I am pleased to announce the Australian Government's response to the Clarke Committee's report on veterans' entitlements.
After extensive consultation with the veterans' community and with Government Members and Senators, I am announcing a package of measures which gives more veterans access to the disability pension; enhances the disability pension; provides rent assistance to war widows in addition to income support supplement; and almost doubles the veterans' funeral benefit.
The package is worth $267 million over five years. It is evidence of the strength of the Government's commitment to its veteran community.
The Government has decided on eight measures.
It has exempted the veterans' disability pension paid by Centrelink from the means test applied to income support payments. This measure will benefit about 19,000 veterans and cost $100 million over five years.
The Government has decided to index the above general rate component of the disability pension by the Consumer Price Index or Male Total Average Weekly Earnings, whichever is higher. This will benefit 45,000 veterans and will cost $66 million over five years.
The Government also has decided to extend rent assistance to war widows, which will benefit 11,500 widows and is worth $73 million over five years.
It also has decided to increase the funeral benefit from $572 to $1,000 at an estimated cost of $27 million over five years. An estimated 14,500 veterans stand to gain from the additional assistance.
The Government has extended access to the disability pension to surviving veterans involved in the Berlin Airlift; to those involved in minesweeping; and to aircrew of the RAAF's No.2 Squadron, who served on the Malay-Thai border.
And the Government has decided to grant an ex gratia payment of $25,000 to surviving Prisoners of War of the North Koreans, or their widows, for the extraordinary hardship they suffered.
The Government also had decided to respond positively to the needs of those affected by the British Atomic Test programme when the outcomes are available of the Australian Participants in the British Nuclear Test Programme - Cancer Incidence and Mortality Study.
The Government will continue to provide special recognition and comprehensive assistance to those who have served Australia in times of war, at personal risk of injury or death from an armed enemy.
In keeping with this approach, we have accepted the Clarke Report's recommendation that there be no change in the incurred danger test for Qualifying Service. However, we reject the view that this test has been interpreted too narrowly.
Further detailed statements will be made by the Minister for Veterans Affairs, the Hon Danna Vale MP.