C23/2002 JUNE 2002 STATUTORY INCREASE - ADVICE LETTER, PAYMENT SUMMARY AND MEDICARE LEVY EXEMPTION CERTIFICATE MAILOUT

DATE OF ISSUE: 14 JUNE 2002

JUNE 2002 STATUTORY INCREASE - ADVICE LETTER, PAYMENT SUMMARY AND MEDICARE LEVY EXEMPTION CERTIFICATE MAILOUT

Purpose of Instruction

This Departmental Instruction is to provide information about the processing arrangements for the June 2002 Statutory Increase (SI) advice letter, Payment Summary (formerly named Group Certificate), and Medicare Levy Exemption Certificate mailout.

ROGER WINZENBERG

BRANCH HEAD

INCOME SUPPORT

12 June 2002

Overview

Introduction

In June each year, the Department undertakes a bulk exercise to issue approximately 350,000 households with advice letters to persons in receipt of service pension, age pension or income support supplement. The majority of these letters will include PAYG (Pay As You Go) Payment Summaries for the end of the financial year. (The Australian Taxation Office (ATO) advised, as part of the new tax reforms introduced in the 2000/2001 financial year, Group Certificates have been renamed 'PAYG Payment Summary - individual non business).

Medicare Levy Exemption Certificates will also be issued at this time.

Significant issues

The June 2002 mailout will incorporate the following events for payday 11 July 2002.

Production of advice letters to all service pensioners, age pensioners and income support supplement recipients;
Adjustment of pension rates, allowances and thresholds in accordance with adjustments to the Income Free Area and Assets Free Area;
Increase to the deeming thresholds - singles rate from $33,400 to $34,400 and couples rate from $55,800 to $57,400;
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;

Significant issues Contd

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 of 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 be provided with their full obligations and full income and asset details at a minimum interval of once every two years;
Full obligations will be suppressed for maximum rate pensioners, however reference will be made to previous obligations issued;
Maximum rate pensioners will receive the Financial Obligations paragraph (including their Prescribed Rates) in their advice letter;
End of financial year Payment Summary production - ATO have advised of formatting and wording changes to the Payment Summary for this years issue - please see example provided showing ATO changes, which includes the provision of a Date of Birth field;
Standalone Payment Summaries ie., payment summaries without a covering letter, and Statement of Earnings - issued to those eligible pensioners who do not receive an advice letter - changes are to be made this year to reduce the number of Standalone Payment Summaries returned to the State Offices for issue;

Production of Medicare Levy Exemption Certificates (MLEC) - there are changes to the format of the MLEC to be issued this year;
Advice to pensioners of any gain or loss of treatment eligibility; and
Payment of Telephone Allowance to those eligible.

Production of Advice Letters

Processing Weekend -

20/06/02 -

24/06/02

Processing is scheduled to run from Thursday evening 20 June until Monday evening 24 June 2002 with any pension variations effective from 1 July 2002 for payday 11 July 2002.

Critical Dates

Processing period within DVA - (includes 'advices' processing).	Thursday (pm) 20 June 2002 - Monday (pm) 24 June 2002
Commence Dispatch of production data to SMS and 'sign-off' duties.	Monday, 24 June 2002 (pm)
Commence printing advice letters (SMS)	Tuesday, 25 June 2002
All production data delivered to SMS	Tuesday, 25 June 2002 (pm)
Progressive lodgement of all State's Advice Letters with Australia Post (SMS) to be completed.	Friday, 5 July 2002

Letter Production

Security Mailing Services, Kingsgrove, Sydney will print the advice letters, add inserts and envelope them. Production of letters is expected to occur over period 25June – 5 July 2002.

Lodgement of Letters

Letters will be progressively lodged with Australia Post for posting commencing Monday, 1 July 2002. All letters are to be posted by Friday, 5 July 2002.

Letter Content

Letters

Prior to the issue of this Departmental Instruction, the June SI State Contact Officers, System Support Officers and Managers Income Support were provided with copies of the proposed paragraph sequencing and mock-ups of advice letters for this run.

A number of recommendations were received and have been taken into consideration for the final version of paragraphs and sequencing. Details of the Paragraph Sequencing and Target Audience can be found at Attachment A. Copies of the expected advice letter content for this run are reproduced at Attachment B to this DI.

Full Obligations - for All Less than Maximum Rate Pensioners

Full Obligations are to be provided for all less than maximum rate SP/ISS/AP recipients. This is in line with the Repatriation Commission policy that pensioners receiving reduced rate of pension be provided with their full obligations and full income and asset details at a minimum interval of once every two years

Financial Obligations including Prescribed Rates for Maximum Rate Pensioners

The Financial Obligations paragraph (including the Prescribed Rates) will be present in the advice for all maximum rate SP/ISS/AP pensioners.

