C10/2009 June 2009 Statutory Increase Processing - Production and Mailout of Advice Letters with Payment Summaries, Standalone Payment Summaries (Issued without a Covering Letter), and Medicare Levy Exemption Certificates | Compensation and Support Reference Library, Departmental Instructions, 2009

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C10/2009 June 2009 Statutory Increase Processing - Production and Mailout of Advice Letters with Payment Summaries, Standalone Payment Summaries (Issued without a Covering Letter), and Medicare Levy Exemption Certificates

Document

DATE OF ISSUE:  17 June 2009

June 2009 Statutory Increase Processing – Production and Mailout of Advice Letters with Payment Summaries, Standalone Payment Summaries (Issued without a Covering Letter), and Medicare Levy Exemption Certificates

Amends DI No.

Replaces DI No.

Purpose of Instruction

This Departmental Instruction is to provide information about the processing arrangements for the June 2009 Statutory Increase (SI) processing of advice letters with payment summaries, Standalone Payment Summaries (issued without a covering letter), and Medicare Levy Exemption Certificate production and mailout.

John Sadeik

National Manager

Income Support

17 June 2009

Overview

Introduction

In June each year, the Department undertakes a bulk exercise to issue approximately 330,000 households with advice letters to persons in receipt of service pension, age pension including those in payment of Defence Force Income Support Allowance (DFISA) or income support supplement.  The majority of these letters will include payment summaries for the end of the financial year.

Standalone Payment Summaries – issued without a covering letter and Medicare Levy Exemption Certificates will also be issued at this time.

Significant Issues

The June 2009 mailout will incorporate the following events for payday 16 July 2009.

  • Production of advice letters to all service pensioner, income support supplement and age pensioner recipients including those in payment of DFISA only;
  • Changes to pension rates, and allowances in line with adjustments to the Income Free Area and Assets Free Area thresholds;
  • Increase to the deeming thresholds – singles rate from $41,000 to $42,000 and couples rate from $68,200 to $70,000.
  • A Full Income and Assets Attachment will NOT be generated for pensioners as part of this processing exercise;

Significant Issues Continued
  • Full Obligations will NOT be generated for pensioners as part of this processing exercise - this is in line with the Repatriation Commission policy which advises that pensioners are provided with their full obligations and full income and assets details at a minimum interval of once every two years for reduced rate pensioners and issued full obligations once every five years for maximum rate pensioners - Full Obligations were last issued to both groups in June 2008 – Full Income and Assets Attachments are not issued to maximum rate pensioners;
  • The Deputy Commissioner signatory for Tasmania has been changed from Elizabeth Quinn to Scott Weston;
  • The Deputy Commissioner signatory for Western Australia has been changed from Vicki Ludwig to Russell McLaughlan;
  • It should be noted that the production of advices with Northern Territory letterhead and signature block for Deputy Commissioner Northern Territory is not within current system functionality, and that development of this is being investigated;
  • End of 2008/2009 financial year Payment Summary production;
  • The Australian Taxation Office (ATO) insert – 'Do you need to lodge a tax return?' will be issued to clients being paid at less than the maximum rate of income support pension only, and to those clients receiving a Standalone Payment Summary or a Medicare levy Exemption Certificate;
  • Standalone Payment Summaries ie., payment summaries issued without a covering letter – to be issued to those eligible pensioners who do not receive an advice letter;
  • Production of Medicare Levy Exemption Certificates (MLEC); and
  • Advice to pensioners of any gain or loss of treatment eligibility.

Production of Advice Letters

Processing Weekend -

19/06/2009 -

21/06/2009

Processing is scheduled to run from Friday evening 19 June 2009 until Sunday, 21 June 2009 with any pension variations effective from 1 July 2009 for payday 16 July 2009.

Critical Dates

Processing period within DVA - (includes 'advices' processing).

Friday (pm) 19 June 2009 – Sunday (pm) 21 June 2009

Commence printing advice letters with payment summaries, Standalone Payment Summaries and Medicare Levy Exemption Certificates (MLEC)

Tuesday, 23 June 2009

Progressive lodgment of all Advice Letters, Standalone Payment Summaries and MLECs with Australia Post (SALMAT)......

Commencing from Friday, 26 June 2009 and completed by COB Friday, 3 July 2009

Letter Production

SALMAT – Businessforce, located in Mulgrave, Victoria will print the advice letters, Standalone Payment Summaries and MLECs, insert the ATO flyers where applicable, envelope and lodge all mail with Australia Post.  Production and processing of letters is expected to occur over the period 22 June 2009 – 3 July 2009.

Lodgment of Letters

Letters will be progressively lodged with Australia Post for posting commencing Friday, 26 June 2009  All letters are to be posted by COB Friday, 3 July 2009

Letter Content

Letters

Prior to the issue of this Departmental Instruction, comments were sought from staff in each location who were provided with copies of the proposed paragraph sequencing and mock-ups of advice letters for this run.

Copies of the expected advice letter content for this run are reproduced at Attachment B.

Single and Joint Advices

All service pensioner and income support supplement recipient couples will receive a joint advice, provided both members of a couple, including illness separated, have the same IMS postal address recorded.

Age pensioners receive single advice letters.

Important to note:  Staff are reminded that if a client in a joint assessment requests separate or single advices, staff need to update this information using the mainframe PRODIMS  – Client Correspondence Screen – CO.CO prior to the processing run to initiate the client request.  Advice default requests in CO.CO will override the DOCGEN advice rules.

