Ex Gratia Payment to Ex-POWs and Civilian Internees of Japan, Ex-POWs of North Korea and Ex-POWs of Europe

Original Purpose/Intent

To provide all Australian service personnel who were held prisoner of war (POW) and civilians who were interned by Japan during World War II and their surviving widows with a one-off ex gratia payment of $25,000 in recognition of the treatment they received in captivity.

Ex-POWs and civilian internees of Japan

Veterans' Entitlements Act 1986 – Section 106
Compensation (Japanese Internment) Act 2001 – Section 7(1)
Veterans' Entitlements (Compensation – Japanese Internment) Regulations

A veteran is eligible if the veteran was interned by Japanese military forces at any time during the designated war period and was alive at 1 January 2001.

A dependant (other than a child) of a deceased veteran is eligible if the dependant was alive on 1 January 2001; the veteran was interned by Japanese military forces at any time during the designated war period and died before 1 January 2001.

A partner of a deceased veteran is eligible if the person was alive at 1 January 2001, the veteran died before 1 January 2001, the person was a partner of the veteran immediately before the veteran's death, and veteran was interned by Japanese military forces at any time during the designated war.

A person (civilian) is eligible if the person was alive at 1 January 2001, the person was interned by Japanese military forces at any time during the designated war period, and the person was domiciled in Australia immediately before the commencement of internment.

Ex-POWs of North Korea

Veterans' Entitlements (Clarke Review) Act 2004 – Part 2.

To provide all Australian service personnel who were held POWs and civilians who were interned by North Korea during the Korean War and their surviving widows with a one-off ex gratia payment of $25,000 in recognition of the treatment they received in captivity.

In 2004 eligibility was extended to ex-POWs of North Korea and their surviving widows who were alive on 1 July 2003 in response to a recommendation of the Clarke Review of Veterans' Entitlements.

A veteran is eligible if the veteran was interned by North Korean military forces at any time during the designated war period and was alive on 1 July 2003.

Ex-POWs (Europe)

A $25,000 one-off payment is also available to Australian former POWs in Europe, or their surviving widows who were alive on 1 January 2007.

To be eligible for the ex-gratia payment the person must have been:

• a member of the Australian Defence Forces (ADF) who was held prisoner by Germany, Italy or their allies at any time between 3 September 1939 and 11 May 1945;
• a civilian, who was interned or detained by the Germans, Italians or their allies at any time between 3 September 1939 and 11 May 1945, who was domiciled in Australia  immediately before their detention or internment; or
• the widow or widower of an eligible veteran or civilian.

The payment is also available to the estates of eligible people who were alive on 1 January 2007 but have since died.

Date of Introduction

May 2001 (POW-J)
July 2004 (POW-K)
January 2007 (POW-E)

Assessment under the Income and Assets Tests

Compensation (Japanese Internment) Act 2001 – Section 12
Veterans’ Entitlements (Clarke Review) Act 2004 – Section 13
Social Security and Veterans’ Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007 Schedule 5 Item 10

The $25,000 one-off payment is disregarded under the assets test and treated as a deduction from the value of the person's total assets for life.

Veterans’ Entitlements Act 1986 – Section 5H(12) – Legislative instruments

The $25,000 one-off payment is regarded as an exempt lump sum under the income test.  If the money received from these payments is invested, used to acquire assets or disposed of, then the subsequent investment, asset acquisition or disposal is assessed using the appropriate income and assets test rules.