B45/1993 SEPTEMBER 1993 QUARTERLY ADVICES | Compensation and Support Reference Library, Departmental Instructions, 1993

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B45/1993 SEPTEMBER 1993 QUARTERLY ADVICES

Document

DATE OF ISSUE: 3 SEPTEMBER 1993

SEPTEMBER 1993 QUARTERLY ADVICES

TABLE OF CONTENTS

Introduction...............................................................2

Associated Departmental Instructions............................................2

Regulation 45A certification...................................................3

Pensioners For Whom An Advice Will Be Generated.................................3

Components for the September Quarterly Advice Mailout..............................4

Pension Indexation - Pensions, TA, Rent Assistance and........................4

Rent Thresholds Indexations............................................4

On-line Shares Implementation & MI 'Global' Reassessment.....................4

Changes To The Assets Test Withdrawal Rate...............................5

Treatment Threshold (Income) Indexation &.................................6

Treatment Benefit Eligibility Changes......................................6

Telephone Allowance - Quarterly Payment..................................6

Department of Defence Leaflet...........................................7

Queensland Branch Office Leaflet.........................................7

Advices - General..........................................................7

ADP Processing.....................................................7

Timetable..........................................................8

Holding of Daily Advices................................................8

Despatch of Quarterly Advices...........................................9

Reprint of Selected Advices.............................................9

Liaison with Ferntree Computer Centre (NCC)................................9

Contact numbers.....................................................9

September Quarterly Advice - Mock-ups..........................................10


Introduction

The Department's Quarterly Advices facility has been designed to enhance communication between the Department and the veteran community.  In general, Quarterly Advices are sent in January, March, June and September of each year.  Advices are sent to service pensioners, some disability pensioners and some war widows.  The size of the mailout is dependent on the issues (eg. Budget changes, payment of TA etc) current at that time.

2.  The September Quarterly Advice mailout will incorporate the following events for pay-day 30 September 1993:

(i)              Pension indexation (SP,DP & War Widow(er) Pensions);

(ii)Telephone Allowance (TA) indexation;

(iii)Rent Assistance and Rent Threshold indexation;

(iv)'On-line' shares implementation;

(v)a global Managed Investment run;

(vi)changes to the assets test withdrawal rate;

(vii)treatment threshold (income) indexation;

(viii)Telephone Allowance payment;

(ix)a Department of Defence leaflet for Australian veterans; and

(x)              a leaflet to Queensland clients regarding the relocation of the Qld Branch Office.

3.  The reassessment processing run and Advice production will be conducted on the weekend of 11/12 September 1993.  The deprived asset, Managed Investments and end period of grace (treatment at Departmental expense) end of fortnight processing runs will be carried out independently for pay-day 30 September 1993 and will not impact on the transactions generated for the Quarterly Advices run.

4.  The major reassessment program ("BAL") will be run to reassess cases affected by any of the events mentioned in items (i) to (vii) above.  Detailed ADP processing requirements will be sent separately to Branch System Support Officers.

Associated Departmental Instructions

5.  DI B26/92 outlined general principles covering the issue of quarterly advices.  In addition, System Support Officers have been provided with copies of the rules for this processing run, entitled September 1993 Quarterly Advices System Rules and Components, which contains details of paragraph wording.

6. The payment processing is scheduled from Saturday morning 11 September till Sunday evening 12 September 1993.  A processing timetable appears later in this instruction.

Regulation 45A certification

7.  The Assistant Secretary of both Benefits Planning & Management and IT Applications Branches in Central Office will attest to the correctness of the new data and the programs used to conduct the exercise.  Certificates in the terms of Finance Regulation 45A will be forwarded to the Authorising Officer in your Finance Branch.

Pensioners For Whom An Advice Will Be Generated

8.  In general terms, advices will only be produced for assessments affected by one or more of the events listed in paragraph 2 above.  Advices will therefore be issued in the following circumstances:

.where service pension and/or rent assistance is varied as a result of indexation (including TA payment);

.where a service pensioner has shares and/or managed investments particulars recorded in the assessment;

.where disability pensioners without SP are eligible for telephone allowance;

.where war widow(er)s without service pension are eligible for telephone allowance.

