DATE OF ISSUE: 23 JULY 1997
EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)
INTRODUCTION
1. In line with the Repatriation Commission decision for the determination of foreign exchange rates, the Secretary of the Department of Social Security has set a new rate for the Pound Sterling and, as a consequence, DVA will apply the new rate.
EFFECTIVE DATE
2. On payday 31 July 1997 the current exchange rate will change from one Pound Sterling equals $2.0781 to one Pound Sterling equals $2.2017 being the average of the "on demand airmail buying rate" for the two weeks to 4 July 1997. This is the same exchange rate as the Department of Social Security will be holding from 24 July 1997.
TIMETABLE
3. This exercise is scheduled for processing on Tuesday evening, 15 July 1997.
AUTOMATIC SUPERANNUATION PROCESSING
4. The amount recorded as super type 08 or 09 will be varied by applying a conversion factor. The amount in Australian dollars of income recorded as BRI superannuation type 08 or 09 will be multiplied by the conversion factor to find the new rate of superannuation. The pension amount will then be reassessed accordingly.
MANUAL CASES AND MS CASES
5. Cases with actions in frozen status will not be processed. These cases will be listed on the manual case listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.
ADVICE LETTERS
6. The advice letters for this exercise will contain a reason paragraph to explain the exchange rate has varied. This is followed by another paragraph which advises that the rate has been applied to the following dot pointed BRI pensions. A payment box has been included in all advices. An advice will only be produced for cases where a variation in payment results.
REGULATION 45A PROCEDURES
7. The Income Support Branch Head, Compensation and Support Division, in National Office will issue certificates in the terms of Finance Regulation 45A that will be forwarded to the Authorising Officer in your Finance Branch.
ISSC IMPLICATIONS
8. ISSC will be producing the cartridge and will forward it to the Lane Print Group Pty Ltd in South Australia. Overseas, Special Register and cases where a change to treatment entitlement occurs will be separated by ISSC and despatched to the State Offices for manual distribution.
MAIL OUT OF BULK ADVICES
9. Lane Print Group will print and prepare the advices for progressive lodgement with Australia Post by Friday 25 July 1997.
BRITISH DP CASES PAID RENT ASSISTANCE
10. Income Support pensioners who are in receipt of Rent Assistance and who also receive British Disability Pension direct from Britain (not EATS and Composite cases) should have that DP pension converted to $A using the BRI exchange rate. The resulting reassessment of their SP could vary the RA paid. A listing of affected cases can be obtained from Murray Chynoweth, Business Delivery Section.
CONTACT OFFICER
11. The Income Support Branch contact officers for this exercise will be:
Murray Chynoweth Telephone: (06) 289 6799
Ferri Ghazi Telephone: (06) 289 6436
BOB HAY
A/g BRANCH HEAD
INCOME SUPPORT
July 1997
POUND STERLING EXCHANGE RATES
Foreign exchange period Exchange rate
£$
17 Feb 94 — to 16 March — 0.4708 — 2.1240
17 Mar 94 to — 3 August 94 — 0.4902 — 2.0400
4 August 94 — to — 23 Nov 94 — 0.4762 — 2.1000
24 Nov 94 — to — 7 Dec. 94 — 0.4576 — 2.1853
8 Dec. 94 — to — 21 Dec. 94 — 0.4723 — 2.1173
22 Dec. 94 — to — 15 March 95 — 0.4898 — 2.0416
16 March 95 — to — 26 April 95 — 0.4770 — 2.0964
27 April 95 — to — 13 Sept. 95 — 0.4576 — 2.1853
14 Sept. 95 — to — 11 Nov. 95 — 0.4774 — 2.0947
12 Nov. 95 — to — 10 April 96 — 0.4899 — 2.0412
11 April 96 — to 8 May 96 — 0.5050 — 1.9802
9 May 96 — to 4 Dec. 96 — 0.5191 — 1.9264
5 Dec. 96 — to 12 Feb. 97 — 0.4873 — 2.0521
13 Feb. 97 — to 9 April 97 — 0.4685 — 2.1345
10 April 97 — to — 21 May 97 — 0.4941 — 2.0239
22 May 97 — to — 30 July 97 — 0.4812 — 2.0781
31 July 97 — to — 0.4542 — 2.2017