Full Obligations – NOT being issued to Less than Maximum Rate or Maximum Rate Pensioners
  • Full Obligations are NOT being generated for less than maximum rate SP/ISS/AP recipients. 
  • Full Obligations are NOT being generated for maximum rate SP/ISS/AP recipients.

This is in line with the Repatriation Commission policy that:

  • pensioners receiving pension at less than the maximum rate be provided with their Full Obligations and Full Income and Assets every two years – Full Obligations and Full Income and Assets were last issued to this group in June 2008; and 
  • pensioners receiving the maximum rate of pension are required to be provided with their Full Obligations at a minimum interval of once every five years -  Full Obligations were last issued to this client group in June 2008.  Full Income and Assets have not been issued to this client group.

Full Income and Assets Attachment – NOT Being Issued
  • A Full Income and Assets Attachment will NOT be generated for those on less than maximum rate of service pension, income support supplement recipients or age pensioners (including those receiving DFISA).
Maximum Rate Pensioners – Do not receive a Payment Information Attachment

SP/ISS/AP pensioners who remain on maximum rate following the processing do not have a Payment Information Attachment printed as part of their advice as they are considered to be continuation cases.

SP/ISS/AP pensioners who increase from less than maximum rate to maximum rate following the processing will receive a Payment Information Attachment.  The Payment Information Attachment will print on the reverse side of page 2 of the advice – it will not print on a 'new' page.

Telephone Allowance

Telephone Allowance (TA) will not be paid in line with the June Statutory Increase (SI) payday – there will not be a paragraph relating to TA in the advice letters.  TA will be paid to eligible pensioners on payday 2 July 2009.

Utilities Allowance

The quarterly payment of Utilities Allowance (UA) will not be paid in line with the June Statutory Increase (SI) payday – there will not be a paragraph relating to UA in the advice letters.  UA will be paid to eligible pensioners on payday 2 July 2009.

Tasmanian Office Clients with Overseas Postal Address

Advice letters for Tasmanian Office clients with an overseas postal address will have their advices printed and posted directly from the Mailing House.

Non Taxable Pensioners

Those pensioners whose pensions are not taxable (eg., those in payment of invalidity service pension and who are under 65 years of age for males, 63.5 years for females) will receive an advice letter only, without a payment summary included.

A Medicare Levy Exemption Certificate (MLEC) will be issued separately to these eligible clients advising them of the number of Medicare Levy exemption days.

A paragraph will advise the client by name, that they will be receiving their MLEC separately.

2009 PAYG Payment Summary -individual Non Business

Payment summaries will be issued to all pensioners whose pensions are taxable.

  • Service Pension, or
  • Age Pension or
  • DFISA or
  • Income Support Supplement

Payment summaries can form part of the advice letter or may be sent without a covering letter.  Where a payment summary is sent without a covering letter, it is referred to as a 'Standalone Payment Summary'.

Payment summaries are sequenced to print after the Payment Information Attachment but before the General Information Sheet (GIS).  Each page of the advice letter, including the payment summary(s), has a page number printing in the footer information.

General Information Sheet (GIS)

The General Information Sheet (GIS) will be generated for each advice letter produced for SP, ISS and AP pensioners.

ATO insert - 'Do you need to lodge a Tax Return?'

A 'pensioner flyer' produced by the ATO titled “Do you Need to lodge a Tax Return?” will only be included in the advice letters produced for those in payment of less than the maximum rate of Income Support pension, those being issued a Medicare Levy Exemption Certificate (MLEC) or a Standalone Payment Summary.

For several years DVA have issued the ATO pensioner flyer to all clients receiving an advice as part of the June SI mailout.  However, there has been a substantial amount of negative feedback concerning the impact of the flyer on DVA clients – and despite several attempts to clarify and provide information in the flyer to assist clients they continue to find the flyer difficult to understand and are unsure as to why they have received it and how the information relates to them.

As a means of addressing these concerns the flyer will not be sent to those clients being paid at the maximum rate of Income Support Pension.  For the June 2009 SI we will send the ATO flyer only to those being paid at less than the maximum rate of income support pension, those receiving a MLEC or a Standalone Payment Summary.

Each location will be supplied with a quantity of the flyers to insert with their Enclosures (treatment changes) or Reduction to Nil advice letters which will print at each location for sending onto clients.

Pensioners to Contact ATO with Taxation Questions

It is important for DVA staff to note that pensioners have been advised in their letters to contact the Australian Taxation Office on 13 28 61 if they should have any questions about taxation.  Should pensioners ring DVA offices with questions relating to taxation matters – Staff should refer them to the Australian Taxation Office on 13 28 61.

IMPORTANT NOTE:  DVA staff must not offer advice about taxation liability or the need to lodge a taxation return.

Information on Tax Thresholds in VIEW

The 'Senior Australians Tax Offset' and 'Pensioner Tax Offset' amounts are displayed in the 'Tax Thresholds Amounts' folder in the 'Fin year Certificate' tab in VIEW.  The 2008/2009 threshold amounts are now available in VIEW.  Additional information about these thresholds is provided via the VIEW Online Help.

Standalone Payment Summaries (issued without a covering letter)

Standalone Payment Summaries – sent without a covering letter

Standalone Payment Summaries - will be produced for the following categories:

  • Those persons issued with an Education Allowance Payment Summary;
  • Working Rule B Widows,
  • Those pensioners who are no longer in payment and do not receive an advice but a payment summary for that part of the year for which they were in payment;
  • Overseas addressees (for clients who were in payment for part of the year but are no longer in payment); and
  • Centrelink clients in payment of DFISA.