NOTE:  Refer to paragraphs 25 to 29 for information regarding indexation of the treatment thresholds.

9.  The estimated numbers of advices for this run are as follows:

War Widows with TA75,000

DP only clients with TA5,000

SP, no MI, no shares, no TA20,000

SP, no MI, no shares, with TA145,000

SP, MIs, no shares, with or without TA27,000

SP, no MIs, shares, with or without TA11,000

SP, MIs, shares, with or without TA9,000

TOTAL292,000

Components for the September Quarterly Advice Mailout

Pension Indexation - Pensions, TA, Rent Assistance and

Rent Thresholds Indexations

10.  Service pensions, disability pensions, war widow(er) pensions, rent assistance, rent thresholds, and telephone allowance are to be increased in line with movements in the consumer price index (CPI).  The effective date for payment is 30 September 1993.  Detailed information regarding the rates etc. will be available shortly in a separate Departmental Instruction.

11.  In general terms, pension and allowances will be increased with effect from

30 September 1993: the exception is rent assistance.  Whilst the maximum rates of rent assistance will be increased, the rent thresholds (ie. the minimum amount of rent a person must pay to qualify for rent assistance) are also being indexed on 30 September 1993.  Indexation of the rent thresholds means that service pensioners with 'non-saved' rent assistance may have their rent assistance reduced or cancelled.

Quarterly Advice Processing

12.  A quarterly advice will be produced for all service pensioners, some disability pensioners and some war widow(er)s affected by indexation.  The range of paragraphs, the circumstances under which these will be applied and the paragraph wording are shown in the September 1993 Quarterly Advices System Rules & Components document.  Mock-up sample advices are at Attachment A.

Client Impact

13.  Approximately 292,000 pensioner households will receive a quarterly advice regarding indexation.

On-line Shares Implementation & MI 'Global' Reassessment

14.  Significant changes are due to be implemented in the assessment of shares effective on pay day 30 September 1993, which will also have a direct effect on the income assessed for managed investments.  This change will impact upon any pensioner holding shares on Australian Stock Exchanges as at the time of the production run on 11/12 September 1993  More detailed information regarding the changes to managed investments and shares will be available shortly in a separate Departmental Instruction.

Quarterly Advice Processing - Managed Investments

15.  A managed investment 'Global' reassessment run will be conducted for pay day 30 September 1993.  Quarterly advice paragraphs will be produced for service pensioners with managed investments.  Additional paragraphs regarding the new offsetting provisions will be included where a person has both managed investments and shares recorded in the assessment.


16.  All service pensioners with managed investments will be reassessed.

17.  The range of paragraphs, the circumstances under which these will be applied and the paragraph wording are shown in the September 1993 Quarterly Advices System Rules & Components document.  Mock-up sample advices are at Attachment A.

Quarterly Advice Processing - Shares

18.  Quarterly Advices paragraphs will be provided to all clients with shares listed on Australian stock exchanges advising them of any changes to the assessment of their shares and a listing of their personal holdings.  Additional paragraphs regarding the new offsetting provisions will be included where a person has both managed investments and shares recorded in the assessment.

19.  Shares not listed on an Australian Stock Exchange will not be recorded in the advice.  If a person has any of these shares only, that person will not receive a 'shares' advice, as the quarterly advices program does not extract entries recorded on the 'OA' screen of the PIPS facility.

20.  There may be pension rate increases, decreases or continuations associated with the implementation of the new rules effective from 30/9/93 but there will be no 'saved' cases associated with shares.

21.  The range of paragraphs, the circumstances under which these will be applied and the paragraph wording are shown in the September 1993 Quarterly Advices System Rules & Components document.  Mock-up sample advices are at Attachment A.

Changes To The Assets Test Withdrawal Rate

22.  Prior to the 1993 election the Government made a commitment to reduce the assets test withdrawal rate for pensioners.  The commitment was made in view of the current economic climate which has resulted in financial hardship for many retirees who are "assets rich" but "income poor" due to prevailing interest rates.

23.  Effective from 30 September 1993, the current assets test withdrawal rate will be reduced from $104 to $78 per annum for each $1000 above the assets test threshold.  This is equivalent to a reduction of $0.75 pension per fortnight for every $250 of assets above the assets test threshold.  More detailed information regarding the changes to assets test withdrawal rate will be available shortly in a separate Departmental Instruction.

