DATE OF ISSUE: 7 September 2004

SEPTEMBER 2004 GLOBAL REFRESH OF MANAGED INVESTMENTS AND SHARES AND (DFISA)

SEPTEMBER 2004 GLOBAL REFRESH OF MANAGED INVESTMENTS AND SHARES LETTER PRODUCTION AND MAILOUT (MAILOUT A) AND CENTRELINK DEFENCE FORCE INCOME SUPPORT ALLOWANCE (DFISA) BATCH PROCESSING LETTER PRODUCTION AND MAILOUT (MAILOUT B)

Purpose of Instruction

This Departmental Instruction is to provide information about the processing arrangements for the: September 2004 Global Refresh of Managed Investments (MIs) and Shares (SHs) advice letter production and mailout - referred to as Mailout A; and the Centrelink DFISA Batch Processing advice letter production and mailout - referred to as Mailout B.

Jeanette Ricketts

Branch Head Income Support

7 September 2004

Overview

Introduction

Each quarter the Department varies pensions and allowances in accordance with provisions contained in the VEA (Statutory Increase or 'SI').  In March and September of each year, the Consumer Price Index (CPI), the Male Total Average Weekly Earnings (MTAWE) and the Global Refresh of Managed Investments (MIs) and Shares (SHs) data are usually combined as one quarterly reassessment routine. This quarter letters will be sent to those pensioners on less than the maximum rate of service pension, income support supplement and age pension who have MIs and/or SHs recorded in their assessment. Advice letters will also be sent to pensioners who commence payment of the DFISA, regardless of whether they do, or do not, have MIs and/or SHs in their assessment. Separate to the September Global Refresh of MIs and/or SHs processing mailout and letters sent to DVA Age Pensioners who commence payment of DFISA, DVA will be conducting a further mailout to Centrelink clients who commence payment of DFISA from DVA. Both mailouts will be conducted over the same time period. This Departmental Instruction provides information about the advice letter production and mailout for both processing exercises and advises of the significant issues relating to each mailout.  Letters will be sent to pensioners affected by the events as set out in the following paragraph.

Significant Issues- of Managed Investment and Share Global Refresh Mailout A

The September 2004 Global Refresh mailout will be referred to as Mailout A and will incorporate the following events for payday 30 September 2004 (WEF 20 September 2004).  Issues of significance with regard to this mailout are as follows: Letters will be sent to all less than maximum rate income support recipients; The asset value of MI and SH data will be reassessed; A 'Shares and Managed Investments Attachment' will be provided for all less than maximum rate income support recipients with MIs and/or SHs recorded in their assessment.  This Attachment will provide a complete listing of the client's MIs and/or SHs regardless of what has been reassessed;

Significant Issues- of Managed Investment and Share Global Refresh Mailout A Cont'd

Commencement of payment of DFISA - All DVA Age Pensioners  who are eligible to commence payment of DFISA will receive an advice letter following the September 2004 SI processing and Global Refresh of MIs and SHs processing, regardless of whether they have MIs and/or SHs in their assessment; and If a treatment change occurs as a result of the reassessment a letter will be produced.

Significant Issues- Centrelink DFISA Batch Processing Mailout B

Centrelink DFISA batch processing advices will be produced following the SI processing for those Centrelink clients who commence payment of DFISA.  The advice will be a three page letter, comprising of a cover letter, payment information attachment and the DFISA Information Fact Sheet.  Please see ATTACHMENT C for an example of this letter.

Letter Content - Mailout A - September Global Refresh of MIs and/or SHs and DFISA Commencement Advices

Advice Letter Target Audience - September Global Refresh of MIs and/or SHs

A letter will be produced for the following clients for the September Global Refresh of MIs and/or SHs and for DVA Age Pensioners who are granted DFISA: All Less than maximum rate service pensioners (SP), income support supplement recipients (ISS) and age pensioners (AP) who have MIs and/or SHs in their assessment; Maximum rate SP/ISS/AP recipients who move to less than maximum rate as a result of the reassessment; Less than maximum rate SP/ISS/AP recipients who move to maximum rate as a result of the reassessment; SP/ISS/AP recipients who are reduced to nil as a result of the reassessment; All DVA Age Pensioners will receive an advice, regardless of whether they do or do not have MIs and/or SHs in their assessment, advising them of the commencement of their DFISA payment; Treatment changes as a result of the Statutory Increase (SI) or global refresh of MIs and/or SHs reassessment.

Defence Force Income Support Allowance  (DFISA)

Payment of DFISA will commence effective from 20 — th September 2004.  DFISA is an income support allowance paid by Veterans' Affairs and is payable to those clients who receive adjusted disability pension (DP). All clients who commence payment of DFISA following the September SI Processing and Global Refresh of MIs and SHs processing will receive an advice letter advising them of the commencement of their DFISA payment. The advice letters content has been amended to accommodate and provide information to pensioners about the commencement of payment of the DFISA allowance.  Samples of letters to clients commencing payment of DFISA are shown at ATTACHMENT B.                                                                                Continued ...