The Standalone Payment Summaries for those listed above, apart from those payment summaries with an Overseas Address, are to be printed at the mailing house and lodged with Australia Post directly from the mailing house.

Standalone Payment Summaries - Unknown Addressees

Standalone Payment Summaries will not be printed for clients with an 'unknown address' recorded.

Standalone Payment Summaries - Overseas Addressees

Standalone Payment Summaries for clients who reside overseas and who are no longer in payment will not be printed at the mailing house.  A zip file of each Standalone Payment Summary category will be emailed to each location – this will list the clients who reside overseas who are to receive a Standalone Payment Summary – staff should request a re-print for those overseas clients listed on the report and send their Standalone Payment Summary directly to them.

Standalone Payment Summaries - For Deceased Clients

Standalone Payment Summaries for clients who have died during the financial year will not be printed at the mailing house.  Staff will be able to request a re-print of a deceased client's payment summary when required from 1 July 2009.

Reports of Standalone Payment Summaries

A Standalone Payment Summary report is generated for each of the following categories:

MRCA Education Allowance;

Education Allowance;

Other;

Group Destination;

Overseas;

Unknown Address; and

Deceased.

A report file for each category will be emailed in a zip file to the contact officer in each location.

Envelope Return Address if not Delivered - GPO Box 9998 in Your Capital City

All Standalone Payment Summaries sent from the Mailing House will be enveloped in a single window-faced envelope with a return address of ...'GPO Box 9998 in Your Capital City'.

Payment Summary Reprint Facility - VIEW Advices Tab

From 1 July 2009, payment summaries for the 2008/2009 financial year may be re-generated using the 'Payment Summary Reprint' facility located under the Advices Tab in VIEW.

Please note: when requesting a reprint of a payment summary for previous years - the 'year of issue' will not print in the payment summary heading for reprinted payment summaries requested from VIEW.  The 'Payment From' and 'Payment To' date range will accurately reflect the correct year/dates payment range.  The 'Authorising Person' will reflect the respective location's Deputy Commissioner, based on the date the reprint is requested.

Payment Summary Template

The June SI Income Support contact officers will be provided with a 2009 Payment Summary Template.

Medicare Levy Exemption Certificates

Medicare Levy Exemption Certificates

(MLEC)

A Medicare Levy Exemption Certificate will be issued to those Gold Card beneficiaries who are not in receipt of a taxable income support pension and who do not receive an advice letter, ie,

  • War widows who do not receive income support supplement; or
  • Those veterans who are eligible for a gold card due to their disability entitlement, and are not in receipt of an income support payment or Centrelink DFISA; or
  • Those clients who are eligible for a gold card due to their entitlement under the Military Rehabilitation and Compensation Act 2004 (MRCA); or
  • Australian veterans with Qualifying Service and over 70 years of age, who are not in receipt of an income support payment; or
  • Those pensioners whose pensions are not taxable (eg, those in payment of invalidity service pension who are under 65 years of age for males, 63.5 years for females).

The number of medicare levy exemption days, where applicable, will be stated on the payment summary for all other pensioners.

A sample of the Medicare Levy Exemption Certificate to be issued in 2009 can be found at Attachment C.

Medicare levy exemption days - blinded Income Support pensioners

Blind veterans and partners in receipt of an Income Support payment are eligible for full or half Medicare Levy exemption. The number of eligible exemption days will be printed on their Payment Summaries.

This affects approximately 660 clients.

Zip File of Reports Listing all MLEC Recipients and Clients with an Unknown Address Recorded

A report of all clients who receive a MLEC will be produced and emailed in a zip file to each contact officer.

A MLEC will not be produced where a client has an 'unknown address' recorded.  However, a report will be produced and emailed in a zip file to all contact officers, listing those clients who are eligible to receive a MLEC but have an unknown address recorded.

MLEC Template

The June SI location contact officers will be provided with a Medicare Levy Exemption Certificate (MLEC) word template for the manual re-issuing of MLECs if required.

Issues Requiring Staff Action

ZIP Files of Advice Schedule Reports

A Zip File listing details of all clients who receive an advice will be emailed to the System Support Officer in each location during the week following the processing run.  The Zip File replaces the Advices Schedule Report, which is too large to print on printers.

Enclosure (Treatment change) Advice Letters

For the June 2009 SI the Enclosure (ie treatment changes) letters will be printed at the nominated printer at each location.  These advices were previously printed at the IBM Printhub and couriered to each state location however, for the quarterly processing runs all streamed advices will print at your state location printer.  Please note: some advices continue to be printed and sent to you from the IBM printhub these advices are not from the quarterly processing jobs.

It is suggested that the streamed advice letters be checked for accuracy, and reconciled against the reports received in each location to ensure they reflect the correct treatment paragraphs.

Reduction to Nil Letters

For the June 2009 SI - any Reduction to Nil advice letters will be printed at the nominated printer for each location.  Staff are required to include a Commonwealth Seniors Health Card (CSHC) claim form, a CSHC fact sheet and a reply paid envelope.

