C30/1998 RETIREMENT ASSISTANCE FOR FARMERS SCHEME (RAFS)

Introduction

The Retirement Assistance for Farmers scheme (RAFS) is part of the Federal Government's integrated rural package ‘Agriculture - Advancing Australia' which was announced by Prime Minister John Howard on 14 September 1997.

The scheme is intended to allow older farmers to transfer ownership of the family farm to the younger generation, retire and gain access to age pension, service pension or income support supplement.  The scheme will introduce a three year moratorium on the gifting provisions, which will allow up to $500,000 per farm to be divested without affecting the retiring farmer's eligibility for income support.

RJ HAY

BRANCH HEAD

INCOME SUPPORT

Period of operation

The scheme applies from 15 September 1997 and will operate until 14 September 2000.

The scheme is also open to those farmers or farming couples who transferred their farms in the preceding five years (ie, 15 September 1992 to 14 September 1997).

Where eligibility is established, the date of commencement will depend on the date of legal transfer of the title to the property to the younger generation

Eligibility

The terms of eligibility for the scheme are as follows:

To be considered a ‘qualifying farmer', the farmer must have:

• a ‘qualifying interest' in the farm enterprise and
• owned the property for at least 15 years or;
• been involved in farming for at least 20 years.

The total value of the farm (ie, land and farming assets) must be no more than $500,000.

Assets must include real property (land).

The farmer (and their partner's) income for the three years preceding the date of legal transfer of the property must have been less than the maximum rate of age service pension.

The farmer, and their partner, must transfer the legal title to the farm to the younger generation and divest themselves of all land and farm assets (house and curtilage may be exempt in certain circumstances).

The next generation immediate family member (‘eligible descendant') that the farm is transferred to must have had an ‘active involvement' in the farm over the last three years.  For people with no immediate family, there are special provisions where the farm can be given to a niece or nephew

Eligibility

Either the farmer or their partner must be of either age service pension age or age income support supplement age

Note:  Only one member of the couple needs to be age service pension age or age ISS age (or ‘retirement age'), regardless of which partner is the qualifying farmer.

The normal income and assets tests are applied to work out the rate of age service pension or the increase in income support supplement.

If all these criteria are met, the value of the farm transferred will not be assessed under the normal deprivation provisions ie, Subdivision B of Division 11 of Part 111B of the VEA will not apply.

Commission Discretion

Under this scheme, Commission has the following discretionary power:

• to prescribe that a person, other than the direct descendent of the farmer, be treated as a child, step child, adopted child or grandchild of the person or partner of the person;

• to allow, in exceptional circumstances which were out of the control of the descendant, the eligible descendant to be deemed to have been actively involved; and

• extend the definition of actively involved to someone who has undertaken educational studies or training in the field that is relevant to the development or management of the farm enterprise.

Impact on Pension Bonus Scheme

The Pension Bonus Scheme (PBS) and RAFS provide some tension.  The PBS is designed to encourage a person to defer retirement, while RAFS encourages farmers to retire.

In order for a person to access both the RAFS scheme and the Pension Bonus Scheme, they will need to register for the Pension Bonus scheme and accrue their bonus before they give their farm away.  To take advantage of both schemes, they will need to:

• register as a member of the pension bonus scheme;
• accrue at least one bonus period before divesting their farm; and
• then claim pension and bonus immediately.

In this situation, the act of giving their farm away has been covered by the RAFS legislation and they will not be penalised in calculating the amount of bonus.  However, a person cannot accrue any bonus after giving their farm away.

Commencement

Date

The commencement date for a qualifying farmer to access the scheme depends on the date that legal transfer of the property to the younger generation occurred.

Transfer occurred before 15 Sept 1997

If a farmer has divested him or herself of the farm in the five years immediately before 15 September 1997 (ie, after 14 September 1992) there are two possible situations:

• the ex-farmer (and any partner) are having the value of the divested

      property assessed under the deprivation provisions, and as a result are

      receiving a reduced rate of pension or allowance; or

• the ex-farmer (and any partner) had their claim rejected or did not choose

      to claim.

If the qualifying farmer was receiving a pension at 15 September 1997, and all of the qualifying criteria for the scheme are met, the rate of pension can be reassessed from 15 September 1997.  Income details for the three years prior to the date of transfer, not the date of claim, should be requested.