Full Income and Assets Attachment

A Full Income and Assets Attachment will be sent to those less than maximum rate service pensioners, income support supplement recipients and age 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.

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 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 earn income.

Assets to be excluded are:

Home contents;
Vehicles, boats, trailors, caravans, motor bikes;
Life insurance;
Collectibles; and
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 new paragraph will be added to the Tailored Income and Assets Attachment advising pensioners that their miscellaneous assets are not listed in the attachment.

It should be noted that the Tailored Income and Assets Attachment will be introduced as part of the daily advices processing from 21 — st June 2002 and will be produced under the same circumstances as for the June SI processing.

Telephone Allowance

Pensioners entitled to a telephone allowance payment will receive a paragraph advising them about their quarterly payment. The TA paragraph will advise pensioners that ....'TA is a separate payment and is not included in your total fortnightly payment information referred to in the letter.'

Non Taxable Pensioners

Those pensioners whose pensions are not taxable (eg, service pension on the grounds of permanent incapacity and under 65 years of age for males, 62 years for females) will receive an advice letter only. A Medicare Levy Exemption Certificate (MLEC) will be issued separately for these clients. Their MLEC certificates will be sent from the mailing house directly to them.

PAYG (Pay As You Go) Payment Summary -individual Non-business

Service Pension, or

Age Pension, or
Income Support Supplement

The information previously reported on a Group Certificate is now reported on a Pay As You Go (PAYG) Payment Summary - individual non-business. Payment Summaries will be issued to all pensioners whose pensions are taxable.

Payment Summaries without Pay As You Go (PAYG) withholding's (tax deductions) will form part of the advice letter sent from the mailing house.

In previous years, Payment Summaries for those pensioners who had PAYG withholding's (tax deductions) during the year, were sent to the State Offices for checking prior to mailing - they will now form part of the advice letter sent from the mailing house.

Changes to the administrative processes have enabled these changes to be introduced, and have been designed to reduce the workload on State Office staff.

The Payment Summary will be sequenced to print after the Payment Information Attachment at the end of the advice but before the General Information Sheet (GIS).

Standalone Payment Summaries - reduction in the numbers to be returned to State Offices for Dispatch

In previous years, it has been the practice to forward all Standalone Payment Summaries back to the State Offices for them to dispatch to the client. In 2001, 17,158 standalone payment summaries were returned to the State Offices for appropriate action. This year we estimate that there will be approximately 6,500 standalone payment summaries returned to the State Offices.

The Standalone Payment Summaries comprise the production of payment summaries for the following clients:

Those pensioners who had PAYG withholding's (tax deductions) during the year;
Deceased - produced for pensioners who had passed away during the financial year;
Others - Comprising Overseas clients, Unknown Addresses, MOA 52 (Working Rule B Widows), and pensioners in part payment during the year;
Education Allowance Payment Summaries; and
Special Register addressed Payment Summaries.

Changes for the 2002 issue of Standalone Payment Summaries are:

The Payment Summaries for pensioners who have had PAYG withholdings during the year will be sent with the advice letter;
Payment Summaries for those clients who died during the year will not be produced for any state as these can be reprinted when requested, using the Reprint Payment Summary facility found in the Advices Tab in VIEW - this facility was implemented in 2001;
Standalone Payment Summaries for Special Register clients will print as part of the advice letter where an advice letter is produced. These advices will continue to be returned to the State Offices for enveloping and dispatching to the client;
There are an estimated 6,568 Standalone Payment Summaries remaining in the 'Others' and 'Education Allowance' categories - for 2002 these will be printed at the Mailing House and forwarded to the State Offices for dispatch to the client.

Page Numbering of Advice Letters

The Payment Summary will print as part of the advice letter. It is sequenced to print after the Payment information Attachment (showing payboxes) but before the General Information Sheet. The Payment Summaries do not have page numbers printed on them.

Please note that the exclusion of page numbers from the payment summaries has resulted in some confusion for pensioners over the past couple of years. The Payment Summaries are sequenced between pages that are numbered. The page numbering sequence, takes into account the payment summary pages for counting purposes although, page numbers are not printed on the actual Payment Summaries. Pensioners may ring concerned that some pages are missing from their letter. It should be explained that there are no missing pages just missing page numbers.

Automatic Payment Summary (Group Certificate) Reprint Facility

From 1 July 2002, reprints of payment summaries for financial year 2001/2002 can be generated using the 'Payment Summary Reprint' facility located under the Advices Tab in VIEW - this replaces the provision of a Payment Summary Template used in previous years.

Please note: the 'year of issue' will not print in the Payment Summary heading for reprinted payment summaries requested via 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 State's Deputy Commissioner based on the date the reprint is requested.

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 who are not in receipt of an income support payment; 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, service pension on the grounds of permanent incapacity and under 65 years of age for males, 62 years for females).