'HELD' Advices to be Forced

As part of the Batch processing run all advices in 'Held' status will be forced to print.  Forced 'held' advices will now print at the nominated printer in each respective location as part of the production run.  Please ensure your nominated printer is fully operational over the processing weekend as the forced advices will print during that time.  All forced advices will need to be checked to ensure the information in them is correct prior to posting to clients.

Handling of Daily Advices

Cases processed prior to the SI run for payday 16 July 2009 should have the daily advice dispatched prior to the June advice letter being sent.

Daily payment advices processed after the processing run on 20 - 21 June 2009 for payday 16 July 2009, should be held by staff in each location until confirmation is received from the June SI Business Co-ordinator to release such advices.  This will ensure that pensioners who have pension variations processed for payday 16 July 2009 will receive their daily advice after the quarterly advice rather than in advance of it.

To minimise the number of daily advices to be held while the June advices are processed, it is suggested that only manual cases (and essential processing) should be processed for payday 16 July 2009.

Reprints of June SI Advices via VIEW Advices Tab

Reprints of individual advice letters produced from the quarterly processing can be requested via VIEW - Advices Tab reprint facility.  Quarterly advice reprints are available and can be requested from day one of the next quarter ie., March quarterly advices from 01/04/yyyy, June quarterly advices from 01/07/yyyy and September quarterly advices from 01/10/yyyy.

Staff Requests for Reprints of Daily Advices - Pre-SI Processing

The 'Reprint' Scheduled jobs which produce the requested reprints of daily advices by staff are postponed as part of the SI processing.  Any requests for an advice reprint on the day of the commencement of the SI processing will not be actioned until following the SI run when the next 'Reprint' job is submitted.  'Unprinted' advice reprint requests will then print when the next 'Reprint' job is submitted.

Manual Advices Required – for PA only back onto payment of Service Pension

Following the June SI processing there may be some instances where clients have gone from payment of Pharmaceutical Allowance (SPPA) (MOA 99 cases) only, onto payment of Service Pension.

Following PIPS processing of these cases a 'new grant' advice with fringe benefits paragraphs and other related new grant information is produced.  A new grant advice does not convey the appropriate wording for this situation, and as such the PIPs advice should be suppressed and a manual advice produced.

DVA Income Support Contact Officers

DVA - Income Support  Contact Officers

NSW  - Peter Rajaratnam - ext 27106

VIC – Lou Zigomanis- ext 36733

QLD - Steve Jensen - ext 48835

SA – Eleanor Smith – ext 50425

WA – Michelle Pauly - ext 68238

TAS - Bryon Kelly – ext 76684

Systems, Cards & Advices Team Contacts – New South Wales

Feedback from Staff

Any concerns regarding letters produced as part of this run should be directed to the June SI Project Officer located in New South Wales – Anissa Lam on ext 27169.  Please ensure that any problems are reported as early as possible.

Contact Details

Any queries regarding advice wording, mail house printing and letter lodgment should be referred to:

Anissa Lam

ext: 27169

Email: anissa.lam@dva.gov.au


ATTACHMENT A

HOUSEHOLDS TO RECEIVE PAYMENT SUMMARIES AND/OR MEDICARE LEVY EXEMPTION CERTIFICATES JUNE 2009- APPROXIMATES BASED ON 2008 STATISTICS

STATE

JOB 1 & JOB 3

Less than Maximum Rate

JOB 2 Maximum  rate

APPROX NO. OF ADVICE LETTERS

JOB 4 - APPROX NO. OF STAND- ALONE PAY SUMS

JOB 5 - APPROX NO. OF

MLEC

NSW (incl ACT)

21,171

51,941

73,112

6,811

23,371

VIC

15,324

34,775

50,099

4,949

14,912

QLD

15,932

31,898

47,830

5,151

16,327

SA

8,217

16,892

25,109

1,578

5,521

WA

7,568

12,750

20,318

2,697

6,269

TAS

2,463

5,517

7,980

496

1,962

TAS OS

727

727

TOTAL

71,402

153,773

225,175

20,682

68,362


ATTACHMENT B

JUNE 2009 SI PARAGRAPH CONTENT

Example 1:

  • SERVICE PENSION
  • SINGLE OUTCOME
  • ASSETS TESTED
  • JOINT ASSESSMENT
  • TAXABLE
  • PAYMENT SUMMARIES ENCLOSED
  • GENERAL INFORMATION SHEET

GPO Box 651, Brisbane  QLD  4001

Contact:

Telephone:Brisbane Office

Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

1!!11 IIIll l 111 1I!! (Barcode?)  044Postal Address:

JOHN SMITHGPO Box 651 Brisbane Qld 4001

MARY SMITHTelephone:

29 MARGARGET STREETCapital city callers: 133 254

IPSWICH   QLD   4010Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8585

21 June 2009

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs SMITH,

This is to advise you that your service pension has been increased.  This change will take effect from 1 July 2009.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for service pension:

  • Income Free Area - this is the amount of income you can have before your service pension is reduced below the maximum rate payable;

  • Assets Value Limit - this is the amount of assets you can have (other than your family home) before your service pension is reduced below the maximum rate payable;

  • Deeming Thresholds - these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of service pension.

For details on these changes please refer to the General Information Sheet which is attached to this letter.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

Issue of 2008/2009 Financial Year Payment Summaries

As it is the end of the 2008/2009 financial year Payment Summaries are being issued.  You will need this information if you are required to lodge a tax return.

Payment Summary for JOHN SMITH is enclosed with this letter.

Payment Summary for MARY SMITH is enclosed with this letter.