Defence Force Income Support Allowance  (DFISA) - Cont'd

All age pensioners who are income tested and paid at less than the maximum rate and, who are eligible to receive the DFISA allowance will receive an advice letter following the SI Processing and Global Refresh of MIs and/or SHs processing. Age pensioners on less than the maximum rate of pension with MIs and/or SHs in their assessment will receive the Global Refresh of MIs and SHs letter with additional DFISA specific paragraphs as follows: A new introductory/commencement paragraph - 'I am writing to you about your age pension payment from Veterans' Affairs and commencement of Defence Force Income Support Allowance (DFISA).;' A paragraph providing a brief explanation of DFISA - and referring them to the DFISA Attachment included in the letter for further details; AP Right of Review para with an additional paragraph relating to the DFISA Right of Review which states....'The rate of DFISA paid to you is derived from your age pension assessment.  You may seek to have that assessment reviewed if you are dissatisfied with your DFISA rate.';' DFISA allowance and amount listed in the payment boxes for both the commencement payday, where a partial payment is made for  payday 30 September 2004 and the total DFISA shown for client in the payment box for the ongoing payday 14 October 2004; and A DFISA Information Fact Sheet Attachment. Age pensioners on less than the maximum rate of pension without MIs and/or SHs in their assessment will receive a letter WITHOUT references to the Global Refresh of MIs and SHs processing but with the DFISA specific paragraphs as follows: A new introductory/commencement paragraph - 'I am writing to you about your age pension payment from Veterans' Affairs and commencement of Defence Force Income Support Allowance (DFISA).'; A paragraph providing a brief explanation of DFISA - and referring them to the DFISA Attachment included in the letter for further details;                                                                                              Continued

Defence Force Income Support Allowance  (DFISA) - Cont'd

AP Right of Review para with an additional paragraph relating to the DFISA Right of Review which states....'The rate of DFISA paid to you is derived from your age pension assessment.  You may seek to have that assessment reviewed if you are dissatisfied with your DFISA rate.';' DFISA allowance and amount listed in the payment boxes for both the commencement payday, where a partial payment is made for that payday 30 September 2004 and the total DFISA shown for client in the payment box for the ongoing payday 14 October 2004; and A DFISA Information Fact Sheet Attachment.

Financial Assets Reassess-ment

The asset value of MI and/or SH data will be reassessed as part of this process.  Clients with MI and/or SH data recorded in their assessment will receive a paragraph advising them of the ...Change to Value of Shares and/or Managed Investments...

Managed Investments and/or Shares Information Attachment

All less than maximum rate income support recipients with MIs and/or SHs recorded in their assessment will receive a complete listing of all their MIs and/or SHs regardless of which MIs and/or SHs have been reassessed. A full Income and Assets Attachment will not be provided.

CPI	There will be a brief reference made in all advice letters about the CPI increase. Vetaffairs would generally be distributed in September advising of the CPI variations however, due to the upcoming election it will not be issued.

Male Total Average Weekly Earnings (MTAWE)

Although MTAWE did not have an impact on the September rate changes, the advices will continue to advise that pensions have been adjusted in line with movement in the CPI and MTAWE.

Obligations suppressed

Full and Partial obligations are to be suppressed for all letters produced.  Reference will be made to previous obligations issued to clients and in the case of Service Pension and Income Support Supplement recipients, reference will also be made to obligations provided in the 'You and Your Pension' Booklet. The Financial Obligations paragraph (including the Prescribed Rates) will be present in the advice for all clients excluding service pensioner and income support supplement pensioners who are reduced to nil.  Age pensioners who are reduced to nil, but eligible for payment of DFISA will receive the Financial Obligations paragraph including their prescribed rates.

$1 Minimum Variation Rules

The $1min rules will be applied to all less than max rate SP and ISS variation cases ie., an increase or reduction must be equal to or greater than a $1 amount to receive an advice. $1min rules do not apply to age pensioners.

Continuation Cases

Cases where the 'old rate' resulting from the Statutory Increase (SI) processing and the 'new rate' resulting from MI/SH refresh end up being the same amount after the reassessment will not have an advice produced. An advice will be produced for all age pensioners' whose payment continues at the same rate following payment of DFISA.

Treatment Advices to be Checked

As is the procedure for quarterly processing all Enclosure (treatment changes) advice letters will be printed at the IBM printhub and sent via courier to each State Office.  We request that these letters be checked for accuracy prior to sending, and reconciled against the reports received by each State Office.

Tasmanian Clients with Overseas Postal Address

Tasmanian State Office clients who have an overseas postal address will have the full overseas address printed on their advice letters. The advice letters for Tasmanian overseas clients will be printed, enveloped and sent from the mailing house.

Group Destination Addresses and Advices

Group Destination advices will not be streamed for this processing run but will be sent to the mailing house as part of the bulk advices to be lodged with Australia Post with all other advice letters.

Blind Clients will not receive an advice

Blind clients will not receive an advice.  Where a member of a couple is assessed as 'blind' - a single advice will only be produced for the non-blind member who may be affected by the processing.

General Information Sheet

Each letter will contain a General Information Sheet (GIS).  This will act as the consistent last page for gatemarking purposes at the mailing house.  Mailout A only.

Single & Joint Addressed Letters

All Service Pensioners and Income Support Supplement recipient couples will receive a joint advice, provided the pensioner addresses are identical.  Please note that where a couple are illness separated and have different addresses registered - a joint advice will continue to be sent to the Veteran's address. 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 PRODIMS - Client Correspondence Screen - CO.CO prior to the processing run to initiate the client request. Age pensioner couples will receive separate letters.

Advice Sequential Numbering in Footer

An advice sequence number will be added to the footer of each client record for all batch advice runs where the advices are sent to the Mailing House for processing.  The sequence number will be 9 characters long with a 3 character prefix for run identifier and 6 digits for the actual sequence number eg., R1S012345 QTLY 12/9/2004 04:08 UIN000498431 QPX123467.  This sequence number will aid the mailing house in reconciling advice numbers as well as assisting in the reconciliation of Australia Post reports used for postal discount purposes.