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

Medicare Levy Exemption Certificates

(MLEC) - New Format

The Medicare Levy Exemption Certificate (MLEC) has a new format this year. In previous years the MLEC had duplicate information printed on the certificate advising the recipient, if lodging a tax return to detach the bottom half and pin it to their return. ATO have advised that the requirement to attach or return the MLEC with a tax return is no longer required. The pensioner should retain the certificate as a record.

The return address to print on the MLEC will no longer be GPO Box 9998 in Your Capital City as in other years. The return address will be the GPO Box specific to each State, as per the advices.

Please see Attachment C for a sample of the revised MLEC format.

Reprints of MLEC

System Support Officers and State Office contact officers have been provided with a Medicare Levy Exemption Certificate (MLEC) word document to enable them to produce a MLEC.

General Information Sheet (GIS)

Each letter will have a General Information Sheet (GIS). The GIS will be sequenced to print after the Payment Summary - the GIS must be used as the consistent last page to enable the enveloping machines at the mailing house, to identify the last page of each persons letter ie., gatemarking purposes.

Letter Content

Details of the proposed content of the letters, including sample letters and sequencing of paragraphs are included in Attachments A and B.

Insert

A 'pensioner flyer' produced by the Australian Taxation Office (ATO), in conjunction with Centrelink and DVA will be included with all advice letters issued in this exercise. It is hoped that this flyer will significantly reduce the number of queries the State Office receives about taxation matters. The brochure is titled “Do you Need to lodge a Tax Return?”. This brochure will be included with all Payment Summaries.

Each of the State offices will be supplied with a quantity of the flyers to insert with their Special Register, Enclosures and Standalone Payment Summaries.

Issues Requiring State Office Action

Special Register and Overseas

Overseas cases for Tasmania will be sent on a cartridge to Security Mailing Services for printing. Other State's letters for overseas clients will be printed by IBM in Clayton, Melbourne and forwarded to the State Offices with other daily advice output for checking and mailing.

All Special Register letters will be printed at the IBM Printhub in Clayton, Melbourne and forwarded to each of the State Offices with other daily output for checking and mailing. States will be provided with the following insert to be included in letters to these pensioners:

ATO brochure “Do you need to lodge a tax return?”

Advice Schedule Reports - Hard Copy and Online Access

Each State Office will receive a 'hard copy' of the advice schedule reports from the June SI processing run. These will be printed at the IBM Printhub in Melbourne and forwarded to each State's System Support Officer (SSO).

Access to this information will also be available 'on-line'. Instructions for accessing the advice schedule reports will be provided separately to this instruction.

Enclosure Letters

As is the procedure for quarterly processing Enclosure (treatment) advice letters will be printed at the IBM Printhub and sent via courier to each State Office. It is suggested that these be checked for accuracy, and reconciled against the reports received by each State Office to ensure they reflect the correct treatment paragraphs.

'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 in each respective State Office's nominated printer as part of the production run. Please ensure your nominated printer is fully operational on Thursday evening, 20 June 2002 as the forced advices will print at that time. All forced advices will need to be checked to ensure the information in them is correct prior to posting.

Handling of Daily Advices

Cases processed in advance for payday 11 July 2002 should have the daily advice dispatched prior to the June advice letter being sent.

Daily payment advices processed after the processing run on 20-24 June 2002 for 11 July 2002, should be held by the State Offices 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 11 July 2002 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 11 July 2002.

State Office Contacts

State Office Contact Officers

NSW - Genia Sacharczuk - 02 9213 7106

VIC - David Price - 03 9284 6379

QLD - Steve Jensen - 07 3223 8835

SA - Graham Bate - 08 8290 0425

WA - John Gliddon - 08 9366 8417

TAS - Bryon Kelly - 03 6221 6684

ACT - Kristie Chynoweth - 02 6289 6019

National Office Contacts

Feedback from State Offices

Any concerns regarding letters produced as part of this run should be directed to the June SI Business Co-ordinator in National Office - Pat Webb. At the end of this process we will be collating all State feedback to analyse any issues raised and develop solutions to address any concerns raised. Any problems noted should be reported to the Business Co-ordinator, together with any background information detailing the issue. We will be particularly interested in enquiries or comments relating to the Tailored Income and Asset Attachment. Please ensure that any problems are reported as early as possible.

Contacts

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

Pat Webb

(02) 6289 6444 (Phone)

(02) 6289 6553 (Fax)

Bob Turner

(02) 6289 6079 (Phone)

(02) 6289 6553 (Fax)

ATTACHMENT A

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

JUNE 2002 - APPROXIMATES BASED ON 2001 STATISTICS

Type	NSW	VIC	QLD	SA	WA	TAS	AUST
SP	58,823	39,971	39,368	18,598	18,036	7,939	182,735
ISS	28,275	19,780	15,834	6,834	5,411	2,825	78,959
AP	2,971	2,101	1,526	724	710	124	8,156
Sub Total - Advices Only	90,069	61,852	56,728	26,156	24,157	10,888	269,850
MLEC	28,566	19,857	16,730	6,293	6,769	2,422	80,837
*Pay Sums without a letter	(8,867) 1928*	(2,306) 1268	(2,782) 1740	(1,306) 652	(1,400) 689	(497) 291	(17,158) 6568
Total	120,563	82,977	75,198	33,101	31,615	13,601	357,255

* The figures presented in brackets represent the number of standalone payment summaries returned to the State Offices in 2001. The bolded figure directly underneath those figures are the expected number of standalone payment summaries to be returned to the State Offices for dispatch in 2002.

