act 2004.\n\n> care institution means any of the following that is not the person’s private home:\n\n    (a) a residential care home (within the meaning of section 10 of the Aged Care Act 2024);\n    (b) a hospital; or\n    (c) a hospice; or\n    (d) a psychiatric institution; or\n    (e) any similar institution, however described, that provides daily care for the person.\n\n> claim means the claim referred to in paragraph 212(1)(c) of the Act.\n\n> eligible person means a person to whom paragraphs 212(1)(a), (b) and (c) of the Act apply.\n\n> initial motor vehicle means the first motor vehicle (whether new or second hand) that an eligible person has received under section 10 of the Scheme.\n\n> interest, in relation to a motor vehicle, means a joint interest in the motor vehicle or other interest but does not include an interest as a mortgagee.\n\n> previous motor vehicle means the last motor vehicle (whether new or second hand) that an eligible person received under section 10 or section 13 of the Scheme, as the case may be.\n\n> replacement motor vehicle means a motor vehicle (whether new or second hand) provided to an eligible person under section 13 of the Scheme as a replacement for a motor vehicle.\n\n> Scheme means this instrument.\n\n## 6 Schedules\n\n> 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.\n\n  \n\n## Part 2—Eligibility and amount of compensation\n\n#### 7 Circumstances when a person is eligible for compensation for modifying a motor vehicle\n\n  (1) Subject to any other provision of this Part, a person is eligible for compensation to modify a motor vehicle for the person if, and only if, the Commission is satisfied that:\n    (a) the person is an eligible person; and\n    (b) if the person is a resident of a care institution, the person is capable of leaving the care institution;\n    (c) the person either:\n    (i) cannot drive a motor vehicle without driving or other modifications that enable the person to drive safely; or\n    (ii) cannot be driven in a motor vehicle without modification that enables the person to be transported safely and in reasonable comfort; and\n    (d) the person owns a motor vehicle or has an interest in a motor vehicle that is capable of having driving devices fitted or modifications made for use by the person; and\n    (e) if the person has an interest in a motor vehicle, any other person with an interest agrees to the motor vehicle being modified in the way proposed; and\n    (f) an approved program provider or an occupational therapist has made a written recommendation to the Commission that the approved program provider or occupational therapist is satisfied on reasonable grounds that the person would derive benefit directly from:\n    (i) driving a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without driving a motor vehicle; or\n    (ii) being driven in a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without driving a motor vehicle.\n\n#### 8 Amount of any subsidy\n\n  (1) The amount of any subsidy under section 7, is such amount as the Commission considers is reasonable, taking account of all the other circumstances the Commission thinks are relevant, including all, or any, of the following:\n    (a) the nature of the person’s impairment;\n    (b) the nature of proposed driving devices or modifications;\n    (c) the type and cost of alternative suitable driving devices or modifications that are reasonably available and cost effective;\n    (d) whether there are alternative providers of suitable driving devices or modifications that are reasonably accessible and cost effective.\n\n#### 9 Commission may request advice from an approved program provider or an occupational therapist\n\n  (1) The Commission may request advice from an approved program provider or an occupational therapist in relation to the type of any necessary driving devices or modifications to make the motor vehicle safe and reasonably comfortable at the minimum cost.\n  (2) The Commission may take any advice provided under subsection (1) into account when determining the amount of any subsidy under section 7.