C15/2008 June 2008 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

DATE OF ISSUE:  13 June 2008

June 2008 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

Purpose of Instruction

This Departmental Instruction is to provide information about the processing arrangements for the June 2008 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

13 June 2008

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 2008 mailout will incorporate the following events for payday 17 July 2008.

  • 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 $39,400 to $41,000 and couples rate from $65,400 to $68,200.
  • A Full Income and Assets Attachment will be provided for - all less than maximum rate pensioners who are either assets tested or income tested where the total of their assets is within (or equal) to $10,000 of their prescribed assets limit;
  • A Tailored Income and Assets Attachment will be provided for - all less than maximum rate pensioners who are income tested and where the total of their assets is greater than $10,000 below their prescribed assets limit;
  • Full Obligations will be provided for all less than maximum rate pensioners - this is in line with the Repatriation Commission policy that pensioners receiving reduced rate of pension are provided with their full obligations and full income and asset details at a minimum interval of once every two years – Full Obligations were last issued to this client group in 2006;
Significant Issues Continued
  • Full Obligations will be provided for all maximum rate pensioners - this is in line with the Repatriation Commission policy that pensioners receiving maximum rate of pension are provided with their full obligations and at a minimum interval of once every five years - Full Obligations were last issued to this client group in 2003 -  Full Income and Assets are not issued to this group;
  • End of 2007/2008 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 -

20/06/2008 -

22/06/2008

Processing is scheduled to run from Friday evening 20 June 2008 until Sunday, 22 June 2008 with any pension variations effective from 1 July 2008 for payday 17 July 2008.
Critical Dates

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

Friday (pm) 20 June 2008 – Sunday (pm) 22 June 2008

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

Tuesday, 24 June 2008

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

Commencing from Friday, 27 June 2008 and completed by COB Friday, 4 July 2008

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 24 June 2008 – 4 July 2008.
Lodgment of Letters

Letters will be progressively lodged with Australia Post for posting commencing Friday, 27 June 2008  All letters are to be posted by COB Friday, 4 July 2008

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.

All feedback received from staff was extremely positive with a request for only a minor change to the proposed advice letter content.

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 – issued to Less than Maximum Rate and Maximum Rate Pensioners
  • Full Obligations are to be provided to all less than maximum rate SP/ISS/AP recipients. 
  • Full Obligations are to be provided to all 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 2006; 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 2003.  Full Income and Assets have not been issued to this client group.
Full Income and Assets Attachment

A Full Income and Assets Attachment will be issued to those on less than maximum rate of service pension, income support supplement recipients and age pensioners (including those receiving DFISA) who are either:

  • Assets tested; or
  • Income tested where the total of their assets is within (or equal to) $10,000 of their prescribed assets limit.
Tailored Income and Assets Attachment

A Tailored Income and Assets Attachment will be sent to those less than maximum rate service pensioners, income support supplement recipients and age pensioners (including those receiving DFISA) who are:

  • Income tested where the total of their assets is greater than $10,000 of their prescribed assets limit.

The Tailored Income and Assets Attachment will list all of the client's income and assets but will exclude any miscellaneous assets in their assessment unless those miscellaneous assets are earning income.

  • Assets to be excluded are:
  • Home contents/entry payment
  • Vehicles
  • Life insurance
  • Exempt assets
  • Collectibles
  • Other personal assets

This change is designed to reduce the advice of miscellaneous assessment items and unnecessary obligations and to aid pensioner understanding of the content of their advice letters.  A paragraph is provided in the Tailored Income and Assets Attachment advising pensioners that their miscellaneous assets will not be listed in the attachment.
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 3 July 2008.
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 3 July 2008.
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.
2008 PAYG Payment Summary -individual Non Business
  • Service Pension, or
  • Age Pension or
  • DFISA or
  • Income Support Supplement

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

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 GIS has been removed and will not be generated as part of the advice letter for the June 2008 SI processing.
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 what it all means.

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 2008 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) 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 2007/2008 threshold amounts are 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 2008.
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 2008, payment summaries for the 2007/2008 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.  If you request a 2007 payment summary in 2008 then 2008 will print on the heading.  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 2008 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 2008 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 Letters

For the June 2008 SI the Enclosure (ie treatment changes) advice 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 2008 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 17 July 2008 should have the daily advice dispatched prior to the June advice letter being sent.