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

An advice will be produced for all Service Pensioners, Income Support Supplement recipients and Age Pensioners.

***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:

Financial Obligations paragraph which includes their prescribed rates in the body of the advice.

WILL NOT receive

Full Income and Assets Attachment
Full Obligations

JUNE 2002 SI - PARAGRAPH SEQUENCING AND TARGET AUDIENCE

PARAGRAPH	TO WHOM
State specific letterhead	All
Opening paragraph(Introduction - RTRAIN)	All
IFA/AFA Max Rate No Change - (Introduction - RSQFAN) IFA/AFA variation /effective date (Introduction - RSQFAC)	Continuations on Maximum Rate Variations
Increase to Maximum Rate/effective date (Qtly Mar/Sept - INCMAX)	Those increased to Maximum Rate.
Your DP has been varied - VARYDP Your DP has not varied - CONTDP	Not being used
Opening Reasons(Cost of living changes to the Income and Assets Test) - (Introduction -RSCIAT)	All
Payment Information - PAYONE	All
Payment Diversion Table - PAYMUL	All
Payment Summaries (formerly known as Group Certificates) - RSQGCA	Taxable
Payment Summaries are enclosed - GCCLTE/GCPTNE	PAYG without Withholdings (without Tax Deduction) cases
Payment Summaries issued separately - GCPTSP/GCCLSP	PAYG Withholding (Tax Deduction) cases
Medicare Levy Exemption Certificate issued separately - (Gpcert - RSMLEC)	Non Taxable (PI cases)
Medicare Levy Exemption (Gpcert - QTMLEC)	Taxable
Contact ATO if questions re: TAX - QTYCTX	ALL (not PI)
Payment Summary - Centrelink - advising the Centrelink will issue a Pay Sum - RSQGCC	Those who transfer to DVA from Centrelink during a Financial Year
Telephone Allowance -	All eligible for TA payment

PARAGRAPH	TO WHOM
Partial Income and Assets - reference to attached Income/Assets List - is info correct - IATAIL, IAFULL	Those who receive Income and Assets Attachment (ie Less than Max Rate SP/ISS/AP)
Events You Must Tell Us About	Less than Maximum Rate SP/ISS/AP
Financial Obligations (incl Prescribed Rates) IALMMJ, IALMMS, IALAPM, IALPAJ, )	All Maximum Rate SP/ISS/AP (except Blinded)
Other Obligations (Partial Obs) (Reference to previous) - OBQTLY, OBQTAP	Maximum Rate SP/ISS/AP
Treatment Paragraphs	Those who have a treatment change
Changes You Have Already Told Us About - (Other Info - THECAN)	All
Your Right of Review - APPLAP, APPLSP	SP/ISS/AP Variations only
State Specific Closing	All
Signature Block (State specific)	All
Payment Information Attachment	All excluding continuations.
Full Income and Asset Attachment	Less than Maximum Rate SP/ISS/AP who are: . Asset tested; or . Income tested with assets < $10,000 of their prescribed assets limits
Tailored Income and Asset Attachment	Less than Maximum Rate SP/ISS/AP who are: . Income Tested with assets > $10,000 of their prescribed assets limit
Full Obligations	All Less than Maximum Rate SP/ISS/AP
Payment Summaries	Taxable
General Information Sheet	All
MEDICARE LEVY EXEMPTION CERTIFICATE	Sample of new format

ATTACHMENT B

JUNE 2002 SI PARAGRAPH CONTENT

Example 1:

LESS THAN MAXIMUM RATE - VARIATION (INCREASE)
ASSETS TESTED

MARRIED ASSESSMENT
DP PAYABLE - not varied

TA IN PAYMENT
TAXABLE
FULL INCOME AND ASSETS ATTACHMENT
FULL OBLIGATIONS
PAYMENT SUMMARIES ENCLOSED
GIS

Commonwealth Department of

Veterans' Affairs

Contact:

Telephone: STATE OFFICE

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1300 13 1945

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

This is to advise you that your T-PENSION-SP-ISS-AP has been T-INC-RE-NIL. This change will take effect from 1 July 2002.

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 T-PENSION-SP-ISS-AP:

Income Free Area - this is the amount of income you can have before your T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP.

