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Pharmaceutical Allowance was rolled into other payments and ceased to exist in the VEA and MRCA on 20 September 2009. PA that was paid to income support pensioners was rolled into the pension supplement. For war widows, it was added to a component of the war widow pension. For other payment recipients, PA was replaced with the veterans supplement.
Veterans' Entitlements Act 1986.
Military Rehabilitation and Compensation Act 2004
The pension supplement is added to a person's maximum basic rate. The pension supplement is calculated as a 'combined couple' rate. The 'not a member of a couple' rate is 66.33% of the 'combined couple' rate. The member of a couple rate is 50% of the combined couple rate. From 1 July 2010, the minimum pension supplement amount will be able to be claimed on a quarterly basis rather than on a fortnightly basis.
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.
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