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11.7.1 Payment into bank account etc.
Last amended 16 March 2016
This section gives the Commission authority to request bank account details from a claimant for the purpose of depositing compensation payments. The effect of subsections 3A-3C is that for certain payments specified in a legislative instrument, the Commission can only make the payment into an account held by the claimant rather than to a third party such as a solicitor. The instrument in force from 28 April 2011 is the Military Rehabilitation and Compensation (Payment into Bank or Foreign Corporation Account) Specification 2011.
Note that the introduction of this instrument only affects payments under the MRCA - SRCA payments are not affected by this change.
Permanent Impairment payments and overseas bank accounts
Occasionally, a client may request that DVA process their Permanent Impairment (PI) payment to their nominated overseas bank account. The preferred method is always to pay clients residing overseas in $AU to an Australian bank account. However, if this is not possible, arrangements can be put in place for a payment to the client’s overseas bank account. This is managed through the Accounts Payable Team in Resources Branch within Corporate Division.
The Claim for Payment form should be used to organise this method of payment. This form can be accessed via TRIM - 15573323E or the intranet: http://sharepoint/supportingbusiness/financeandresources/finance/Pages/forms.aspx
Please note the following:
- Supporting documentation should be provided along with the Claim for Payment form to show evidence of how much is being paid and the purpose of the payment (a PI Determination Letter will usually satisfy this requirement), and forwarded to the Accounts Payable Team.
- The exchange rate to be used in these payments will be the rate as specified on the date the account is processed. The client should be made aware that no additional amounts will be available for any loss incurred on variations of exchange rates or costs that the client’s bank may charge. Any changes to a converted Permanent Impairment payment as a result of currency fluctuations are not the responsibility of DVA and the client accepts any currency exchange risks when they request to receive their payments in this manner, as they are still being paid their correct entitlement by DVA.
- The client may ask for an estimate of the exchange rate or likely conversion amount. DVA’s practice is to use the Oanda website to generate an estimate of the currency conversion (http://www.oanda.com/currency/converter/). It is important that the delegate emphasise to the client that the estimate of the exchange rate/amount will likely differ by the time the transaction is actually processed.
- Support for completing the Claim for Payment form or for information on the processing of overseas payments should be directed to the Accounts Payable Team (Accounts.Payable.Mailbox).