B56/1993 AMENDMENT TO DEPARTMENTAL INSTRUCTION B45/93 OF 03/09/93 RELATING TO THE SEPTEMBER QUARTERLY ADVICE MAILOUT

DATE OF ISSUE:  7 OCTOBER 1993

AMENDMENT TO DEPARTMENTAL INSTRUCTION B45/93 OF 03/09/93 RELATING TO THE SEPTEMBER QUARTERLY ADVICE MAILOUT

PURPOSE

The purpose of this Departmental Instruction (DI) is to inform you of a necessary amendment to DI B45/93 of 3 September 1993.  It is important that this DI be read in conjunction with DI B45/93.

2.This DI relates to the impact on the September Quarterly Advice mailout of the Government's revised policy on assessment of shares.  Detailed information regarding the new rules regarding shares will be notified in a separate instruction.

BACKGROUND

3.In late August, DI B45/93 explained the manner in which clients with shares would be advised of the new rules for assessing income from shares.

4.On 1 September 1993, the Government announced further changes to the rules for assessing shares.  Advices for the September Quarterly Advice mailout were therefore modified to reflect those new rules.

CHANGE OF POLICY AND IMPACT ON QUARTERLY ADVICES

5.Paragraphs 14 and 18-21 of DI B45/93 refer to the original policy in relation to shares.  Those paragraphs should be disregarded.

6.As a result of the intense media coverage of the shares issue, it was decided to publicise details of the revised policy to all clients in receipt of service pension.  This was achieved by including a generic set of paragraphs in all Quarterly Advices sent to clients in receipt of service pension.

7.In addition to the generic paragraphs, a 'Shares Table' was produced for any pensioner who had shares data recorded on the PIPS Shares screen (ie. had been data collected as a result of the recent 'Shares' data collection exercise) as at the processing run on weekend 11/12 September 1993.  Approximately 5500 assessments nationally had been data collected at the time of the processing run.

8.The revised paragraph wording for September Quarterly Advices is shown in the samples at attachment A.

Contact Numbers

9.Any staff enquiries should be directed in the first instance to John Ramsay in Policy Development & Implementation Section, on (06) 289 6409 or Tony Whelan on (06) 289 6684.  Facsimile messages should be sent to (06) 289 6553.

KAY GRIMSLEY

ASSISTANT SECRETARY INCOME SUPPORT

THIS ATTACHMENT HAS BEEN REKEYED TO ENABLE IT TO BE INCLUDED ON THE GENERAL

ATTACHMENT

BRANCH OFFICE

Centennial Plaza

280 Elizabeth Street

Sydney NSW 2000

Postal Address:

GPO Box 3994,

Sydney NSW 2001

Telephone:

Metropolitan residents: 213 7777

Country residents: 008 257251

13 September 1993

YOUR FILE N[JMBER IS NX543210

JOHN B SMITH

SARAH SMITH

1029 ANZAC AVENUE

HOMEBUSH BAY 2140

Dear Mr and Mrs SMITH

This letter gives you details of your current pension payment from Veterans' Affairs.

Indexation and changes to the assets test

Service pensions, disability pensions, rent assistance and telephone allowance have been increased in line with movements in the consumer price index (CPI). The new rates will be paid on pay day 30 September 1993.

In addition, and in recognition of the recent fall in interest rates, the Government has eased the assets test for service pensioners. From 30 September 1993, asset tested pensions will only be reduced by 75 cents instead of the current $1.00 for every $250 worth of assets above the asset threshold.

Shares

The Government has announced that the new rules for shares will now apply onlv to those shares acquired on or after 19 August 1992.

In August of this year the Department sent a Shares Review Form to all pensioners known to hold shares. If you received a Shares Review Form and have not yet returned it, please do so immediately.

You do not have to contact the Department as a result of the Government's changes to the shares rules. The Department will write to you if any information is needed from you.

Payment details

The amount of pension you will receive each fortnight is set out below. Payment at this

rate will commence from 30 September 1993.

PAYMENTS TO JOHN SMITH and SARAH SMITH

Service pension 220.00 — 220.00

Pharmaceutical Allowance — 2.60 — 2.60

TOTAL FORTNIGHTLYPAYMENT$222.60$222.60

Telephone Allowance payment

Your quarterly Telephone Allowance of $6.80 each will be paid to you on

30 September 1993, in addition to that fortnight's pension payment. Your next payment of Telephone Allowance will be on 6 January 1994. You must tell us if you cease to be a telephone subscriber.

Your obligations to the Department

Your obligations have been explained to you in previous advices. These obligations still apply, but the relevant income and asset levels may have changed. These are shown below.

Your service pension is paid at less than the maximum rate. You must tell the Department within 21 days if your combined income (apartfrom Veterans'Affairs pensions) rises above $797 a fortnight. You must also tell us if the value of your assets rises above $240,000.

You can do this by telephoning or writing to us or by visiting any Department of Veterans' Affairs office. The address and telephone number are shown at the top of this letter. If you telephone, we may ask you to confirm information in writing or to send us certain documents which are related to the matter.

