Veterans' Entitlements, Treatment and Support (Simplification and Harmonisation) Act 2025 (17 of 2025)

Schedule 2   Single ongoing Act enhancements

Part 1   Amendments relating to allowances etc.

Division 4   Victoria Cross allowance and decoration allowance

Military Rehabilitation and Compensation Act 2004

34   At the end of Part 1 of Chapter 11

Add:

404A Indexation of Victoria Cross allowance

(1) The dollar amount mentioned in section 230B (the allowance amount ), for an allowance indexation year in which the indexation factor is greater than 1, is replaced by the amount worked out using the following formula:

Start formula The allowance amount for the previous allowance indexation year times Indexation factor for the allowance indexation year end formula
              

(2) The amount worked out under subsection (1) is to be rounded up to the nearest multiple of one dollar.

(3) The indexation factor for an allowance indexation year is the number worked out using the following formula:

Start formula start fraction Index number for the reference quarter over Index number for the base quarter end fraction end formula
              

(4) The indexation factor is to be worked out to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

(5) Amounts are to be worked out under this section:

(a) using only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and

(b) disregarding index numbers published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).

(6) In this section:

allowance indexation year means the following:

(a) the period of 12 months starting on 20 September 2024;

(b) each subsequent period of 12 months starting on 20 September.

base quarter means the June quarter that has the highest index number of the June quarters before the reference quarter (but not earlier than the June quarter 2023).

index number , for a quarter, means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician for that quarter.

June quarter means a period of 3 months starting on 1 April.

reference quarter means the June quarter immediately before the allowance indexation year.