Drop pension indexation change plan: vets

26 Aug 2014

AAP AUGUST 26, 2014

VETERANS have urged the federal government to back away from plans to wind back the rate of indexation of the disability pension paid to former service personnel.

DAVID Jamison, spokesman for the Alliance of Defence Service Organisations, said they utterly condemned the budget move to index veteran disability pensions to the consumer price index (CPI) from 2017, dropping use of other indexes which have applied since 2007.

They have written to Prime Minister Tony Abbott asking for this proposal to be dropped and calling on MPs to reject it in the name of fairness to disabled veterans.
The CPI is generally lower than these other indexes.
Mr Jamison said this meant incomes of the most disabled will no longer keep pace with community income standards.
He said the ex-service community understood the government’s need to bring budget spending under control.
But there was no justification for this proposal as the veteran disability pension was a long-recognised compensation entitlement not a social security payment.