Quarterly Advice Processing - Assets Test Withdrawal Rate

24.  The wording for the changes to the asset test withdrawal rate has been combined with the paragraphs for indexation.  In general terms, this means that all service pensioners will be advised of the changes to the rate of withdrawal.  The range of 'indexation/asset test withdrawal' paragraphs, the circumstances under which these will be applied and the paragraph wording are shown in the September 1993 Quarterly Advices System Rules & Components document.  Mock-up sample advices are at Attachment A.


Treatment Threshold (Income) Indexation &

Treatment Benefit Eligibility Changes

25.  Some service pensioners will lose or gain treatment eligibility as a result of the changes to be implemented on pay day 30 September 1993.

26.  Treatment thresholds are to be increased in line with movements in the consumer price index (CPI).  The effective date for increase is 30 September 1993.  This means that some income-affected clients may gain eligibility as a result of the increased limits.

27.  Other service pensioners may lose treatment eligibility as a result of income and/or asset reassessment following the 'on-line shares' implementation and/or 'global' managed investment run.

Quarterly Advice Processing - Treatment Threshold Indexation

28.  Where reassessment results in loss or gain of treatment eligibility, the quarterly advices for these cases will be separated from the normal output.  The Quarterly Advice program will, after re-assessment processing, detect people:

.gaining treatment at Departmental expense;

.losing treatment at Departmental expense; &

.commencing a period of grace*.

29.  These cases will have their advice letters printed at NCC Ferntree and despatched (with a schedule) to Branch Offices.  Branches will then need to examine each case and send a proforma letter to clients to explain their loss, gain or deferred loss of treatment eligibility.

*Note:  Cases on a period of grace prior to the September processing runs, and remaining in period of grace status post Budget processing , will not be separated by the program.  (These cases have already received advice about deferred loss of benefits via the daily advices system.)

Telephone Allowance - Quarterly Payment

30.  The first quarterly payments of Telephone Allowance (TA)  were made in July 1992.  Departmental Instruction B25/92 sets out the eligibility criteria and processing guidelines.  That instruction should be consulted as necessary, but references to processing dates should of course be ignored.

Quarterly Advice Processing

31.  Telephone Allowance will be paid to eligible pensioners for pay day

30 September 1993 in the normal way.  A Telephone Allowance (TA) paragraph will be included for any automatic assessment where TA is payable.

32.  Cases which have a manual method of assessment (e.g. War Widow with SP, Hardship etc.) and which are eligible for TA will not have a 'TA only' quarterly advice generated.  Branches will need to advise clients of TA payment when notifying of any pension variations actioned manually.

33.  The range of 'telephone allowance' paragraphs, the circumstances under which these will be applied and the paragraph wording are shown in the September 1993 Quarterly Advices System Rules & Components document.  A mock-up sample advice is at

Attachment A.

Rates Of Telephone Allowance

34.  Three rates of TA are payable; the World War 1 rate, the Base rate and half the Base rate.  The new rates of TA, effective from 30 September 1993, are:

.Half Base Rate -               $6.80;

.Base Rate -               $13.60; &

.WW1 Rate -               $41.30*.

*NOTE:  The WW1 rate of TA has not been increased from 30 September 1993. (Unlike the base rate and half base rate of TA which are increased in line with movements in the CPI, the WW1 rate TA is paid at the rate equivalent to the quarterly amount of rental charged by Telecom Australia.)

Department of Defence Leaflet

35.  Some quarterly advices to Australian veterans will contain a Department of Defence leaflet regarding an asbestos compensation scheme.  If Branch Offices receive enquiries from veterans concerning the scheme they should direct the caller to the Department of Defence.  The leaflet details a contact telephone number and address for enquiries.  A copy is not yet available.

Queensland Branch Office Leaflet

36.  All quarterly advices to clients of the Queensland Branch Office will have a leaflet inserted regarding the relocation of that office to new accommodation some time in November 1993.

Advices - General

ADP Processing

37. Detailed information regarding ADP Processing will be issued to State Systems Support Officers in a separate memorandum.  The Systems Support Officers will be issuing a local processing timetable and should be consulted on any matter concerning ADP Processing.


