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Watching your cost of living rise faster than your pension payments can feel like running on a treadmill that keeps speeding up. The good news is that your DVA pension increase happens automatically twice a year to help keep pace with inflation. Veterans and their families will see their payments rise from 20 March 2025, with the first full payment at new rates arriving on 17 April 2025. We'll break down exactly what these increases mean for your fortnightly payments and explain how the indexation process works to protect your financial security.
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The DVA utilises a sophisticated system to help maintain the purchasing power of your pension over time. Pensions and allowances are adjusted to hold their value against increases in the cost of living. This indexation process considers three different measures to determine which provides the highest increase for veterans.
The three indexation measures include:
Service pension is legislated to keep pace with MTAWE. The DVA applies whichever index shows the highest increase, ensuring veterans receive the best possible adjustment. This triple-protection approach means your pension won't lose ground against either inflation or wage growth.
Payment rates are reviewed twice a year, in March and September, and adjusted in line with the cost of living. These regular adjustments occur on schedule, providing veterans with predictable income increases throughout the year.
The upcoming increase timeline looks like this:
Here's what makes the process stress-free: Those who are eligible don't have to take any action to receive the payment increase; it will be automatically applied to payments received after March 20, 2025. There's no paperwork, no phone calls, and no visits to DVA offices required.
Pensions, allowances, and thresholds are adjusted either annually or semiannually. They are indexed on the same date every year. This consistency helps veterans plan their finances with confidence.
Being aware of recent increases helps you anticipate future adjustments. The September 2024 indexation delivered significant gains across all pension types.
The maximum rate of single service pension will rise by $28.10 to $1,144.40 per fortnight, and the maximum rate for couples will increase by $21.20 to $862.60 per fortnight (each). These increases reflected the rising cost of living and helped veterans maintain their standard of living.
Veterans receiving disability compensation saw substantial increases:
For 20 September 2024, the indexation was driven by PBLCI. This demonstrates how the system selects the most beneficial index for veterans.
These rates are current from July 1, 2025, to September 19, 2025. Knowing your current rate helps you calculate the impact of future increases on your budget.
Current maximum pension rates include the energy supplement and represent the full amount before any income or asset testing:
Our Gold Card eligibility guide explains additional benefits that may supplement your pension payments.
The indexation process affects various DVA payments differently, depending on the specific legislation governing each payment type.
Service pension is legislated to keep pace with MTAWE. This protection helps your service pension maintain its value relative to average weekly earnings, not just inflation. The Income Support Supplement follows similar indexation rules, providing consistent increases for war widow(er)s receiving this payment.
Veterans receiving compensation under MRCA see their payments adjusted according to specific indexation factors. The weekly MRCA wholly dependent partner payment will increase by $14.50 to $582.65. This is paid fortnightly ($1,165.30). Our MRCA permanent impairment guide provides detailed information about these compensation arrangements.
The TPI payment receives among the highest increases due to its role in supporting veterans unable to work. Recent indexation has delivered substantial increases to help these veterans maintain their quality of life despite being unable to earn income through employment.
Pension increases often coincide with adjustments to income and asset thresholds, providing additional relief for veterans.
From 1 July 2025, veterans can earn more and have higher asset values before their pension payments are affected. These threshold increases mean:
The asset test thresholds increase annually to reflect property value growth and inflation. The rise in income and asset amounts is in line with the annual indexation process. This helps keep the system fair as asset values change over time.
Different limits may apply for veterans who are assessed under transitional rules. Disability compensation payments and war widow(er)'s pensions are not subject to the income and assets tests. Knowing which regulations apply to your situation helps you maximise your entitlements.
Pension indexation is just one way your payments can increase. Other opportunities include:
Many veterans don't realise they're missing out on available benefits. Common oversights include:
For people who are over qualifying age and whose pension is not assessed under the transition rules, the first $300.00 of their work bonus income per fortnight will be excluded from the income test. This allows pensioners to supplement their income without affecting payments.
Being familiar with the indexation cycle helps you plan your finances more effectively. With increases occurring every March and September, you can anticipate when additional funds will arrive and budget accordingly.
Keep records of your payment statements to track how indexation affects your income over time. This information proves valuable when:
The DVA publishes detailed rate information before each indexation period. Our veterans’ benefits guide provides comprehensive information about all available entitlements and how they're affected by indexation.
While pension increases happen automatically, ensuring you receive the correct base rate requires expert assessment. We help veterans:
Higher base payments mean larger increases with each indexation. We review your current entitlements to identify:
If you're approaching age thresholds or considering permanent impairment claims, timing matters. Our expertise helps you avoid missing opportunities to maximise your entitlements before indexation dates.
Many veterans receive less than they're entitled to simply because they are unaware of what's available. We conduct comprehensive reviews to help confirm you're receiving every benefit you've earned through service.
The DVA pension increase system operates quietly in the background, safeguarding your financial security through automatic adjustments made every March and September. Veterans and families are set to receive an increase in financial support when pension payments rise later this month, in line with the pension indexation process. While you don't need to take any action for these increases, ensuring you're on the correct base rate makes a significant difference to your long-term financial position. Contact Veterans First Consulting today to review whether you're receiving all the entitlements you've earned through your service.
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Common DVA FAQs
Have other questions?
Contact us so we can help.
No action is required on your part. Pensioners don't need to take any action to receive the increase. The DVA automatically applies all indexation increases to eligible payments. If you have questions about your specific rate, you can check your payment statement after the increase date.
Living overseas doesn't stop your indexation increases. However, certain supplements may be affected by overseas residence. Contact DVA before travelling to understand how extended overseas stays might impact your specific payments.
Veterans assessed under pre-2009 rules receive different indexation calculations. According toDVA's transitional rate information, these rates are protected so that rule changes do not disadvantage any veteran. Your increases continue automatically under the transitional arrangements.
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