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

Payment Information

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

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
13/07/00	XXXXXX DDDDD	CBA 59404040	$XXX.XX
		TOTAL	$XXX.XX
13/07/00	XXXXXX DDDDD	CBA 59404040	$XXX.XX
		TOTAL	$XXX.XX

Payment Summaries (formerly known as Group Certificates)

The Australian Taxation Office (ATO) advised as part of the tax reforms introduced in the 2000/01 financial year, that Group Certificates have been renamed 'Payment Summary'.

As it is the end of the 2001/02 financial year Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.

Payment Summary for T-CLIENT-NAME is enclosed with this letter.

Payment Summary for T-PTNR-NAME is enclosed with this letter.

Medicare Levy Exemption

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

You should contact the Australian Taxation Office on 13 2861 if you have any questions about taxation.

Telephone Allowance

Your quarterly telephone allowance will be paid on T-DATE-Of-PAYMENT, together with your pension payment. Your telephone allowance is a separate payment and is not included in your total fortnightly payment information referred to in the letter. The current telephone allowance rates are:

Singles Rate - $18.00

Couples Rate (each) - $9.00

World War I Veterans - $59.70

Events You Must Tell Us About

Details of your obligations to notify us of changes to your circumstances are included in the attachment '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 about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452. For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

PAYMENT INFORMATION ATTACHMENT

The Department now calculates T-PENSION-SP-ISS-AP payments on a daily basis. This means that your fortnightly pension payment is now 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.

Listed below are the payment tables showing the different amounts of pension you will receive on the paydays that are affected, with the final payment table showing your ongoing payment.

PAYMENTS TO XXXXX XXXXXXX and XXXXX XXXXXXX for

Pension Payday 11 JULY 2002

TOTAL FORTNIGHTLY PAYMENT — xxx.xx — xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.xx

PAYMENTS TO XXXXX XXXXXXX and XXXXX XXXXXXX for

Pension Payday 25 JULY 2002

TOTAL FORTNIGHTLY PAYMENT — xxx.xx — xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.xx

INCOME AND ASSETS USED TO ASSESS YOUR PAYMENT

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

You are receiving T-PENSION-SP-ISS-AP 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 as 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	$XXX.XX

IMPORTANT: We understand that the balances in these types of accounts may fluctuate regularly.

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, regardless of the actual interest rates, 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

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 are currently receiving T-PENSION-SP-ISS-AP under the assets test. As you are paid at less than the maximum rate payable, you must notify us if:

Your income from all sources increases above T-TOTAL-INCOME-PLUS-4 pf; or
The total of your financial assets increase; or
Your total assets increase to more than T-PRESCR-ASSET-AMT. (Please note that this figure does not reflect your actual total amount of assets. If your assets exceed this amount your pension will be assessed under the assets test).

This action will ensure that your T-PENSION-SP-ISS-AP is paid at the correct rate.

Obligations – Homeowner

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

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

Obligations – General

You change your postal and/or residential address
You leave Australia
You are granted any pension or benefit from the Department of Family and Community Services, an overseas authority or from any other authority
You (or your partner) make a claim or receive workers compensation, sickness or accident insurance other than a payment of disability or war widow/ers pension from this department.
You are imprisoned after conviction for an offence.

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.

Commonwealth Department of

Veterans' Affairs

2002 PAYG Payment Summary - Individual Non Business

Service Pension

Original

DVA File No: QX999999

Payer's ABN: 288 665 94

Tax File Number: 111 111 111

Payment From: 01/07/2001

Payment to: 30/06/2002

Date of Birth: DD/MM/CCYY

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:20/06/02

✂-------------------------------------------------------------------------------------------------------------------------------------

Commonwealth Department of

Veterans' Affairs

2002 PAYG Payment Summary - Individual Non Business

Service Pension

Client Copy

DVA File No: QX999999

Payer's ABN: 288 665 94

Tax File Number: 111 111 111

Payment From: 01/07/2001

Payment to: 30/06/2002

Date of Birth: DD/MM/CCYY

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 - NIL NIL NIL NIL

whole dollars only in words

Total tax withheld (whole dollars)$0.00

Authorised Person:20/06/02

If you need to lodge a tax return, detach the ORIGINAL by cutting along the dotted line, and attach it to your tax return and keep the CLIENT COPY for your records.

See Notes On Reverse →

Notes

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

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

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.

Terminology changes

A PAYG Payment Summary-Individual Non Business was formerly known as a group certificate. A tax offset was called a rebate in previous years.

6. 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 2002 or TaxPack 2002 for retirees, or call the Australian Taxation Office on 13 2861. Pension enquiries should be directed to the Department of Veterans' Affairs.

Notes

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

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

5. Terminology changes

A PAYG Payment Summary-Individual Non Business was formerly known as a group certificate. A tax offset was called a rebate in previous years.