\n\n#### 10 Eligibility for a subsidy to assist the purchase of an initial motor vehicle\n\n  (1) Subject to any other provision of this Part, a person is eligible for compensation in the form of a subsidy to assist the person to purchase an initial motor vehicle if:\n    (a) the person is an eligible person; and\n    (b) the person either:\n    (i) cannot drive a motor vehicle without driving or other modifications that enable the person to drive safely; or\n    (ii) cannot be driven in a motor vehicle without modification that enables the person to be transported safely and in reasonable comfort; and\n    (c) the person can establish:\n    (i) where the person owns a motor vehicle or has an interest in a motor vehicle—that it is either not possible or not practicable to modify that motor vehicle; or\n    (ii) the person does not own a motor vehicle or have an interest in a motor vehicle; and\n    (d) if the person is a resident of a care institution, the person is capable of leaving the care institution; and\n    (e) an approved program provider or an occupational therapist has made a written recommendation to the Commission that the approved program provider or occupational therapist is satisfied on reasonable grounds that the person would derive benefit directly from:\n    (i) driving a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without driving a motor vehicle; or\n    (ii) being driven in a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without access to a motor vehicle.\n  (2) For the purposes of subsection (1), a person is not to be taken to derive direct benefit through the use of the motor vehicle by another person solely for that other person.\n  (3) The Commission may determine to grant a person compensation for modifying a motor vehicle where a person is eligible under subsection (1) if it considers that is appropriate compensation in all the circumstances. Compensation under subsection (1) is only to be available if modification of a person’s motor vehicle or a motor vehicle in which they have an interest is not a cost effective or appropriate option.\n\n#### 11 Determining the amount of any subsidy\n\n  (1) The amount of any subsidy under section 10, is such amount as the Commission considers is reasonable, after deducting the trade-in value at arm’s length of the person’s existing motor vehicle (if any) or interest in a motor vehicle (if any) and taking account of all the other circumstances the Commission thinks are relevant, including all, or any, of the following:\n    (a) the nature of the person’s impairment;\n    (b) the type and cost of the motor vehicle that the person is proposing to purchase;\n    (c) the type and cost of accessories that are reasonably required for the person;\n    (d) the type and cost of alternative motor vehicles to the motor vehicle the person is proposing to purchase;\n    (e) the ability of the proposed motor vehicle to be fitted with any necessary driving devices or be otherwise modified for the person;\n    (f) in relation to a second hand motor vehicle—the number of kilometres travelled by the motor vehicle, the life of the motor vehicle and the possible application of section 12;\n    (g) if the person’s existing motor vehicle was stolen or destroyed through no fault on the part of the person—the full amount of the of insurer’s write-off payment;\n    (h) if the person sold or disposed of a motor vehicle or an interest in a motor vehicle within the period of 12 months ending on the date of making a claim—the trade-in value at arm’s length for which that motor vehicle or interest was sold or disposed.\n\n#### 12 Commission may request advice from an approved program provider or an occupational therapist\n\n  (1) The Commission may request advice from an approved program provider or an occupational therapist in relation to the type of motor vehicle, the type of any reasonable accessories and the type of any necessary driving devices or modifications to make the motor vehicle safe and reasonably comfortable at the minimum cost.\n  (2) The Commission may take any advice provided under subsection (1) into account when determining the amount of any subsidy under section 10.\n\n#### 13 Circumstances when a person is eligible for a replacement motor vehicle\n\n  (1) Subject to any other provision of this Part, where a person has received a previous motor vehicle, the person is eligible for compensation to assist with the purchase of a replacement motor vehicle under this section if:\n    (a) any of the following applies at a time when the person is an eligible person:\n    (i) the person’s claim for compensation under this section is made at least 5 years after the person last received compensation under section 7 or section 10; or\n    (ii) the person’s previous motor vehicle has travelled at least 100,000 kilometres after it was purchased or modified, whichever last occurred; or\n    (iii) the person’s previous motor vehicle was stolen or destroyed through no fault of the person; and\n    (b) an approved program provider or occupational therapist has made a written recommendation to the Commission that the approved program provider or occupational therapist is satisfied on reasonable grounds that the person would derive benefit directly from:\n    (i) driving a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without driving a motor vehicle; or\n    (ii) being driven in a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without access to a motor vehicle; and\n    (c) a qualified mechanic considers that the person’s previous motor vehicle is unsafe, taking into account the previous motor vehicle’s maintenance and service history, and its condition.