Letter Content - Mailout B - Centrelink DFISA Batch Processing

Advice Letter Target Audience -  Centrelink DFISA Batch Processing

A separate letter will be produced for those Centrelink clients whose payment details have been transmitted to DVA from Centrelink advising them of their grant of payment of DFISA.  Payment data will be transmitted from Centrelink to DVA prior to the processing weekend of 11 — th - 12 — th September 2004, listing clients eligible for grant of DFISA payment.  There are approximately 14,000 Centrelink clients nationally, expected to receive an advice following this processing. These clients will receive a batch grant advice letter advising them of their payment of DFISA.  The advices from this processing will be printed at Security Mailing Services, the Department's contracted mailing house, together with the advices produced from the September Global Refresh of MIs and/or SHs.  See ATTACHMENT C for an example of the wording in the Centrelink DFISA Batch processing advice.

Production of Advice Letters - Mailout A and B

SI Processing & IPS Centrelink DFISA Processing

SI Processing is scheduled to run from PM Friday, 10 — th September 2004 through until approximately PM Sunday, 12th September 2004 - during this time Centrelink DFISA Batch processing will also be undertaken.

Critical Dates

Processing Weekend within DVA (includes 'advices' processing)	Friday (pm) 10 — th September  2004 – Sunday (pm) 12 — th September  2004
Commence dispatch of Production Data to SMS	Monday, 13 — th September 2004
Commence printing Advice Letters	Tuesday, 14 — th September 2004
Commence State progressive lodgement of Advice Letters with Australia Post	From Wednesday, 15 — th September 2004
Complete lodgement of all State's Advice Letters with Australia Post	By COB Friday, 17 — th September 2004.

Expected Client Numbers

The approximate number of letters to be sent nationally following processing for Mailout A is 33,000 this includes DFISA commencements of clients paid age pension by DVA.  A breakdown of expected numbers per State, was not available at the time of producing this Departmental Instruction. The approximate number of letters to be sent nationally following the IPS Centrelink DFISA Batch processing (Mailout B) is expected to be approximately 14,000.

Printing of Letters

Security Mailing Services (SMS) Sydney, will print, fold and insert advice letters from Mailout A and B in the week from Tuesday, 14 — th September 2004 through until Friday, 17 — th September 2004.

Progressive Lodgement of Letters – commencing from Wednesday, 15th Sept 2004 - Friday, 17th  Sept 2004

Letters will be progressively lodged with Australia Post, commencing from Wednesday, 15 — th September 2004.  All State's letters will be lodged with Australia Post by COB Friday, 17th September 2004.  A representative from National Office will notify and confirm all lodgement details. The State Office Contacts for this exercise will be given progress reports and advised of any changes to this timetable.

Foreign Pension Refresh Program known as GROOVER

The foreign pension refresh program referred to as 'GROOVER' (Global Refresh Of Overseas Exchange Rates) is a separate processing exercise to the September Global Refresh and is tentatively scheduled to run on the evening of Saturday, 18 — th September 2004 - following the September Global Refresh processing. The effective date of the Foreign Pensions Refresh Run is 20 — th September 2004 for payday 30 — th September 2004. Separate advices are produced for clients who have foreign pensions, excluding the British Social Security Pension and British Official Public Service/Forces pension types (08 & 09).  Clients whose pension has been varied will receive an advice.  Please note that the advice letters produced from this processing will be printed at the IBM Printhub and couriered to each State Office for checking and posting after the September 2004 quarterly letters have been dispatched.

Issues Requiring State Office Action

Enclosure Advice Letters

Enclosure (treatment changes) advice letters will be printed at the IBM Printhub at St Leonards in Sydney and sent via courier to each State Office.  These should be checked for accuracy, and reconciled against the reports received by each State Office. Each State Office will receive an advices exceptions report containing details of the enclosure advices.  We will advise SSOs in each State when to expect delivery of these letters.  Please notify Pat Webb, Advices and Cards Team on (02) 9213 7288 if the letters do not arrive or if they do not match the reports.

Reprints of Advices Available using VIEW – Advices Tab

Reprints of individual advice letters produced from the quarterly processing can be requested via VIEW – Advices Tab reprint facility immediately following the processing weekend.

'HELD' Advices to be Forced

As part of the Batch processing run any advices in 'Held' status will be forced to print.  Forced held advices will print at each respective State Office's nominated printer as part of the production processing.  Please ensure your designated printer is fully operational during the processing period.  These advices will need to be checked to ensure the information in them is correct prior to posting.

Holding of daily advice letters

Daily payment advice letters produced after the processing run on the weekend of 11 — th – 12 — th September 2004, should be held pending notification that the September 2004 quarterly letters have been dispatched.  This will ensure that pensioners receive their advice letters in chronological order.

Manual Advices Required – for PA only back onto payment of Service Pension

Following the September SI and Global Refresh processing there may be some instances where clients have gone from payment of Pharmaceutical Allowance (PA) (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.

