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C16/1998 Rationalisation of Payments: Transfer of Child Related Payments to Centrelink

Document

DATE OF ISSUE:  3 MARCH 1998

Rationalisation of Payments: Transfer of Child Related Payments to Centrelink

BACKGROUND

1. Purpose

The purpose of this Departmental Instruction is to provide background information and procedural guidelines for the 1996/97 Budget initiative to rationalise income support pensions by transferring responsibility for all child related payments (CRP) to the Commonwealth Services Delivery Agency Centrelink.

2. Effective Date

This initiative is effective from 1 January 1998.

Continued on next page


3. History of CRP in DVA

A person who receives service pension (SP) or income support supplement (ISS) and has eligible dependent children was paid CRP as components of SP or ISS.  CRP was usually paid to the veteran or war widow(er).

CRP components relevant to the transfer were:

  • dependent child add-on (DCAO);
  • guardian allowance (GA); and
  • rent assistance (RA).

CRP through DVA equated to the following family payment (FP) through Centrelink:

  • above the minimum standard FP rate;
  • GA; and
  • RA.

In addition to CRP through DVA, pensioners could also receive the ‘minimum FP rate' in respect of eligible dependent children.

  • The adaptation of the ‘above the minimum standard FP' to the income support calculation process has created significant administrative complexities.
  •  

NOTE:  Remote area allowance does not form any part of the CRP transferred to Centrelink.

4. Rationale for transfer

This initiative is designed to simplify and rationalize the delivery of assistance to families, as veterans and their dependents will no longer be required to apply for these payments from both Veterans' Affairs and Centrelink.

The ‘minimum FP rate' is already being paid through Centrelink.  It is administratively inefficient for two departments to undertake similar annual reviews of child payment eligibility.

Note that the Social Security Act (SSA) states that “ where a person or the person's partner is receiving a periodic payment under a law of the Commonwealth and the law provides for an increase in the rate of payment by reference to the child,” eg DCAO is paid by DVA, only the ‘minimum standard FP rate' is payable.  This means that payments for DCAO must cease to enable transfer to Centrelink.

Continued on next page


5. Legislation

Legislation to enable the transfer is contained in the Veterans' Affairs Legislation Amendment (Budget and Simplification Measures) Act 1997 (Number 87 of 1997).

This means that from 1 January 1998, provisions in the Veterans' Entitlements Act 1986 (VEA) enabling DVA to pay CRP are repealed.  Several new definitions are inserted to reflect dependent child meanings as in the SSA.  Refer paragraph 31 for these new definitions.

SAVED CASES

Payments not transferring

6.  Pensioners disadvantaged by the transfer

As a result of minor anomalies between the VEA and the SSA, some pensioners will be financially better off after transfer but some will be disadvantaged.

However, to ensure that no pensioner is financially disadvantaged from the transfer, the SP or ISS of those pensioners or recipients who would be disadvantaged will continue to have their CRP included.

As at the transfer date there were 250 cases nationally which have a “saved” status.

Continued on next page


7.  Categories of some ‘saved' cases

Outlined below are some categories where there are identified differences between the VEA and SSA.  Pensioners whose payments fit these categories would have been financially disadvantaged if transferred.

  • Prescribed >16

There are differences between CRP and the above the minimum standard FP rate for prescribed student children of 16 or 17 years, and for whom GA is paid as part of the CRP and/or for whom an additional rent assistance free area is allowed.  The FP rate equivalents cease once the student child attains 16 years and becomes prescribed.

Note that where there are other dependents and GA is payable, there may be no financial disadvantage as Centrelink would pay GA in respect of the other children.

  • Not prescribed > 18

There are differences between CRP and the standard FP rate for an 18-25 year old child, who is not a ‘prescribed student child', ie the child is not receiving a payment from a prescribed education scheme or certain other schemes.  Any FP ceases at 18 years but DVA continues to pay $34.00 pf whilst the child remains eligible.

  • Dependent children absent from Australia > 3 years

DVA does not require a dependent child to be living in Australia.  A child that has been absent from Australia for more than 3 years cannot be a FP child.

  • ISS War widows receiving CRP only

Different method statements in the rate calculators for ISS and FP enable some war widow/ers with eligible dependent children to receive a greater amount of CRP than they could receive as ‘above the minimum standard FP'.