\n  (2) For the purposes of subsection (1), a person is not to be taken to derive direct benefit through the use of the motor vehicle by another person solely for that other person.\n\n#### 14 Determining the amount of any subsidy\n\n  (1) The amount of any subsidy under section 13, is such amount as the Commission considers is reasonable, after deducting the trade-in value at arm’s length of the person’s previous motor vehicle (if any) or interest in a previous motor vehicle and taking account of all the circumstances the Commission thinks are relevant, including all, or any, of the following:\n    (a) the nature of the person’s impairment;\n    (b) the type and cost of the motor vehicle that the person is proposing to purchase;\n    (c) the type and cost of accessories that are reasonably required for the person;\n    (d) the type and cost of alternative motor vehicles to the motor vehicle the person is proposing to purchase;\n    (e) the ability of the proposed motor vehicle to be fitted with any necessary driving devices or be otherwise modified for the person;\n    (f) in relation to a second hand motor vehicle—the number of kilometres travelled by the motor vehicle, the life of the motor vehicle and the possible application of section 15;\n    (g) if the person’s existing motor vehicle was stolen or destroyed through no fault on the part of the person—the full amount of the of insurer’s write-off payment.\n\n#### 15 Commission may request advice from an approved program provider or an occupational therapist\n\n  (1) The Commission may request advice from an approved program provider or an occupational therapist in relation to the type of motor vehicle, the type of any reasonable accessories and the type of any necessary driving devices or modifications to make the motor vehicle safe and reasonably comfortable at the minimum cost.\n  (2) The Commission may take any advice provided under subsection (1) into account when determining the amount of any subsidy under section 13.\n\n#### 16 Other compensation\n\n  (1) A person is eligible for compensation in the form of a subsidy to assist the person with:\n    (a) the cost of insurance insofar as the insurance only relates to any modifications provided under the Scheme; or\n    (b) repairs to any modification that have been made as a result of compensation to modify a vehicle under this Scheme.\n\n#### 17 Amount of other compensation\n\n  (1) The amount of compensation under section 16 is equal to:\n    (a) the cost of any additional insurance that only relates to the modifications; or\n    (b) the cost of the repairs to the modifications.\n\n#### 18 Motor vehicle from another scheme\n\n  (1) A person is not eligible for compensation in the form of a subsidy to assist with the purchase of a motor vehicle under this Scheme if the person receives or has received:\n    (a) a payment or any other form of assistance for the purchase of a motor vehicle; or\n    (b) a motor vehicle;\n  under any other law, contract, agreement or understanding within 5 years before making a claim for compensation under this Scheme.\n\n#### 19 Conditions relating to the compensation payment\n\n  (1) If a person receives compensation in the form of a subsidy to assist with the purchase of a motor vehicle under this Scheme, the person must:\n    (a) register the motor vehicle; and\n    (b) comprehensively insure the motor vehicle to its full market value.\n\n#### 20 Ownership of motor vehicle\n\n  (1) If a person receives compensation in the form of a subsidy to assist with the purchase of a motor vehicle under this Scheme:\n    (a) the person is taken to be the legal owner of the motor vehicle; and\n    (b) the motor vehicle cannot be sold, transferred, encumbered or otherwise dealt with without the written agreement of the Commonwealth; and\n    (c) it is a condition of the subsidy that the person maintain the motor vehicle in good working order; and\n    (d) it is a condition of the subsidy that if the motor vehicle is damaged and the person receives any payment in respect of the damage from an insurer—the person must apply the amount of the payment towards repairing the damage to the motor vehicle or the replacement of the motor vehicle.