Around 900 surviving Australian prisoners of war (PoW) are to get a $500 a fortnight benefits boost in next week's federal budget.
Surviving World War II and Korean War PoWs will be handed the cash, which is tax free and indexed annually to inflation, according to Fairfax Media reports.
The so-called prisoner of war recognition supplement, due to start in September, won't affect pensions or any other benefits received by veterans.
Further details of the plan are due to be announced in Tuesday's budget and are set to cost $27 million.
Former federal Labor MP Tom Uren, also a former PoW, is said to have lobbied Prime Minister Julia Gillard for the cash payments.
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