  • Those who will be disadvantaged by loss of treatment benefits

There is a small group of veteran service pensioners who are receiving payment of SP only because of inclusion of CRP in the calculation of the rate of pension and who, as a result of that SP payment, are eligible for medical treatment under section 85(7) of the VEA.  This provision allows eligibility for treatment benefits to veterans who receive disability pension at a rate of 50% or more and any amount of SP.  If transferred, these veterans would lose payability for SP and hence treatment eligibility.

  • Veterans paying maintenance and in receipt of DCAO

Refer paragraph 8.

Continued on next page

8.  Maintenance Cases

Where the veteran pays child maintenance, receives CRP from DVA because he/she contributes towards the care of the child/ren and the child/ren reside with the separated spouse, the veteran may be considered financially disadvantaged by the transfer.  This is because under the SSA the parent with custody of the child/ren receives FP.

Where these cases occur they are to be ‘saved' and subject to normal reviews.

However, where there is a shared care arrangement, CRP is paid pro-rata between the couple.  This rule applied equally under the VEA and the SSA, therefore no financial disadvantage should occur as a result of transfer.

9.  Savings Provisions

There may be differences between the VEA and SSA in addition to the above list where pensioners would be financially disadvantaged on transfer.

However, savings provisions provide that any service pensioner or income support supplement recipient who would be or is financially disadvantaged by the transfer be ‘saved' and the total CRP paid by DVA.

Note that the ‘saved' CRP components are subject to full CPI increases.

10.  System identification

of saved cases

Where it was possible to determine that pensioners would be financially disadvantaged by transfer, these cases have been identified as ‘saved' and flagged on the system.  This system identification occurred on the weekend 12/13 December 1997.

11.  Pensioners claiming financial disadvantage following transfer

In some circumstances it was not possible prior to the transfer to identify whether a pensioner would be financially disadvantaged.

In these cases, the pensioner may find that he/she receives a lower rate through Centrelink after transferring.  If this happens, the pensioner has 3 months to apply to DVA for CRP to be resumed, ie until 31 March 1998.

Evidence of the amount of the payment, such as a letter from Centrelink, must be provided.  These will become ‘saved' payments.  Refer Attachment A for further processing instructions for these cases.

Any application lodged outside of these dates cannot be accepted.

Continued on next page


12.  An example of where CRP can be resumed

Where, following transfer, (ie not because of a variation resulting from the application of the income and assets test), the pensioner is financially disadvantaged, eg the total CRP is greater than the above the ‘minimum standard FP', DVA can resume payment of CRP.

For example, a veteran with 2 dependent children, one aged 15 years and the other aged 18 years and non prescribed, would have the following comparison.

DVA - 1/1/98

Centrelink -1/1/98

$s

$s

DCAO

135.90

Above minimum FP

101.90

GA

36.70

GA

36.70

RA

87.40

RA

87.40

_______

_______

Total

$260.00

Total

$226.00

Note:  Full indexation applies to the CRP components

13.  The comparison

It is important to note that the only comparison used is between the assessed DVA CRP as at 31/12/97 and the assessed Centrelink ‘above the minimum standard FP' amount during the period 1/1/98 until 31/3/98.

FP is made up of a number of components including:

Minimum FP child rate: $23.50 pf  per child as at 1/1/98;

Above minimum standard FP: Amount per age of child;

Guardian Allowance;

Rent Assistance.

FP is paid with Family Tax Payment; and

Parenting Allowance.

14.  Invalid Claims

Any claims of financial disadvantage because of increased bank charges or the payment going to the other member of a couple are not valid claims.

Where it has been established that a ‘dual payment' of DCAO has occurred and a reduction in income is sustained as a result of cancellation of DVA DCAO (to enable transfer to Centrelink), no financial disadvantage has occurred as the reduction is due to a previous incorrect payment.  Refer to Attachment B for appropriate advice letter.

Continued on next page


15.  To transfer back to DVA

The pensioner should provide evidence of their lesser Centrelink payment such as their advice of variation to FP.

Centrelink has requested that because the numbers of financially disadvantaged pensioners is expected to be small, DVA staff should contact Trish Foster, Families & Childcare Operations, Centrelink on
(02) 6244 7560 to arrange for pensioners to transfer back to DVA.

