You are here

Compensation

Document
Last amended 
4 May 2022
Pension and allowances
Indexation of pensions and allowances
CategoryIndexation date(s)...Reference quarterBase quarterRounding baseRate calculated under...
War widow's/widower's pension
(para 30(1)(a) component)
20-MarNot indexed but each March and September this rate will be substituted with the single rate service pension MBRN/ASection 198 VEA
20-Sep
War widow's / widower's pension (para 30(1)(b) component)20-MarIndexed using pension MBR factor$0.10 p/f, rounded upSection 198 VEA
20-Sep
War widow's / widower's pension (para 30(1)(c) component)20-MarDecember quarterHighest June or December quarter prior to the reference quarter$2.60 p/a, rounded offSection 198 VEA
20-SepJune Quarter
Disability Compensation Payment:
- special rate
- intermediate rate
- EDA
- general rate
20-MarIndexed 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 upSection 198 VEA
20-Sep
Increased rates for specific disability - items 1-620-MarDecember quarterHighest June or December quarter prior to the reference quarter$0.10 p/f, rounded offSection 198 VEA
20-SepJune quarter
Increased rates for specific disability - items 7-1520-SepJune quarterHighest June quarter prior to the reference quarter$0.10, rounded offSection 198D VEA
Orphan's pension1-JanJune quarterHighest June quarter prior to the reference quarter$0.10 p/f, rounded offSection 198A VEA
PNG pension
 - disability
 - widows
 - other dependants
20-MarIndexed using pension MBR factor$0.10, rounded offMembers of the Forces Benefits Act 1957 (and Regulations)    
20-Sep
PNG pension
 - orphan
1-JanIndexed using proportional increase in VEA orphan's pension rate.$0.10, rounded offMembers of the Forces Benefits Act 1957 (and Regulations)    
Veterans supplement1-JanJune quarterJune quarter prior to the reference quarter (but not earlier than June quarter 2008)$0.20 p/f rounded downSection 198F VEA,
Clothing allowance20-SepJune quarterHighest June quarter prior to the reference quarter$0.10, rounded offSection 198D VEA
Attendant allowance
Recreational transport allowance
Prisoner of War Recognition Supplement
Vehicle Assistance Scheme - Running and Maintenance Allowance20-SepNot indexed but set as equal to the high rate of recreation transport allowance multiplied by 26.Vehicle Assistance Scheme - Instrument 1997 No. 1
Victoria Cross allowance20-SepJune quarterHighest June quarter prior to the reference quarter$1.00, rounded offSection 198FA VEA
Education allowances1-JanJune quarterHighest June quarter prior to the reference quarter$0.10 p/f, rounded offVeterans' Children Education Scheme Instrument 1992 No. 11


 

 

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 (EDA) 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 as 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 compensation payment (known before 2022 as disability pension), for the purposes of service pension, income support supplement and veteran payment, means:

  • a pension paid by way of compenstion 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).

Please note that the Disability Compensation Payment is legally a pension by way of compensation under the VEA so that concessional benefits under state, territory and local government legislation to pensioners/pensions under the VEA are not denied.

 

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.