Daily payment advices processed after the processing run on 21 - 22 June 2008 for payday 17 July 2008, 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 17 July 2008 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 17 July 2008.
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  - Genia Sacharczuk  - 02 9213 7106

VIC – Gavin Inglis - 03 9284 6379

QLD - Steve Jensen - 07 3223 8835

SA – Eleanor Smith - 08 8290 0425

WA – Fiona Logan - 08 9366 8421

TAS - Bryon Kelly - 03 6221 6684

ACT Location Contacts

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 - Pat Webb.  At the end of this process we will be collating all Staff feedback to analyse any issues identified and develop solutions to address any concerns raised.  Any problems noted should be reported to the Project Officer, together with any background information detailing the issue.  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:

Pat Webb

(02) 9213 7288 (Phone) Speed dial: 27288

(02) 9213 7889 (Fax)

pat.webb@dva.gov.au (email)

or

Anissa Lam

(02) 9213 27169 (phone) Speed Dial: 27169


ATTACHMENT A

HOUSEHOLDS TO RECEIVE PAYMENT SUMMARIES AND/OR MEDICARE LEVY EXEMPTION CERTIFICATES

JUNE 2008- APPROXIMATES BASED ON 2007 STATISTICS

STATE

Less than Maximum Rate

Maximum  rate

APPROX NO. OF ADVICE LETTERS

STANDALONE PAYMENT SUMMARIES

MEDICARE LEVY EXEMPTION CERTIFICATES

NSW (incl ACT)

20,703

55,186

75,889

6,888

24,829

VIC

14,980

37,153

52,133

4,977

15,815

QLD

15,445

33,876

49,321

5,240

16,888

SA

8,248

17,745

25,993

1,649

5,790

WA

7,622

13,353

20,975

1,952

6,483

TAS

2,389

5,956

8,345

513

2,066

TAS OS

751

751

TOTAL

70,138

163,269

233,407

21,219

71,871


ATTACHMENT B

JUNE 2008 SI - PARAGRAPH SEQUENCING AND TARGET AUDIENCE

An advice will be produced for all Service Pensioners, Income Support Supplement recipients and Age Pensioners, including those in payment of Defence Force Income Support Allowance (DFISA).

***LESS THAN MAXIMUM RATE SP/ISS/AP pensioners will receive the following paragraphs:

  • The Full Income and Assets Attachment.  This will be sent to those:

Less than Maximum Rate of SP/ISS/AP pensioners who are either:

  • Assets tested; or
  • Income tested where the total of their assets is within (or equal to) $10,000 of their prescribed asset limit.

  • A Tailored Income and Asset Attachment will be sent to those:

Less than Maximum Rate of SP/ISS/AP pensioners who are:

  • Income tested and where the total of their assets is greater than $10,000 below their prescribed asset limit.

The Tailored Income and Assets Attachment will list all of the client's income and assets but will exclude their miscellaneous assets unless those miscellaneous assets earn income.

  • Full Obligations will be sent to:

All Less than Maximum Rate SP/ISS/AP pensioners.

***MAXIMUM RATE SP/ISS/AP will receive the following paragraphs:

  • Full Obligations will be sent to:

All Maximum Rate SP/ISS/AP pensioners

Telephone Allowance and Utilities Allowance

Telephone Allowance (TA) and Utilities Allowance (UA) Paragraphs – As TA and UA will be paid on Payday 3 July 2008 and not the June SI effective Payday of 17 July 2008 the advices will not contain paragraphs advising of the TA or UA payments.


JUNE 2008 SI PARAGRAPH CONTENT

Example 1:

  • SERVICE PENSION
  • LESS THAN MAXIMUM RATE - VARIATION (INCREASE)
  • ASSETS TESTED
  • JOINT ASSESSMENT
  • TAXABLE
  • FULL INCOME AND ASSETS ATTACHMENT
  • FULL OBLIGATIONS
  • 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?)  044 — Postal Address:

JOHN SMITH — GPO Box 651 Brisbane Qld 4001

MARY SMITH — Telephone:

29 MARGARGET STREET — Capital city callers: 133 254

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

Facsimile: (07) 3223 8479

22 June 2008

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 2008.