\n\n> Note: Section 408 of the Act is an offence provision that limits a person’s ability to deal with goods provided under the Act without the Commission’s consent.\n\n  (2) Subject to the operation of this Scheme in relation to future eligibility, the vehicle can be loaned at any time at the person’s discretion.\n\n#### 21 Ongoing expenses relating to the motor vehicle\n\n  (1) Subject to section 16, if a person receives compensation in the form of a subsidy to assist with the purchase of a motor vehicle under this Scheme, the person is wholly responsible for garaging, maintenance, insurance, registration, and operation of the motor vehicle.\n\n  \n\nSchedule 1—Transitional\n\n1 Definitions\n\n> In this Schedule:\n\n> commencement day means the day section 1 of this instrument commenced.\n\n> former scheme means the Motor Vehicle Compensation Scheme (Instrument 2015 No. MRCC 20) as in force immediately before the commencement day.\n\n2 Process not determined under former scheme\n\n  (1) A process commenced under the former scheme and not determined before the commencement day is taken to have been commenced under the Scheme.\n\n3 Compensation received under former scheme\n\n  (1) A driving or other modification that an eligible person received under the former scheme is taken to have been received under the Scheme for the purposes of the Scheme.\n  (2) A motor vehicle that an eligible person received under the former scheme is taken to be a previous motor vehicle for the purposes of the Scheme.\n\n  \n\nSchedule 2—Amendments\n\nMotor Vehicle Compensation Scheme 2025\n\n1 Subsection 5(1), definition of care institution, paragraph (a)\n\nsubstitute\n\n    (a) a residential care home (within the meaning of section 10 of the Aged Care Act 2024);","sortOrder":1},{"sectionNumber":"7","sectionType":"section","heading":"Circumstances when a person is eligible for compensation for modifying a motor vehicle","content":"#### 7 Circumstances when a person is eligible for compensation for modifying a motor vehicle\n\n  (1) Subject to any other provision of this Part, a person is eligible for compensation to modify a motor vehicle for the person if, and only if, the Commission is satisfied that:\n    (a) the person is an eligible person; and\n    (b) if the person is a resident of a care institution, the person is capable of leaving the care institution;\n    (c) the person either:\n    (i) cannot drive a motor vehicle without driving or other modifications that enable the person to drive safely; or\n    (ii) cannot be driven in a motor vehicle without modification that enables the person to be transported safely and in reasonable comfort; and\n    (d) the person owns a motor vehicle or has an interest in a motor vehicle that is capable of having driving devices fitted or modifications made for use by the person; and\n    (e) if the person has an interest in a motor vehicle, any other person with an interest agrees to the motor vehicle being modified in the way proposed; and\n    (f) an approved program provider or an occupational therapist has made a written recommendation to the Commission that the approved program provider or occupational therapist is satisfied on reasonable grounds that the person would derive benefit directly from:\n    (i) driving a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without driving a motor vehicle; or\n    (ii) being driven in a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without driving a motor vehicle.","sortOrder":2},{"sectionNumber":"8","sectionType":"section","heading":"Amount of any subsidy","content":"#### 8 Amount of any subsidy\n\n  (1) The amount of any subsidy under section 7, is such amount as the Commission considers is reasonable, taking account of all the other circumstances the Commission thinks are relevant, including all, or any, of the following:\n    (a) the nature of the person’s impairment;\n    (b) the nature of proposed driving devices or modifications;\n    (c) the type and cost of alternative suitable driving devices or modifications that are reasonably available and cost effective;\n    (d) whether there are alternative providers of suitable driving devices or modifications that are reasonably accessible and cost effective.","sortOrder":3},{"sectionNumber":"9","sectionType":"section","heading":"Commission may request advice from an approved program provider or an occupational therapist","content":"#### 9 Commission may request advice from an approved program provider or an occupational therapist\n\n  (1) The Commission may request advice from an approved program provider or an occupational therapist in relation to the type of any necessary driving devices or modifications to make the motor vehicle safe and reasonably comfortable at the minimum cost.