If you are unsure as to whether you are required to lodge a tax return or if you have any questions about taxation matters you should contact the Australian Taxation Office on 13 28 61.

Department of Veterans' Affairs' staff  are unable to assist with taxation enquiries.

Medicare Levy Exemption

If you have been eligible for full treatment at departmental expense during the past financial year, you are eligible for a full or half exemption from payment of the Medicare Levy for that period.  The number of days you are eligible for a full or half Medicare levy exemption is shown on your Payment Summary.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if you gain or dispose of any assets, or the value of your combined existing assets varies, or your combined gross income from all sources increases above $XXX.XX per fortnight.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still 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 processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply, you must do so within three months of being advised of this decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions regarding Income Support issues you should contact us on 1300 550 452 (Capital city callers) or 1800 550 452 (Non-Capital city callers).  For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission


PAYMENT INFORMATION ATTACHMENT

The Department calculates pension payments on a daily basis.  This means that your fortnightly pension payment is made up of 14 days of entitlement of pension.  Therefore, when there is a change to your circumstances on any particular day in the fortnight - your pension will be adjusted from that day.  For that reason your pension payment may be different for one or two paydays after a reassessment.

Payment for 16 JULY 2009Veteran Partner

TOTAL FORTNIGHTLY PAYMENTxxx.xx         xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxx.xx          xxx.xx

- xxxxxxxxx xxxxxxxxxxxx xxx.xx          xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx              x.xx

Payment for 30 JULY 2009VeteranPartner

TOTAL FORTNIGHTLY PAYMENTxxx.xx         xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxx.xx          xxx.xx

- xxxxxxxxx xxxxxxxxxxxx xxx.xx          xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx              x.xx

Please Note: If you have an overpayment or lump sum advance which is currently being recovered (by deductions from your fortnightly pension), the amount paid into your account may be less than the total fortnightly payment shown above.


2009 PAYG Payment Summary – Individual

  Non Business

Service Pension

ORIGINAL

DVA File No: QX999999

Payer's ABN: 2396 4290 824

Tax File Number:            111 111 111

Payment From: 01/07/08

Payment to: 30/06/09

Date of Birth:  26/02/1971

Client's Name

1st Line of Client's Address

2nd Line of Client's Address

3rd Line of Client's Address

Gross payments:

$0.00

Medicare Levy Full or

Half Exemption Days:          0

Remote Area

Allowance:                      $0.00

ThousandsHundredsTensUnits

Total tax withheld -

whole dollars only in wordsNILNILNILNIL

Total tax withheld (whole dollars)$0.00

Authorised Person:                                 21/06/09

2009 PAYG Payment Summary – Individual

Non Business

Service Pension

CLIENT COPY

DVA File No: QX999999

Payer's ABN:       2396 4290 824

Tax File Number:      111 111 111

Payment From: 01/07/08

Payment to:30/06/09

Date of Birth: 26/02/1971

Client's Name

1st Line of Client's Address

2nd Line of Client's Address

3rd Line of Client's Address

Gross payments:

$0.00

Medicare Levy Full or

Half Exemption Days:          0

Remote Area

Allowance:                     $0.00

ThousandsHundredsTensUnits

Total tax withheld - NILNILNILNIL

whole dollars only in words

Total tax withheld (whole dollars)$0.00

Authorised Person:                              21/06/09

See Notes On Reverse ?


NOTES

1. Total Tax Withheld

If you have an amount in this box you need to lodge a tax return. This ensures that you receive any refunds of tax you may be entitled to.

2. Gross payments

This is the amount you should show as income in your tax return.  The 'Gross payments' shown on this statement does not include non-taxable payments such as pharmaceutical allowance, telephone allowance or disability pension.

3. Remote Area Allowance (RAA)

This amount is not taxable but if you need to lodge a tax return it will reduce any tax offset you may be entitled to.

4. Medicare Levy Exemption

The holders of Veterans' Affairs Gold treatment cards are eligible for a full or half exemption from the payment of the Medicare levy.  Where applicable, the number of Medicare Levy full or half exemption days is shown on this form.  If you need to lodge a tax return the number of days shown will need to be stated at the relevant Medicare levy question.

5. Further assistance

If you have any taxation enquiries, particularly in relation to whether you qualify for a full or half Medicare levy exemption, read the Medicare levy section in TaxPack 2009, Short tax return instructions 2009, or call the Australian Taxation Office on 13 28 61. Pension enquiries should be directed to the Department of Veterans' Affairs.

The Australian Taxation Office checks information shown in tax returns against information provided by Veterans' Affairs.

NOTES

1. Total Tax Withheld

If you have an amount in this box you need to lodge a tax return. This ensures that you receive any refunds of tax you may be entitled to.

2. Gross payments

This is the amount you should show as income in your tax return.  The 'Gross payments' shown on this statement does not include non-taxable payments such as pharmaceutical allowance, telephone allowance or disability pension.

3. Remote Area Allowance (RAA)

This amount is not taxable but if you need to lodge a tax return it will reduce any tax offset you may be entitled to.

4. Medicare Levy Exemption

The holders of Veterans' Affairs Gold treatment cards are eligible for a full or half exemption from the payment of the Medicare levy.  Where applicable, the number of Medicare Levy full or half exemption days is shown on this form.  If you need to lodge a tax return the number of days shown will need to be stated at the relevant Medicare levy question.

