C14/2004 JUNE 2004 STATUTORY INCREASE - ADVICE LETTER, PAYMENT SUMMARY AND MEDICARE LEVY EXEMPTION CERTIFICATE PRODUCTION AND MAILOUT

DATE OF ISSUE: 18 JUNE 2004

JUNE 2004 STATUTORY INCREASE - ADVICE LETTER, PAYMENT SUMMARY AND MEDICARE LEVY EXEMPTION CERTIFICATE PRODUCTION AND MAILOUT

Purpose of Instruction

This Departmental Instruction is to provide information about the processing arrangements for the June 2004 Statutory Increase (SI) advice letter, Payment Summary, and Medicare Levy Exemption Certificate production and mailout.

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT

17 June 2004

Overview

Introduction

In June each year, the Department undertakes a bulk exercise to issue approximately 350,000 households with advice letters to persons in receipt of service pension, age pension or income support supplement. The majority of these letters will include PAYG (Pay As You Go) Payment Summaries for the end of the financial year.

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

Significant Issues

The June 2004 mailout will incorporate the following events for payday 8 July 2004.

Production of advice letters to all service pensioners, age pensioners and income support supplement recipients;
Adjustment of pension rates, and allowances in line with adjustments to the Income Free Area and Assets Free Area thresholds;
Increase to the deeming thresholds – singles rate from $35,600 to $36,400 and couples rate from $59,400 to $60,600;
A Full Income and Assets Attachment will be provided for - all less than maximum rate pensioners who are either assets tested or income tested where the total of their assets is within (or equal) to $10,000 of their prescribed assets limit;

Significant Issues Continued

A Tailored Income and Assets Attachment will be provided for - all less than maximum rate pensioners who are income tested and where the total of their assets is greater than $10,000 below their prescribed assets limit;

Full Obligations will be provided for all less than maximum rate pensioners - this is in line with the Repatriation Commission policy that pensioners receiving reduced rate of pension are provided with their full obligations and full income and asset details at a minimum interval of once every two years;
Full obligations will be suppressed for all maximum rate pensioners, however reference will be made to previous obligations issued;
Maximum rate pensioners will receive the Financial Obligations paragraph (including their Prescribed Rates) in their advice letter;
End of financial year Payment Summary production;
Standalone Payment Summaries ie., payment summaries without a covering letter, and Statement of Earnings – issued to those eligible pensioners who do not receive an advice letter;

Production of Medicare Levy Exemption Certificates (MLEC);
Advice to pensioners of any gain or loss of treatment eligibility; and
Payment of Telephone Allowance to those eligible.

Production of Advice Letters

Processing Weekend -

18/06/04 -

20/06/04

Processing is scheduled to run from Friday evening 18 — th June 2004 until Sunday, 20 — th June 2004 with any pension variations effective from 1 July 2004 for payday 8 July 2004.

Critical Dates

Processing period within DVA - (includes 'advices' processing).	Friday (pm) 18 — th June 2004 – Sunday (pm) 20 — th June 2004
Commence printing advice letters (SMS)	Tuesday, 22 — nd June 2004
Progressive lodgement of all State's Advice Letters with Australia Post (SMS) to be completed.	Friday, 2 — nd July 2004

Letter Production

Security Mailing Services, Kingsgrove, Sydney will print the advice letters, add inserts and envelope them. Production of letters is expected to occur over the period 22 — nd June – 2 — nd July 2004.

Lodgement of Letters

Letters will be progressively lodged with Australia Post for posting commencing Monday, 28 — th June 2004. All letters are to be posted by Friday, 2 — nd July 2004.

Letter Content

Letters

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

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

Full Obligations - for All Less than Maximum Rate Pensioners

Full Obligations are to be provided for all less than maximum rate SP/ISS/AP recipients. This is in line with the Repatriation Commission policy that pensioners receiving reduced rate of pension are provided with their full obligations and full income and asset details at a minimum interval of once every two years. Full Obligations were last issued to this group in June 2002.

Financial Obligations including Prescribed Rates for Maximum Rate Pensioners

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

Full Income and Assets Attachment

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

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

Tailored Income and Assets Attachment

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

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

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

Assets to be excluded are:

Home contents;
Vehicles, boats, trailers, caravans, motor bikes;
Life insurance;
Collectibles; and
Other personal assets.

