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Compensation

Document
Last amended 
19 December 2014

Last amended: 19 December 2014

Pension and allowances
Indexation of pensions and allowances

Category

Indexation date(s)...

Reference quarter

Base quarter

Rounding base

Rate calculated under...

War widow's/widower's pension

(para 30(1)(a) component)

20 March

Not indexed but each March and September this rate will be substituted with the single rate service pension MBR

N/A

Section 198 VEA

20 September

War widow's / widower's pension (para 30(1)(b) component)

20 March

 

Indexed using pension MBR factor

$0.10 p/f, rounded up

Section 198 VEA

20 September

War widow's / widower's pension (para 30(1)(c) component)

20 March

December quarter

Highest June or December quarter prior to the reference quarter

$2.60 p/a, rounded off

Section 30 VEA

 

20 September

June Quarter

Disability pension:

- special rate

- intermediate rate

- EDA

- general rate

20 March

 

Indexed using pension MBR factor

Note that the special, intermediate and EDA rates are indexed in two parts – the general rate component and the above general rate component. Each part is indexed separately, including rounding, and then added together.

$0.10 p/f, rounded up

Section 198 VEA

20 September

Increased rates for specific disability - items 1-6

20 March

December quarter

Highest June or December quarter prior to the reference quarter

$0.10 p/f, rounded off

Section 198 VEA

20 September

June quarter

Increased rates for specific disability - items 7-15

20 September

 

June quarter

Highest June quarter prior to the reference quarter

$0.10, rounded off

Section 198D VEA

Orphan's pension

1 January

June quarter

Highest June quarter prior to the reference quarter

$0.10 p/f, rounded off

Section 198A VEA

PNG pension

20 March

 

Indexed using pension MBR factor

$0.10, rounded off

Members of the Forces Benefits Act 1957 (and Regulations)    

More ?

 

Papua New Guinea (Members of the Forces Benefits) Act 1957

 

More ? (go back)

 

20 September

Veterans supplement

 

1 January

June quarter

June quarter prior to the reference quarter (but not earlier than June quarter 2008)

$0.20 p/f rounded down

Section 198F VEA,

 

Clothing allowance

20 September

 

June quarter

Highest June quarter prior to the reference quarter

$0.10, rounded off

Section 198D VEA

Attendant allowance

Recreational transport allowance

Prisoner of War Recognition Supplement

Vehicle Assistance Scheme - Running and Maintenance Allowance

20 September

Not indexed but set as equal to the high rate of recreation transport allowance multiplied by 26.

VEA

Vehicle Assistance Scheme - Instrument 1997 No. 1

Victoria cross allowance

20 September

June quarter

Highest June quarter prior to the reference quarter

$1.00, rounded off

Section 198FA VEA

Education allowances

1 January

June quarter

Highest June quarter prior to the reference quarter

$0.10 p/f, rounded off

Veterans' Children Education Scheme Instrument 1992 No. 11

VEA and MRCA


 

 

A form of pension that is paid to the partner of a veteran where the veteran has died as a result of war service or eligible Defence ServiceWar widow's/widower's pension is also paid to the partner of a veteran whose death was not war caused if the veteran was a ex-prisoner of war or if the veteran was receiving Extreme Disablement Adjustment Rate, Special Rate (T&PI) or a rate increased in respect of certain war-caused injury or disease.

 

A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.

According to Schedule 6-B1 of the VEA a MBR is the person's maximum rate is ascertained at the date of grant of the designated pension, and is the maximum annual pension rate payable at the date of grant (excluding allowances).

 

 

Disability pension, for the purposes of service pension and income support supplement, means:

  • a pension paid for incapacity from war caused conditions, or peacetime, peacekeeping or hazardous service caused conditions (other than a war widow's or orphan's pension); or
  • temporary incapacity allowance; or
  • any other payment in respect of incapacity or death resulting from war or war-like operations in which the Crown has been engaged [usually paid by another Commonwealth country].

A form of pension that is paid to a child of a veteran where the veteran has died as a result of war service or defence service.  The child may be the natural or adopted child of the veteran or any other child who was wholly or substantially dependent on the veteran.

 

 

The veterans supplement was introduced on 20 September 2009 as part of the Government's Secure and Sustainable Pension Reform package. It is a fortnightly payment that replaces pharmaceutical allowance and/or telephone allowance for compensation recipients who are not in receipt of an income support supplement. There are two rates, the veterans supplement low rate and the veterans supplement high rate. The low rate replaces one of the allowances and the high rate replaces both. The low rate is indexed every January to the Consumer Price Index (CPI). The high rate is always twice the amount of the low rate.