5. Further assistance

If you have any taxation enquiries, particularly in relation to whether you qualify for a full or half Medicare levy exemption, read the Medicare levy section in TaxPack 2009, Short tax return instructions 2009, or call the Australian Taxation Office on 13 28 61. Pension enquiries should be directed to the Department of Veterans' Affairs.

The Australian Taxation Office checks information shown in tax returns against information provided by Veterans' Affairs.


This is an example of the General Information Sheet (GIS) for Service Pensioners that will be used in the June 2009 mailout.  There is a separate GIS for income support supplement and age pension recipients. Production printing of the GIS is restricted to one sheet – two images.

GENERAL INFORMATION ON SERVICE PENSION RATES AND LIMITS

(Information current as at T-ADVICE-PRINT-DATE )

MAXIMUM RATES OF SERVICE PENSION (excludes pharmaceutical allowance)

Singles Rate$XXX.XX (per fortnight)

Couples Rate (each)$XXX.XX (per fortnight)

PENSION INCOME LIMIT (per fortnight)

At which Service Pension ReducesCut Off*

Singles Rate$XXX.XX                                                                 $X,XXX.XX

Couples Rate (combined)$XXX.XX                                                                 $X,XXX.XX

PENSION ASSETS LIMIT

At which Service Pension ReducesCut Off*

Home Owner

Singles Rate$XXX,XXX                                                                $XXX,XXX

Couples Rate (combined)$XXX,XXX                                                                $XXX,XXX

Non Home Owner

Singles Rate$XXX,XXX                                                                $XXX,XXX

Couples Rate (combined)$XXX,XXX                                                                $XXX,XXX

These pension income and assets limits may increase for each dependent child or student up to the age of 22, or if rent assistance is payable.

NOTE: *Income and assets limits do not apply to blinded service pensioners.

GOLD CARD INFORMATION

The Gold Card income and assets limits shown below apply if you receive a disability pension below 50% of the general rate and you also receive an amount of service pension.  Should your assessed income or assets exceed these limits you will no longer be eligible for the Gold Card.

The Gold Card income and assets limit shown below do not apply if:

  • your disability pension is above 50% of the general rate and you also receive an amount of service pension.  Should your service pension cease due to excess income and assets, you will no longer be eligible for a Gold Card;
  • you receive a disability pension at 100% of the general rate, Intermediate rate, EDA or TPI; or
  • you are aged 70 years or over and you are a veteran who served in Australia's Defence Force and have qualifying service from any conflict or you are an Australian Mariner with qualifying service from World War II.

GOLD CARD INCOME AND ASSETS CUT OFF LIMITS

The treatment benefits income and assets limits apply to you if you are an Australian veteran or mariner whose eligibility for the Gold Card is dependent solely on your service pension payment.

INCOME

Singles Limit              $XXX.XX (per fortnight)

Couples Limit (combined)              $XXX.XX (per fortnight)

Add $XX.XX per fortnight for each dependent child or student to the age of 22.

ASSETS

Home OwnerNon Home Owner

Singles Limit$XXX,XXX$XXX,XXX

Couples Limit (combined)$XXX.XXX$XXX,XXX

Add approximately $XX,XXX for each dependent child or student up to the age of 22.

DEEMING

Deeming assumes that any money you have invested in financial assets is earning a particular amount of income regardless of the actual amount earned.  The deeming rates are:

Singles

Low Rate:- X% interest up to the threshold of $XX,XXX

High Rate:- X% interest for the remaining balance

Couples

Low Rate:- X% interest up to the threshold of $XX,XXX

High Rate:- X% interest for the remaining balance

ILLNESS SEPARATED COUPLES

Couples separated due to ill health are paid at the single rate of service pension, but have their income and assets assessed as a couple.

RENT ASSISTANCE

You may be eligible for rent assistance if you pay rent to a non-government body or landlord.  Rent assistance is not payable if you reside in a government funded (approved) nursing home, or in government funded housing.

The amount of rent assistance you receive depends on the amount of rent you pay and your family circumstances.  Rent assistance is paid at the rate of 75 cents in the dollar for every dollar you pay over the set rent limits.

When calculating the amount of rent assistance payable, any disability pension received is counted as income and may reduce the rate of rent assistance payable to you or your partner.


Maximum Amount of Rent Assistance Payable (per fortnight)

Singles Rate$XX.XX

Couples Rate (combined, no children)$XX.XX

Rent Limits (per fortnight)

Singles Limit$XX.XX

Couples Limit (combined, no children) $XXX.XX


Example 2:

  • AGE PENSION
  • SINGLE ASSESSMENT
  • DFISA IN PAYMENT
  • MULTIPLE OUTCOME
  • TAXABLE
  • PAYMENT SUMMARY ENCLOSED
  • GENERAL INFORMATION SHEET

GPO Box 651, Brisbane  QLD  4001

Contact:

Telephone:Brisbane Office

Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

1!!11 IIIll l 111 1I!! (Barcode?)  044Postal Address:

MR FRED JOHNSTONGPO Box 651 Brisbane Qld 4001

17 EDWIN STREETTelephone:

IPSWICH   QLD   4010Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8585

21 June 2009

YOUR FILE NUMBER IS QX123456

Dear Mr JOHNSTON,

This is to advise you that your:

  • age pension has been increased.
  • Defence Force Income Support Allowance (DFISA) has varied.

