Australia’s commitment to recognising exceptional military courage continues in 2025 through the Victoria Cross Allowance, now indexed at $5,696 per year. Unlike standard veterans’ benefits, this allowance is not designed as financial assistance. Instead, it stands as a lasting national tribute to those who have demonstrated the highest level of bravery in combat.
Following the latest annual indexation, the updated payment rate came into effect in October 2025, reinforcing the government’s pledge to honour living recipients of the Victoria Cross (VC) — Australia’s most prestigious award for gallantry.
What Is the Victoria Cross Allowance?
The Victoria Cross Allowance is a unique annual payment provided to Australian veterans who have been awarded either:
- The Victoria Cross for Australia, or
- The original Imperial Victoria Cross, awarded prior to Australia establishing its own honours system.
Administered by the Department of Veterans’ Affairs (DVA), the allowance is fundamentally different from pensions or compensation payments. It is symbolic in nature, representing the nation’s ongoing gratitude for acts of extraordinary heroism.
Key features of the allowance include:
- Tax-free status, meaning recipients receive the full amount
- Non-means tested, with no income or asset restrictions
- Paid in addition to all other DVA benefits
- Issued annually as a lump sum, rather than fortnightly
This structure ensures the payment is recognised as an honour, not a welfare entitlement.
Victoria Cross Allowance Rate for 2025
For the 2025 payment year, the Victoria Cross Allowance has been officially indexed to $5,696 per annum. The rate is reviewed each year in line with inflation, typically using Consumer Price Index (CPI) adjustments to preserve its real value over time.
Payment Schedule:
- Paid once per year, generally in September
- For 2025, the indexed amount was deposited in October
- Existing recipients receive the payment automatically
- Newly awarded VC recipients are added to the system once registered with DVA
No reapplication is required for existing recipients, and payments are deposited directly into the bank account on file.
Who Is Eligible for the Victoria Cross Allowance?
Eligibility for this allowance is extremely limited and applies only to a small group of individuals who have received Australia’s highest gallantry honour.
To qualify, a person must be:
- A living recipient of the Victoria Cross for Australia, or
- A living recipient of the Imperial Victoria Cross, officially recognised under Australian law
Importantly, the allowance does not transfer to spouses, dependants, or estates. It ceases upon the recipient’s death, reinforcing its purpose as a personal recognition of bravery.
How This Allowance Differs from Other Veteran Payments
The Victoria Cross Allowance operates independently of all other veterans’ benefits, including:
- Service Pension (means-tested retirement payment)
- Disability Compensation Payments (for service-related injury or illness)
- Decoration Allowance (paid to recipients of other military honours)
Recipients may receive the Victoria Cross Allowance in addition to any of the above, as it is not affected by income, age, or medical status.
How the Payment Is Delivered
The Department of Veterans’ Affairs manages the allowance through an automatic and streamlined process:
- Existing recipients receive the payment automatically each year
- New VC recipients must submit personal and banking details after the award is formally conferred
- The payment is fully exempt from income tax and does not affect assessable income
There is no annual renewal process or additional paperwork once eligibility is confirmed.
Historical and Symbolic Importance of the Victoria Cross
First instituted in 1856 by Queen Victoria, the Victoria Cross remains the most revered military decoration for courage under fire. The Victoria Cross for Australia, introduced in 1991, continues this legacy while recognising acts of exceptional bravery in modern conflicts.
Because so few Australians have ever received the Victoria Cross, this allowance is among the rarest payments within Australia’s veterans’ support framework. While modest in monetary value, its symbolic importance is profound.
A Reflection of Australia’s Commitment to Veterans
Australia’s veterans’ policy increasingly emphasises respect, recognition, and lifelong support. The Victoria Cross Allowance exemplifies this approach, ensuring that national gratitude is expressed not only through ceremony but also through enduring policy.
A spokesperson for the Department of Veterans’ Affairs noted:
“Recipients of the Victoria Cross embody the highest ideals of courage and self-sacrifice. This allowance is not charity — it is a permanent mark of national honour.”
The allowance complements broader support measures under the Veterans’ Entitlements Act and the Defence Honours and Awards framework, reinforcing Australia’s respect for service and sacrifice.
Confirming Eligibility or Updating Records
In most cases, eligibility is identified automatically through official records. However, in rare situations — such as the verification of historical awards — individuals or their representatives may need to contact DVA.
Support is available through:
- Online services via the DVA website
- Telephone assistance through Veterans’ Affairs contact centres
- In-person support at DVA service offices
A Lasting Tribute to Exceptional Courage
The $5,696 Victoria Cross Allowance for 2025 is far more than an annual payment. It is a permanent symbol of Australia’s respect for those who have demonstrated unmatched bravery in the face of danger.
Although only a small number of individuals qualify, the allowance plays a vital role in preserving the legacy of military heroism. Indexed annually and protected by policy, it stands as a living reminder that extraordinary courage will always be remembered and honoured.