Timetable

38. Key time frames of advices are summarised below. The first processing run will begin on the evening of  Friday 10 September 1993.

DateEvent

Friday 10 Sept 1993Cutoff for payperiod 32 (16 Sept)

Friday 10 Sept (pm)BAL re-assessment run.

Sun. 12 SeptQuarterly Advices processing runs.

Mon. 13 SeptDaily advices produced from today to be held till Quarterly advices despatched.

Mon. 13 Sept to cut-off for pay 33Examiner action on manualschedules for SP.

&

Quarterly Advices progressively lodged with Australia Post from 20 Sept to 27 Sept.

Holding of Daily Advices

39.  Service pension assessments involving shares and processed between now and the processing run on 11/12 September 1993 for pay period 33 (30 September 1993) must have their advice suppressed.  Other cases processed in advance for 30 September 1993 should have the daily advice despatched prior to the Quarterly Advice being sent.

40. Daily payment advices produced after the processing run on 11/12 September 1993 for pay period 33 (30 September 1993), should be held by Branch Offices until confirmation is received from the Quarterly Advices Project Manager in Central Office to release such advices. This will ensure that pensioners who have pension variations processed for payday 30 September 1993 will receive their daily advice after the quarterly advice rather than in advance of it.

41.  To minimise the number of daily advices to be held whilst quarterly advices are processed, it is suggested that only manual cases (and essential processing) should be processed for pay day 30 September 1993.  General pensions processing should continue unabated but should be submitted for the subsequent pay day ie. pay period 34  -

14 October 1993.


Despatch of Quarterly Advices

42. The quarterly advices will be progressively lodged with Australia Post by the mailing house in Canberra, during the period 20 September 1993 to 27 September 1993.  As soon as each State's advices have been lodged, the CO Project Manager will advise the appropriate Branch contact officer.

Reprint of Selected Advices

43. Any requests for reprints of individual Quarterly Advices should be referred through Branch Office System Support Officers to the Benefits Application Help Desk on (06) 289 6216.

Liaison with Ferntree Computer Centre (NCC)

44. The Veterans Services Applications Branch will provide NCC with a schedule of computer runs for this exercise.  Benefits SM&S Section will supply an after hours contact number closer to the processing date.

Contact numbers

45. Any enquiries should be directed in the first instance to John Ramsay in Policy Development & Implementation Section, on (06) 289 6409 or Tony Whelan on (06) 2896684.  Facsimile messages should be sent to (06)289 6553.

Kay Grimsley

Assistant Secretary Income Support

BRANCH OFFICE

Centennial Plaza

280 Elizabeth Street

Sydney NSW 2000

Postal Address:

JOHN B SMITH              GPO Box 3994, Sydney NSW 2001

SARAH SMITH

1029 ANZAC AVENUETelephone:

HOMEBUSH BAY 2140Metropolitan residents: 213 7777

Country residents: 008 257251

13 September 1993

YOUR FILE NUMBER IS NX543210

Dear Mr and Mrs SMITH

This letter gives you details of your current pension payment from Veterans' Affairs.

Indexation and changes to the assets test

Service pensions, disability pensions, rent assistance and telephone allowance have been increased in line with movements in the consumer price index (CPI).  The new rates will be paid on pay day 30 September 1993.

In addition, and in recognition of the recent fall in interest rates, the Government has eased the assets test for service pensioners.  From 30 September 1993, asset tested pensions will only be reduced by 75 cents instead of the current $1.00 for every $250 worth of assets above the asset threshold.

Payment details

The amount of pension you will receive each fortnight is set out below. Payment at this rate will commence from 30 September 1993.

PAYMENTS TO JOHN SMITH and SARAH SMITH

Service pension   220.00   220.00

Pharmaceutical Allowance       2.60       2.60

TOTAL FORTNIGHTLY PAYMENT $222.60 $222.60


Telephone Allowance payment

Your quarterly Telephone Allowance of $6.80 each will be paid to you on

30 September 1993, in addition to that fortnight's pension payment.  Your next payment of Telephone Allowance will be on 6 January 1994.  You must tell us if you cease to be a telephone subscriber.

Your obligations to the Department

Your obligations have been explained to you in previous advices. These obligations still apply, but the relevant income and asset levels may have changed.  These are shown below.