6. Further assistance

This is an example only of the General Information Sheet (GIS) for Service Pensioners that will be used in the June mailout. There is a separate GIS for income support supplement recipients and age pensioners. PLEASE NOTE: All rates and thresholds have been updated to reflect changes.

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$421.80 (per fortnight)

Couples Rate (each)$352.10 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$116.00$1,185.00

Couples Rate (combined)$204.00$1,979.00

These limits may increase for each dependent child or student up to the age of T-CHILD-AGE, or if rent assistance is payable.

PENSION ASSETS LIMIT

Before Service Pension ReducesCut Off*

Home Owner

Singles Rate$145,250$288,000

Couples Rate (combined)$206,500$443,500

Non Home Owner

Singles Rate$249,750$392,500

Couples Rate (combined)$311,000$548,000

These limits may increase for each dependent child or student up to the age of T-CHILD-AGE, or if rent assistance is payable.

NOTE: *Income and assets cut off limits applies to all service pensioners except blinded service pensioners.

GOLD CARD INFORMATION

NOTE 1: These income and asset limits apply to the Gold Card only. Different income and asset limits apply to the pension. These limits can be found at the top of the page.

NOTE 2: If you are aged 70 years or over, and you are a veteran who served in Australia's Defence Force, and you have qualifying service from any conflict (or you are an Australian Mariner with qualifying service from World War 2), the Gold Card income and assets cut off limits shown below, DO NOT APPLY TO YOU as your Gold Card is NOT affected by your income and assets.

GOLD CARD INCOME CUT OFF LIMIT

Singles Rate$328.00 (per fortnight)

Couples Rate (combined)$570.00 (per fortnight)

Add $69.60 per fortnight for each dependent child or student to the age of T-CHILD-AGE.

GOLD CARD ASSETS CUT OFF LIMIT

Home Owner

Singles Rate$173,750

Couples Rate (combined)$255,500

Non Home Owner

Singles Rate$278,250

Couples Rate (combined)$360,000

Add approximately $6,000 for each dependent child or student up to the age of T-CHILD-AGE.

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:- 3% interest up to the threshold of $34,400

High Rate:- 4.5% interest for the remaining balance

Couples

Low Rate:- 3% interest up to the threshold of $57,400

High Rate:- 4.5% 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. 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 to a service pension recipient, any disability pension received by that person or their partner, is counted as income and may reduce the rate of rent assistance payable.

Maximum Amount of Rent Assistance Payable (per fortnight)

No children1-2 children3 or more

children

Singles Rate$88.00$102.80$116.60

Couples Rate

(combined)$82.80$102.80$116.60

Rent Limits (per fortnight)

No children1-2 children3 or more

children

Singles Rate$78.00$102.60$102.60

Couples Rate

(combined)$127.00$151.80$151.80

Example 2:

LESS THAN MAXIMUM RATE - VARIATION (INCREASE)
INCOME TESTED WITH ASSETS < $10,000 OF THEIR PRESCRIBED ASSETS LIMIT

SINGLE ASSESSMENT

NIL DP PAYABLE
NIL TA IN PAYMENT
TAXABLE
FULL INCOME AND ASSETS ATTACHMENT
FULL OBLIGATIONS
PAYMENT SUMMARIES ENCLOSED
GIS

Commonwealth Department of

Veterans' Affairs

Contact:

Telephone: STATE OFFICE

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1300 13 1945

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

This is to advise you that your T-PENSION-SP-ISS-AP has been T-INC-RE-NIL. This change will take effect from 1 July 2002.

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 T-PENSION-SP-ISS-AP:

Income Free Area - this is the amount of income you can have before your T-PENSION-SP-ISS-AP 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 T-PEBNSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP.

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

Payment Information

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

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
13/07/00	XXXXXX DDDDD	CBA 59404040	$XXX.XX
		TOTAL	$XXX.XX

Payment Summaries (formerly called Group Certificates)

The Australian Taxation Office (ATO) advised as part of the tax reforms introduced in the 2000/01 financial year, that Group Certificates have been renamed 'Payment Summary'.

As it is the end of the 2001/02 financial year Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.

Payment Summary for T-CLIENT-NAME is enclosed with this letter.

Medicare Levy Exemption

You should contact the Australian Taxation Office on 13 2861 if you have any questions about taxation.

Your Income and Assets

As your service pension is assessed under the income test, assets not affecting your rate of service pension have not been included in the attached list of income and assets. You should advice the Department if this 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 'Important Information You Should Retain'. It is important that you read them.