A paragraph is included in the Tailored Income and Assets Attachment advising pensioners that some of the miscellaneous assets recorded in their pension assessment that do not currently affect the rate of pension they are paid, are not listed in the attachment.

Telephone Allowance

Pensioners entitled to a telephone allowance payment will receive a paragraph advising them about their quarterly payment and the date of that payment – 8 July 2004. The TA paragraph will advise pensioners that ....'TA is a separate payment and is not included in your total fortnightly payment information referred to in the letter.'

Non Taxable Pensioners

Those pensioners whose pensions are not taxable (eg, service pension on the grounds of permanent incapacity and under 65 years of age for males, 62.5 years for females) will receive an advice letter only – they will not receive a payment summary. Where eligible, a Medicare Levy Exemption Certificate (MLEC) will be issued separately to these clients. Their MLEC certificates will be sent from the mailing house directly to them.

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

Service Pension, or

Age Pension, or
Income Support Supplement

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

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

Payment Summaries for those pensioners who have had PAYG withholding's (tax deductions) during the year, will form part of the advice letter sent from the mailing house.

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

Page numbering will be included on the Payment Summary – in previous years no page number printed on the Payment Summary but printed on the General Information Sheet (GIS), which prints after the Payment Summary. This caused numerous concerns for clients thinking pages were missing.

Standalone Payment Summaries - to be returned to State Offices for Dispatch

Standalone PAYG Payment Summaries - do not have a covering advice letter and will be issued to the following client groups:

Eligible Veterans' Children Education Scheme (VCES) Recipients;
Working Rule B Widows,

Those pensioners who are no longer in payment and do not receive an advice but a payment summary for that part of the year for which they were in payment – Payment Summaries for Overseas addressees and Unknown addressees also print as part of this category.

Standalone Payment Summaries for those listed above are to be printed at the Mailing House and returned to the State Offices for distribution.

Please note: Payment Summaries for clients who have died during the financial year will not be printed at the Mailing House. The State Offices are able to re-print deceased clients' Payment Summaries on request.

Automatic Payment Summary (Group Certificate) Reprint Facility

From 1 July 2004, reprints of payment summaries for financial year 2003/2004 can be generated using the 'Payment Summary Reprint' facility located under the Advices Tab in VIEW - this replaces the provision of a Payment Summary Template used in previous years.

Please note: the 'year of issue' will not print in the Payment Summary heading for reprinted payment summaries requested via VIEW. The 'Payment From' and 'Payment To' date range will accurately reflect the correct year/dates payment range. The 'Authorising Person' will reflect the respective State's Deputy Commissioner based on the date the reprint is requested.

Medicare Levy Exemption Certificates

(MLEC)

A Medicare Levy Exemption Certificate will be issued to those Gold Card beneficiaries who are not in receipt of a taxable income support pension and who do not receive an advice letter ie,

War widows who do not receive income support supplement; or
Those veterans who are eligible for a gold card due to their disability entitlement, and who are not in receipt of an income support payment; or
Australian veterans with Qualifying Service and over 70 years of age, who are not in receipt of an income support payment; or
Those pensioners whose pensions are not taxable (eg, service pension on the grounds of permanent incapacity and under 65 years of age for males, 62.5 years for females).

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

Medicare levy exemption days - blinded Income Support pensioners

Blind veterans and spouses in receipt of an Income Support payment are eligible for full or half Medicare Levy exemption. The number of eligible exemption days will be printed on their Payment Summaries.

This affects approximately 660 clients.

Re-issuing MLECs

System Support Officers and State Office contact officers will be provided with a Medicare Levy Exemption Certificate (MLEC) word template for re-issuing MLECs if required.

Tasmanian Clients with Overseas Address

Tasmanian State Office clients who have an overseas postal address will have their overseas postal address printed on their advice letters.

The advice letters for Tasmanian overseas clients will be printed, enveloped and sent from the mailing house.

General Information Sheet (GIS)

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

Letter Content

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

Insert

A 'pensioner flyer' produced by the Australian Taxation Office (ATO), in conjunction with Centrelink and DVA will be included with all advice letters and Medicare Levy Exemption Certificates issued in this exercise. This flyer is designed to significantly reduce the number of queries the State Offices may receive about taxation matters. The brochure is titled “Do you Need to lodge a Tax Return?”.