Your service pension is paid at less than the maximum rate.  You must tell the Department within 21 days if your combined income (apart from Veterans' Affairs pensions) rises above $797 a fortnight. You must also tell us if the value of your assets rises above $240,000.

You can do this by telephoning or writing to us or by visiting any Department of Veterans' Affairs office. The address and telephone number are shown at the top of this letter.  If you telephone, we may ask you to confirm information in writing or to send us certain documents which are related to the matter.

If you do not tell us of these changes you may be overpaid. There are penalties that apply for failing to fulfil your obligations or for providing false or misleading information. The authority for this obligation is under Section 54 of the Veterans' Entitlements Act.  Please remember that obligations previously advised to you continue to apply.

Changes you have already told us about

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been included when sending this letter.  If this is the case, we will be sending you another letter as soon as the change has been put into place.

If you have any questions about any of the above matters, please contact this office at the address or telephone number shown at the top of this letter.

Yours sincerely,

G K Stonehouse

Deputy Commissioner as

Delegate of the Secretary

BRANCH OFFICE

Centennial Plaza

280 Elizabeth Street

Sydney NSW 2000

Postal Address:

JOHN B O'REILLYGPO Box 3994, Sydney NSW 2001

SARAH O'REILLY

20 FAIRY CRESCENTTelephone:

BOTANY BAY 2940Metropolitan residents: 213 7777

Country residents: 008 257251

13 September 1993

YOUR FILE NUMBER IS NX555550

Dear Mr and Mrs O'REILLY

This letter gives you details of your current pension payment from Veterans' Affairs.

Indexation and changes to the assets test

Service pensions, disability pensions, rent assistance and telephone allowance have been increased in line with movements in the consumer price index (CPI).  The new rates will be paid on pay day 30 September 1993.

In addition, and in recognition of the recent fall in interest rates, the Government has eased the assets test for service pensioners.  From 30 September 1993, asset tested pensions will only be reduced by 75 cents instead of the current $1.00 for every $250 worth of assets above the asset threshold.

Shares

In the 1992 Budget, the Government announced changes to the way in which shares are assessed for service pension purposes.  The changes will be introduced on pay day

30 September 1993 and are explained separately in this letter.

Payment details

The amount of pension you will receive each fortnight is set out below. Payment at this rate will commence from 30 September 1993.


PAYMENTS TO JOHN O'REILLY and SARAH O'REILLY

Service pension   200.00   200.00

Pharmaceutical Allowance       2.60       2.60

TOTAL FORTNIGHTLY PAYMENT $202.60 $202.60

Telephone Allowance payment

Your quarterly Telephone Allowance of $6.80 each will be paid to you on

30 September 1993, in addition to that fortnight's pension payment.  Your next payment of Telephone Allowance will be on 6 January 1994.  You must tell us if you cease to be a telephone subscriber.

Changes to Shares

In the 1992 Budget, the Government announced changes to the way in which shares are assessed for service pension purposes.  The changes will be introduced on pay day

30 September 1993 and are as follows:

  • Income from shares will be assessed at a percentage rate of return based on capital growth or loss and dividends paid over the previous 12 months.  The highest rate of return Veterans' Affairs will calculate is 50%.

  • Any loss (negative rate of return) on a parcel of shares or managed investments will be  offset against any gain (positive rate of return) on other shares and managed investments.

  • Brokerage fees and stamp duty associated with the buying or selling of shares will be allowed as a deduction against ongoing income from shares and managed investments for a period of 12 months from the date these costs are incurred.

Please note:

These changes only relate to shares and other securities listed on Australian Stock Exchanges.  If you hold shares in a private company or in an unlisted public company, they will not be affected by the new share rules.


The income and asset details now recorded for all your listed shares are shown in the table below.

ShareNo. ofAsset Rate ofIncome Per

sharesValue ReturnFortnight

  • CRA LTD.- $1.00 ORDINARY FULLY

PAID5,200$32,240-22.51%-$279.12

  • BROKEN HILL PTY. LTD - $1.00

ORDINARY FULLY PAID3,540$49,91420.27%$389.14

  • M.I.M. HOLDINGS LTD - $0.50

ORDINARY FULLY PAID1,100$4,950-4.20%-$9.42

TOTAL FEE DEDUCTION-$57.24

TOTAL INCOME FOR PENSION PURPOSES$43.36

Note that for pension purposes all Rates of Return are capped at a maximum of 50%.