Trish Foster will liaise with Centrelink area staff to arrange a cancellation date for the ‘above the minimum standard FP' and also calculation of the total amount of the ‘above the minimum standard FP' rate paid for the adjustment period.  Current procedures apply for the recovery of any overpaid FP.

16.  How long do the savings provisions apply?

The total CRP will be ‘saved' until each child becomes ineligible or until the amount of the ‘above the minimum standard FP' rate potentially payable equals or exceeds the ‘saved' child related component of the dependent children already included in the assessment under VEA at 31 December 1997.

An example is where a new child is granted by Centrelink and the total FP potentially payable would be greater than the ‘saved' component.

17.  New dependent child claims received prior to 1 January 1998

When adding a new child/ren during the period 15 December until 31 December 1997 you will have to determine whether it falls in one of the ‘saved' child categories.

If the dependent child does fall into a ‘saved' category, you will need to set the ‘saved' indicator on the PIPS PC Edit Child Details screen.  Refer Attachment A for further processing instructions.

If the dependent child does not fall into a ‘saved' category refer to paragraph 29 below.

18.  After 1 January 1998

After 1 January 1998, any new dependent child cannot be a ‘saved' child unless the claim was lodged on or before 31 December 1997.

It is possible for a ‘saved' CRP case to also be receiving the ‘above the minimum standard FP' in respect of a new child who became eligible after 1 January 1998.  This is because there is no bar in the SSA which forces the FP for the whole family to be paid by one Department only.  This anomaly requires legislative amendment.

However, there are not expected to be many of these cases and in most circumstances, the pensioner would receive a higher standard FP rate through Centrelink than the ‘saved' CRP and must be advised to transfer.

Continued on next page

19.  On going variations

‘Saved' dependent children are assessed under the rules contained in the VEA as at 31 December 1997.  Work practices relevant at that time should continue to be applied to these cases.

Please note again, however, that full CPI increases apply to the CRP components.


PAYMENTS BEING TRANSFERRED

Procedural guidelines

20.  What is being transferred?

All CRP, including rent assistance where normally payable, transfer to Centrelink from 1 January 1998.  These payments include:

  • DCAO;
  • GA; and
  • RA.

DVA cannot pay RA as part of SP or ISS whilst the ‘above the minimum standard FP' is received through Centrelink.

21.  Will Family Payment be the same?

FP comprises the ‘minimum standard FP rate' and the ‘above the minimum standard FP rate'.  The total rate payable is the same as the combined amount paid previously by DVA and Centrelink to the family unit.

22.  Transfer date

The last pension payment containing CRP made by DVA is 18 December 1997.  Centrelink commence paying the full ‘standard FP rate' from 1 January 1998.

Continued on next page


23.  Timetable

The table below shows the events of the transfer and the actions taken.

Date

Action/Description

11/12

State Offices (SOs) provide listings of names and file numbers of:

  • new claims granted

  • manual issue of Centrelink claim forms

  • changes in circumstances which alter saved/transfer status

  • maintenance cases where DCAO received, children with separated spouse.

12/12

National Office (NO) reconcile original mailout list and subsequent changes to ensure continuation of payments.

13-14/12

System run done by NO to cancel CRP for transfer cases.

15/12

A listing of CRP cases which require manual action such as maintenance cases issued to SOs for action.

18/12

Last payment made by DVA transfer cases.

19/12

Automatic advices for saved or transferred cases arrive in SOs  for enveloping and despatch

Manual advices required where SP reduced to NIL on transfer.

Attachment B contains copies of the advices:

  • ‘saved' cases

  • transfer cases

  • SP reduced to NIL (manual advice).

Advices are not to be sent before 18 December 1997 being the last payment date.

24.  Children still remain in DVA pension assessment

The $24 pf (or $12 pw) income reduction for each eligible child is still included in the pension assessment whilst the child continues to be a dependent child within the meaning of the VEA.  Please note that these definitions are changed to mirror the provisions for a dependent child in the SSA.

25.  Additional threshold for DVA treatment eligibility

Income eligibility limits for Gold Card treatment benefits continue to include a $52 pf income reduction component for each dependent child.

However, within the new meaning of dependent child, the age cut-off for eligibility is 22 years instead of 25 years (excluding those ‘saved' dependent children remaining in payment with DVA).

Continued on next page


26.  Rent Assistance

DVA pays RA as part of the income support payment.  Where the ‘above the minimum standard FP' is payable, it is incorporated into that FP payment.