State Office Contacts

State Office Point of Contact

A contact person from each State has previously been identified to act as a liaison point for the National Office Advices Team and will be the responsible person for distributing any information regarding the global refresh and mailout to staff. State Office Contacts for the September processing are: NSW: Genia Sacharczuk - 02 9213 7106/Ganes Jagadeeswaran - 02 9213 7546 VIC: David Price - 03 9284 6379 QLD: Steve Jensen – 07 3223 8835 SA: Graham Bate - 08 8290 0425/Wanda Melnyczek - 08 8290 0206 WA: John Gliddon - 08  9366 8417 TAS: Bryon Kelly – 03 6221 6698 ACT: Paul Segrott – 02 6289 6493

National Office Contacts

Feedback from State Offices

Any concerns regarding letters produced as part of this run should be directed to the National Office Contact Officer, Pat Webb.  Please forward your feedback on this exercise to the National Office Contact Officer, noting the nature of the query together with any relevant information – every effort will be made to develop solutions to address any concerns raised.  Please ensure that problems are reported as early as possible.

Contacts

There will be one National Office contact for this mailout.  Any queries regarding advice wording, data cartridges, mail house printing and  lodgement of letters with Australia Post should be referred to: Pat Webb (02) 9213 7288 (Phone) (02) 9213 7889 (Fax) pat.webb@dva.gov.au (email) Systems issues should be directed to: Warren Walsh on (02) 9213 7254 or Renee Arkinstall on (02) 6289 6777.

Mockups of Letters to be Produced

Letter Content

Prior to the issue of this Departmental Instruction, the State Office Contact Officers for this exercise and Manager's Income Support were provided with copies of the proposed paragraph sequencing and mock-ups of advice letters for this run. All recommendations received have been taken into consideration for the final version of paragraphs and sequencing.  An email will be forwarded to the State Contact Officers advising of the changes in respect of all comments received. Details of the proposed content of the letters, including sample letters and sequencing of paragraphs are included in Attachments A, B & C. Please note: as the 'new' rates remain under embargo until released they have not been updated to reflect changes in the General Information Sheets. Attachment A – Paragraph sequencing and Advice Letter Examples: Example 1A: Overall Reduction - SP either from Maximum  Rate to less than Maximum Rate or reduction in Less than Max Rate Amount - with MIs/SHs in assessment. Example 2A: Service Pensioner increase from less than maximum rate to maximum rate with MIs/SHs in assessment– single assessment. Example 3A: Income Support Supplement - overall increase, remaining on less than maximum rate with MIs and/or SHs in assessment - single assessment. Example 4A: Service Pension Reduction to Nil with MIs and/or SHs in assessment. Single assessment. Attachment B – Paragraph sequencing and DFISA Advice Letter Examples: Example 1B: Age Pension paid > 0 - Increase. DFISA commencement with MIs/SHs in assessment. Example 2B: Age Pension paid > 0, DFISA commencement without MIs/SHs in assessment. Example 3B: Age Pension - Reduction to Nil, DFISA commencement with MIs/SHs in assessment. Example 4B: Age Pension - Reduction to Nil, DFISA commencement without MIs/SHs in assessment. Attachment C - Example 1C - IPS Centrelink DFISA Batch Processing Advice

Letter Variables

Please note, in the following samples: Letterhead, DC name and signature block will change according to State; The words “service pension”, “age pension”, “income support supplement” each represent variables which will appear for those clients in receipt of the applicable pension. State specific 'closing' paragraphs with the preferred contact telephone number for Income Support related issues will be used for this mailout.

ATTACHMENT A

EXAMPLE 1A:

• OVERALL REDUCTION– EITHER FROM MAXIMUM RATE TO LESS THAN MAXIMUM RATE OR REDUCTION IN LESS THAN MAXIMUM RATE AMOUNT WITH MIs/SHs IN ASSESSMENT.
• SERVICE PENSIONERS
• MARRIED ASSESSMENT
• TELEPHONE ALLOWANCE IN PAYMENT

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

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your service pension payment and has resulted in an overall decrease to the amount of service pension paid to you.  Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all your shares and/or managed investments regardless of whether there has been a change to that share or managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of service pension you are paid.

Your pension has also been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 September 2004.

Payment Information

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

Telephone Allowance

Your quarterly telephone allowance will be paid on 30 September 2004, 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 this letter.  The current quarterly telephone allowance rates are:

Singles Rate - $19.20

Couples Rate (each) - $9.60

World War I Veterans - $70.50

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 gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still 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 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

As Delegate of the Secretary and Repatriation Commission

PAYMENT INFORMATION ATTACHMENT

The Department now calculates 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 30 SEPTEMBER 2004 VeteranPartner

Payment for 14 OCTOBER 2004VeteranPartner

SHARES AND MANAGED INVESTMENTS INFORMATION

(Information current as at 12 September 2004)

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

You are currently paid under the income test.  The total of your assessed gross fortnightly income is $x,xxx.xx.  The total of all your assets (excluding any deductible assets) is $xxx,xxx.xx.

Information about your shares and managed investments is provided below.

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The information below sets out the values for the shares and/or managed investments in your current assessment.

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 Information:  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of service pension you are paid.  If they have changed, please notify the Department immediately.

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if the above list of your Shares and/or Managed Investments is incomplete or incorrect; or if the number of shares or units you hold has changed. Please note that failure to advise of incorrect or missing information about your shares or managed investments, or about other income or asset changes, may lead to your pension being overpaid.  Such overpayments are recoverable.