If the farmer was not receiving a pension at 15 September 1997, they and their partner will need to lodge a claim before 15 September 1998 in order to receive backpayment to 15 September 1997. Clients in these circumstances will not be eligible for backpayment prior to 15 September 1997.

Transfer occurred between 15 Sept. 1997 and 15 Sept 1998.

If the farmer transfers the farm before 15 September 1998 and lodges a claim before that date, pension is backdated to the later of the following dates:

• the date that the transfer occurred; or
• the date that they became eligible for the payment.

For example, a farmer reaches age 60 on 1 January 1998.  He transferred his farm to the eligible descendant on 1 October 1997.  If the farmer lodges a claim for service pension before 15 September 1998, payment will be made from 1 January 1998.

Transfer occurred after 14 Sept 1998

Applications made after 14 September 1998 will be assessed from the date of lodgement of claim.  If the claim is made within three months of the farm being transferred, the claim can be backdated to:

• the date of transfer or
• the date the person became eligible for a DVA payment, whichever is the later.

Claims lodged after 14 September 1998 and more than 3 months after the date of transfer, will be assessed from the date of lodgement.

The transfer must be completed before 15 September 2000.

Definition of qualifying farmer

To take advantage of RAFS the person must be, or have been a farmer ie:

held a qualifying interest in the farm for a continuous period of 15 years; and the person or the person's partner:

• contributes a significant part of his or her labour and capital to the farm enterprise; and
• derives a significant part of his or her income form the farm enterprise;

or

acquired the qualifying interest before 15 September 1997 and the person or the person's partner has been actively involved in farming in Australia for any period of 20 years, by;

• contributing a significant part of his or her labour and capital to the farm enterprise; and
• deriving a significant part of his or her income from the farm enterprise.

A qualifying farmer can also be a person who falls within one of the categories above, but who divested a farm in the five years prior to 15 September 1997.

Definition of qualifying interest

A person has a qualifying interest in a farm if they:

• have legal ownership of the farm land; or
• hold a pastoral lease over the farm land; or
• hold an equitable interest in general law land which is mortgaged; or
• are a shareholder in a private company that owns or holds a pastoral lease over the farm land.

Sharefarmers who do not own real property will not qualify under this scheme.  Nor will a person who occupies a property on a short-term lease rather than a pastoral lease.

A trustee of a trust has a legal interest in its assets, and therefore a qualifying interest.  This includes trustees of estates such as life interests, e.g, where a widow is the trustee of her deceased spouse's will.  Shareholders in private trustee companies also have a qualifying interest.

Definition of ownership

A person will be considered to have owned the farm property in Australia for 15 years where they had initially owned only a part of the currently existing farm enterprise and subsequently acquired adjoining parcels of land.

When looking at involvement in farming for 20 years, any 20 years of the person's working life can be taken into account provided the person was in Australia at the time.

A farming couple may both meet the definition of a farmer over the required period although the title is only held in the name of one member of the couple.  In these circumstances, both members of the couple will be regarded as having the ownership of the property.

Definition of significant part

In considering whether a ‘significant part' of the person's labour, capital and income were related to the farm, the general rule will be:

that at least half of the person's working hours and income were involved.

This is not defined in the legislation, and each case should be treated individually when determining what is significant labour, capital and income for a particular farmer.

Gross income figures should be used.

Definition of farm enterprise

A farm enterprise is an enterprise carried on within any of the:

• agricultural;
• horticultural;
• pastoral; or
• aquacultural industries.

A farm enterprise will include situations where:

• a group of farm properties are run by a farmer as a single enterprise, or
• where a farmer in partnership runs a farming enterprise.

The enterprise will consist of all farming properties regardless of whether they are used within the same business structure.

Definition of farm enterprise

A farm enterprise will include situations where:

• a group of farm properties are run by a farmer as a single enterprise, or
• where a farmer in partnership runs a farming enterprise.

The enterprise will consist of all farming properties regardless of whether they are used within the same business structure.

Net asset limit of $500,000

The scheme is open to farmers and their partners, or former partners, who have an interest in a farm or farms worth up to $500,000.

This includes the net value of the:

• house and other buildings;
• land;
• capital improvement;
• machinery;              
• plant and livestock; etc.

All primary production assets and liabilities are aggregated in order to calculate the net value of the farm enterprise.

For example, if a farmer owns a $700,000 farm with a $250,000 mortgage, for the purposes of RAFS, the value of the farm is $450,000.