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.

Payment Information

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

Issue of 2007/2008 Financial Year Payment Summaries

As it is the end of the 2007/2008 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.

Your Income and Assets

Your service pension is assessed under the assets test using your income and assets as shown in the attached list.  It is important that you check that this list is a full and accurate statement of your income and assets.

Events You Must Tell Us About

Details of your obligations to notify us of changes to your circumstances are included in the attachment 'Statement of Obligations - Important Information You Should Retain'.  These apply to both you and your partner and it is important that you both read them.

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 now calculates service 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 17 JULY 2008VeteranPartner

TOTAL FORTNIGHTLY PAYMENT — xxx.xx         xxx.xx

This is made up of:

- 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.


INCOME AND ASSETS USED TO ASSESS YOUR PAYMENT

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

The following is a complete list of your Income and Assets as recorded by the Department.  If any details are incorrect or have been omitted you should notify the Department within 14 days (28 days if you are living overseas or receive remote area allowance).  Please note that failure to fulfil this obligation may lead to your service pension being overpaid.  Such overpayments are recoverable.

You are receiving service pension at less than the maximum rate payable.

The amount that you are paid depends on your combined income and assets but does not include the home in which you live.  The pension is calculated under two separate tests: an income test and an assets test.  The test that pays the lower rate of pension is the one that applies.

You are currently paid under the assets test.  The total of your assessed fortnightly income is T-TOTAL-FORT-INCOME.  The total of all your assets (excluding any deductible assets) is T-TOTAL-ASSETS.  Details of how your pension has been assessed are shown below.

FINANCIAL ASSETS

Savings and Cheque Accounts

Description

Account Number

Asset Amount

XXXXXXXX

XXXXXXXXXXX

$  XX.XX

XXXXXXXX

XXXXXXXX

$XXX.XX

Listed Securities and Unlisted Public Securities

Description

No. of Shares

Asset Amount

XXXXXX

X,XXX

$XX,XXX.XX

QQQQQQQQQQQQQ

XXX

$    X,XXX.XX

Managed Investments

Description

Units

Asset Amount

VVVVVVVVVV

XX

$XX.XX

CCCCCCCCCCCCC

XXX

$XX.XX

Note: Income from financial assets is deemed.

IMPORTANT: You only need to notify the department if there are any changes to the value of your financial assets, as shown above.  You do not need to advise of any changes to the interest rates of these investments.

Total Financial Assets

FINANCIAL ASSETS VALUE

DEEMED INTEREST RATE

DEEMED INCOME PER FORTNIGHT

$XX,XXX.XX

3.5%

$X.XX

$         XX.XX

5.5%

$X.XX

$XX,XXX.XX

$XX.XX

What is Deemed Income?

For pension purposes, income from financial assets such as accounts with banks, building societies and credit unions, loans, bonds, debentures, gifts, shares, managed investments and bullion is deemed.  The value of all your financial assets is added together, and deemed interest rates are applied to calculate the income.

At present, deemed income is calculated as follows, on the total of all your financial assets:

$0 to T-MARRIED-THRSH-DEEMED-AMT – at T-INC-DEMING-INT-RATE%

T-MARRIED-THRSH-DEEMED-AMT + at T-INC-DEEMING-HIGH-RATE%

If your investments are earning more than the T-INC-DEEMING-INT-RATE% or T-INC-DEEMING-HIGH-RATE% deeming rates, this additional income will not affect the rate of your T-PENSION-SP-ISS-AP.

OTHER INCOME AND ASSETS

The following assets are those, which do not have deeming, applied to them but are still used to determine your rate of pension.

Home Assets

The asset and/or income values shown below are the amounts used for pension purposes.

  • Market value of household contents - $XX,XXX.XX

Miscellaneous Assets

  • T-MISC-ASSET-DESCRIPTION with a net market value of $X,XXX.XX

Direct Income

  • T-DESCRIPT-MISC-EARNINGS - $XXX.XX per fortnight

Total of Income and Assets

The total of your fortnightly income in your assessment is $299.06.  The total of all your assets in your assessment is $184,037.00.


