Summary

Amends the: Veterans' Entitlements Act 1986 to: increase the single maximum basic rate of veterans' affairs pensions from 20 September 2009; index veterans' affairs pensions using the Pensioner and Beneficiary Living Cost Index; index veterans' affairs pensions using a combined couple benchmark; increase veterans' affairs pensions to compensate for anticipated increases in the living cost index arising from the Carbon Pollution Reduction Scheme; increase the income test taper rate and remove the additional income test free area for dependent children; introduce a Work Bonus so that certain income is disregarded as ordinary income; close the pension bonus scheme from 20 September 2009; increase the pension age for persons other than veterans from 65 to 67 years; enable certain veterans' affairs pension recipients to apply for an advance of veterans' affairs entitlements; Veterans' Entitlements Act 1986, Military Rehabilitation and Compensation Act 2004, Income Tax Assessment Act 1997, Social Security Act 1991 and Social Security (Administration) Act 1999 to consolidate a number of smaller payments and allowances into one pension supplement; Veterans' Entitlements Act 1986 and Social Security Act 1991 to allow veterans' affairs pensioners to transition to the new arrangements; and Aged Care Act 1997 in relation to the calculation of total assessable income for residents in aged care.