Each of the State offices will be supplied with a quantity of the flyers for their information and to insert with their Group Destination, Enclosures and Standalone Payment Summaries.

Pensioners to Contact ATO with Taxation Questions

It is important for DVA staff to note that Pensioners have been advised in their letters to contact the Australian Taxation Office on 13 28 61 if they should have any questions about taxation. Should pensioners ring DVA offices with questions relating to taxation matters – Staff should refer them to the Australian Taxation Office on 13 28 61.

DVA staff must not offer advice about taxation liability, or the need to lodge a taxation return.

Issues Requiring State Office Action

Group Destination Advices

Group Destination advices where the address is that of the Public Trustee will be streamed and printed at the IBM Printhub at St Leonards in Sydney and forwarded to each State Office for checking and dispatch.

ZIP Files of Advice Schedule Reports

A Zip File listing details of all clients who receive an advice will be emailed to the System Support Officer in each State during the week following the processing run. The Zip File replaces the Advices Schedule Report, which is too large to print on the State Office Printers.

Enclosure Letters

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

'HELD' Advices to be Forced

As part of the Batch processing run all advices in 'Held' status will be forced to print. Forced 'held' advices will now print in each respective State Office's nominated printer as part of the production run. Please ensure your nominated printer is fully operational over the processing weekend as the forced advices will print during that time. All forced advices will need to be checked to ensure the information in them is correct prior to posting.

Handling of Daily Advices

Cases processed prior to the SI run for payday 8 — th July 2004 should have the daily advice dispatched prior to the June advice letter being sent.

Daily payment advices processed after the processing run on 18 — th –20 — th June 2004 for payday 8 — th July 2004, should be held by the State Offices until confirmation is received from the June SI Business Co-ordinator to release such advices. This will ensure that pensioners who have pension variations processed for payday 8 — th July 2004 will receive their daily advice after the quarterly advice rather than in advance of it.

To minimise the number of daily advices to be held while the June advices are processed, it is suggested that only manual cases (and essential processing) should be processed for payday 8 — th July 2004.

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

Following the June Statutory Increase 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 Contact Officers

NSW - Genia Sacharczuk - 02 9213 7106

VIC - David Price - 03 9284 6379

QLD - Steve Jensen - 07 3223 8835

SA - Graham Bate - 08 8290 0425

WA - John Gliddon - 08 9366 8417

TAS - Bryon Kelly - 03 6221 6684

ACT – 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 June SI Business Co-ordinator in National Office - Pat Webb. At the end of this process we will be collating all State feedback to analyse any issues raised and develop solutions to address any concerns raised. Any problems noted should be reported to the Business Co-ordinator, together with any background information detailing the issue. Please ensure that any problems are reported as early as possible.

Contacts

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

Pat Webb

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

(02) 9213 7889 (Fax)

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

Systems issues should be directed to:

Warren Walsh via email (warren.walsh@dva.gov.au) or Renee Arkinstall on either (02) 6289 6777 or Speed dial: 16777.

ATTACHMENT A

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

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

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

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

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

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

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

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

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

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

Full Obligations will be sent to:

All Less than Maximum Rate SP/ISS/AP pensioners

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

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

WILL NOT receive

Full Income and Assets Attachment
Full Obligations

ATTACHMENT B

JUNE 2004 SI PARAGRAPH CONTENT

Example 1:

SERVICE PENSION
LESS THAN MAXIMUM RATE - VARIATION (INCREASE)
ASSETS TESTED

JOINT ASSESSMENT

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

GPO Box 651, Brisbane QLD 4001

Contact:

Telephone:State Office

Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

JOHN SMITH — GPO Box 651 Brisbane Qld 4001

MARY SMITH — Telephone:

29 MARGARGET STREET — General inquiries: 133 254

IPSWICH QLD 4010 — Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 32238585

19 June 2004

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs SMITH,

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

This is to advise you that your service pension has been increased. This change will take effect from 1 July 2004.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for service pension:

Income Free Area - this is the amount of income you can have before your service pension is reduced below the maximum rate payable;

Assets Value Limit - this is the amount of assets you can have (other than your family home) before your service pension is reduced below the maximum rate payable;

Deeming Thresholds – these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of service pension.

