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Veterans Supplement

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.



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.



Telephone Allowance was rolled into other payments and ceased to be paid on 20 September 2009.  For income support recipients, TA was rolled into the pension supplement. For CSHC and gold card holders (not receiving income support).TA was rolled into the Seniors supplement. Disability pensioners (not receiving income support) receive a veterans supplement instead of TA.



ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.



The consumer price index (CPI) provides the official measure of inflation in Australia. The CPI measures quarterly changes in the price of a 'basket' of goods and services which account for a high proportion of expenditure by the CPI population group (i.e. metropolitan households).

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