STATEMENT OF OBLIGATIONS

IMPORTANT INFORMATION YOU SHOULD RETAIN

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

Events You Must Tell Us About

You must tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if any of the events listed below occur.  These events may affect the amount of T-PENSION-SP-ISS-AP you receive.  If you do not tell us of any of these changes you may be overpaid.  We are entitled under section 205 of the Veterans' Entitlements Act 1986 to recover this overpayment and an administrative charge may also be applied.

You will also need to tell us the date any changes to your circumstances occur.

When you are telling us of changes to your circumstances you should do this by telephoning or visiting any Department of Veterans' Affairs Office, or by writing to the Deputy Commissioner.

Obligations - Financial

You currently receive T-PENSION-SP-ISS-AP at less than the maximum rate because your assets are above the current threshold.

You are obliged by law to tell us within 14 days (28 days if you are living overseas T-SP-ISS-AP-OBS ) if you gain or dispose of any assets.  You must also notify this Department if T-AYOURTOTAL-YOURCOMB gross income from all sources increases above T-PRESCR-INC-AMT per fortnight.  This will ensure that your T-PENSION-SP-ISS-AP continues to be paid at the correct rate.

If T-AYOURTOTAL-YOURCOMB assets are reduced, any increase in pension can only be made the day your new details are received by us.

The following information may assist you to decide what you need to tell us about:

Some examples of what you need to tell us about

  • Increases to the total value of your financial investments.
  • Money acquired through inheritance, lotteries, gambling, etc.
  • Increases to income from other sources eg. wages, superannuation.
  • If you give away $10,000 or more worth of assets in a tax year or $30,000 or more in a five-year rolling period that commences on, or any time after 1 July 2002.  Assets may be cash or non-cash assets such as a car or other property.

Some examples of what you do not need to tell us about

(This information is obtained from the finance industry)

  • Changes to the interest rates paid on your savings and investments.
  • Changes to the unit value or rates of return for investments in publicly listed companies.
  • Restructures of publicly listed companies in which you have money invested.

Obligations – Domestic Situation

You must tell us if:

  • You live apart because of age, ill health or any other reasons
  • You get divorced
  • Your spouse passes away.

Obligations – Homeowner

As a homeowner, you must tell us full details if:

  • You sell your home
  • Either of you leave your home because of age or ill health
  • You rent or sublet your home
  • Either of you leave your home for any period in excess of twelve months

Obligations – General

  • Either of you change your postal and/or residential address,
  • Either of you leave Australia,
  • Either of you are granted any pension or benefit from the Department of Family and Community Services,
  • Either of you are granted any pension or benefit from an overseas authority,
  • Either of you make a claim or receive workers compensation, sickness or accident insurance other than a payment of disability or war widower's pension from this department,
  • Either of you are imprisoned after conviction for an offence,
  • Either of you are the beneficiary, trustee or controller of a private trust, including a testamentary trust.

Conclusion

The above are your full obligations to the Department.  If you have any queries about any of the above matters please contact this office at the address or telephone number shown at the top of this letter.

2008 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: 01/07/2007

Payment to: 30/06/2008

DOB:  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 wordsNIL — NIL — NIL — NIL

Total tax withheld (whole dollars)$0.00

Authorised Person:1513/06/08

THIS BOX DOES NOT PRINT IN PRODUCTION VERSION

2008 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: 01/07/2007

Payment to:30/06/2008

DOB: 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

Exemption Days: 0

Remote Area

Allowance: $0.00

ThousandsHundredsTensUnits

Total tax withheld - NIL — NIL — NIL — NIL

whole dollars only in words

Total tax withheld (whole dollars)$0.00

Authorised Person:15/06/2008

THIS BOX DOES NOT PRINT IN PRODUCTION VERSION

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 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 question on your tax return.

5. Further assistance

If you have any taxation enquiries, particularly in relation to whether you are eligible for full or half Medicare levy exemption,

read TaxPack 2008 or Retirees TaxPack 2008, or Short tax return instructions 2008 or contact 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 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 question on your tax return.

5. Further assistance

If you have any taxation enquiries, particularly in relation to whether you are eligible for full or half Medicare levy exemption, read

TaxPack 2008 or Retirees TaxPack 2008, or Short tax return instructions 2008 or contact 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.


