Exempted Failed Investments

This section contains details of exempted investments held with financial institutions which are in financial difficulty.

The financial institutions listing alphabetically lists the names of financial institutions which have specific investments exempted from the deeming provisions.

The inclusion of a financial institution in this listing does not mean that all investments administered by that financial institution are exempt.  Only the investments specified in the listing have been granted an exemption.

Each exempted failed investments entry displays alphabetically the names of organisations which have specific investments exempted from the deeming provisions along with the exemption date and the actual income/asset values to be used in assessing service pension or ISS entitlement.

Any investments which do not appear in this listing must be assessed as financial assets and deemed accordingly.  If a pensioner claims an exemption for an investment which does not appear in the listing, the case should be referred to the Investment Database Unit (IDU).

The information provided in the exempted investments listing is as follows:

Institution Name:

The names of the institutions holding the exempted investment/s will be listed

alphabetically.

Investment Name:

The specific names of the investments which have been exempted will

appear alphabetically under the institution name.

Exemption Date:

The effective date of the exemption will appear directly below the specific name of the investment/s which have been exempted.

Asset Value:

The asset value of the investment expressed as a percentage of its face value (eg. if a client has a debenture with a face value of $10,000, and the asset value in the register is 15%, the asset value to be held will be $1,500).

The investment is only exempt from the deemed income rules, not

the asset test rules.  The asset value indicated in the register must be assessed

for assets test purposes.

Income Value:

The actual income from the investment expressed as an interest rate (%), (eg. if a client has a debenture still earning interest, and the income value in the register is 4%, the income to be held will be 4% of the current investment value).

The investment is only exempt from the deemed income rules, not

the normal income test rules.  The income value indicated in the register must

be assessed for income test purposes.

PIPS Recording Procedures:

If the investment is a managed investment, share or account which appears on the DVA Investment Database:

a)the IDU will set the national exemption indicator to 'Yes' and

select all clients holding the investment for reassessment using

the Fortnightly Processing Run.

b)the investments will be monitored via the DVA Investment

Databases, and the IDU will update the actual dividend, rate

and/or price details on the investment to ensure that all clients

are reassessed using the same details.

If the investment is a loan, bond, debenture, bullion or other financial asset:

a)the exempted investments listing will be updated with the

appropriate income, asset and effective date details.

b)these investments will not appear on the DVA Investment

Databases, and processing staff must manually edit the

investment on PIPS PC and re-set the exemption indicator

from 'No' to 'Yes', updating actual interest rate details and the

current asset value.