PI ADVICE
Understanding Permanent Impairment (PI)
Permanent Impairment (PI) compensation is paid to recognise the lasting impact of injuries or illnesses that have been accepted as related to Defence service under the Military Rehabilitation and Compensation Act 2004 (MRCA).
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PI compensation is designed to acknowledge the effect of those conditions on a veteran’s quality of life and ability to work, rather than to replace income directly.
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A PI determination may offer compensation as:
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A lump sum payment,
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Ongoing fortnightly payments, or
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A combination of both.
The choice you make at this point is significant. It can affect your tax position, superannuation, and your future eligibility for other benefits such as the Special Rate Disability Pension (SRDP).
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For this reason, the Department of Veterans’ Affairs (DVA) provides funding for professional financial advice before you make your election. This ensures you fully understand the implications of your choice before it becomes final.
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Many veterans look for guidance after receiving their PI determination letter. This page explains what PI compensation is, why DVA-funded advice exists, and how Witton Lane Advisory helps you make a clear and confident decision within your 12-month election window.
Why Getting PI Financial Advice Matters
The decision between a lump sum and ongoing compensation can have long-term financial effects. Each veteran’s circumstances are different, and what’s right for one person may not be suitable for another.
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The DVA funds personal financial advice so you can make this decision based on a full understanding of your financial situation and future goals.
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Your adviser can help you:
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Understand the differences between lump sum, ongoing payments, and split payment options
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Review how each choice may affect your tax position and cash flow
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Identify any impact on superannuation, Centrelink, or insurance
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Consider how your election may interact with future SRDP eligibility
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Evaluate how each option fits your long-term financial goals and family needs
This advice is not about selling products or influencing your choice. It is about providing clarity, compliance, and confidence so that your decision reflects your best interests.
At Witton Lane Advisory, we ensure this process runs as the DVA intends. Structured, transparent, and focused entirely on the veteran.
What to Do After Receiving Your PI Letter
If you have received your Permanent Impairment determination letter, you have 12 months to seek advice and make your election.
Do not return your election form until you have reviewed your options with a qualified adviser.
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Witton Lane Advisory can help you connect with a licensed financial adviser who will guide you through the funded process and explain each option clearly.
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(If you believe your condition prevents you from working and may meet SRDP criteria, visit our SRDP Advice page.)