Example 2:

  • SERVICE PENSION
  • LESS THAN MAXIMUM RATE - VARIATION (INCREASE)
  • INCOME TESTED WITH ASSETS within or equal to $10,000 OF THEIR PRESCRIBED ASSETS LIMIT
  • SINGLE ASSESSMENT
  • TAXABLE
  • FULL INCOME AND ASSETS ATTACHMENT
  • FULL OBLIGATIONS
  • 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?)  044 — Postal Address:

MR FRED JOHNSTON — GPO Box 651 Brisbane Qld 4001

17 EDWIN STREET — Telephone:

IPSWICH   QLD   4010 — Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8479

22 June 2008

YOUR FILE NUMBER IS QX123456

Dear Mr JOHNSTON,

This is to advise you that your service pension has been increased.  This change will take effect from 1 July 2008.

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.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

Issue of 2007/2008 Financial Year Payment Summaries

As it is the end of the 2007/08 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 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.

Your Income and Assets

Your service pension is assessed under the income test using your income and assets as shown in the attached list.  It is important that you check that this list is a full and accurate statement of your income and assets.

Events You Must Tell Us About

Details of your obligations to notify us of changes to your circumstances are included in the attachment 'Statement of Obligations - Important Information You Should Retain'.  It is important that you read them.

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 – in the Sequential Order of printing

  • Payment Information Attachment - YES
  • Full Income and Assets Attachment - YES
  • Tailored Income and Assets Attachment - NO
  • Full Obligations - YES
  • Payment Summary/s              - YES
  • General Information Sheet - NO


Example 3:

  • SERVICE PENSION
  • LESS THAN MAXIMUM RATE – VARIATION (INCREASE)
  • INCOME TESTED WITH TOTAL ASSETS > $10,000 OF THEIR PRESCRIBED ASSETS LIMIT
  • JOINT ASSESSMENT
  • TAXABLE
  • TAILORED INCOME AND ASSETS ATTACHMENT ie., excluding all miscellaneous assets apart from those which earn income
  • FULL OBLIGATIONS
  • PAYMENT SUMMARIES ENCLOSED

GPO Box 651, Brisbane  QLD  4001

Contact:

Telephone:Brisbane Office

Bank of Queensland

259 Queen Street

Brisbane Qld 4000

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

MR THOMAS JONES — GPO Box 651 Brisbane Qld 4001

MRS SYLVIA JONES — Telephone:

55 SMITH STREET — Capital city callers: 133 254

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

Facsimile: (07) 3223 8479

22 June 2008

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs JONES,

This is to advise you that your service pension has been increased.  This change will take effect from 1 July 2008

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.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

Issue of 2007/2008 Financial Year Payment Summaries

As it is the end of the 2007/2008 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 THOMAS JONES is enclosed with this letter.

Payment Summary for MRS SYLVIA JONES 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.

Your Income and Assets

As your service pension is assessed under the income test, some assets not affecting your rate of service pension have not been included in the attached list of income and assets.  You should advise the Department within 14 days (28 days if your are living overseas or receive Remote Area Allowance) if the information is incorrect.

Events You Must Tell Us About

Details of your obligations to notify us of changes to your circumstances are included in the attachment 'Statement of Obligations - Important Information You Should Retain'.  These apply to both you and your partner and it is important that you both read them.

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
  • Tailored Income and Assets Attachment – YES – SEE SAMPLE
  • Full Income and Assets Attachment - NO
  • Full Obligations - YES
  • Payment Summary/s              - YES
  • General Information Sheet - NO


SAMPLE - TAILORED INCOME AND ASSETS ATTACHMENT- SAMPLE

INCOME AND ASSETS USED TO ASSESS YOUR PAYMENT

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

The following is a list of Income and Assets as recorded by the Department, some assets not affecting your rate of service pension have not been included.  If any of the listed details are incorrect you should notify the Department within 14 days (28 days if you are living overseas or receive remote area allowance).  Please note that failure to fulfill this obligation may lead to your service pension being overpaid.  Such overpayments are recoverable.  You are receiving service pension at less than the maximum rate payable.

You are receiving service pension at less than the maximum rate payable.

The amount that you are paid depends on your combined income and assets but does not include the home in which you live.  The pension is calculated under two separate tests: an income test and an assets test.  The test that pays the lower rate of pension is the one that applies.