Where a pensioner notifies DVA that FP ceases to be payable, payment of RA is resumed by DVA to the income support recipient.

The system does this automatically where examiner action is taken to terminate a FP child from the assessment.

27.  Differences in RA between the VEA and SSA

The rules in the VEA and SSA in regard to RA are similar except that DP is not taxable income and therefore not assessable for the purposes of the FP income test.

This means some disability pensioners receive an increase in RA on transfer.

It should be noted that when transferring back to DVA, these pensioners may receive a reduction in the amount of RA payable.

28.  Pensioner Concession Cards

Dependent children continue to be included on the DVA Pensioner Concession Card (PCC).

Again, with the new meaning of dependent child, the age cut-off for eligibility is 22 years instead of 25 years (excluding those ‘saved' dependent children remaining in payment with DVA).

If as a result of the transfer no SP is payable, ie CRP was the only component payable, there is no ongoing entitlement to a PCC.

Low income earners who are FP recipients and who are not receiving an income support pension can apply subject to an income test for a Health Care Card through Centrelink.

With the exception of ‘saved' cases, no dependent child can be put into payment after 11 December 1997.  Paragraph 17, -‘New dependent child claims received prior to 1 January 1998' deals with ‘saved' cases.

In all other cases, where a claim for a dependent child was received during the period 11 December to 31 December 1997, the child related information must be recorded on the system to ensure the additional thresholds for dependent children are received.

The following action should also be taken:

  • any CRP arrears should be paid up 31 December 1998; and
  • DVA staff should contact Trish Foster, Families & Childcare Operations, Centrelink on (02) 6244 7560 to arrange transfer details. This is because of the small number of cases expected in this category.

Continued on next page

30.  New claim for a dependent child lodged after 1 January

No new dependent child can be put in payment after 1 January 1998.

Again, it will still be necessary to record dependent child details on the system for pension assessment purposes.

Income support new claimants or current income support recipients who lodge a claim for a new dependent child should immediately be referred to Centrelink to receive their full ‘standard FP rate' free of the income and asset test.

This should be explained from the outset in the new claim process to ensure the earliest possible increase or grant of FP.  The new claim form will shortly be amended to reflect this information.

Also, a paragraph is shortly to be added to the daily advices (new grants) to remind pensioners with dependent children to contact Centrelink with their new grant letter.  This will enable Centrelink to re assess their FP from the earliest date possible.

31.  Changes to dependent child definitions

From 1 January 1998, definitions relating to dependent children in the VEA [see sections 5F(1) to (3)] change to mirror the definitions in the SSA.  In summary:

dependant child and FP child have the same meaning as in the Social Security Act.

a person becomes a dependent child at the time when the person would become a dependent child for the purposes of the Social Security Act if that Act applied in respect of that person.

a person becomes a FP child at the time when the person becomes an FP child for the purposes of the Social Security Act.

When processing a case with a dependent child in the assessment (where the ‘above the minimum standard FP' is paid through Centrelink) care must be taken to apply the new definitions, eg a dependent child ceases to be eligible from 22nd birthday.

It should be noted that where eligibility for partner service pension is contingent on a dependent child in the assessment when the claim is made, there is no eligibility where a dependent is aged 22 years and over.

The DSS online policy and legislation system (OPAL) is an essential reference tool to aid processing.  Attachment C refers.

Continued on next page

32.  A comparison of VEA/SSA rules

Attachment D provides an overview of the major differences and similarities between DVA ‘saved' CRP and FP through Centrelink.


ADDITIONAL INFORMATION

33.  Advices & automatic student review forms

The integrated advices system obligation paragraphs relevant to dependent children and the student review forms have been updated to reflect the changed definitions for the transferred cases.

Note that different age and income levels apply in respect to ‘saved' children.

34.  Obligations

There is no automatic notification by Centrelink to DVA of changes in FP recipient circumstances.  Pensioners continue to be obliged to notify DVA of changes in their circumstances to ensure receipt of their correct entitlement.

35.  Delegations

There are no changes to delegations as a result of this initiative.

