Carbon tax compensation for veteran community

The Government has developed a package of compensation payments for the veteran and ex service community to deal with the impact of a carbon tax.

Because some of Australia's largest companies may choose to pass on carbon tax costs to households, the Government has announced a compensation package to provide support payments to approximately 350,000 veterans, their families, war widows and widowers.

The Minister for Veterans’ Affairs, Warren Snowdon said, “Through a combination of lump-sum payments and ongoing fortnightly or quarterly supplements, eligible veterans and their families will receive direct financial assistance to help with the costs of a price on carbon.”

Payments will commence in May 2012 with the ‘Clean Energy Advance’, an upfront payment of between $190 and $374.

This will go to eligible service pensioners, seniors supplement recipients, war widows and widowers, disability pensioners, permanent impairment recipients and wholly dependent partners (under the Military, Rehabilitation and Compensation Act 2004).

Following the up-front payment, from March 2013, ongoing assistance for this group will be provided through either fortnightly or quarterly payments. These payments will amount to an increase in benefits of between $7.40 and $20.90 per fortnight.

A service pensioner on the single rate will receive $250 upfront in May or June 2012 and after March 2013, $13.50 in ongoing fortnightly payments, with couples receiving $190 upfront each and from March 2013, $10.20 ongoing per fortnight.

For a veteran on a disability pension, their payment will depend on the rate of pension. Veterans receiving up to 100 per cent Disability Pension will receive $132.00 upfront and $7.40 per fortnight ongoing, while a veteran on Special Rate (TPI) will receive $374 upfront in June 2012 and $20.90 per fortnight in March 2013.

Veterans on a disability pension and service pension receive both payments.

Children of veterans and members receiving payments under children’s education schemes will also receive assistance. They will receive two lump sum payments—in June 2012 and 2013—with ongoing assistance commencing on 1 January 2014.

Veterans who earn an income may also benefit from tax cuts. All taxpayers, whose income is up to $80,000 will get a tax cut, with most getting a cut of at least $300.

It is important that veterans have access to direct information about what a carbon price means for them.

For more information on the full suite of measures please visit www.cleanenergyfuture.gov.au or call 1800 057 590.

Following is a full breakdown of payment amounts announced as part of the compensation measures.

15 July 2011.