This is an example of the General Information Sheet (GIS) for Service Pensioners that will be used in the September 2004 mailout.  There is a separate GIS for both income support supplement and age pensioner recipients. Production printing of the GIS is restricted to one page – two images.  PLEASE NOTE:  At the time of issuing this Departmental Instruction the new rates and thresholds were under 'embargo' and until released cannot be 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$464.20 (per fortnight)

Couples Rate (each)$387.60 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$122.00$1,297.00

Couples Rate (combined)$216.00$2,168.50

PENSION ASSETS LIMIT

Pension Before Service ReducesCut Off*

Home Owner

Singles Rate$149,500$309,750

Couples Rate (combined)$212,500$478,000

Non Home Owner

Singles Rate$257,500$420,250

Couples Rate (combined)$320,500$588,500

These pension income and assets limits may increase for each dependent child or student up to the age of 22, or if rent assistance is payable.

NOTE: *Income and assets limits do not apply to blinded service pensioners.

GOLD CARD INCOME AND ASSETS CUT OFF LIMITS

The treatment benefits income and assets limits apply to you if you are an Australian veteran or mariner whose eligibility for the Gold Card is dependent solely on your service pension payment.

INCOME

Singles Rate              $345.75 (per fortnight)

Couples Rate (combined)              $602.00 (per fortnight)

Add $73.60 per fortnight for each dependent child or student to the age of 22.

ASSETS

Home OwnerNon Home Owner

Singles Rate$183,000$293,500

Couples Rate (combined)$269,000$379,500

Add approximately $6,500 for each dependent child or student up to the age of 22.

GOLD CARD INFORMATION

The Gold Card income and assets limits apply if you receive a disability pension below 50% of the general rate and you also receive an amount of service pension.  Should your assessed income or assets exceed these limits you will no longer be eligible for the Gold Card.

The Gold Card income and assets limit do not apply if:

• your disability pension is above 50% of the general rate and you also receive an amount of service pension.  Should your service pension cease due to excess income and assets, you will no longer be eligible for a Gold Card;
• you receive a disability pension at 100% of the general rate, Intermediate rate, EDA or TPI; or
• you are aged 70 years or over and you are a veteran who served in Australia's Defence Force and have qualifying service from any conflict or you are an Australian Mariner with qualifying service from World War II.

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 $36,400

High Rate:- 5% interest for the remaining balance

Couples

Low Rate:- 3% interest up to the threshold of $60,600

High Rate:- 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, any disability pension received, is counted as income and may reduce the rate of rent assistance payable to you or your partner.

Maximum Amount of Rent Assistance Payable (per fortnight)

Singles Rate (no children)$95.40

Couples Rate (combined, no children)$90.20

Rent Thresholds (per fortnight)

Singles Rate (no children)$84.80

Couples Rate (combined, no children) $138.20

EXAMPLE 2A:

• INCREASE FROM LESS THAN MAXIMUM RATE TO MAXIMUM RATE AMOUNT WITH MIs/SHs IN ASSESSMENT
• SERVICE PENSIONER
• SINGLE ASSESSMENT

Dear Mr SMITH,

I am writing to you about your service pension payment from Veterans' Affairs

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your service pension payment and has resulted in an increase to the amount of service pension paid to you.  Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all your shares and/or managed investments regardless of whether there has been a change to that share or managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of service pension you are paid.

Your pension has also been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 September  2004.

Payment Information

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

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive Remote Area Allowance) if your gross income is more than $XXXX.XX per fortnight or the value of your assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still 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 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

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

• Payment Information Attachment - YES

• Shares and/or Managed Investments Information Attachment - YES

• DFISA Information Fact Sheet - Attachment - No

• General Information Sheet - YES

EXAMPLE 3A:

• OVERALL INCREASE – REMAINING ON LESS THAN MAXIMUM RATE OF INCOME SUPPORT SUPPLEMENT WITH MIs/SHs IN ASSESSMENT
• INCOME SUPPORT SUPPLEMENT – SINGLE ADVICE
• NIL TELEPHONE ALLOWANCE IN PAYMENT

Dear Mrs THOMPSON,

I am writing to you about your income support supplement payment from Veterans' Affairs.

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your income support supplement payment and has resulted in an increase to the amount of income support supplement paid to you.  Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all your shares and/or managed investments regardless of whether there has been a change to that share or managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of income support supplement you are paid.

Your pension has also been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 September 2004.

Payment Information

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

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive Remote Area Allowance) if your gross income is more than $XXXX.XX per fortnight or the value of your assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still 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 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

As Delegate of the Secretary and Repatriation Commission

ATTACHMENT

• Payment Information Attachment - YES

• Shares and/or Managed Investments Information Attachment - YES

• DFISA Information Fact Sheet - Attachment - No

• General Information Sheet - YES - PLEASE SEE EXAMPLE OF THE GIS PRODUCED FOR ISS RECIPEINTS ON NEXT PAGE

This is an example of the General Information Sheet (GIS) for Income Support Supplement e Pensioners that will be used in the September 2004 mailout - provided to show wording changes due to implementation of DFISA - see highlighted paragraphs.  There is a separate GIS for both service pensioner and age pensioner recipients. Production printing of the GIS is restricted to one page – two images.  PLEASE NOTE: PLEASE NOTE:  At the time of issuing this Departmental Instruction the new rates and thresholds were under 'embargo' and until released cannot be updated to reflect changes.

GENERAL INFORMATION SHEET ON INCOME SUPPORT SUPPLEMENT RATES AND LIMITS

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

MAXIMUM RATES OF INCOME SUPPORT SUPPLEMENT

War Widows and Widowers$137.90

If you have continuously received income support supplement (ISS) since before 31 October 1986, the ceiling rate is the amount payable immediately prior to 1 November 1986.