36.  Attachments

Attachments are as follows:

A - SYSTEM CHANGES

B - AUTOMATIC AND MANUAL ADVICES RE TRANSFER

C - GUIDE TO OPAL

D - DVA AND CENTRELINK COMPARISON

37.  Contact officers

Any questions regarding this instruction should be directed to:

Robyn Del CasaleAssistant DirectorPhone: (08) 8290 0321

FAX: (08) 8290 0498

(LAN: Del Casale Robyn)

Jenny BeathProject OfficerPhone: (02) 9213 7330

(LAN: Beath Jenny)

R J HAY

AG BRANCH HEAD

INCOME SUPPORT

   March 1998

Attachment A

SYSTEM CHANGES

1. Recording of Dependants

The system has been altered to allow for the two different categories of dependent children:

  • child payment saved 1/1/98; and
  • non saved children who are only recorded for assessment purposes.

2. Saved/Not Saved Indicator

A new field called "Child Payment Saved 1/1/98"on the PIPS/PC Child Details screen has been added.  It indicates YES if ‘saved' and NO if not.

3. Changing the Saved/Not Saved Indicator

On Edit Child Details screen, a new check box called “Child Payments Saved 1/1/98” has been added. It checks if a child is ‘saved' but is blank if not.

To save a child just click in the box next to “child payment saved 1/1/98”, and the eligibility field can now be edited.

Eligibility is defaulted but can be changed by selecting appropriate

eligibility item from the drop box; and clicking OK.


4. Simulated Assessment and What If? - Children screens

The new ‘saved' field is also be displayed on the Simulated Assessment and What If? screens.  Example as follows:

5. New Field on Trial (PP.TR)

Child components on the trial screen are not be available from 15 December 1997 because of the complexity of the changes required.

It is expected that this facility will be available sometime next year as system resources become available.  Until then, “trial” cannot be used if a child is displayed.  All child data must be deleted to produce a trial assessment (this of course would not include any children in the assessment).

However, in the meantime, the “What if? - Children” and “Simulated Assessment - Children” screens have been changed to cater for ‘saved' children processing and ‘what if' assessments.

A new field “98SAVED” has been added to the trial screen to indicate the number of dependent children ‘saved'.


NEXT:          :            PENSIONS PROCESSING                       11/12/97

STATE: Q FILE NO: X002873    EVERARD, VANCE H.                   DOB: 11/05/26

          CASE NO:                                                DOD: 01/07/88

       PERSON IND: SPS   EFF DATE: 01/01/98   STATUS:        ASSMT ID: 00147910

                         >>> TRIAL ASSESSMENT (TR) <<<

   CURRENT ACTION: NONE         ORDER OF REDUCTION - VEA OR PMF (V/P): V

VET/SPS DOB:          05/01/59 ELIG TYP:   I    CLASS:    DC ENTLMNT:     X

CEILING RTE:          120.10     SEPMED:      BLINDED:       CHLDPAY:

        RENT:           90.00   ASSETLIM:   H   RESSIT:    RE RESQUAL:     G

   93 RA SAV:                   ACCOMPUR:   N CANCELRA:    N  OSEASID:

     RAAELIG:                   FB SAVED:   N   WW2IND:       OSCANPA:

SPS DEPVTSP:      PAIDOTH:                  PARTNERED:        SPSDSS:

CHILDREN NO:  2   UNDER13:  2   UNDER16:      NUMSTUD:     DOB YGEST: 28/07/88

        REDC:  48.00   RAA:      INVALID:      98SAVED:  2         YA:

DP   VET DP:      VET SDA:      VET DEP:        OSEAS:         OTHER:

     SPS VET:      SPS SDA:      SPS DEP: WID ADJ=>E/C:          PTIV:

INCOME      DEEMED INCOME:       .12               IN:

          HO:           BU:           FA:           PR:            IA:

                        PA:           MA:           PF:

ASSETS   FINANCIAL ASSETS:    108.00

          HO:  29000.00 BU:           FA:           PR:            IA:

                        PA:   6300.00 DD:                    PRINT TO:

WARNING: DEEMED AMOUNTS DISPLAYED      ;ALTER DETAILS AS REQUIRED

** KIDS IN ASSESSMENT - USE PIPS PC WHAT IF? **                           AXPT

6. Calculate Pension

If the child is 22 years or over not saved or 25 years over and saved as of the effective date, an error message will appear to terminate from assessment.

If there are no ‘saved' children in the assessment and the Child Payment box is checked on spouse an edit message will appear “Child Payment must be set on principal client at Adult Details”

7.  Death processing system

The death processing system (DPS) has been changed to cater for the new ‘saved' indicator for children.

