The Minister for Veterans' Affairs Bruce Billson today in Parliament paved the way for the Howard Government's $470 million veterans disability pension and war widows pension enhancement package to be enshrined in legislation. Mr Billson introduced legislation to increase payments to disability pensioners and war widows and widower pensioners and to also apply more beneficial indexation methods to their pensions. These measures will benefit more than 140,000 veterans' disability pensioners and about 114,000 war widows and widowers.

"The Howard Government has moved swiftly to demonstrate its commitment to these significant new measures and to provide certainty with regard to their implementation by introducing legislation and having it passed by the Lower House," Mr Billson said.

"Recognising the vastly more principled, comprehensive and beneficial nature of the Government's package, the Opposition has indicated it would unequivocally embrace the Howard Government's measures and I would urge Labor to put politics aside and fully support the passage of this legislation through the Senate."

The Howard Government's enhancement package will see all veterans' disability pensions indexed with reference to both the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE) from March 2008. In addition, more than 13,500 veterans who receive the Extreme Disablement Adjustment (EDA) will receive a fortnightly increase of $15, from March 2008, to the Above General Rate component of their disability pension. The entire General Rate Table will also be increased by 5 per cent from March 2008. This initiative will deliver Above and 100 per cent General Rate recipients, including EDA veterans, a fortnightly boost of $20 from March 2008, also adjusted by the more beneficial indexation method.

War widows and widowers will also receive a $10 increase a fortnight to the non-indexed component of their pensions from March 2008, taking this amount to $35 per fortnight. This payment will also now be indexed with reference to both the CPI and MTAWE from March 2008. These measures are in addition to the regular indexation increases for all veterans affairs pensions which are effective from today, as well as the $160 million enhancements to Special Rate and Intermediate Rate disability pensions by $50 per fortnight and $25 per fortnight delivered through the recent 2007-08 Budget.