I announce today that the Federal Government will link the war widows'
pension to the recently legislated benchmark of 25% of male total
average weekly earnings (MTAWE).
This goes beyond the Government's previous decision to index
age and service pensions at 25 % of MTAWE and recognises that the
war widows' pension is special compensation for the loss of the
family breadwinner.
As a result, the war widows' pension will increase by $6.80 to
$378.60 per fortnight, effective immediately. It is tax free and non-means
tested.
Almost 100,000 war widows and war widowers will receive their first
increased pension payment on April 9.
The Federal Government will spend $168 million over four years to
deliver the increase.
Australia sent its young soldiers overseas on service with the solemn
undertaking that in the event of the war causing their death, their
widow and family would be cared for.
That undertaking has been honoured since 1914 by the payment of war
widows' pension.
My announcement today reinforces the Government's commitment
to care for those who deserve special recognition for their personal
sacrifice. It also highlights our commitment to protect the living
standards and financial security of older Australians.