8.  Reports

The following reports have changed to include the new ‘saved' indicator:

  1. the monthly run to report children turning 16 years; and

  1. the fortnightly run to report:
  • SP children turning 13 years;
  • SP children turning 16 years;
  • SP children, prescribed, turning 18 years;
  • SP children, 25 years and over; and
  • SP children, non saved, 22 years and over (new report).

DPS has been changed to cater for the new Saved Indicator for children.


Attachment B

ADVICES

Contact: T-CONTACT-OFFICER STATE OFFICE

Telephone: T-CONTACT-TELEPHONE

199 Grenfell Street

Adelaide SA 5000

Postal Address:

GPO Box 1652, Adelaide SA 5001

Telephone:

Metropolitan Residents: (08) 8290 0555

Country, Broken Hill and

NT Residents:1800 113304

Facsimile: (08) 8290 0360

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

Child Related Payments

This letter is to inform you of changes to how child related payments are made.

From 1 January 1998, responsibility for most child related payments made by Veterans' Affairs will be transferred to Centrelink, the new Commonwealth Services Delivery Agency.

DVA to Continue to Pay Some Child Related Payments

However, some pensioners, such as yourself, would receive less Family Payment than the child related payments currently being received from Veterans' Affairs.  These pensioners will continue to be paid by Veterans' Affairs.

How the Changes Will Affect You

Your child related payments will not be transferred to Centrelink.

Veterans' Affairs will continue to administer your child related payments whilst you remain eligible for this payment.

Remember

You will need to tell us if:

  • your child leaves your care, custody and control or stops being maintained by you; or

  • if your child stops being a student; or

  • your child starts to receive payments under an Education Scheme, eg Austudy.

Any Questions?

If you do not understand, or have any questions about any of the above, please contact an officer of this Department on the number at the top of this letter.

Yours sincerely,

Contact: T-CONTACT-OFFICER STATE OFFICE

Telephone: T-CONTACT-TELEPHONE

199 Grenfell Street

Adelaide SA 5000

Postal Address:

GPO Box 1652, Adelaide SA 5001

Telephone:

Metropolitan Residents: (08) 8290 0555

Country, Broken Hill and

NT Residents:1800 113304

Facsimile: (08) 8290 0360

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

Transfer of Child Related Payments

I wrote to you recently about changes to your child related payments.

From 1 January 1998, responsibility for all child related payments made by Veterans' Affairs will be transferred to Centrelink, the new Commonwealth Services Delivery Agency.

By now you should have completed the form that was enclosed with my previous letter and forwarded it to Centrelink.  This will ensure that you receive your correct entitlement for your dependent children and that there are no interruptions to your payments because of the transfer process.

Centrelink will pay your full Family Payment to one member of a couple.  This payment will include all the child related payments that you previously received from Veterans' Affairs plus the Family Payment you currently receive through Centrelink.  If you receive Rent Assistance this will also be incorporated in the Family Payment.

Cancellation of Child Related Payments

In order for Centrelink to start paying your full Family Payment, it is necessary for Veterans' Affairs to cancel your child related payments from 1 January 1998.  The pension you receive from Veterans' Affairs on 18 December 1997 will be your last one containing child related payments.

New Payment Details

The fortnightly rate of Veterans' Affairs pension you will receive from 1 January 1998 is shown below.

Payments to CLIENT NAME

TOTAL FORTNIGHTLY PAYMENT

$XXX.xx

This is made up of :-

-   Service pension

XXX.xx

-   Pharmaceutical allowance

X.xx

Will my payment amount change?

From 1 January 1998 your combined Family Payment through Centrelink should not be any less than you were receiving from Veterans' Affairs.  However, there are slightly different eligibility and assessment rules for Family Payment which may mean your payment will be less.  If you do receive less as a result of the transfer, you should send us a copy of the letter you receive through Centrelink about your Family Payment within 3 months of the transfer date, that is by 31 March 1998.

If you are considered to be financially disadvantaged by the transfer, Veterans Affairs' will resume making payments until your child related payments are no longer payable or until you would receive more Family Payment with Centrelink.

Remember

You will need to tell Veterans' Affairs and Centrelink if:

  • your child leaves your care or custody or stops being maintained by you; or

  • your child stops being a student; or

  • your child starts to receive payments under an Education Scheme, eg Austudy.

