DATE OF ISSUE:  7 MARCH 1997

INCREASE IN VICTORIA CROSS ALLOWANCE

PURPOSE

The purpose of this Instruction is to formalise arrangements for the payment of an increased rate of the Victoria Cross (VC) allowance.

BACKGROUND

2.The original rate of VC allowance in 1856 was ?10 per annum.  In 1959 this was raised to ?100 per annum.  In October 1995 the British Prime Minister announced the allowance paid to British VC holders would be increased to ?1300 per annum, effective from 17 August 1995.

3.The Federal Budget on 20 August 1996 provided for Australian VC holders to be granted an allowance of $2700 per annum backdated to 17 August 1995.

PROCEDURE

4.The allowance may be paid either fortnightly, or in advance as an annual lump sum.  State Offices should contact VC holders to offer the choice.

5. If a veteran chooses the lump sum option a payment for the two years from 17 August 1995 to 16 August 1997 is to be made when the amendment to the VEA receives Royal Assent.  Thereafter the allowance is to be paid annually on the last payment day in August.

6. If a veteran chooses to continue having the allowance paid fortnightly a new rate of $103.51 per fortnight is to be paid.  In this event, the arrears from17 August 1995 are to be paid as a lump sum when the amendment to the VEA receives Royal Assent.  The new fortnightly rate is also to be paid from the date of Royal Assent.

7.No part of the allowance paid in advance is to be recovered on the death of a VC holder.

PETER REECE

Division Head

Compensation and Support