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

Payment Information

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

Payment Summaries

As it is the end of the 2003/2004 financial year Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.

Payment Summary for JOHN SMITH is enclosed with this letter.

Payment Summary for MARY SMITH is enclosed with this letter.

Medicare Levy Exemption

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

You should contact the Australian Taxation Office on 13 28 61 if you have any questions about taxation.

Telephone Allowance

Your quarterly telephone allowance will be paid on 8 July 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 the letter. The current telephone allowance rates are:

Singles Rate - $19.20

Couples Rate (each) - $9.60

World War I Veterans - $70.50

Your Income and Assets

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

Events You Must Tell Us About

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

Changes You Have Already Told Us About

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent. If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised. This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office. If you do decide to apply, you must do so within three months of being advised of this decision. Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions 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 service pension payments on a daily basis. This means that your fortnightly pension payment is made up of 14 days of entitlement of pension. Therefore, when there is a change to your circumstances on any particular day in the fortnight - your pension will be adjusted from that day. For that reason your pension payment may be different for one or two paydays after a reassessment.

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

Payment for 8 JULY 2004VeteranPartner

TOTAL FORTNIGHTLY PAYMENT — xxx.xx — xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.xx

Payment for 22 JULY 2004VeteranPartner

TOTAL FORTNIGHTLY PAYMENT — xxx.xx — xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.xx

INCOME AND ASSETS USED TO ASSESS YOUR PAYMENT

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

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

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

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

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

FINANCIAL ASSETS

Savings and Cheque Accounts

Description	Account Number	Asset Amount
XXXXXXXX	XXXXXXXXXXX	$ XX.XX
XXXXXXXX	XXXXXXXX	$XXX.XX

Listed Securities and Unlisted Public Securities

Description	No. of Shares	Asset Amount
XXXXXX	X,XXX	$XX,XXX.XX
QQQQQQQQQQQQQ	XXX	$ X,XXX.XX

Managed Investments

Description	Units	Asset Amount
VVVVVVVVVV	XX	$XX.XX
CCCCCCCCCCCCC	XXX	$XX.XX

Note: Income from financial assets is deemed.

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

Total Financial Assets

FINANCIAL ASSETS VALUE	DEEMED INTEREST RATE	DEEMED INCOME PER FORTNIGHT
$XX,XXX.XX	3.5%	$X.XX
$ XX.XX	5.5%	$X.XX
$XX,XXX.XX		$XX.XX

What is Deemed Income?

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

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

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

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

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

OTHER INCOME AND ASSETS

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

Home Assets

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

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

Miscellaneous Assets

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

Direct Income

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

Total of Income and Assets

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

STATEMENT OF OBLIGATIONS

IMPORTANT INFORMATION YOU SHOULD RETAIN

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

Events You Must Tell Us About

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

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

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

Obligations - Financial

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

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

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

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

Some examples of what you need to tell us about

Increases to the total value of your financial investments.

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

Some examples of what you need to tell us about

(This information is obtained from the finance industry)

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

Obligations – Domestic Situation

You must tell us if:

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

Obligations – Homeowner

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

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

Obligations – General

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

Conclusion

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

2004 PAYG Payment Summary – Individual Non Business

Service Pension

Original

DVA File No: QX999999

Payer's ABN:

2396 4290 824

Tax File Number: 111 111 111

Payment From: 01/07/2003

Payment to:30/06/2004

DOB: 26/02/1971

Client's Name

1st Line of Client's Address

2nd Line of Client's Address

3rd Line of Client's Address

Gross payments:

$0.00

Medicare Levy

Full or Half

Exemption Days: 0

Remote Area

Allowance: $0.00

ThousandsHundredsTensUnits

Total tax withheld -

whole dollars only in wordsNIL NIL NIL NIL

Total tax withheld (whole dollars)$0.00

Authorised Person:17/06/04

THIS BOX DOES NOT PRINT IN PRODUCTION VERSION

2004 PAYG Payment Summary – Individual Non Business

Service Pension

CLIENT COPY

DVA File No: QX999999

Payer's ABN: 2396 4290 824

Tax File Number: 111 111 111

Payment From: 01/07/2003

Payment to: 30/06/2004

DOB: 26/02/1971

Client's Name

1st Line of Client's Address

2nd Line of Client's Address

3rd Line of Client's Address

Gross payments:

$0.00

Medicare Levy

Exemption Days: 0

Remote Area

Allowance: $0.00

ThousandsHundredsTensUnits

Total tax withheld - NIL NIL NIL NIL

whole dollars only in words

Total tax withheld (whole dollars)$0.00

Authorised Person:17/06/04

THIS BOX DOES NOT PRINT IN PRODUCTION VERSION

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

See Notes On Reverse →

Notes

Total Tax Withheld

If you have an amount in this box you need to lodge a tax return. This ensures that you receive any refunds of tax you may be entitled to.

2. Gross payments

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

3. Remote Area Allowance (RAA)

This amount is not taxable but if you need to lodge a tax return it will reduce any tax offset you may be entitled to.

4. Medicare Levy Exemption

The holders of Veterans' Affairs Gold treatment cards are eligible for a full or half exemption from the payment of the Medicare levy. Where applicable, the number of Medicare levy full or half exemption days is shown on this form. If you need to lodge a tax return the number of days shown will need to be stated at the relevant Medicare levy question.

5. Further assistance

If you have any taxation enquiries, particularly in relation to whether you qualify for a full or half Medicare levy exemption, read the Medicare levy section in TaxPack 2004 or Retirees TaxPack 2004, or call the Australian Taxation Office on 13 28 61. Pension enquiries should be directed to the Department of Veterans' Affairs.

Notes

1. Total tax withheld

If you have an amount in this box you need to lodge a tax return. This ensures that you receive any refunds of tax you may be entitled to.

2. Gross payments

3. Remote Area Allowance (RAA)

This amount is not taxable but if you need to lodge a tax return it will reduce any tax offset you may be entitled to.

4. Medicare Levy Exemption

5. Further assistance

If you have any taxation enquiries, particularly in relation to whether you are qualify for a full or half Medicare levy exemption, read the Medicare levy section in TaxPack 2004 or Retirees TaxPack 2004, or call the Australian Taxation Office on 13 28 61. Pension enquiries should be directed to the Department of Veterans' Affairs.

This is an example of the General Information Sheet (GIS) for Service Pensioners that will be used in the June 2004 mailout. There is a separate GIS for income support supplement and age pensioner recipients. Production printing of the GIS is restricted to one page – two images.

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 Reduces — Cut Off*

Singles Rate$122.00$1,297.00

Couples Rate (combined)$216.00$2,168.50

PENSION ASSETS LIMIT

Before Service Pension Reduces — Cut 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 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 2:

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

SINGLE ASSESSMENT

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

GPO Box 651, Brisbane QLD 4001

Contact:

Telephone:State Office

Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

MR FRED JOHNSTON — GPO Box 651 Brisbane Qld 4001

17 EDWIN STREET — Telephone:

IPSWICH QLD 4010 — General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 32238585

19 June 2004

YOUR FILE NUMBER IS QX123456

Dear Mr JOHNSTON,

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

This is to advise you that your service pension has been increased. This change will take effect from 1 July 2004.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for service pension:

Income Free Area - this is the amount of income you can have before your service pension is reduced below the maximum rate payable;

Assets Value Limit - this is the amount of assets you can have (other than your family home) before your service pension is reduced below the maximum rate payable;

Deeming Thresholds – these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of service pension.

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

Payment Information

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

Payment Summaries

As it is the end of the 2003/04 financial year Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.

Payment Summary for MR FRED JOHNSTON is enclosed with this letter.

Medicare Levy Exemption

You should contact the Australian Taxation Office on 13 28 61 if you have any questions about taxation.