If you do not tell us of these changes you may be overpaid. There are penalties that apply for failing to fulfil your obligations or for providing false or misleading information. The authority for this obligation is under Section 54 of the Veterans' Entitlements Act. Please remember that obligations previously advised to you continue to apply.

Changes you have already told us about

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been included when sending this letter. If this is the case, we will be sending you another letter as soon as the change has been put into place.

If you have any questions about any of the above matters, please contact this office at the address or telephone number shown at the top of this letter.

Yours sincerely,

G K Stonehouse

Deputy Commissioner as

Delegate of the Secretary

BRANCH OFFICE

Centennial Plaza

280 Elizabeth Street

Sydney NSW 2000

Postal Address:

GPO Box 3994,

Sydney NSW 2001

Telephone:

Metropolitan residents: 213 7777

Country residents: 008 257251

13 September 1993

YOUR FILE NUMBER IS NX555550

JOHN B O'REILLY

SARAH O'REILLY

20 FAIRY CRESCENT

BOTANY BAY 2940

Dear Mr and Mrs O'REILLY

This letter gives you details of your current pension payment from Veterans' Affairs.

Indexation and changes to the assets test

Service pensions, disability pensions, rent assistance and telephone allowance have been increased in line with movements in the consumer price index (CPI). The new rates will be paid on pay day 30 September 1993.

In addition, and in recognition of the recent fall in interest rates, the Government has eased the assets test for service pensioners. From 30 September 1993, asset tested pensions will only be reduced by 75 cents instead of the current $ 1.00 for every $250 worth of assets above the asset threshold.

Shares

The Government has announced that the new rules for shares will now apply onlv to those shares acquired on or after 19 August 1992.

In August of this year the Department sent a Shares Review Form to all pensioners known to hold shares. If you received a Shares Review Form and have not yet returned it, please do so immediately.

You do not have to contact the Department as a result of the Government's changes to the shares rules. The Department will write to you if any information is needed from you.

Payment details

The amount of pension you will receive each fortnight is set out below. Payment at this

rate will commence from 30 September 1993.

PAYMENTS TO JOHN O'REILLY and SARAH O'REILLY

Service pension 200.00 — 200.00

Pharmaceutical Allowance 2.60 — 2.60

TOTAL FORTNIGHTLYPAYMENT $202.60$202.60

Telephone Allowance payment

Your quarterly Telephone Allowance of $6.80 each will be paid to you on

30 September 1993, in addition to that fortnight's pension payment. Your next payment of Telephone Allowance will be on 6 January 1994. You must tell us if you cease to be a telephone subscriber.

Listed Shares

Share — No. of — Asset — Dividend — Income Per

shares — Value(Cents Per)Fortnight

Share)

CRA LTD.- $ 1.00 ORDINARY

FULLY PAID — 5,200$32,240 — 7.2129$ 14.40

BROKEN HILL PTY. LTD - $1.00 — 3,540$49,914 — 8.5996$11.70

ORDINARY FULLY PAID

M.I.M. HOLDINGS LTD - $0.50 — 1,100$4,950 — 9.1980$3.89

ORDINARY FULLY PAID

LISTED SHARE INCOME FOR PENSION PURPOSES$29.99

Your right of review

If you do not agree with a decision affecting your rate of service pension, you may apply to have it reviewed by a delegate of the Repatriation Commission. The Delegate may decide the original decision was correct, or may decide to change it. If the decision is changed, your pension may be increased or reduced.

Any request for a review must be made in writing within three months of the day you

receive this letter. Your letter should state the specific grounds for your request for

review.

Your obligations to the Department

Your obligations have been explained to you in previous advices. These obligations still apply, but the relevant income and asset levels may have changed. These are shown below.

Your service pension is paid at less than the maximum rate. You must tell the Department within 21 days if your combined income (apartfrom Veterans'Affairs pensions) rises above $497 a fortnight. You must also tell us if the value of your assets rises above $240,000.

You can do this by telephoning or writing to us or by visiting any Department of Veterans' Affairs office. The address and telephone number are shown at the top of this letter. If you telephone, we may ask you to confirm information in writing or to send us certain documents which are related to the matter.

If you do not tell us of these changes you may be overpaid. There are penalties that apply for failing to fulfil your obligations or for providing false or misleading information. The authority for this obligation is under Section 54 of the Veterans' Entitlements Act.

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 included when sending this letter. If this is the case, we will be sending you another letter as soon as the change has been put into place.

If you have any questions about any of the above matters, please contact this office at the address or telephone number shown at the top of this letter.

Yours sincerely,

G K Stonehouse

Deputy Commissioner as

Delegate of the Secretary

BRANCH OFFICE

Centennial Plaza

280 Elizabeth Street

Sydney NSW 2000

Postal Address:

GPO Box 3994,

Sydney NSW 2001

Telephone:

Metropolitan residents: 213 7777

Country residents: 008 257251

13 September 1993

YOUR FILE NUMBER IS NX121212

JOHN FELYONAVICH

DOT FELYONAVICH

1123 MORTAR STREET

PARADISE BEACH 4140

Dear Mr and Mrs FELYONAVICH

This letter gives you details of your current pension payment from Veterans' Affairs.