You are currently paid under the income test.  The total of your assessed fortnightly income is T-TOTAL-FORT-INCOME.  The total of all your assets (excluding any deductible assets) is T-TOTAL-ASSETS.  Details of how your pension has been assessed are shown below.

FINANCIAL ASSETS

Savings and Cheque Accounts

Description

Account Number

Asset Amount

XXXXXXXX

XXXXXXXXXXX

$  XX.XX

@@@@@@@@@@

XXXXXXXX

$XXX.XX

Listed Securities and Unlisted Public Securities

Description

No. of Shares

Asset Amount

XXXXXX

X,XXX

$XX,XXX.XX

QQQQQQQQQQQQQ

XXX

$    X,XXX.XX

Managed Investments

Description

Units

Asset Amount

VVVVVVVVVV

XX

$XX.XX

CCCCCCCCCCCCC

XXX

$XX.XX

Note: Income from financial assets is deemed.

Total Financial Assets

FINANCIAL ASSETS VALUE

DEEMED INTEREST RATE

DEEMED INCOME PER FORTNIGHT

$XX,XXX.XX

3.5%

$X.XX

$         XX.XX

5.5%

$X.XX

$XX,XXX.XX

$XX.XX


What is Deemed Income?

For pension purposes, income from financial assets such as accounts with banks, building societies and credit unions, loans, bonds, debentures, gifts, shares, managed investments and bullion is deemed.  The value of all your financial assets is added together, and deemed interest rates are applied to calculate the income.

At present, deemed income is calculated as follows, on the total of all your financial assets:

$0 to T-MARRIED-THRSH-DEEMED-AMT – at T-INC-DEMING-INT-RATE%

T-MARRIED-THRSH-DEEMED-AMT + at T-INC-DEEMING-HIGH-RATE%

If your investments are earning more than the T-INC-DEEMING-INT-RATE% or T-INC-DEEMING-HIGH-RATE% deeming rates, this additional income will not affect the rate of your T-PENSION-SP-ISS-AP.

IMPORTANT: You only need to notify the department if there are any changes to the value of your financial assets, as shown above.  You do not need to advise of any changes to the interest rates of these investments.

OTHER INCOME AND ASSETS

The following assets are those, which do not have deeming, applied to them but are still used to determine your rate of pension.

Income Streams - Long Term

Description

Asset Amount

Gross Income

Deductible Amount

Assessed Income

XXXXXXXX

$XXX,XX.XX

$XXX.XX

$XXX.XX

$XX.XX

Property

In working out the net market value shown below we have taken into account the value of any mortgages and secured loans.

  • Property at 11 Sample Road, Sample Town, with a net market value of $XXX,XX.XX.

Direct Income

  • T-DESCRIPT-MISC-EARNINGS - $XXX.XX per fortnight


***** The paragraph below is highlighted for advice 'mock-up' purposes only - the information will not be presented like this in the actual production advice but print as a regular paragraph.  Please note: Where a Miscellaneous Asset in the assessment is earning any income – that asset will be listed in the attachment.

Miscellaneous Assets Note

As you are paid under the income test, some of the miscellaneous assets recorded in your pension assessment do not currently affect the rate of pension you are paid and have not been listed above.  Miscellaneous assets may include the value of home contents, life assurance policies, vehicles, boats or trailers.

Total of Income and Assets

The total of your fortnightly income in your assessment is $293.41.  The total of all your assets in your assessment is $12,478.00.


Example 4:

  • LESS THAN MAXIMUM RATE – Invalidity Service Pension- VARIATION (INCREASE)
  • INCOME TESTED WITH ASSETS < $10,000 OF THEIR PRESCRIBED ASSETS LIMIT
  • JOINT ASSESSMENT
  • NON TAXABLE
  • FULL INCOME AND ASSETS ATTACHMENT
  • FULL OBLIGATIONS
  • 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?)  044 — Postal Address:

MR PHILLIP ADAMS — GPO Box 651 Brisbane Qld 4001

MRS PATRICIA ADAMS — Telephone:

6 BOURKE STREET — Capital city callers: 133 254

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

Facsimile: (07) 3223 8479

22 June 2008

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs ADAMS,

This is to advise you that your service pension has been increased.  This change will take effect from 1 July 2008.

