C29/1998 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

Purpose of Instruction

This Departmental Instruction is to provide information about the Pounds Sterling exchange rate variation exercise.

Introduction

Following the recent variation in foreign exchange rates, it is appropriate for DVA to apply a new exchange rate for income support pension assessment purposes.

Effective Date

On payday 16 July 1998 the current exchange rate will change.

New Rate

The exchange rate will change from one Pound Sterling equals $2.5019 to one Pound Sterling equals $2.7300 which is the average of the “on demand airmail buying rate” for the four weeks to 19 June 1998.

Timetable

The DVA exercise is scheduled for processing on Tuesday evening, 30 June 1998.

Automatic

Superannu -ation processing

The amount recorded as BRI non-indexed or BRI indexed will be varied by applying a conversion factor.  The amount of income, in Australian dollars, will be multiplied by the conversion factor to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.

Advice Letters

The advice letters for this exercise will be joint advices.  The letter will advise the new exchange, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.

Regulation 45A Procedures

The Income Support Branch Head, Compensation and Support Division, in National Office will issue certificates in the terms of Finance Regulation 45A that will be forwarded to the Authorising Officer in your Finance Branch.

IBM GSA Implications

IBM GSA will be producing the cartridge and will forward it to Security Mailing in Sydney.  Overseas, Special Register and cases where a change to treatment entitlement occurs will be separated  by IBM GSA and despatched to the State Office for manual distribution.

Mail out of Bulk Advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by Monday 13 July 1998.

British DP case paid Rent Assistance

Income Support pensioners who are in receipt of Rent Assistance and who also receive British Disability Pension direct from Britain (not EATS and Composite cases) should have that DP pension converted to $A using the BRI exchange rate.  The resulting reassessment of their SP could vary the RA paid.  A listing of affected cases can be obtained from Murray Chynoweth, Business Delivery Unit.

Contact Officer

The Income Support Branch contact officers for the exercise will be:

Anne Stewart                Telephone:   (02) 6289 6285

Murray Chynoweth         Telephone:   (02) 6289 6799

£

$

17 Feb 94

to

16 March 94

0.4708

2.1240

17 Mar 94

to

3 August 94

0.4902

2.0400

4 August 94

to

23 Nov 94

0.4762

2.1000

24 Nov 94

to

7 Dec. 94

0.4576

2.1853

8 Dec. 94

to

21 Dec. 94

0.4723

2.1173

22 Dec. 94

to

15 March 95

0.4898

2.0416

16 March 95

to

26 April 95

0.4770

2.0964

27 April 95

to

13 Sept. 95

0.4576

2.1853

14 Sept 95

to

11 Oct. 95

0.4774

2.0947

12 Oct. 95

to

10 April 96

0.4899

2.0412

11 April 96

to

8 May 96

0.5050

1.9802

9 May 96

to

4 Dec 96

0.5191

1.9264

5 Dec 96

to

12 Feb 97

0.4873

2.0521

13 Feb 97

to

9 April 97

0.4685

2.1345

10 April 97

to

21 May 97

0.4941

2.0239

22 May 97

to

30 July 97

0.4812

2.0781

31 July 97

to

3 Dec 97

0.4542

2.2017

4 Dec 97

to

29 Jan 98

0.4235

2.3613

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4242

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

0.3835

2.7300