Indexation and changes to the assets test

Service pensions, disability pensions, maximum amount of rent assistance, rent thresholds and telephone allowance have been increased in line with movements in the consumer price index (CPI). Indexation of the rent thresholds may result in a variation of rent assistance for some pensioners.

The new rates will be paid on pay day 30 September 1993.

In addition, and in recognition of the recent fall in interest rates, the Government has eased the assets test for service pensioners. From 30 September 1993, asset tested pensions will only be reduced by 75 cents instead of the current $1.00 for every $250 worth of assets above the asset threshold.

Shares

The Government has announced that the new rules for shares will now apply onlv to those shares acquired on or after l9 August 1992.

In August of this year the Department sent a Shares Review Form to all pensioners known to hold shares. If you received a Shares Review Form and have not yet returned it, please do so immediately.

You do not have to contact the Department as a result of the Government's changes to the shares rules. The Department will write to you if any information is needed from you.

Reassessment of managed investments

Managed investment products have been reassessed for pay day 30 September 1993. The income and assets values for all your managed investments are detailed separately in this letter.

Payment details

The amount of pension you will receive each fortnight is set out below. Payment at this rate will commence from 30 September 1993.

PAYMENTS TO JOHN FELYONAVICH and DOT FELYONAVICH

Service pension              190.00              190.00

Rent Assistance              31.50              31.50

Pharmaceutical Allowance              2.60              2.60

TOTAL FORTNIGHTLY PAYMENT              $224.10              $224.10

Telephone Allowance payment

Your quarterly Telephone Allowance of $6.80 each will be paid to you on 30 September 1993, in addition to that fortnight's pension payment. Your next payment of Telephone Allowance will be on 6 January 1994. You must tell us if you cease to be a telephone subscriber.

Managed Investments

Managed Investment — Units — Asset — Rate of — Fee — Income

Value — Return/Deduction — Per

Cents — Per — Fortnight

Per Unit — Fortnight    (Less Fee

Deduction)

MANCHESTER UNITY

HIBERNIAN FRIENDLY

SOCIETY - S -N/A$9,136.78 — 8.100%N/A$28.46

Ongoing Income Only

SCHRODES

AUSTRALIA

MANAGEMENT

LTD - N — 2,387$5,203.66 — 22.000c — N/A$20.19

PROPERTY FUND

ORDINARY UNITS

Income Plus Capital Growth

MANAGED INVESTMENT INCOME FOR PENSION PURPOSES$48.65

GUIDE TO TABLE

Ongoing Income Only - Income is assessed as it accrues based upon any dividends and any rise or fall in the value of the investment over a 12 month period, and omy whilst the investment is held.

Income Plus Capital Growth - In addition to any income distributions that may currently be assessed, capital growth may also be assessable if the investment matures, or it is sold, surrendered, transferred, gifted, or it is fully or partially withdrawn.

Listed Shares

Share — No. of — Asset — Dividend — Income Per

shares — Value(Cents Per — Fortnight

Share)

CRA LTD.- $1.00 ORDINARY

FULLY PAID — 5,200$32,240 — 7.2129$14.40

BROKEN HILL PTY. LTD - $ 1.00 — 3,540$49,914 — 8.5996$11.70

ORDINARY FULLY PAID

M.I.M. HOLDINGS LTD - $0.50 — 1,100$4,950 — 9.1980$3.89

ORDINARY FULLY PAID

LISTED SHARE INCOME FOR PENSION PURPOSES$29.99

Your right of review

If you do not agree with a decision affecting your rate of service pension, you may apply to have it reviewed by a delegate of the Repatriation Commission. The Delegate may decide the original decision was correct, or may decide to change it. If the decision is changed, your pension may be increased or reduced.

Any request for a review must be made in writing within three months of the day you receive this letter. Your letter should state the specific grounds for your request for review.

Your obligations to the Department

Your obligations have been explained to you in previous advices. These obligations still apply, but the relevant income and asset levels may have changed. These are shown below.

Your service pension is paid at less than the maximum rate. You must tell the Department within 21 days if your combined income (apart from Veterans' Affairs pensions) rises above $812 a fortnight. You must also tell us if the value of your assets rises above $240,000.

You can do this by telephoning or writing to us or by visiting any Department of Veterans' Affairs office. The address and telephone number are shown at the top of this letter. If you telephone, we may ask you to confirm information in writing or to send us certain documents which are related to the matter.

If you do not tell us of these changes you may be overpaid. There are penalties that apply for failing to fulfil your obligations or for providing false or misleading information. The authority for this obligation is under Section 54 of the Veterans' Entitlements Act. Please remember that obligations previously advised to you continue to apply.

Changes you have already told us about

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been included when sending this letter. If this is the case, we will be sending you another letter as soon as the change has been put into place.

If you have any questions about any of the above matters, please contact this office at the address or telephone number shown at the top of this letter.

Yours sincerely,

G K Stonehouse

Deputy Commissioner as

Delegate of the Secretary