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.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

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.

Your Income and Assets

Your service pension is assessed under the income test using your income and assets as shown in the attached list.  It is important that you check that this list is a full and accurate statement of your income and assets.

Events You Must Tell Us About

Details of your obligations to notify us of changes to your circumstances are included in the attachment 'Statement of Obligations - Important Information You Should Retain'.  These apply to both you and your partner and it is important that you both read them.

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
  • Full Income and Assets Attachment – YES
  • Tailored Income and Assets Attachment - NO
  • Full Obligations - YES
  • Payment Summary/s              - NO
  • Medicare Levy Exemption Certificate sent separately - YES
  • General Information Sheet -NO


Example 5:

  • AGE PENSION PLUS DFISA
  • LESS THAN MAXIMUM RATE INCREASED TO MAXIMUM RATE
  • INCOME TESTED WITH ASSETS GREATER THAN $10,000 of THEIR PRESCRIBED ASSETS LIMIT
  • JOINT ASSESSMENT/SINGLE ADVICE
  • TAXABLE
  • PAYMENT SUMMARY 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?)  044 — Postal Address:

MR ROBERT MURDOCH — GPO Box 651 Brisbane Qld 4001

12 JEFFERSON STREET — Telephone:

IPSWICH   QLD   4010 — Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8479

22 June 2008

YOUR FILE NUMBER IS QX123456

Dear Mr MURDOCH,

This is to advise you that your:

.age pension has been increased

.Defence Force Income Support Allowance (DFISA) has reduced to nil.

This change will take affect from 1 July 2008.

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.

Payment Information

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

Issue of 2007/2008 Financial Year Payment Summaries

As it is the end of the 2007/2008 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.

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.

Your Income and Assets

As your age pension is assessed under the income test, some assets not affecting your rate of age pension have not been included in the attached list of income and assets.  You should advise the Department within 14 days (28 days if your are living overseas) if the information is incorrect.

Events You Must Tell Us About

Details of your obligations to notify us of changes to your circumstances are included in the attachment 'Statement of Obligations - Important Information You Should Retain'.

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 and Repatriation Commission

ATTACHMENTS

  • Payment Information Attachment -  YES
  • Tailored Income and Assets Attachment - YES
  • Full Income and Assets Attachment - NO
  • Full Obligations - YES
  • Payment Summary/s              - YES
  • General Information Sheet -  NO


Example 6:

  • SERVICE PENSION
  • MAXIMUM RATE CONTINUATION ON MAXIMUM RATE
  • INCOME TESTED
  • MARRIED ASSESSMENT
  • DP PAYABLE
  • NIL PAYMENT INFORMATION ATTACHMENT
  • TAXABLE
  • PAYMENT SUMMARIES ENCLOSED
  • FULL OBLIGATIONS

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?)  044 — Postal Address:

MR BILL BROWN — GPO Box 651 Brisbane Qld 4001

MRS BERYL BROWN — Telephone:

16 PHILLIPS STREET — Capital city callers: 133 254

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

Facsimile: (07) 3223 8479

22 June 2008

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs BROWN,

I am writing to you about your service pension payment from 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.

Issue of 2007/2008 Financial Year Payment Summaries

As it is the end of the 2007/2008 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 BILL BROWN is enclosed with this letter.

Payment Summary for MRS BERYL BROWN 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.

Events You Must Tell Us About

Details of your obligations to notify us of changes to your circumstances are included in the attachment. 'Statement of obligations – Important Information You Should Retain'.

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 the Secretary and Repatriation Commission

ATTACHMENTS

  • Payment Information Attachment - NO
  • Tailored Income and Assets Attachment - NO
  • Full Income and Assets Attachment - NO
  • Full Obligations - YES
  • Payment Summary/s              - YES
  • General Information Sheet -  NO


ATTACHMENT C

MEDICARE LEVY EXEMPTION CERTIFICATE

SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE

GPO Box 481

Hobart   TAS   7001

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 2007/2008 is: 366

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 that 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 2008; Retirees TaxPack 2008 or Short tax return instructions 2008 or contact the Australian Taxation Office on 13 28 61.

Yours faithfully

Deputy Commissioner

Source URL: https://clik.dva.gov.au/node/21717