GARP Chapter 24: Weekly Payments and Lump Sums, Explained Simply

Permanent impairment compensation is a weekly payment for life.

You can swap some or all of it for a lump sum. This chapter sets out how much you are allowed to swap.

The rule

It depends on how big your weekly amount is, compared with the maximum weekly amount payable.

• Under 10% of the maximum — you can convert the whole amount.
• Between 10% and 20% — you can convert 50% or 100%.
• Over 20% — you can convert 25%, 50%, 75% or 100%.

So the more you are getting, the more choice you have — and the more you can choose to keep as income.

How the lump sum is worked out

By conversion factors approved by the Australian Government Actuary.

The factor depends mainly on your age. A younger veteran has more years of payments ahead, so the same weekly amount converts to a larger lump sum.

These are not published as a simple table you can look up. DVA works it out and tells you the figure.

What DVA has to tell you

Once compensation is determined, DVA must notify you of:

• the weekly amount payable, and
• whether it can be converted, wholly or partly, into a lump sum

You will be given the actual numbers. Do not make the decision before you have them.

Things to think about

We are not financial advisers, and this is not financial advice. But these are the questions worth putting to one.

• The weekly payment is for life and is indexed. A lump sum is not.
• Once converted, it is gone. You cannot swap back.
• You do not have to choose one or the other. Splitting it is often sensible — some cash now, some income forever.
• Ask about the effect on other payments and on any means testing.
• Ask about tax for your own circumstances.

DVA provides free financial advice through its financial advice arrangements for exactly this decision. Use it.

What this means for you

• Get the actual figures first. Weekly amount and lump sum equivalent.
• Consider splitting rather than taking all or nothing.
• Take the free financial advice. This is a permanent decision.
• Do not rush it to clear a debt. Think about the next thirty years.

Common questions

Can I change my mind later?

No. Conversion is permanent.

Why is my mate's lump sum bigger on the same points?

Usually age. Younger veterans convert at higher factors. Service type and lifestyle rating also affect the weekly amount underneath it.

What if my condition worsens after I take the lump sum?

A reassessment can still be done. Extra compensation requires the rating to rise by at least 5 points.

Next in this series

Chapter 25: if you already had a VEA or DRCA condition.

Want a hand with yours?

If you have a permanent impairment assessment coming up, we do these every week. Call 0429 146 039 or email reception@vhc.org.au.

More reading

What is the GARP? · The chapter map · DVA Claims: PI points calculator · Permanent Impairment Assessments · DVA claims · SoP library

This is general information for Australian veterans. It is not legal advice. It explains Chapter 24 of the Guide to Determining Impairment and Compensation 2026 (F2026L00595), which started on 1 July 2026. The full rules are on the Federal Register of Legislation. Check your own situation with DVA on 1800 VETERAN (1800 838 372).