Cr Michael Farley, who pushed for the change, believes Casey is the first council in Victoria and possibly Australia to offer this extra assistance to its ratepayers.

"It's really good news for our ex-servicemen and their widows that was long overdue,'' Cr Farley said.

"If re-elected in November, I would like to expand this entitlement even further, for example, to all Gold Card holders.''

Under the initiative, ex-servicemen who hold both a Department of Veterans' Affairs card and a Totally and Permanently Incapacitated pension card are eligible, as are all war widows.

The extra $100 is on top of an existing State Government scheme which gives a $172.90 rates rebate to DVA and TPI card holders and widows holding a DVA pension card.

Cr Farley said the council had put $90,000 aside for the rebate, to apply from the next round of rates.

Although this covered the 900 residents in Casey known to hold a TPI card, the takeup was expected to be less as the DVA card, which also must be held, is means-tested.

Cranbourne RSL secretary Ron Mayne welcomed the move, saying rising prices were putting financial pressure on many ex-servicemen and their widows.

"People need all the help they can get,'' Mr Mayne said.