This change will take effect from 1 July 2009.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for age pension:

  • Income Free Area - this is the amount of income you can have before your age pension is reduced below the maximum rate payable;

  • Assets Value Limit - this is the amount of assets you can have (other than your family home) before your age pension is reduced below the maximum rate payable;

  • Deeming Thresholds - these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of age pension.

For details on these changes please refer to the General Information Sheet which is attached to this letter.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

Issue of 2008/2009 Financial Year Payment Summaries

As it is the end of the 2008/2009 financial year, Payment Summaries are being issued.  You will need this information if you are required to lodge a tax return.

Payment Summary for FRED JOHNSTON is enclosed with this letter.

If you are unsure as to whether you are required to lodge a tax return or if you have any questions about taxation matters you should contact the Australian Taxation Office on 13 28 61.

Department of Veterans' Affairs' staff  are unable to assist with taxation enquiries.

Medicare Levy Exemption

If you have been eligible for full treatment at departmental expense during the past financial year, you are eligible for a full or half exemption from payment of the Medicare Levy for that period.  The number of days you are eligible for a full or half Medicare levy exemption is shown on your Payment Summary.

If you were previously being paid by Centrelink, they will issue a Payment Summary to you separately.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas) if your total gross income from all sources is more than $XXX.XX per fortnight or the value of your total assets is more than $XXX,XXX.XX.

Other Obligations

We have explained your obligations to you in previous letters.  These obligations still 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 processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this decision, you can contact your nearest Veterans' Affairs office and discuss the reasons for the decision.  If you remain dissatisfied, you may apply to have the decision reviewed by an Authorised Review Officer, with no prior involvement in the case.  If you decide to apply for a review more than 13 weeks from the day this notice is given to you, you can only be paid an adjustment from the date we receive your application.  Requests for review may be made in person , by telephone or in writing.

The rate of DFISA paid to you is derived from your age pension assessment.  You may seek to have your age pension assessment reviewed if you are dissatisfied with your DFISA rate.

If you have any questions regarding Income Support issues you should contact us on 1300 550 452 (Capital city callers) or 1800 550 452 (Non-Capital city callers).  For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner as Delegate of the Secretary

ATTACHMENTS – in the Sequential Order of printing

  • Payment Information Attachment - YES
  • Payment Summary/s              - YES
  • General Information Sheet - YES


Example 3:

  • INCOME SUPPORT SUPPLEMENT
  • INCOME TESTED
  • MULTIPLE OUTCOMES
  • RENT ASSISTANCE IN PAYMENT
  • PAYMENT SUMMARY ENCLOSED
  • GENERAL INFORMATION SHEET

GPO Box 651, Brisbane  QLD  4001

Contact:

Telephone:Brisbane Office

Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

1!!11 IIIll l 111 1I!! (Barcode?)  044Postal Address:

MRS JOYCE MUNROEGPO Box 651 Brisbane Qld 4001

25 O'RYAN STREETTelephone:

IPSWICH   QLD  4010Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8585

21 June 2009

YOUR FILE NUMBER IS QX123456

Dear Mrs MUNROE,

This is to advise you that your:

  • income support supplement has been increased.
  • rent assistance has been increased.

This change will take effect from 1 July 2009.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for income support supplement:

  • Income Free Area - this is the amount of income you can have before your income support supplement is reduced below the maximum rate payable;

  • Assets Value Limit - this is the amount of assets you can have (other than your family home) before your income support supplement is reduced below the maximum rate payable;

  • Deeming Thresholds - these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of income support supplement.

For details on these changes please refer to the General Information Sheet which is attached to this letter.

Payment Information

Details of your payments are provided in the Payment Information Attachment.

Issue of 2008/2009 Financial Year Payment Summaries

As it is the end of the 2008/2009 financial year Payment Summaries are being issued.  You will need this information if you are required to lodge a tax return.

Payment Summary for JOYCE MUNROE is enclosed with this letter.

If you are unsure as to whether you are required to lodge a tax return or if you have any questions about taxation matters you should contact the Australian Taxation Office on 13 28 61.

Department of Veterans' Affairs' staff are unable to assist with taxation enquiries.

Medicare Levy Exemption

If you have been eligible for full treatment at departmental expense during the past financial year, you are eligible for a full or half exemption from payment of the Medicare Levy for that period.  The number of days you are eligible for a full or half Medicare Levy Exemption is shown on your Payment Summary.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if your total gross income from all sources is more than $X,XXX.XX per fortnight or the value of your total assets is more than $XXX,XXX.XX.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'. These obligations still 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 processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply, you must do so within three months of being advised of this decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions regarding Income Support issues you should contact us on 1300 550 452 (Capital city callers) or 1800 550 452 (Non-Capital city callers).  For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

as Delegate of Secretary and Repatriation Commission

ATTACHMENTS

  • Payment Information Attachment - YES
  • Payment Summary/s              - YES
  • General Information Sheet - YES


Example 4:

  • INVALIDITY SERVICE PENSION 
  • JOINT ADVICE
  • MAXIMUM RATE
  • NON TAXABLE
  • PAYMENT SUMMARIES NOT ISSUED
  • MLEC ISSUED AND SENT SEPARATELY

GPO Box 651, Brisbane  QLD  4001

Contact:

Telephone:Brisbane Office

Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

1!!11 IIIll l 111 1I!! (Barcode?)  044Postal Address:

MR PHILLIP ADAMSGPO Box 651 Brisbane Qld 4001

MRS PATRICIA ADAMSTelephone:

6 BOURKE STREETCapital city callers: 133 254

IPSWICH   QLD   4010Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8585

21 June 2009

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs ADAMS,

I am writing to you about your service pension payment form Veterans' Affairs.  You currently receive the maximum rate of service pension and this amount remains unchanged.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for service pension:

  • Income Free Area - this is the amount of income you can have before your service pension is reduced below the maximum rate payable;

  • Assets Value Limit - this is the amount of assets you can have (other than your family home) before your service pension is reduced below the maximum rate payable;

  • Deeming Thresholds – these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of service pension.

