VETERANS CONTINUE TO BENEFIT UNDER HOWARD GOVERNMENT

The Howard Government has allocated an additional $604.1 million over four years to the Veterans' Affairs Portfolio, including $328.9 million in measures announced in the Budget tonight, taking total expenditure for the portfolio to $10.6 billion in 2004-05. This is the ninth annual consecutive increase and an average annual increase of 6.1 per cent.

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Tonight’s new funding is in addition to the $289 million over five years committed in response to the Clarke Report in March 2004 and $44.8 million over four years for the new Military Rehabilitation and Compensation Scheme commencing 1 July 2004.

The Minister for Veterans’ Affairs, Danna Vale, said the Government had been listening to the concerns of veterans and ex-service organisations.

“New funding will be provided for veterans’ health care, our successful commemorative programmes and the Australian War Memorial. Veterans and war widows also will directly benefit from the Government’s changes to aged care and income support announced tonight," Mrs Vale said.

Veterans’ Health Care

Veterans’ access to free, comprehensive medical care will be assured with an additional $158 million over four years to increase fees for medical specialists.

Specialists already receive 100 per cent of the Medicare Benefits Schedule fee to treat eligible veterans. Additional payments will ensure that eligible Gold and White Card holders will continue to receive quality specialist care across Australia.

“This funding builds on the Government's strong record which has seen veterans’ health care expenditure increase from $1.8 billion in 1996 to a record $4.4 billion in 2004-05," Mrs Vale said.

In addition, $21.5 million will be provided over four years to continue the Managing Health Care Information programme to improve the purchasing of health services for the veteran community. Continued improvements in the management of contracts with service providers will reduce outlays by an estimated $63.5 million over four years.

Veterans and war widows will also benefit from the promotion of the Pathways Home programme, making the transition from hospital to home easier for elderly patients through the greater use of ‘step-down’ and rehabilitation services. This will reduce hospital outlays by an estimated $2.7 million over four years.

The Government also has allocated $0.9 million over four years for the continuation of the important Vietnam Veterans' Children Support programme and will transfer it from the Department of Health and Ageing to the Department of Veterans' Affairs. This is in keeping with the Government’s commitment to provide ease of access to services for Vietnam veterans and their families.

Aged Care for Veterans

Older members of the veteran community will benefit from the Government’s $2.2 billion response to the Hogan Report, announced tonight.

“Veterans and war widows already enjoy special status in aged care planning. More than $190.7 million of the new funding for aged care services will directly benefit veterans and war widows,” Mrs Vale said.

In addition, the Government has decided that no former prisoner of war will pay a daily care fee in an aged care facility from 1 January 2005.

The Government has allocated $1.8 million to pay the daily care fees for former prisoners of war in low-level aged care facilities. This will align the daily care fee arrangements for all former prisoners of war across all levels of aged care and return, on average, $250 a fortnight to former prisoners of war.

Commemorative Programmes

The Government has committed $24.1 million over four years to honour the service and sacrifice of Australia's men and women in wars, conflicts and peacekeeping operations.

"The popular Saluting Their Service programme has been extended for a further four years at $15.1 million to educate young Australians and to promote community awareness of Australia’s military history," Mrs Vale said.

In addition, the Government will provide $4.5 million for the commemoration of significant World War II anniversaries, including Victory in Europe (VE) Day, Victory in the Pacific (VP) Day and the sixtieth anniversary of major campaigns in Papua New Guinea and Borneo.

The Government has allocated $4.5 million over four years to maintain Australian war graves and significant overseas memorials.

Australian War Memorial

Mrs Vale said the Government also honoured its promise to expand the Australian War Memorial, with $11.6 million over four years.

“This funding is for a new building and will facilitate the redevelopment of the post-1945 exhibitions within the main building,” Mrs Vale said.

The space available for the Vietnam, Korean and Peacekeeping exhibitions will be significantly augmented and will allow for the commemoration of more recent operations in East Timor, Afghanistan and Iraq.

Income Support

Changes to assist students, retirees and sugar cane farmers receiving income support from Centrelink will also apply to veterans, including those in receipt of benefits from the Department of Veterans' Affairs, at a net saving of $13.3 million over four years.

The exemption of all fee-waiver and fee pay scholarships from the income test, as announced by the Minister for Family and Community Services, Senator Kay Patterson and the Minister for Education, Science and Training, Dr Brendan Nelson, will also benefit the children of veterans. This will end an anomaly that may have discouraged some students from taking up scholarships to support their further education.

The Government will provide greater choice for retired veterans by providing a 50 per cent assets test exemption for a new non-commutable income stream product that provides returns linked to the investment market. It will also reduce the assets test exemption currently available on certain non-commutable purchased income streams to 50 per cent from 20 September 2004.

Veterans who are sugarcane farmers will benefit from the Prime Minister's announcement of a new intergenerational farm transfer scheme. The scheme will provide a three year window of opportunity that will enable eligible sugarcane farmers to gift their farm to their children without attracting the gifting rules under the assets test for the service pension or income support payments.

"This year’s Budget continues the Government’s strong record in meeting the changing needs of the veteran community, honouring their service and confirms our commitment to building a repatriation system for the 21st century,” Mrs Vale said.