Parliament House Canberra ACT 2602
Telephone 02 6277 7820 Facsimile 02 6273 4140
The Hon Alan Griffin MP
Minister for Veterans Affairs
VA084b
Friday, 18 September 2009
NEW RATES BOOST VETERAN PENSIONS
New pension rates will benefit some 72,000 members of the veteran community in Victoria from
this Sunday, 20 September, announced the Minister for Veterans Affairs, Alan Griffin.
Mr Griffin said the new pension rates are part of the Australian Governments Secure and
Sustainable Pension Reforms and will benefit more than 320,000 veterans Australia-wide.
The increases to income support pensions, combined with the new Pension Supplement and
improved indexation, mean maximum rate single service pensioners will receive $671.90 a
fortnight and war widows/ers with income support supplement will receive $881.50 a fortnight,
Mr Griffin said.
The new maximum rate for couples is $1,013.00 fortnightly, or $506.50 each.
Our reforms are aimed at giving those pensioners who rely on income support a fair go now,
when they need it most, while improving the long term sustainability of the pension system.
The Government is also simplifying the complex system of allowances and paying new
supplements fortnightly, Mr Griffin said.
Indexation of income support has improved as the new Pensioner and Beneficiary Living Cost
Index (PBLCI) more realistically reflects the rise in cost of goods and services for pensioners.
In the six months to June 2009, the PBLCI rose by 1.0 per cent. The Consumer Price Index
rose by 0.6 per cent over the same period.
There is also a Work Bonus rewarding those of pension age who choose to continue to work.
A letter is being sent to all pension recipients explaining how the pension reforms affect their
personal circumstances. I encourage Veterans Affairs pensioners to read their letter carefully,
Mr Griffin said.
If any member of the veteran community has questions about their pension changes after
reading the letter, they can contact my Departments special Pension Review team on
NB: Table of rates follows
Media inquiries only: Sasha Nimmo 0437 863 109
Pension
Old fortnightly rate
New fortnightly rate
Special Rate (TPI) Pension/
MRCA Special Rate Disability
Pension
$1,011.90
$1,022.10
Extreme Disablement
Adjustment
$558.50
$564.10
100 per cent General Rate of
Disability Pension
$359.50
$363.10
Intermediate Rate Disability
Pension
$686.60
$693.50
Service Pension single
$569.80
$671.90*
Service Pension couples
$951.80 couple
$475.90 each
$1,013.00* couple
$506.50* each
War Widows/ers Pension
$607.00
$679.00
Income Support Supplement
$170.20
$202.50*
*New rates include new supplements which replace allowances previously paid quarterly. The new
Pension Supplement replaces, and incorporates the full value of the Utilities Allowance, Telephone
Allowance (at the higher internet rate), the GST Supplement and the Pharmaceutical Allowance.
Other reforms include a change to the income test taper rate. Any pensioner who would
otherwise have had a reduction in their payment because of the changes will go onto a
transitional rate and will still receive a modest increase. They will stay on the transitional rate
until they receive a higher payment under the new rules.
Pension increases apply from 20 September, paid from pension day 24 September. The
24 September pension payment will include the last quarterly payment of Telephone Allowance
and Utilities Allowance. The first full payment of the new rates will be on 8 October.
The minimum pension increase is $20.20, however, with an increase of around 35 per cent in
the value of the stock market since March 2009, there may be an erosion of the amount for
some people.
The VVCS Veterans and Veterans Families Counselling Service can be contacted 24 hours a day, seven days a
week on 1800 011 046.
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