\n  (2) The Commission may take any advice provided under subsection (1) into account when determining the amount of any subsidy under section 7.","sortOrder":4},{"sectionNumber":"10","sectionType":"section","heading":"Eligibility for a subsidy to assist the purchase of an initial motor vehicle","content":"#### 10 Eligibility for a subsidy to assist the purchase of an initial motor vehicle\n\n  (1) Subject to any other provision of this Part, a person is eligible for compensation in the form of a subsidy to assist the person to purchase an initial motor vehicle if:\n    (a) the person is an eligible person; and\n    (b) the person either:\n    (i) cannot drive a motor vehicle without driving or other modifications that enable the person to drive safely; or\n    (ii) cannot be driven in a motor vehicle without modification that enables the person to be transported safely and in reasonable comfort; and\n    (c) the person can establish:\n    (i) where the person owns a motor vehicle or has an interest in a motor vehicle—that it is either not possible or not practicable to modify that motor vehicle; or\n    (ii) the person does not own a motor vehicle or have an interest in a motor vehicle; and\n    (d) if the person is a resident of a care institution, the person is capable of leaving the care institution; and\n    (e) an approved program provider or an occupational therapist has made a written recommendation to the Commission that the approved program provider or occupational therapist is satisfied on reasonable grounds that the person would derive benefit directly from:\n    (i) driving a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without driving a motor vehicle; or\n    (ii) being driven in a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without access to a motor vehicle.\n  (2) For the purposes of subsection (1), a person is not to be taken to derive direct benefit through the use of the motor vehicle by another person solely for that other person.\n  (3) The Commission may determine to grant a person compensation for modifying a motor vehicle where a person is eligible under subsection (1) if it considers that is appropriate compensation in all the circumstances. Compensation under subsection (1) is only to be available if modification of a person’s motor vehicle or a motor vehicle in which they have an interest is not a cost effective or appropriate option.","sortOrder":5},{"sectionNumber":"11","sectionType":"section","heading":"Determining the amount of any subsidy","content":"#### 11 Determining the amount of any subsidy\n\n  (1) The amount of any subsidy under section 10, is such amount as the Commission considers is reasonable, after deducting the trade-in value at arm’s length of the person’s existing motor vehicle (if any) or interest in a motor vehicle (if any) and taking account of all the other circumstances the Commission thinks are relevant, including all, or any, of the following:\n    (a) the nature of the person’s impairment;\n    (b) the type and cost of the motor vehicle that the person is proposing to purchase;\n    (c) the type and cost of accessories that are reasonably required for the person;\n    (d) the type and cost of alternative motor vehicles to the motor vehicle the person is proposing to purchase;\n    (e) the ability of the proposed motor vehicle to be fitted with any necessary driving devices or be otherwise modified for the person;\n    (f) in relation to a second hand motor vehicle—the number of kilometres travelled by the motor vehicle, the life of the motor vehicle and the possible application of section 12;\n    (g) if the person’s existing motor vehicle was stolen or destroyed through no fault on the part of the person—the full amount of the of insurer’s write-off payment;\n    (h) if the person sold or disposed of a motor vehicle or an interest in a motor vehicle within the period of 12 months ending on the date of making a claim—the trade-in value at arm’s length for which that motor vehicle or interest was sold or disposed.","sortOrder":6},{"sectionNumber":"12","sectionType":"section","heading":"Commission may request advice from an approved program provider or an occupational therapist","content":"#### 12 Commission may request advice from an approved program provider or an occupational therapist\n\n  (1) The Commission may request advice from an approved program provider or an occupational therapist in relation to the type of motor vehicle, the type of any reasonable accessories and the type of any necessary driving devices or modifications to make the motor vehicle safe and reasonably comfortable at the minimum cost.