Any Questions?

If you do not understand, or have any questions about any of the above, please contact Centrelink on 131305 or an officer of this Department on the number at the top of this letter.

Yours sincerely,


CHILD RELATED CHANGES

MANUAL ADVICE:  Cancelled IS Payment

Dear Mr and Mrs Vet,

Transfer of Child Related Payments

I wrote to you recently about changes to your child related payments.

From 1 January 1998, responsibility for all child related payments made by Veterans' Affairs will be transferred to Centrelink, the new Commonwealth Services Delivery Agency.

By now you should have completed the form that was enclosed with my previous letter and forwarded it to Centrelink.  This will ensure that you receive your correct entitlement for your dependent children and that there are no interruptions to your payments because of the transfer process.

Centrelink will pay your full Family Payment to one member of a couple.  This payment will include all the child related payments that you previously received from Veterans' Affairs plus the Family Payment you currently receive through Centrelink.

Cancellation of Child Related Payments

In order for Centrelink to start paying your full Family Payment, it is necessary for Veterans' Affairs to cancel your child related payments from 1 January 1998.  However, because the only service pension you receive is made up entirely of child related payments, your last payment from Veterans' Affairs was on the 18th December 1997.

Will my payment amount change?

From 1 January 1998 your combined Family Payment through Centrelink should not be any less than you were receiving from Department of Veterans' Affairs.  However, there are slightly different eligibility and assessment rules for Family Payment which may mean your payment will be less.  If you do receive less as a result of the transfer, you should send us a copy of the letter you receive through Centrelink within 3 months of the transfer date, that is by the 31 March 1998.

If you are considered financially disadvantaged by the transfer, Veterans' Affairs will resume making payments until your child related payments are no longer payable or until you would receive more Family Payment with Centrelink.

Any Questions?

If you do not understand, or have any questions about any of the above, please contact Centrelink on 131305 or an officer of this Department on the number at the top of this letter.

Yours sincerely,

Contact: T-CONTACT-OFFICER STATE OFFICE

Telephone: T-CONTACT-TELEPHONE

199 Grenfell Street

Adelaide SA 5000

Postal Address:

GPO Box 1652, Adelaide SA 5001

Telephone:

Metropolitan Residents: (08) 8290 0555

Country, Broken Hill and

NT Residents:1800 113304

Facsimile: (08) 8290 0360

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

Transfer of Child Related Payments

I wrote to you recently about changes to your child related payments and I understand that you consider that you might be financially disadvantaged by the transfer.

From 1 January 1998, responsibility for all child related payments made by Veterans' Affairs has been transferred to Centrelink, the new Commonwealth Services Delivery Agency.

Centrelink pays your full Family Payment to one member of a couple.  The payment includes all the child related payments that you previously received from Veterans' Affairs plus the minimum rate Family Payment.  If you receive Rent Assistance this is also incorporated in your Family Payment.

Cancellation of Child Related Payments

In order for Centrelink to start paying your full Family Payment, it was necessary for Veterans' Affairs to cancel your child related payments from 1 January 1998.  The pension you received from Veterans' Affairs on 18 December 1997 was your last one containing child related payments.


Payments For Dependent Children

You cannot receive the equivalent of Dependent Child Add On from both Veterans' Affairs and Centrelink.

Centrelink can only pay the minimum standard family payment rate where a person or the person's partner is  receiving a periodic payment under a law of the Commonwealth and the law provides for an increase in the rate of payment by reference to the child.

This provision was in force prior to the transfer. If you were receiving payments from Centrelink and Veterans' Affairs for Dependent Child Add On you may have received monies in excess of your entitlement, and you should please contact Centrelink if you have any queries regarding this matter.

Financial Disadvantage

From 1 January 1998 your correct Family Payment through Centrelink should not be any less than you were receiving from Veterans' Affairs as 31 December 1997. This means that you are not considered financially disadvantaged as a result of the transfer process.

Any Questions?

If you do not understand, or have any questions about any of the above, please contact an officer of this Department on the number at the top of this letter.

If you have any questions about your Family Payment please contact Centrelink on 131305.

Yours sincerely,

ATTACHMENT C

GUIDE TO OPAL

1.  What is OPAL?

OPAL is the online policy and legislation system used by Centrelink in relation to Social Security matters.  The DVA equivalent to OPAL is the General Orders Service Pension (GOSP), found in “The General” on your Local Area Network (LAN).

