<?xml version="1.0" encoding="ISO-8859-1"?> <docID>335350</docID> <postdate>2024-12-15 06:40:16</postdate> <headline>Veteran payments blowout puts further strain on budget</headline> <body><p><img class="size-full wp-image-335351" src="https://citynews.com.au/wp-content/uploads/2024/12/defence-soldiers-e1734205183947.jpg" alt="" width="800" height="533" /></p> <caption>An extra $1.8 billion to clear a backlog of veteran claims puts pressure on the federal budget. Photo: Department of Defence</caption> <p><span class="kicker-line">By <strong>Emily Verdouw</strong> in Canberra</span></p> <p><strong>Payments to veterans are set to put further pressure on the budget as the federal government clears a backlog of claims.</strong></p> <p>Federal Treasurer Jim Chalmers said an extra $1.8 billion in payments would impact the mid-year budget update as the government worked to "pay veterans what they're owed" and clear a backlog.</p> <p>"We're doing the right thing by our veterans and that will have an impact on the budget," Dr Chalmers said.</p> <p>"Pressures on the budget are intensifying, estimates variations like payments to veterans are a big part of the story and you'll see that in the mid-year update."</p> <p>The $1.8 billion comes on top of the $6.5 billion in additional veterans' payments in the 2024/25 budget.</p> <p>The government has accused the coalition of failing to adequately fund the Department of Veterans' Affairs teams responsible for processing veteran claims during its time in office, resulting in a logjam of some 42,000 unallocated claims.</p> <p>The claims were cleared at the end of February 2024 ahead of a March 2024 deadline set by the Royal Commission into Defence and Veteran Suicide.</p> <p>However, action to clear the backlog has put more pressure on the budget as the department continues to pay more veterans their entitlements.</p> <p>The federal government is investing $254.1 million across four years to upgrade and sustain IT systems to ensure timely payments and better access to services for veterans and families.</p> <p>"The Liberals think supporting our veterans is 'wasteful spending' but we don't," Dr Chalmers said.</p> <p>"Supporting those who served our country is our responsibility.</p> <p>"We're paying veterans what they're entitled to."</p> <p>Finance Minister Katy Gallagher criticised the previous government's handling of veteran claims.</p> <p>"Previous administrations did not take sufficient steps to ensure veterans received the payments they were entitled to," she said.</p> <p>"Now, in opposition, they have not supported the current government's changes aimed at addressing these issues."</p> <p>The blowout comes at a critical time for Australia's economy.</p> <p>After a series of unexpectedly strong budget returns, the economic outlook is dimming.</p> <p>Analysts predict the budget's bottom line will worsen by $4.7 billion across the next four years due to slowing tax revenues and increased spending on things such as subsidised child care and energy rebates.</p> <p>The Albanese government released its response to the royal commission's final report earlier in December, outlining a long-term plan for what it said was a comprehensive reform to support defence personnel, veterans and their families.</p> </body>