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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-Mar||Not indexed but each March and September this rate will be substituted with the single rate service pension MBR||N/A||Section 198 VEA|
|War widow's / widower's pension (para 30(1)(b) component)||20-Mar||Indexed using pension MBR factor||$0.10 p/f, rounded up||Section 198 VEA|
|War widow's / widower's pension (para 30(1)(c) component)||20-Mar||December quarter||Highest June or December quarter prior to the reference quarter||$2.60 p/a, rounded off||Section 198 VEA|
|Disability Compensation Payment:|
- special rate
- intermediate rate
- general rate
|20-Mar||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|
|Increased rates for specific disability - items 1-6||20-Mar||December quarter||Highest June or December quarter prior to the reference quarter||$0.10 p/f, rounded off||Section 198 VEA|
|Increased rates for specific disability - items 7-15||20-Sep||June quarter||Highest June quarter prior to the reference quarter||$0.10, rounded off||Section 198D VEA|
|Orphan's pension||1-Jan||June quarter||Highest June quarter prior to the reference quarter||$0.10 p/f, rounded off||Section 198A VEA|
- other dependants
|20-Mar||Indexed using pension MBR factor||$0.10, rounded off||Members of the Forces Benefits Act 1957 (and Regulations)|
|1-Jan||Indexed using proportional increase in VEA orphan's pension rate.||$0.10, rounded off||Members of the Forces Benefits Act 1957 (and Regulations)|
|Veterans supplement||1-Jan||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-Sep||June quarter||Highest June quarter prior to the reference quarter||$0.10, rounded off||Section 198D VEA|
|Recreational transport allowance|
|Prisoner of War Recognition Supplement|
|Vehicle Assistance Scheme - Running and Maintenance Allowance||20-Sep||Not 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 allowance||20-Sep||June quarter||Highest June quarter prior to the reference quarter||$1.00, rounded off||Section 198FA VEA|
|Education allowances||1-Jan||June quarter||Highest June quarter prior to the reference quarter||$0.10 p/f, rounded off||Veterans' 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 Service. War 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.
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.