Chris Ellison (WA, Liberal Party, Minister for Human Services) Share this | Hansard source

I thank Senator Humphries for what is a very important question in relation to a sector of our society who have done much by way of sacrifice in their own lives to make a contribution to this country. Last night, at the RSL National Congress, the Prime Minister announced a $330 million support package for Australia’s disabled veterans. This significant indexation measure will benefit 140,000 disability pensioners, including those on the special rate, the intermediate rate and extreme disablement adjustment. This is a very important package for Australia’s disabled veterans. All Veterans’ Affairs disability pensions will be indexed with reference to both the consumer price index and male total average weekly earnings, in the same manner as the veterans’ service pension, from March 2008. In addition, from March 2008, more than 13,500 veterans who receive the extreme disablement adjustment will receive a fortnightly increase of $15 to the above general rate component of their disability pension.

The Australian government also recognises that the general rate table for non-economic loss compensation for pain, suffering and loss of function resulting from an accepted service-related condition has not been reviewed for some time, other than to be adjusted in line with movements in the CPI. Therefore, the entire general rate table will be increased by five per cent from March 2008. This initiative will deliver above 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. This acknowledges that while some veterans’ disabilities have not affected their capacity to work and earn a living, their disability has had an adverse effect on their quality of life.

It is important to recognise that the method of indexation of general rate disability pension has stood the test of time. But times are changing. The economic prosperity the Howard government has brought over the past 11 years has produced unprecedented increases in wages at a time of low inflation. This has influenced the current arrangements for indexation of non-economic loss payments, and of course you have the flow-on benefits from that. More than any other group in our community, our disabled veterans deserve to share in this prosperity. The veterans community can also be assured that they will continue to enjoy the dedicated support of the Department of Veterans’ Affairs and, in particular, the continued operation of the Veterans’ Affairs Network offices in major population centres across metropolitan and regional Australia.