\n  (2) The Commission may take any advice provided under subsection (1) into account when determining the amount of any subsidy under section 10.","sortOrder":7},{"sectionNumber":"13","sectionType":"section","heading":"Circumstances when a person is eligible for a replacement motor vehicle","content":"#### 13 Circumstances when a person is eligible for a replacement motor vehicle\n\n  (1) Subject to any other provision of this Part, where a person has received a previous motor vehicle, the person is eligible for compensation to assist with the purchase of a replacement motor vehicle under this section if:\n    (a) any of the following applies at a time when the person is an eligible person:\n    (i) the person’s claim for compensation under this section is made at least 5 years after the person last received compensation under section 7 or section 10; or\n    (ii) the person’s previous motor vehicle has travelled at least 100,000 kilometres after it was purchased or modified, whichever last occurred; or\n    (iii) the person’s previous motor vehicle was stolen or destroyed through no fault of the person; and\n    (b) an approved program provider or occupational therapist has made a written recommendation to the Commission that the approved program provider or occupational therapist is satisfied on reasonable grounds that the person would derive benefit directly from:\n    (i) driving a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without driving a motor vehicle; or\n    (ii) being driven in a motor vehicle, taking account of the benefits to the person’s physical and mental health and the person’s level of mobility without access to a motor vehicle; and\n    (c) a qualified mechanic considers that the person’s previous motor vehicle is unsafe, taking into account the previous motor vehicle’s maintenance and service history, and its condition.\n  (2) For the purposes of subsection (1), a person is not to be taken to derive direct benefit through the use of the motor vehicle by another person solely for that other person.","sortOrder":8},{"sectionNumber":"14","sectionType":"section","heading":"Determining the amount of any subsidy","content":"#### 14 Determining the amount of any subsidy\n\n  (1) The amount of any subsidy under section 13, is such amount as the Commission considers is reasonable, after deducting the trade-in value at arm’s length of the person’s previous motor vehicle (if any) or interest in a previous motor vehicle and taking account of all the circumstances the Commission thinks are relevant, including all, or any, of the following:\n    (a) the nature of the person’s impairment;\n    (b) the type and cost of the motor vehicle that the person is proposing to purchase;\n    (c) the type and cost of accessories that are reasonably required for the person;\n    (d) the type and cost of alternative motor vehicles to the motor vehicle the person is proposing to purchase;\n    (e) the ability of the proposed motor vehicle to be fitted with any necessary driving devices or be otherwise modified for the person;\n    (f) in relation to a second hand motor vehicle—the number of kilometres travelled by the motor vehicle, the life of the motor vehicle and the possible application of section 15;\n    (g) if the person’s existing motor vehicle was stolen or destroyed through no fault on the part of the person—the full amount of the of insurer’s write-off payment.","sortOrder":9},{"sectionNumber":"15","sectionType":"section","heading":"Commission may request advice from an approved program provider or an occupational therapist","content":"#### 15 Commission may request advice from an approved program provider or an occupational therapist\n\n  (1) The Commission may request advice from an approved program provider or an occupational therapist in relation to the type of motor vehicle, the type of any reasonable accessories and the type of any necessary driving devices or modifications to make the motor vehicle safe and reasonably comfortable at the minimum cost.