For details on these changes please refer to the General Information Sheet which is attached to this letter.

Medicare Levy Exemption Certificate

A Medicare Levy Exemption Certificate showing the number of days PHILLIP ADAMS is eligible for a full or half Medicare levy exemption will be issued separately.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if your combined gross income from all sources is more than $X,XXX.XX per fortnight or the value of your combined assets is more than $XXX,XXX.XX.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'. These obligations still 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 processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised This normally takes no more than 4 weeks.

If you have any questions regarding Income Support issues you should contact us on 1300 550 452 (Capital city callers) or 1800 550 452 (Non-Capital city callers).  For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

as Delegate of Secretary and Repatriation Commission

ATTACHMENTS

  • Payment Information Attachment - NO
  • Payment Summary/s              - NO
  • Medicare Levy Exemption Certificate sent separately - YES
  • General Information Sheet - YES


Example 5:

  • SERVICE PENSION
  • INCOME TESTED
  • SINGLE OUTCOME
  • ILLNESS SEPARATED - RESIDENTIAL AGED CARE
  • JOINT ADVICE - BOTH MEMBERS HAVE SAME ADDRESS RECORDED
  • TAXABLE
  • PAYMENT SUMMARIES ENCLOSED

GPO Box 651, Brisbane  QLD  4001

Contact:

Telephone:Brisbane Office

Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

1!!11 IIIll l 111 1I!! (Barcode?)  044Postal Address:

MR ROBERT MURDOCHGPO Box 651 Brisbane Qld 4001

MRS JOY MURDOCHTelephone:

12 JEFFERSON STREETCapital city callers: 133 254

IPSWICH   QLD   4010Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8585

21 June 2009

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs MURDOCH,

This is to advise you that your service pension has been increased.  This change will take affect from 1 July 2009.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for service pension:

  • Income Free Area - this is the amount of income you can have before your service pension is reduced below the maximum rate payable;

  • Assets Value Limit - this is the amount of assets you can have (other than your family home) before your service pension is reduced below the maximum rate payable;

  • Deeming Thresholds – these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of service pension.

For details on these changes please refer to the General Information Sheet which is attached to this letter.

Issue of 2008/2009 Financial Year Payment Summaries

As it is the end of the 2008/2009 financial year Payment Summaries are being issued.  You will need this information if you are required to lodge a tax return.

Payment Summary for MR ROBERT MURDOCH is enclosed with this letter.

Payment Summary for MRS JOY MURDOCH is enclosed with this letter.

If you are unsure as to whether you are required to lodge a tax return or if you have any questions about taxation matters you should contact the Australian Taxation Office on 13 28 61.

Department of Veterans' Affairs' staff are unable to assist with taxation enquiries.

Medicare Levy Exemption

If you have been eligible for full treatment at departmental expense during the past financial year, you are eligible for a full or half exemption from payment of the Medicare Levy for that period.  The number of days you are eligible for a full or half Medicare levy exemption is shown on your Payment Summary.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if your combined gross income from all sources is more than $X,XXX.XX per fortnight or the value of your combined assets is more than $XXX,XXX.XX.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still apply.

Residential Aged Care Fees

The Department of Veterans' Affairs will advise the Department of Health and Ageing of changes to your income that may affect the amount of residential care fee you pay.

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 processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply, you must do so within three months of being advised of this decision.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions regarding Income Support issues you should contact us on 1300 550 452 (Capital city callers) or 1800 550 452 (Non-Capital city callers).  For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

  • Payment Information Attachment - YES
  • Payment Summary/s              - YES
  • General Information Sheet – YES


ATTACHMENT C

SAMPLE OF MEDICARE LEVY EXEMPTION CERTIFICATE

GPO Box 9998

In YOUR CAPITAL CITY

MR DVA SAMPLE

20 SAMPLE STREET

HOBART   TAS  7001

Medicare Levy Exemption Certificate

Dear Beneficiary

This is your Medicare Levy Exemption Certificate showing the number of days you were eligible for full or half exemption from payment of the Medicare Levy.  This exemption applies, as you were eligible for full treatment at the expense of the Department of Veterans' Affairs.

Your File Number is: TX000001

The number of days you are eligible for a full or half Medicare Levy Exemption during 2008/2009 is: 365

Please note: If you lodge an income tax return YOU DO NOT NEED TO ATTACH this Certificate to your tax return.  However, you should retain this Certificate for your records.  If you need to lodge a tax return, the number of days you were eligible for full or half exemption will need to be stated against the relevant question on your tax return. Please note tax deducted from any income may include the Medicare levy.

If you have any enquiries about the number of days, please contact your nearest DVA office.

If you have any enquiries about whether you are fully or half exempt from the payment of Medicare levy, read TaxPack 2009; Short tax return instructions 2009 or contact the Australian Taxation Office on 13 28 61.

Yours faithfully

Deputy Commissioner