2.  Useful features

OPAL has many features including several Acts and policy manuals.  Some of the features of OPAL, relevant to DVA staff are electronic versions of the: ·Social Security Act 1991; ·Guide to the Administration of the Social Security Act;  Review and Appeals Handbook; and Data Matching Program (Assistance and Tax) Act 1990.

Chapter 2.17 of the SSA contains information relating to Family Payments

Chapter 23 of the Guide contains information relating to Rent Assistance.

3. Starting OPAL

The table below shows you how to start OPAL in Windows 95.

Step

Action

1

Click on the “Start” button

2

Click “Departmental” option

3

Click “Applications” option

4

Click “Reference Tools” option

5

Click “DSS Information” option

6

Click “OPAL” option

4.  Viewer Functions

Viewer functions on OPAL are the same as on the General, because they use the same software.  This means that commands on the menu operate in the same way eg backtrack and history.

5.  Quick Ref Button

If you click on the “Quick Ref” button, you will find a useful online guide on how to use some of the features of OPAL.

Continued on next page

6. Social Security Act button

If you click on this button, a table of chapters of the SSA will appear for you to choose from, eg chapter 2 contains information on age and wife pensions.

7.  Guide to Act button

If you click on this button you will open the table of chapters of the Guide to the Administration of the Social Security Act, policy manual (like our GOSP).  For example chapter 5 deals with age pension and chapter 27 deals with income.

Note:  the chapters in the Guide do not correspond to the chapters in the SSA.

8.  Guide Index button

The Guide Index is like the GOSP Index.  If you click on the Guide Index button, you can type in a word relating to the topic you want information on.  Then select from the topics displayed and click on “display” to show the information.

9.  Manuals button

If you click on the Manuals button, a list of manuals available on OPAL will be displayed.  Click on the manual you wish to view, and the table of contents will be displayed.  For example, Review and Appeals Handbook.

10.  Definitions Index button

The Definitions Index is an index of all the definitions contained in the SSA.  When you click on this button, you select a letter of the alphabet and all the definitions beginning with that letter are displayed, along with the corresponding section of the SSA.  You then click on the definition you want and it is displayed.  For example, select P for the definition of protected information.

11.  Legislation Index button

When clicked, the Legislation Index displays the titles of all Acts contained in OPAL.  Click on the Act and it will display its table of contents for you to choose from.  If you are after the SSA, it is quicker to use the Social Security Act button, as described above.

Continued on next page


12.  Switching between OPAL and General

Follow the steps in the table below, to switch quickly from OPAL to the General, without having to open the General through the main menus. Note: this works in both OPAL and the General.

Step

Action

1

Assume you have opened and are working in OPAL

2

Click on File, located at the top left of the screen.  At the bottom of the drop box that appears, there will be an option for both OPAL and the General that look similar to this: 1 \\QSTAFP1\DATA\NATDATA\OPAL\OPALRSCH.EPB 2 QSTAFP1\DATA\NATDATA\GENERAL\GENERAL.EPB

3

Select and click on the General option and it opens automatically

Attachment D

DVA AND CENTRELINK COMPARISON

DVA

CENTRELINK

Rent Assistance

Paid with income support pension.

DP treated as income.

Incorporated into FP.

DP not treated as income.

CPI Index

Same

Same

Child/Student income

Accrued by calendar year.

Different amount for living away from home.

Accrued by financial year

One amount regardless of abode.

Shared Care

Same

Same

Child Related Payments Recipient

May be paid to person where children not residing with them.  Amount of maintenance paid determines dependency.

One member of a couple who has custody and is principle caregiver.

CRP Amount

Is income tested as part of total pension assessment.

Is not subject to an income test if parents are income support recipients.

Dependent child overseas > 3 years

Eligible

31/12/97  Not a FP child.

1/1/98  If child departs for OS after this date:  Full FP for 13 weeks, reducing to minimum FP with cancellation >3 years

Prescribed >16

No payment but income reduction continues until 18th birthday.

Ceases at 16 years to be a FP child if prescribed.

Not prescribed > 18

Payment and income reduction ceases at 25th birthday.

Payment ceases at 18 years and income reduction at 22nd birthday.

NOTE:  Centrelink provisions apply to non-saved cases, for example application of income free area ceases at 22 years.