INCOME LIMIT (per fortnight)

Before ISS ReducesCut Off*

Singles Rate$ 937.75$1,282.50

Couples Rate (combined)$1,464.50$2,154.00

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

War Widow's pension is income for the purposes of income support supplement.  Adjusted disability pension paid by Veterans' Affairs is not income for the purposes of income support supplement.

ASSETS LIMIT

Before ISS reducesCut Off*

Home Owner

Singles Rate$261,750$307,750

Couples Rate (combined)$383,500$476,000

Non Home Owner

Singles Rate$372,250$418,250

Couples Rate (combined)$494,000$586,500

These rates 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 apply to all income support supplement recipients, except blinded recipients.

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 $36,400

High Rate:- 5% interest for the remaining balance

Couples

Low Rate:- 3% interest up to the threshold of $60,600

High Rate:- 5% interest for the remaining balance

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 the set limits.

When calculating the amount of rent assistance payable, any adjusted disability pension received is counted as income and may reduce the rate of rent assistance payable to you or your partner.

Maximum Amount of Rent Assistance Payable (per fortnight)

No children1-2 children3 or more children

Singles Rate$95.40$112.14$126.70

Couples Rate (combined)$90.20$112.14$126.70

Rent Limits (per fortnight)

No children1-2 children3 or more children

Singles Rate$  84.80$111.72$111.72

Couples Rate (combined)$138.20$165.34$165.34

IMPORTANT:  Please note although rent assistance may be payable, the maximum combined rate of income support supplement and rent assistance cannot exceed the maximum

EXAMPLE 4A:

• SERVICE PENSION - REDUCTION TO NIL WITH MIs/SHs IN ASSESSMENT
• SINGLE ASSESSMENT
• NIL TELEPHONE ALLOWANCE IN PAYMENT

Dear Mr TELL,

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

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your service pension payment and has resulted in your service pension being reduced to nil.  Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all your shares and/or managed investments regardless of whether there has been a change to that share and managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of service pension you are paid.

Your pension has also been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

Your service pension has been reduced to nil because your income and/or assets exceed the limits that allow for payment of the pension.

This change will take effect from 20 September 2004.

Payment Information

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

Fringe Benefits

As you are no longer eligible for a service pension you no longer qualify for fringe benefits from this Department.  Please destroy your existing Pensioner Concession Card.

Your Right to Re-Apply

You may re-apply to have your service pension restored at any time if your income and/or assets fall below the limits that would allow for payment of the pension.

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

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

• Payment Information Attachment - YES

• Shares and/or Managed Investments Information Attachment - YES

• DFISA Information Fact Sheet - Attachment - No

• General Information Sheet - YES

ATTACHMENT B - DFISA LETTERS

EXAMPLE 1B:

• AGE PENSION PAID > 0

• OVERALL INCREASE
• DFISA COMMENCEMENT
• WITH MIs/SHs IN ASSESSMENT.
• TELEPHONE ALLOWANCE IN PAYMENT

Dear Mr JOHNSTON,

I am writing to you about your age pension payment from Veterans' Affairs and commencement of Defence Force Income Support Allowance (DFISA).

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your age pension payment and has resulted in an increase to the amount of age pension paid to you.  Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all your shares and/or managed investments regardless of whether there has been a change to that share or managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of age pension you are paid.

Your pension has also been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 September 2004.

Payment Information

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

Defence Force Income Support Allowance (DFISA)

DFISA is a payment made under the Veterans' Entitlements Act 1986 by Veterans' Affairs.  DFISA is payable when your age pension is reduced or not payable because of adjusted disability pension paid by Veterans' Affairs.

DFISA is the difference between the amount of your age pension and what it would be if adjusted disability pension was not included in your income assessment but was included in the calculation of any rent assistance you may be entitled to.

The calculation of the rate of DFISA is based on your age/wife pension assessment.  If you wish to request a review of your pension assessment please see the paragraph below titled 'Your Right of Review'.

For further information on DFISA, please refer to the DFISA Attachment included in this letter.

Telephone Allowance

Your quarterly telephone allowance will be paid on 30 September 2004, 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 this letter.  The current quarterly telephone allowance rates are:

Singles Rate - $19.20

Couples Rate (each) - $9.60

World War I Veterans - $70.50

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas) if your combined gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters.  These obligations still 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 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, arrears can only be paid from the date we receive your application.  Requests for review may be made in person, by telephone or 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 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

As Delegate of the Secretary

PAYMENT INFORMATION ATTACHMENT

The Department now calculates 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.

Because you have been granted DFISA from 20 September 2004, your DFISA payment on 30 September 2004 will consist of 8 days of entitlement.  The payment on 14 October 2004 will consist of the full 14 days entitlement.

Payment for 30 SEPTEMBER 2004 Veteran

Payment for 14 OCTOBER 2004Veteran

SHARES AND MANAGED INVESTMENTS INFORMATION

(Information current as at 12 September 2004)

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

You are currently paid under the income test.  The total of your assessed gross fortnightly income is $x,xxx.xx.  The total of all your assets (excluding any deductible assets) is $xxx,xxx.xx.

Information about your shares and managed investments is provided below.

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The information below sets out the values for the shares and/or managed investments in your current assessment.

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 Information:  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of age pension you are paid.  If they have changed, please notify the Department immediately.

