The new bill has been criticised for failing to provide lump sum payments to veterans' families to cover funeral costs after their death.
Masterton and Carterton Returned Service Associations have 282 registered members between them, including 93 Returned servicemen and women who have served in war or peacekeeping deployment, according to 2012 membership figures.
National RSA president Don McIver said while he welcomed the clarity provided by the new bill, he was disappointed lump-sum payments for families would only go to veterans with 52 per cent or more disability.
"It should have been opened up to all veterans in the way the other provisions have been.
"It would have cost a bit of money but, we believe, it would have been a genuine expression of gratitude to all those who served."
The bill would only make a "limited difference" in the day-to-day lives of veterans.
"It's not massive, it's not like their pockets will be full or anything like that, it's just that more thought will be given to their care and welfare."
Labour spokesman Phil Goff said the Government's decision to exclude the lump-sum payment for all veterans' families recommended by the commission was "mean-spirited and penny pinching".
"The Government has declined to follow the recommendation with the comment 'not at this time' and the promise to review the decision in the future.
"But the fact is that 28 per cent of our veterans will have passed on over the next five years.
"As veterans have said to me, 'they'll give it to us when we're all bloody dead'."
However, Veteran Affairs Minister Michael Woodhouse said the new bill was "very generous" and included extending the veterans' pension to all, granting $300,000 to the national RSA, and organising and funding veterans to travel overseas for 60th and 70th commemorations of the battles in which they served.
"It is disingenuous for Labour to cry foul over not extending funeral payments," he said.
"Mr Goff has tried to hide the fact that Labour plans to increase the age for entitlement to the Veteran's Pension from 65 to 67, which will remove support for thousands of ageing veterans."
Scheme One of the bill will come into force in early December and Scheme Two will come into force 12 months later.