\n  (2) The Commission may take any advice provided under subsection (1) into account when determining the amount of any subsidy under section 13.","sortOrder":10},{"sectionNumber":"16","sectionType":"section","heading":"Other compensation","content":"#### 16 Other compensation\n\n  (1) A person is eligible for compensation in the form of a subsidy to assist the person with:\n    (a) the cost of insurance insofar as the insurance only relates to any modifications provided under the Scheme; or\n    (b) repairs to any modification that have been made as a result of compensation to modify a vehicle under this Scheme.","sortOrder":11},{"sectionNumber":"17","sectionType":"section","heading":"Amount of other compensation","content":"#### 17 Amount of other compensation\n\n  (1) The amount of compensation under section 16 is equal to:\n    (a) the cost of any additional insurance that only relates to the modifications; or\n    (b) the cost of the repairs to the modifications.","sortOrder":12},{"sectionNumber":"18","sectionType":"section","heading":"Motor vehicle from another scheme","content":"#### 18 Motor vehicle from another scheme\n\n  (1) A person is not eligible for compensation in the form of a subsidy to assist with the purchase of a motor vehicle under this Scheme if the person receives or has received:\n    (a) a payment or any other form of assistance for the purchase of a motor vehicle; or\n    (b) a motor vehicle;\n  under any other law, contract, agreement or understanding within 5 years before making a claim for compensation under this Scheme.","sortOrder":13},{"sectionNumber":"19","sectionType":"section","heading":"Conditions relating to the compensation payment","content":"#### 19 Conditions relating to the compensation payment\n\n  (1) If a person receives compensation in the form of a subsidy to assist with the purchase of a motor vehicle under this Scheme, the person must:\n    (a) register the motor vehicle; and\n    (b) comprehensively insure the motor vehicle to its full market value.","sortOrder":14},{"sectionNumber":"20","sectionType":"section","heading":"Ownership of motor vehicle","content":"#### 20 Ownership of motor vehicle\n\n  (1) If a person receives compensation in the form of a subsidy to assist with the purchase of a motor vehicle under this Scheme:\n    (a) the person is taken to be the legal owner of the motor vehicle; and\n    (b) the motor vehicle cannot be sold, transferred, encumbered or otherwise dealt with without the written agreement of the Commonwealth; and\n    (c) it is a condition of the subsidy that the person maintain the motor vehicle in good working order; and\n    (d) it is a condition of the subsidy that if the motor vehicle is damaged and the person receives any payment in respect of the damage from an insurer—the person must apply the amount of the payment towards repairing the damage to the motor vehicle or the replacement of the motor vehicle.\n\n> Note: Section 408 of the Act is an offence provision that limits a person’s ability to deal with goods provided under the Act without the Commission’s consent.\n\n  (2) Subject to the operation of this Scheme in relation to future eligibility, the vehicle can be loaned at any time at the person’s discretion.","sortOrder":15},{"sectionNumber":"21","sectionType":"section","heading":"Ongoing expenses relating to the motor vehicle","content":"#### 21 Ongoing expenses relating to the motor vehicle\n\n  (1) Subject to section 16, if a person receives compensation in the form of a subsidy to assist with the purchase of a motor vehicle under this Scheme, the person is wholly responsible for garaging, maintenance, insurance, registration, and operation of the motor vehicle.\n\n  \n\nSchedule 1—Transitional\n\n1 Definitions\n\n> In this Schedule:\n\n> commencement day means the day section 1 of this instrument commenced.\n\n> former scheme means the Motor Vehicle Compensation Scheme (Instrument 2015 No. MRCC 20) as in force immediately before the commencement day.\n\n2 Process not determined under former scheme\n\n  (1) A process commenced under the former scheme and not determined before the commencement day is taken to have been commenced under the Scheme.\n\n3 Compensation received under former scheme\n\n  (1) A driving or other modification that an eligible person received under the former scheme is taken to have been received under the Scheme for the purposes of the Scheme.\n  (2) A motor vehicle that an eligible person received under the former scheme is taken to be a previous motor vehicle for the purposes of the Scheme.\n\n  \n\nSchedule 2—Amendments\n\nMotor Vehicle Compensation Scheme 2025\n\n1 Subsection 5(1), definition of care institution, paragraph (a)\n\nsubstitute\n\n    (a) a residential care home (within the meaning of section 10 of the Aged Care Act 2024);","sortOrder":16}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original purpose. It is a straightforward re-enactment of the 2015 Motor Vehicle Compensation Scheme with minor updates (specifically updating the aged care reference to the 2024 Act). The scope remains focused on vehicle assistance for eligible military personnel and veterans with service-related disabilities."