War veterans on some disability pensions will receive a significant and well-deserved payment increase from this Thursday, the Minister for Veterans' Affairs, Bruce Billson said today. Mr Billson said the fortnightly pension payments to Special (Totally and Permanently Incapacitated - TPI) Rate pensioners will increase by $50 and the payment to Intermediate Rate pensioners will rise by $25.

"This very powerful measure, worth around $160 million, will improve the financial status of about 30,000 veterans who receive the higher rates of disability pension," Mr Billson said."These are real and meaningful increases which will be indexed in the same way as other pensions that are linked to increases in Male Total Average Weekly Earnings (MTAWE) and the Consumer Price Index (CPI), to ensure the value will be preserved and maintained.

"I put a strong case to the Government that these veterans deserved a real and immediate increase because had it not been for the impact of their service, they would have been able to benefit from the same opportunities available to workers during these strong and prosperous economic times. "Veterans who have sacrificed so much for our country deserve higher levels of support and I believe this funding will go a long way to providing that much needed extra aid."

The Department of Veterans' Affairs will be paying the increases on 19 July, the first full pay period of 2007-08. A veteran on the Special Rate disability pension will now receive $919.40 per fortnight in recognition of the economic loss resulting from an inability to work due to service-related impairments and for the pain and suffering caused by these injuries and illnesses.

Nearly 80 per cent of Special Rate veterans also receive up to $525.10 per fortnight in income support as a Service Pension, resulting in payments totalling $1,444.50 per fortnight. The Special Rate pension is neither means tested, nor taxable, and is payable for life.

Indexation that is based on both MTAWE and CPI applies to all except $318.70 of these fortnightly payments. The $318.70 is the pain and suffering component of the Special Rate pension, which is indexed against CPI only to maintain its value. This is consistent with similar injury compensation arrangements.

In addition, Special Rate veterans are also entitled to benefits such as concessions on council rates, electricity and gas bills, car registration and licences, and the Gold Card which entitles them to free treatment for all conditions, service-related or not.

Mr Billson said the increases were in addition to a range of services and programs available to provide the very best standard of care for veterans who receive the higher rates of disability pension. "TPI or Intermediate rate pensioners who have questions concerning the pension increase can contact the Department of Veterans' Affairs on 133254," Mr Billson said.