Your right of review

If you do not agree with a decision affecting your rate of service pension, you may apply to have it reviewed by a delegate of the Repatriation Commission.  The Delegate may decide the original decision was correct, or may decide to change it.  If the decision is changed, your pension may be increased or reduced.

Any request for a review must be made in writing within three months of the day you receive this letter.  Your letter should state the specific grounds for your request for review.

Your obligations to the Department

Your obligations have been explained to you in previous advices. These obligations still apply, but the relevant income and asset levels may have changed.  These are shown below.

Your service pension is paid at less than the maximum rate.  You must tell the Department within 21 days if your combined income (apart from Veterans' Affairs pensions) rises above $497 a fortnight. You must also tell us if the value of your assets rises above $240,000.

You can do this by telephoning or writing to us or by visiting any Department of Veterans' Affairs office. The address and telephone number are shown at the top of this letter.  If you telephone, we may ask you to confirm information in writing or to send us certain documents which are related to the matter.

If you do not tell us of these changes you may be overpaid. There are penalties that apply for failing to fulfil your obligations or for providing false or misleading information. The authority for this obligation is under Section 54 of the Veterans' Entitlements Act.

Changes you have already told us about

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been included when sending this letter.  If this is the case, we will be sending you another letter as soon as the change has been put into place.


If you have any questions about any of the above matters, please contact this office at the address or telephone number shown at the top of this letter.

Yours sincerely,

G K Stonehouse

Deputy Commissioner as

Delegate of the Secretary

BRANCH OFFICE

Centennial Plaza

280 Elizabeth Street

Sydney NSW 2000

Postal Address:

JOHN FELYONAVICHGPO Box 3994, Sydney NSW 2001

DOT FELYONAVICH

1123 MORTAR STREETTelephone:

PARADISE BEACH  4140Metropolitan residents: 213 7777

Country residents: 008 257251

13 September 1993

YOUR FILE NUMBER IS NX121212

Dear Mr and Mrs FELYONAVICH

This letter gives you details of your current pension payment from Veterans' Affairs.

Indexation and changes to the assets test

Service pensions, disability pensions, maximum amount of rent assistance, rent thresholds and telephone allowance have been increased in line with movements in the consumer price index (CPI).  Indexation of the rent thresholds may result in a variation of rent assistance for some pensioners.

The new rates will be paid on pay day 30 September 1993.

In addition, and in recognition of the recent fall in interest rates, the Government has eased the assets test for service pensioners.  From 30 September 1993, asset tested pensions will only be reduced by 75 cents instead of the current $1.00 for every $250 worth of assets above the asset threshold.

Reassessment of managed investments

Managed investment products have been reassessed for pay day 30 September 1993.  The income and assets values for all your managed investments are detailed separately in this letter.

Shares

In the 1992 Budget, the Government announced changes to the way in which shares are assessed for service pension purposes.  The changes will be introduced on pay day

30 September 1993 and are explained separately in this letter.


Payment details

The amount of pension you will receive each fortnight is set out below. Payment at this rate will commence from 30 September 1993.

PAYMENTS TO JOHN FELYONAVICH and DOT FELYONAVICH

Service pension   190.00   190.00

Rent Assistance     31.50     31.50

Pharmaceutical Allowance       2.60       2.60

TOTAL FORTNIGHTLY PAYMENT $224.10 $224.10

Telephone Allowance payment

Your quarterly Telephone Allowance of $6.80 each will be paid to you on

30 September 1993, in addition to that fortnight's pension payment.  Your next payment of Telephone Allowance will be on 6 January 1994.  You must tell us if you cease to be a telephone subscriber.

