Prisoner of war recognition supplement - establishment and tax treatment

In the 2011-12 Federal Budget, the government announced that $27.8 million will be provided over five years to further recognise the severe hardship and suffering experienced by former prisoners of war (POWs) of Japan and Europe from the Second World War, and former POWs from the Korean War.

This measure commenced on 20 September 2011 and introduced a Prisoner of War Recognition Supplement of $500 per fortnight for eligible former POWs. This payment will be paid and administered by the Department of Veterans' Affairs.

The Prisoner of War Recognition Supplement is non-taxable payment and will not be included as income for the purposes of veterans' entitlements and social security income tests.

Legislation and supporting material

This measure is part of the Veterans' Entitlements Amendment Act 2011, which received royal assent on 15 September 2011.

More information Budget 2011-12 announcement Department of Veterans' Affairs' media release