Your Income and Assets

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

Events You Must Tell Us About

Changes You Have Already Told Us About

Your Right of Review

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS – in the Sequential Order of printing

Payment Information Attachment - YES

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

General Information Sheet - YES

Example 3:

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

JOINT ASSESSMENT

TA IN PAYMENT
TAXABLE
TAILORED INCOME AND ASSETS ATTACHMENT ie., excluding all miscellaneous assets apart from those which earn income
FULL OBLIGATIONS
PAYMENT SUMMARIES ENCLOSED
GIS

GPO Box 651, Brisbane QLD 4001

Contact:

Telephone:State Office

Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

MR THOMAS JONES — GPO Box 651 Brisbane Qld 4001

MRS SYLVIA JONES — Telephone:

55 SMITH STREET — General inquiries: 133 254

IPSWICH QLD 4010 — Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 32238585

19 June 2004

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs JONES,

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

This is to advise you that your service pension has been increased. This change will take effect from 1 July 2004.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for service pension:

Income Free Area - this is the amount of income you can have before your service pension is reduced below the maximum rate payable;

Assets Value Limit - this is the amount of assets you can have (other than your family home) before your service pension is reduced below the maximum rate payable;

Deeming Thresholds – these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of service pension.

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

Payment Information

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

Payment Summaries

As it is the end of the 2003/04 financial year Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.

Payment Summary for MR THOMAS JONES is enclosed with this letter.

Payment Summary for MRS SYLVIA JONES is enclosed with this letter.

Medicare Levy Exemption

You should contact the Australian Taxation Office on 13 28 61 if you have any questions about taxation.

Telephone Allowance

Singles Rate - $19.20

Couples Rate (each) - $9.60

World War I Veterans - $70.50

Your Income and Assets

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

Events You Must Tell Us About

Changes You Have Already Told Us About

Your Right of Review

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

Payment Information Attachment - YES

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

General Information Sheet - YES

SAMPLE - TAILORED INCOME AND ASSETS ATTACHMENT- SAMPLE

INCOME AND ASSETS USED TO ASSESS YOUR PAYMENT

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

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

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

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

FINANCIAL ASSETS

Savings and Cheque Accounts

Description	Account Number	Asset Amount
XXXXXXXX	XXXXXXXXXXX	$ XX.XX
@@@@@@@@@@	XXXXXXXX	$XXX.XX

Listed Securities and Unlisted Public Securities

Description	No. of Shares	Asset Amount
XXXXXX	X,XXX	$XX,XXX.XX
QQQQQQQQQQQQQ	XXX	$ X,XXX.XX

Managed Investments

Description	Units	Asset Amount
VVVVVVVVVV	XX	$XX.XX
CCCCCCCCCCCCC	XXX	$XX.XX

Note: Income from financial assets is deemed.

Total Financial Assets

FINANCIAL ASSETS VALUE	DEEMED INTEREST RATE	DEEMED INCOME PER FORTNIGHT
$XX,XXX.XX	3.5%	$X.XX
$ XX.XX	5.5%	$X.XX
$XX,XXX.XX		$XX.XX

What is Deemed Income?

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

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

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

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

OTHER INCOME AND ASSETS

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

Income Streams - Long Term

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

Property

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

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

Direct Income

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

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

Miscellaneous Assets Note

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

Total of Income and Assets

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

Example 4:

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

JOINT ASSESSMENT

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

GPO Box 651, Brisbane QLD 4001

Contact:

Telephone:State Office

Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

MR PHILLIP ADAMS — GPO Box 651 Brisbane Qld 4001

MRS PATRICIA ADAMS — Telephone:

6 BOURKE STREET — General inquiries: 133 254

IPSWICH QLD 4010 — Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 32238585

19 June 2004

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs ADAMS,

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

This is to advise you that your service pension has been increased. This change will take effect from 1 July 2004.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for service pension:

Income Free Area - this is the amount of income you can have before your service pension is reduced below the maximum rate payable;

Assets Value Limit - this is the amount of assets you can have (other than your family home) before your service pension is reduced below the maximum rate payable;

Deeming Thresholds – these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of service pension.