},"complexity_factors":["Multiple cross-references to the Military Rehabilitation and Compensation Act 2004 for core definitions like 'eligible person' and 'claim'","Nested conditional logic in eligibility criteria (sections 7, 10, 13) requiring multiple cumulative conditions to be satisfied","Defined terms rely on external legislation (Aged Care Act 2024) for 'residential care home' definition","Discretionary decision-making framework ('Commission considers reasonable') rather than fixed amounts creates interpretive complexity","Multiple overlapping but distinct eligibility pathways (modification vs initial purchase vs replacement) with slightly different criteria","Temporal restrictions (5-year waiting periods, 12-month disposal lookback, 100,000km threshold) create calculation complexity","Ownership restrictions and encumbrance rules create property law interactions","Transitional provisions preserving rights under repealed 2015 scheme"],"plain_english_summary":"This scheme replaces the 2015 program and gives eligible serving personnel and veterans with service-related mobility impairments financial subsidies to modify or buy a first vehicle, replace one after set periods or loss, and cover extra insurance and modification repairs. It requires a health professional’s recommendation, vehicle registration and comprehensive insurance, limits on resale without Commonwealth permission, and excludes those who received similar assistance in the past five years. The update modernises aged‑care references to the Aged Care Act 2024."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"The instrument repeals and replaces the 2015 scheme (section 4) while largely restating eligibility routes for modifications, initial purchases and replacements. It explicitly ties the definition of 'care institution' to the Aged Care Act 2024 (Schedule 2) and stages that amendment to commence with that Act. It preserves prior entitlements and unfinished processes from the former scheme (Schedule 1) but introduces or restates discrete operational rules and Commission discretion (sections 7, 8, 10–15, 20)."},"complexity_factors":["Broad Commission discretion to set what is 'reasonable' for subsidies and to weigh unspecified 'other circumstances' (sections 8, 11, 14).","Multiple conditional eligibility tests (modification, initial purchase, replacement) with overlapping requirements (sections 7, 10, 13).","Cross‑references to the Military Rehabilitation and Compensation Act 2004 and the Aged Care Act 2024 for key definitions and authority (sections 3, 5; Schedule 2).","Detailed calculation and offset rules: deduction of trade‑in value, insurer write‑off treatment, second‑hand vehicle kilometre/life considerations, and a 5‑year/100,000 km replacement threshold (sections 11, 13, 14, 18).","Mandatory written recommendations or advice from approved program providers, occupational therapists, and in some cases a qualified mechanic; Commission may request but relies on professional input (sections 7(f), 9, 12, 15, 13(1)(c)).","Conditions and restrictions on ownership and disposal: recipient deemed legal owner but cannot sell/encumber without Commonwealth consent; obligations to repair/replace if insurer pays (section 20; note to section 408 of the Act).","Ongoing recipient liabilities for garaging, maintenance, insurance, registration and operation, with limited Commonwealth assistance only for modification‑specific insurance and repairs (sections 16, 17, 21).","Transitional continuity for processes, modifications and vehicles under the former scheme, plus repeal of the 2015 instrument (section 4; Schedule 1)."],"plain_english_summary":"This instrument replaces the 2015 motor‑vehicle compensation rules and establishes how the Commonwealth (through the Commission) funds subsidies to modify, buy an initial vehicle, or replace a vehicle for eligible persons under the Military Rehabilitation and Compensation Act. The Commission decides eligibility and subsidy amounts, taking medical/occupational recommendations and cost factors into account.\n\nRecipients must register, comprehensively insure and maintain vehicles and bear ongoing operating costs; they cannot deal with the vehicle without the Commonwealth’s written agreement. The Scheme links the meaning of “care institution” to the Aged Care Act 2024 and preserves prior entitlements."}},"importantCases":[],"_links":{"self":"/api/acts/motor-vehicle-compensation-scheme-2025","history":"/api/acts/motor-vehicle-compensation-scheme-2025/history","analysis":"/api/acts/motor-vehicle-compensation-scheme-2025/analysis","conflicts":"/api/acts/motor-vehicle-compensation-scheme-2025/conflicts","importantCases":"/api/acts/motor-vehicle-compensation-scheme-2025/important-cases","documents":"/api/acts/motor-vehicle-compensation-scheme-2025/documents"}}