You need to tell us within 14 days (28 days if you are living overseas) if the above list of your Shares and/or Managed Investments is incomplete or incorrect; or if the number of shares or units you hold has changed. Please note that failure to advise of incorrect or missing information about your shares or managed investments, or about other income or asset changes, may lead to your pension being overpaid.  Such overpayments are recoverable.

Defence Force Income Support Allowance

What is the Defence Force Income Support Allowance (DFISA)?

You are now receiving a new payment called the Defence Force Income Support Allowance (DFISA).  You are receiving this payment because either you or your partner receive adjusted disability pension from Veterans' Affairs and your social security income support payment is reduced (possibly to nil) because of the impact of that payment.

What is Adjusted Disability Pension?

Adjusted DP means:

disability pensions paid under Parts II or IV of the Veterans' Entitlements Act 1986 (VEA); or

dependant pension, which is a small frozen amount paid to dependants of disability pensioners, not granted since 1986; or

temporary incapacity allowance; or

permanent impairment payments and special rate disability pension paid under the Military Rehabilitation and Compensation Act 2004.

Income Support Payments

Social security income support payments are generally paid by Centrelink.  However, veterans who receive adjusted disability pension, and their partners, can choose to be paid their social security age or wife pension by Veterans' Affairs rather than Centrelink.

Other social security income support payments are only paid by Centrelink; these include:

Disability support pensionCarer payment

Newstart allowancePartner allowance

Parenting paymentSickness allowance

Bereavement allowanceWidow B pension

Youth allowanceAustudy payment

Widow allowanceMature age allowance

Special benefit

How much DFISA will I receive?

DFISA will be the difference between your social security income support payment, and what your payment would be if adjusted DP was exempt but was assessed in the calculation of rent assistance.

Your assessed social security payment, including rent assistance, has not changed as a result of receiving DFISA.

If you are receiving your social security age or wife pension from Veterans' Affairs.

Veterans' Affairs calculates the amount of DFISA to which you are entitled.

Your obligations and fringe benefits (such as your Pensioner Concession Card) are administered by Veterans' Affairs.

If you are receiving your social security payment from Centrelink.

Centrelink calculates the amount of DFISA payable.  Centrelink advises Veterans' Affairs of the amount and Veterans' Affairs makes the payment.

Centrelink continues to administer all aspects of your social security payment.  Your obligations to report all relevant changes in circumstances, as advised by Centrelink, continue.  If your social security payment entitles you to a concession card, such as a Pensioner Concession Card or a Health Care Card, this will be provided by Centrelink.

You must still advise Veterans' Affairs if your postal address changes.

This is an example of the General Information Sheet (GIS) for Age Pensioners that will be used in the September 2004 mailout.  There is a separate GIS for both income support supplement and service pensioner recipients. Production printing of the GIS is restricted to one page – two images.  PLEASE NOTE:  At the time of issuing this Departmental Instruction the new rates and thresholds were under 'embargo' and until released cannot be updated to reflect changes.

GENERAL INFORMATION ON AGE PENSION RATES AND LIMITS

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

MAXIMUM RATES OF AGE PENSION

Singles Rate$464.20 (per fortnight)

Couples Rate (each)$387.60 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Age Pension ReducesCut Off*

Singles Rate$122.00$1,282.50

Couples Rate (combined)$216.00$2,154.00

PENSION ASSETS LIMIT

Before Age Pension ReducesCut Off*

Home Owner

Singles Rate$153,000$309,750

Couples Rate (combined)$217,500$478,000

Non Home Owner

Singles Rate$263,500$420,250

Couples Rate (combined)$328,000$588,500

These limits may increase for each dependent child or student up to the age of 22, or if rent assistance is payable.

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 $36,400

High Rate:- 5% interest for the remaining balance

Couples

Low Rate:- 3% interest up to the threshold of $60,6000

High Rate:- 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.

Maximum Amount of Rent Assistance Payable (per fortnight)

No Children1-2 Children3 or more children

Singles Rate $95.40$112.14$126.70

Couples Rate (combined)$90.20$112.14$126.70

Rent Limits (per fortnight)

No Children1-2 Children3 or more children

Singles Rate $84.80$111.72$111.72

Couples Rate (combined)$138.20$165.34$165.34

HOW DISABILITY PENSION AFFECTS AGE PENSION

Disability pension is counted as income in the assessment of your age pension.

DEFENCE FORCE INCOME SUPPORT ALLOWANCE (DFISA)

If your age pension is reduced because of adjusted disability pension you may be entitled to receive DFISA.  The amount of DFISA you are entitled to will be automatically calculated and paid to you.

EXAMPLE 2B:

• AGE PENSION PAID > 0
• DFISA COMMENCEMENT
• WITHOUT MIs/SHs IN ASSESSMENT.
• TELEPHONE ALLOWANCE IN PAYMENT

Dear Mr ROBINSON,

I am writing to you about your age pension payment from Veterans' Affairs and commencement of Defence Force Income Support Allowance (DFISA).

Change to Age Pension due to CPI & MTAWE

Your pension has been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 September 2004.

Payment Information

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

Defence Force Income Support Allowance (DFISA)

DFISA is a payment made under the Veterans' Entitlements Act 1986 by Veterans' Affairs.  DFISA is payable when your age pension is reduced or not payable because of adjusted disability pension paid by Veterans' Affairs.

DFISA is the difference between the amount of your age pension and what it would be if adjusted disability pension was not included in your income assessment but was included in the calculation of any rent assistance you may be entitled to.

The calculation of the rate of DFISA is based on your age pension assessment.  If you wish to request a review of your pension assessment please see the paragraph below titled 'Your Right of Review'.

