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Pension Supplement

Legislative Authority

Veterans' Entitlements Act 1986
Section 5GA
Schedule 6


Stated Current Purpose/Intent

The Veterans' Affairs and Other Legislation Amendment (Pension Reform) Bill 2009 introduced the Pension Supplement to simplify the number of supplementary allowances currently available and to provide pensioners with more flexibility in managing their own budgets.


Current Eligibility Criteria

All veterans who are in receipt of income support.


Date of Introduction

20 September 2009



  1. The Pension Supplement incorporated the value of the previous GST Supplement, pharmaceutical allowance, utilities allowance and telephone allowance (at the higher internet rate).
  2. The Pension Supplement is paid fortnightly.
  3. A portion of the Pension Supplement is only available to people resident in Australia or temporarily overseas.  This maintains the current portability rules applying to the former utilities allowance and telephone allowance.
  4. A pension payment will not fall below the minimum amount of the Pension Supplement until income or assets reach a level that would otherwise reduce the pension to nil.
  5. An amount of the Pension Supplement equal to the previous GST Supplement is taxable, except where a pension is received that is not taxable.  The remainder of the Pension Supplement is non-taxable.
  6. The combined pension couple rate of the Pension Supplement and the Pension Supplement minimum amount are indexed to the CPI each 20 March and 20 September.  The single rate of the Pension Supplement and Pension Supplement minimum amount is 66.33 per cent of the combined pension couple rate.


Significant Changes in Criteria or Purpose Since Introduction


Option introduced for pensioners to elect to receive the pension supplement minimum amount as a quarterly payment rather than fortnightly from 1 July 2010.


The portability rules for temporary overseas travel changed on 1 January 2013, reducing the allowable travel period from 13 weeks to 6 weeks before the supplement is reduced.