Changes You Have Already Told Us About

Your Right of Review

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

ATTACHMENTS - in order of appearance

Payment Information Attachment - YES

Full Income and Assets Attachment - YES
Full Obligations - YES
Payment Summary/s - YES

General Information Sheet - YES

Example 3:

LESS THAN MAXIMUM RATE - VARIATION (INCREASE)
INCOME TESTED WITH ASSETS > $10,000 BELOW THEIR PRESCRIBED ASSETS LIMIT

MARRIED ASSESSMENT

DP PAYABLE - not varied
TA IN PAYMENT
TAXABLE
TAILORED INCOME AND ASSETS ATTACHMENT ie., excluding all miscellaneous assets apart from those which earn income
FULL OBLIGATIONS
PAYMENT SUMMARIES ENCLOSED
GIS

Commonwealth Department of

Veterans' Affairs

Contact:

Telephone: STATE OFFICE

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1300 13 1945

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

This is to advise you that your T-PENSION-SP-ISS-AP has been T-INC-RE-NIL. This change will take effect from 1 July 2002.

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 T-PENSION-SP-ISS-AP:

Income Free Area - this is the amount of income you can have before your T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP.

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

Payment Information

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

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
13/07/00	XXXXXX DDDDD	CBA 59404040	$XXX.XX
		TOTAL	$XXX.XX
13/07/00	XXXXXX DDDDD	CBA 59404040	$XXX.XX
		TOTAL	$XXX.XX

Payment Summaries (formerly known as Group Certificates)

The Australian Taxation Office (ATO) advised as part of the tax reforms introduced in the 2000/01 financial year, that Group Certificates have been renamed 'Payment Summary'.

As it is the end of the 2001/02 financial year Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.

Payment Summary for T-CLIENT-NAME is enclosed with this letter.

Payment Summary for T-PTNR-NAME is enclosed with this letter.

Medicare Levy Exemption

You should contact the Australian Taxation Office on 13 2861 if you have any questions about taxation.

Telephone Allowance

Singles Rate - $18.00

Couples Rate (each) - $9.00

World War I Veterans - $59.70

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 in this list is incorrect.

Events You Must Tell Us About

Changes You Have Already Told Us About

Your Right of Review

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

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 - YES

SAMPLE - TAILORED INCOME AND ASSETS ATTACHMENT- SAMPLE

INCOME AND ASSETS USED TO ASSESS YOUR PAYMENT

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

You are receiving T-PENSION-SP-ISS-AP 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

IMPORTANT: We understand that the balances in these types of accounts may fluctuate regularly.

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?

At present, deemed income is calculated as follows, regardless of the actual interest rates, 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.

Income Streams - Long Term

Description	Asset Amount	Gross Income	Deductible Amount	Assessed Income
Summit Master Trust	$128,513.36	$314.92	$248.63	$66.19

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 Lot 22 Ocean View Rd, NORTH HEAD, with a net market value of $160,000.00.

Direct Income

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

***** This is a new paragraph - highlighted for advice 'mock-up' purposes only - the information will not be presented like this in the actual advice but print as a regular paragraph. Please note: Where there is a Miscellaneous Asset earning income in an assessment - it 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 tailors.

Example 4:

LESS THAN MAXIMUM RATE - Permanently Incapacitated- VARIATION (INCREASE)
INCOME TESTED WITH ASSETS < $10,000 OF THEIR PRESCRIBED ASSETS LIMIT

MARRIED ASSESSMENT

NIL DP PAYABLE
TA IN PAYMENT
NON TAXABLE
FULL INCOME AND ASSETS ATTACHMENT
FULL OBLIGATIONS
PAYMENT SUMMARIES NOT ISSUED
MLEC ISSUED AND SENT SEPARATELY
GIS

Commonwealth Department of

Veterans' Affairs

Contact:

Telephone: STATE OFFICE

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1300 13 1945

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

This is to advise you that your T-PENSION-SP-ISS-AP has been T-INC-RE-NIL. This change will take effect from 1 July 2002.

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 T-PENSION-SP-ISS-AP:

Income Free Area - this is the amount of income you can have before your T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP.

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

Payment Information

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

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
13/07/00	XXXXXX DDDDD	CBA 59404040	$XXX.XX
		TOTAL	$XXX.XX

Medicare Levy Exemption Certificate

A Medicare Levy Exemption Certificate showing the number of days your are eligible for full or half Medicare Levy exemption will be issued to you separately.

Telephone Allowance

Singles Rate - $18.00

Couples Rate (each) - $9.00

World War I Veterans - $59.70

Your Income and Assets

As your service pension is assessed under the income test, 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 if this information is incorrect.

Events You Must Tell Us About

Changes You Have Already Told Us About

Your Right of Review

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

ATTACHMENTS

Payment Information Attachment - YES

Full Income and Assets Attachment - YES
Full Obligations - YES
Payment Summary/s - NO

General Information Sheet - YES

Example 5:

LESS THAN MAXIMUM RATE INCREASED TO MAXIMUM RATE
INCOME TESTED WITH ASSETS > $10,000 BELOW THEIR PRESCRIBED ASSETS LIMIT
MARRIED ASSESSMENT

NIL DP PAYABLE
TA IN PAYMENT
TAXABLE
PAYMENT SUMMARIES ENCLOSED
GIS

Commonwealth Department of

Veterans' Affairs

Contact:

Telephone: STATE OFFICE

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1300 13 1945

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

You have been increased to the maximum rate of T-PENSION-SP-ISS-AP. This change will take affect from 1 July 2002.