Managed Investments

Managed InvestmentUnitsAssetRate ofFeeIncome

ValueReturn/DeductionPer

CentsPerFortnight

PerUnitFortnight(Less Fee

Deduction)

  • MANCHESTER UNITY

HIBERNIAN FRIENDLY

SOCIETY - S - N/A$9,136.788.100%N/A$28.46

FLEXISHIELD BOND

Ongoing Income Only

  • SCHRODES

AUSTRALIA

MANAGEMENT LTD - N2,387$5,203.6622.000cN/A$20.19

- PROPERTY FUND -

ORDINARY UNITS

Income Plus Capital Growth

TOTAL INCOME FOR PENSION PURPOSES$48.65

GUIDE TO TABLE

Ongoing Income Only - Income is assessed as it accrues based upon any dividends and any rise or fall in the value of the investment over a 12 month period, and only whilst the investment is held.

Income Plus Capital Growth - In addition to any income distributions that may currently be assessed, capital growth may also be assessable if the investment matures, or it is sold, surrendered, transferred, gifted, or it is fully or partially withdrawn.


Changes to Shares

In the 1992 Budget, the Government announced changes to the way in which shares are assessed for service pension purposes.  The changes will be introduced on pay day

30 September 1993 and are as follows:

  • Income from shares will be assessed at a percentage rate of return based on capital growth or loss and dividends paid over the previous 12 months.  The highest rate of return Veterans' Affairs will calculate is 50%.

  • Any loss (negative rate of return) on a parcel of shares or managed investments will be  offset against any gain (positive rate of return) on other shares and managed investments.

  • Brokerage fees and stamp duty associated with the buying or selling of shares will be allowed as a deduction against ongoing income from shares and managed investments for a period of 12 months from the date these costs are incurred.

Please note:

These changes only relate to shares and other securities listed on Australian Stock Exchanges.  If you hold shares in a private company or in an unlisted public company, they will not be affected by the new share rules.

The income and asset details now recorded for all your listed shares are shown in the table below.

ShareNo. of AssetRate ofIncome Per

sharesValue ReturnFortnight

  • CRA LTD.- $1.00 ORDINARY FULLY

PAID5,200$32,240-22.51%-$279.12

  • BROKEN HILL PTY. LTD - $1.00

ORDINARY FULLY PAID3,540$49,91420.27%$389.14

  • M.I.M. HOLDINGS LTD - $0.50

ORDINARY FULLY PAID1,100$4,950-4.20%-$9.42

TOTAL FEE DEDUCTION-$57.24

TOTAL INCOME FOR PENSION PURPOSES$43.36

Note that for pension purposes all Rates of Return are capped at a maximum of 50%.

For pension purposes any loss (negative rate of return) on a parcel of shares or managed investments will be offset against any gain (positive rate of return) on other shares and managed investments.   The total income for managed investments and shares is shown below. Note if this total is negative, no income is recorded for service pension purposes.

TOTAL INCOME FROM MANAGED INVESTMENTS AND SHARES FOR

PENSION PURPOSES $92.01

Your right of review

If you do not agree with a decision affecting your rate of service pension, you may apply to have it reviewed by a delegate of the Repatriation Commission.  The Delegate may decide the original decision was correct, or may decide to change it.  If the decision is changed, your pension may be increased or reduced.

Any request for a review must be made in writing within three months of the day you receive this letter.  Your letter should state the specific grounds for your request for review.

Your obligations to the Department

Your obligations have been explained to you in previous advices. These obligations still apply, but the relevant income and asset levels may have changed.  These are shown below.

Your service pension is paid at less than the maximum rate.  You must tell the Department within 21 days if your combined income (apart from Veterans' Affairs pensions) rises above $812 a fortnight. You must also tell us if the value of your assets rises above $240,000.

You can do this by telephoning or writing to us or by visiting any Department of Veterans' Affairs office. The address and telephone number are shown at the top of this letter.  If you telephone, we may ask you to confirm information in writing or to send us certain documents which are related to the matter.

If you do not tell us of these changes you may be overpaid. There are penalties that apply for failing to fulfil your obligations or for providing false or misleading information. The authority for this obligation is under Section 54 of the Veterans' Entitlements Act.  Please remember that obligations previously advised to you continue to apply.

Changes you have already told us about

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been included when sending this letter.  If this is the case, we will be sending you another letter as soon as the change has been put into place.

If you have any questions about any of the above matters, please contact this office at the address or telephone number shown at the top of this letter.

Yours sincerely,

G K Stonehouse

Deputy Commissioner as

Delegate of the Secretary