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

Payment Information

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

Medicare Levy Exemption Certificate

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

Telephone Allowance

Singles Rate - $19.20

Couples Rate (each) - $9.60

World War I Veterans - $70.50

Your Income and Assets

Events You Must Tell Us About

Changes You Have Already Told Us About

Your Right of Review

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

as Delegate of Secretary and Repatriation Commission

ATTACHMENTS

Payment Information Attachment - YES

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

General Information Sheet - YES

Example 5:

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

TA IN PAYMENT
TAXABLE
PAYMENT SUMMARIES ENCLOSED
GIS

GPO Box 651, Brisbane QLD 4001

Contact:

Telephone:State Office

Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

MR ROBERT MURDOCH — GPO Box 651 Brisbane Qld 4001

MRS JOY MURDOCH — Telephone:

12 JEFFERSON STREET — General inquiries: 133 254

IPSWICH QLD 4010 — Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 32238585

19 June 2004

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs MURDOCH,

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

You have been increased to the maximum rate of service pension. This change will take affect from 1 July 2004.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for service pension:

Income Free Area - this is the amount of income you can have before your service pension is reduced below the maximum rate payable;

Assets Value Limit - this is the amount of assets you can have (other than your family home) before your service pension is reduced below the maximum rate payable;

Deeming Thresholds – these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of service pension.

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

Payment Summaries

As it is the end of the 2003/04 financial year Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.

Payment Summary for MR ROBERT MURDOCH is enclosed with this letter.

Payment Summary for MRS JOY MURDOCH is enclosed with this letter.

Medicare Levy Exemption

You should contact the Australian Taxation Office on 13 28 61 if you have any questions about taxation.

Telephone Allowance

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

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

Your Right of Review

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

Financial Obligations with Prescribed Rates - YES

Payment Information Attachment - YES

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

General Information Sheet - YES

Example 6:

MAXIMUM RATE CONTINUATION ON MAXIMUM RATE
INCOME TESTED
MARRIED ASSESSMENT

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

GPO Box 651, Brisbane QLD 4001

Contact:

Telephone:State Office

Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

MR BILL BROWN — GPO Box 651 Brisbane Qld 4001

MRS BERYL BROWN — Telephone:

16 PHILLIPS STREET — General inquiries: 133 254

IPSWICH QLD 4010 — Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 32238585

19 June 2004

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs BROWN,

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

You currently receive the maximum rate of service pension and this amount remains unchanged.

Cost of living changes to the Income and Assets Test

Recent increases in the cost of living have been applied to the following income and assets limits for service pension:

Income Free Area - this is the amount of income you can have before your service pension is reduced below the maximum rate payable;

Assets Value Limit - this is the amount of assets you can have (other than your family home) before your service pension is reduced below the maximum rate payable;

Deeming Thresholds – these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of service pension.

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

Payment Summaries

As it is the end of the 2003/2004 financial year Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.

Payment Summary for MR BILL BROWN is enclosed with this letter.

Payment Summary for MRS BERYL BROWN is enclosed with this letter.

Medicare Levy Exemption

You should contact the Australian Taxation Office on 13 28 61 if you have any questions about taxation.

Telephone Allowance

Your quarterly telephone allowance will be paid on 8 July 2004, together with your pension payment. The current telephone allowance rates are:

Singles Rate - $19.20

Couples Rate (each) - $9.60

World War I Veterans - $70.50

Financial Obligations

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

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

Financial Obligations with Prescribed Rates - YES

Payment Information Attachment - NO

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

General Information Sheet - YES

MLEC - FORMAT FOR 2004 ISSUE ATTACHMENT D

Medicare Levy Exemption

Dear Beneficiary

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

Please note: If you lodge an income tax return YOU DO NOT NEED TO ATTACH this Certificate to it. However, you should retain the Certificate for your records. If you do lodge a tax return the number of days shown below will need to be stated at the relevant Medicare levy question.

If you have any enquiries about the number of days of exemption, please contact your nearest DVA office. If you have any enquiries about whether you qualify for a full or half Medicare levy exemption, read the Medicare levy section in TaxPack 2004 or Retirees TaxPack 2004. Alternatively you can contact the Australian Taxation Office on 13 28 61.

Yours faithfully

Deputy Commissioner

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

Medicare Levy Exemption Certificate

YourThe number of days you are

File No is NX123456eligible for a full or half

Medicare levy

exemption during

2003/2004 is

365

1!!11 IIIll l 111 1I!! (Barcode)

Smith, Joseph

150 Smith Street

SMITHFIELD NSW 2003

Source URL: https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/2004/c142004-june-2004-statutory-increase-advice-letter-payment-summary-and-medicare-levy-exemption-certificate-production-and-mailout