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 T-PENSION-SP-ISS-AP:

Income Free Area - this is the amount of income you can have before your T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP.

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

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
13/07/00	XXXXXX DDDDD	CBA 59404040	$XXX.XX
		TOTAL	$XXX.XX
13/07/00	XXXXXX DDDDD	CBA 59404040	$XXX.XX
		TOTAL	$XXX.XX

Payment Summaries (formerly known as Group Certificates)

The Australian Taxation Office (ATO) advised as part of the tax reforms introduced in the 2000/01 financial year, that Group Certificates have been renamed 'Payment Summary'.

As it is the end of the 2001/02 financial year Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.

Payment Summary for T-CLIENT-NAME is enclosed with this letter.

Payment Summary for T-PTNR-NAME is enclosed with this letter.

Medicare Levy Exemption

You should contact the Australian Taxation Office on 13 2861 if you have any questions about taxation.

Telephone Allowance

Singles Rate - $18.00

Couples Rate (each) - $9.00

World War I Veterans - $59.60

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 income from all sources increases above T-TOTAL-INCOME-PLUS-4 per fortnight or your combined assets, apart from your home, exceed T-PRESCR-ASSET-AMT. Income includes deemed income from your financial assets and income from other sources.

Changes You Have Already Told Us About

Your Right of Review

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

ATTACHMENTS

Financial Obligations with Prescribed Rates - YES

Payment Information Attachment - YES

Tailored Income and Assets Attachment - NO
Full Income and Assets Attachment - NO
Full Obligations - NO
Payment Summary/s - YES

General Information Sheet - YES

Example 6:

MAXIMUM RATE CONTINUATION ON MAXIMUM RATE
INCOME TESTED
MARRIED ASSESSMENT

DP PAYABLE - not varied
TA IN PAYMENT
TAXABLE
PAYMENT SUMMARIES ENCLOSED
GIS

Commonwealth Department of

Veterans' Affairs

Contact:

Telephone: STATE OFFICE

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1300 13 1945

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

You currently receive the maximum rate of T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP:

Income Free Area - this is the amount of income you can have before your T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP 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 T-PENSION-SP-ISS-AP.

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

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
13/07/00	XXXXXX DDDDD	CBA 59404040	$XXX.XX
		TOTAL	$XXX.XX
13/07/00	XXXXXX DDDDD	CBA 59404040	$XXX.XX
		TOTAL	$XXX.XX

Payment Summaries (formerly known as Group Certificates)

The Australian Taxation Office (ATO) advised as part of the tax reforms introduced in the 2000/01 financial year, that Group Certificates have been renamed 'Payment Summary'.

As it is the end of the 2001/02 financial year Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.

Payment Summary for T-CLIENT-NAME is enclosed with this letter.

Payment Summary for T-PTNR-NAME is enclosed with this letter.

Medicare Levy Exemption

You should contact the Australian Taxation Office on 13 2861 if you have any questions about taxation.

Telephone Allowance

Singles Rate - $18.00

Couples Rate (each) - $9.00

World War I Veterans - $59.60

Financial Obligations

Changes You Have Already Told Us About

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

ATTACHMENTS

Financial Obligations with Prescribed Rates - YES

Payment Information Attachment - NO

Tailored Income and Assets Attachment - NO
Full Income and Assets Attachment - NO
Full Obligations - NO
Payment Summary/s - YES

General Information Sheet - YES

MLEC - NEW FORMAT FOR 2002 ISSUE ATTACHMENT C

Medicare Levy Exemption

Dear Beneficiary

Please find below your Medicare Levy Exemption Certificate. This Certificate shows the number of days you were eligible for full or half exemption from payment of the Medicare Levy because you were eligible for full treatment at the expense of this Department.

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 the Certificate for your records.

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 2002 or TaxPack 2002 for retirees, or contact the Australian Taxation Office on 132 861.

Yours faithfully

Deputy Commissioner

IF YOU LODGE AN INCOME TAX RETURN, YOU DO NOT NEED TO ATTACH THIS CERTIFICATE TO YOUR TAX RETURN. PLEASE RETAIN THIS SHEET FOR YOUR RECORDS.

Commonwealth Department of

Veterans' Affairs

Medicare Levy Exemption Certificate

YourThe number of days you are

File No is NX123456eligible for full or half Medicare Levy Exemption

During 2001/02 is

365

Smith, Joseph

150 Smith Street

SMITHFIELD NSW 2003

Source URL: https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/2002/c232002-june-2002-statutory-increase-advice-letter-payment-summary-and-medicare-levy-exemption-certificate-mailout