For further information on DFISA, please refer to the DFISA Attachment included in this letter.

Telephone Allowance

Your quarterly telephone allowance will be paid on 30 September 2004, 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 this letter.  The current quarterly telephone allowance rates are:

Singles Rate - $19.20

Couples Rate (each) - $9.60

World War I Veterans - $70.50

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas) if your combined gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters.  These obligations still 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 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, arrears can only be paid from the date we receive your application.  Requests for review may be made in person, by telephone or 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 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

As Delegate of the Secretary

• Payment Information Attachment - Yes
• Shares and Managed Investments Information Attachment - No
• DFISA Information Fact Sheet - Attachment - Yes
• General Information Sheet - Yes

EXAMPLE 3B:

• AGE PENSION REDUCTION TO NIL
• DFISA COMMENCEMENT
• WITH MIs/SHs IN ASSESSMENT.
• NIL TELEPHONE ALLOWANCE IN PAYMENT

Dear Mr PHILLIPS,

I am writing to you about your age pension payment from Veterans' Affairs and commencement of Defence Force Income Support Allowance (DFISA).

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your age pension payment and has resulted in your age pension being varied to nil.  Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter.  This Attachment details all your shares and/or managed investments regardless of whether there has been a change to that share or managed investment.  It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they have not been changed in this assessment.  However, they continue to be used in assessing the amount of age pension you are paid.

Your pension has also been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 September 2004.

Age Pension Payable at Nil

Your age pension is payable at nil rate.

Although no amount of age pension is payable to you because your or your partner's income is above the limit, you continue to be an age pensioner.  This means that you continue to be entitled to fringe benefits such as the pensioner concession card.  Your requirement to report all changes in circumstances to Veterans' Affairs also continues.

Payment Information

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

Defence Force Income Support Allowance (DFISA)

DFISA is a payment made under the Veterans' Entitlements Act 1986 by Veterans' Affairs.  DFISA is payable when your age pension is reduced or not payable because of adjusted disability pension paid by Veterans' Affairs.

DFISA is the difference between the amount of your age pension and what it would be if adjusted disability pension was not included in your income assessment but was included in the calculation of any rent assistance you may be entitled to.

The calculation of the rate of DFISA is based on your age pension assessment.  If you wish to request a review of your pension assessment please see the paragraph below titled 'Your Right of Review'.

For further information on DFISA, please refer to the DFISA Attachment included in this letter.

Pensioner Concession Card

You will continue to be eligible for the Pensioner Concession Card because you remain an age pensioner.  You should continue to use your current Pensioner Concession Card for concession purposes.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas) if your combined gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters.  These obligations still 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 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, arrears can only be paid from the date we receive your application.  Requests for review may be made in person, by telephone or 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 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

As Delegate of the Secretary

• Payment Information Attachment - Yes
• Shares and Managed Investments Information Attachment - Yes
• DFISA Information Fact Sheet - Attachment - Yes
• General Information Sheet - Yes

EXAMPLE 4B:

• AGE PENSION REDUCTION TO NIL
• DFISA COMMENCEMENT
• WITHOUT MIs/SHs IN ASSESSMENT.
• TELEPHONE ALLOWANCE IN PAYMENT

Dear Mr PACKER,

I am writing to you about your age pension payment from Veterans' Affairs and commencement of Defence Force Income Support Allowance (DFISA).

Change to Age Pension due to CPI & MTAWE

Your pension has been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 September 2004.

Age Pension Payable at Nil

Your age pension is payable at nil rate.

Although no amount of age pension is payable to you because your or your partner's income is above the limit, you continue to be an age pensioner.  This means that you continue to be entitled to fringe benefits such as the pensioner concession card.  Your requirement to report all changes in circumstances to Veterans' Affairs also continues.

Payment Information

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

Defence Force Income Support Allowance (DFISA)

DFISA is a payment made under the Veterans' Entitlements Act 1986 by Veterans' Affairs.  DFISA is payable when your age pension is reduced or not payable because of adjusted disability pension paid by Veterans' Affairs.

DFISA is the difference between the amount of your age pension, and what it would be if adjusted disability pension was not included in your income assessment but was included in the calculation of any rent assistance you may be entitled to.

The calculation of the rate of DFISA is based on your age pension assessment.  If you wish to request a review of your pension assessment please see the paragraph below titled 'Your Right of Review'.

For further information on DFISA, please refer to the DFISA Attachment included in this letter.

Telephone Allowance

Your quarterly telephone allowance will be paid on 30 September 2004, 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 this letter.  The current quarterly telephone allowance rates are:

Singles Rate - $19.20

Couples Rate (each) - $9.60

World War I Veterans - $70.50

Pensioner Concession Card

You will continue to be eligible for the Pensioner Concession Card because you remain an age pensioner.  You should continue to use your current Pensioner Concession Card for concession purposes.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas) if your combined gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters.  These obligations still 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 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, arrears can only be paid from the date we receive your application.  Requests for review may be made in person, by telephone or 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 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

As Delegate of the Secretary

• Payment Information Attachment - Yes
• Shares and Managed Investments Information Attachment - No

DFISA Information Fact Sheet - Attachment - Yes

• General Information Sheet - Yes

ATTACHMENT C

IPS CENTRELINK DFISA BATCH PROCESSING

EXAMPLE 1C:

• CENTRELINK DFISA BATCH PROCESSING
• DFISA COMMENCEMENT