Asset limit can comprise one or more farms

The $500,000 limit applies to the combined value of all farms divested, not per farm.  In these cases, the total value of the combined farm enterprise (including the total value of farm enterprises where a farmer is in partnership) must not exceed $500,000.  This excludes house and curtilage if the farmer retains a life interest, freehold estate or leasehold interest in the dwelling house on the farm.

The $500,000 limit applies to:

• the qualifying farmer;
• the qualifying farmer and their spouse or former spouse; or
• a group of retiring farmers who are partners in a farm.

The amount can comprise one or more farms, as long as the total value of the farm enterprise is equal or less than $500,000.

For example, where a farm enterprise is valued at $700,000 is owned by two brothers, each with shares of $350,000, the retiring farmer cannot take advantage of RAFS.

Farms valued over $500,000

The only situation where a person can take advantage of RAFS with a farm valued over $500,000 is where the eligible descendant already has an interest in the farm.  In these cases, the total value of the farm or farms being divested, less the value of the descendant's estate or interest in the farm/s, must be equal to or less than $500,000.

For example, a retiring farmer is involved in a farm enterprise valued at $600,000.  His son is a partner, and has a one-third share in the property.  The value of the farm assets being divested will be $600,000 less the son's share of $200,000 = $400,000.  The retiring farmer will be able to access the scheme.

Total value of farm cannot have been reduced after 15 September 1997

If the farmer has done anything to the property after the announcement of this scheme in order to reduce its value below $500,000 they will be disqualified from the scheme.

If a transaction is made between 15 September 1997 and the date of the transfer which reduces the value of the property, the value of the property at the date of transfer is taken to be the unreduced farm value.

For example, A farmer who owned a property worth $600,000 subdivided it in December 1997 (ie, after the announcement of the RAFS), and gave a parcel worth $100,000 to his or her children, the value of the farm will be taken to be $600,000, if the farmer subsequently decides to give the remaining $500,000 away.

Ownership of a farm by a trust

Qualifying farmers whose farms are owned by a trust are entitled to participate in RAFS as long as they are trustees, and therefore have a qualifying interest in the land.

Where the person's farm and farm assets are held within a trust structure, the usual rules regarding assessment of discretionary trusts do not apply.  We are not assessing the value of the farmer's interest in the trust, but rather the value of the farms and farm assets in which the farmer has a qualifying interest.

AVO valuation may be required

An AVO valuation of the farm land and other farming assets may be required, for example, if the farmer's estimate appears understated, or where the value of these assets is close to the $500,000 limit.

Transfer of legal title required

The farmer must transfer legal title to their farm land to the eligible descendant.

To confirm that legal ownership has been transferred, a copy of the certificate of title for the land must be obtained.

Ownership of land under general law and Torrens system

Privately owned land in Australia is held under either the general law

(old system) or Torrens system.

Ownership of land under general law can only be proven by the 'chain of title', the group of documents which show changes in ownership for at least the last 30 years. Where the farmer holds general law land, this land must be converted to a Torrens title before transfer of legal title is taken to have been achieved for RAFS purposes. Customers applying under RAFS will need to supply a copy of the certificate of title of the relevant farm land to confirm its transfer to the younger generation.

In contrast, a farmer's ownership of land under the Torrens system can be shown on a certificate of title issued under the relevant State land law ( refer VEA 5P(1).

Determining the date of transfer

The date that the transfer is effected is the date that legal title is passed.  This will be shown on the certificate of title.

Where the farm is transferred through a series of transactions eg. of farm land, then business equipment, livestock, etc, the effective date of divestment is the date of transfer of legal title to the land.  This will usually be the later date.

For example, where a farmer transfers farm property and other chattels on a particular date, they will have disposed of their equitable interest but not the legal title.  Transfer of legal title will be a separate transaction involving registration with the Land Titles Office in the relevant State or Territory.  In some cases, transfer of legal title may occur at a much later date than transfer of equitable interest.  Where this occurs, the farmer will only be eligible for consideration under RAFS from the date of transfer of the legal title to the land.

Interim assessment can be made

At the date of transfer of equitable interest, an assessment can be made of the farmer's entitlement under the existing provisions (ie deprivation or forgone wages).  It is possible that the farmer may be entitled to receive a reduced rate of payment by using these provisions.  When legal transfer occurs, a reassessment can then be made under RAFS.

Transfer must be a gift

The transfer of the farming assets must occur by way of gift.  For example, if the farmer signs a contract to sell the farm to the younger generation, with the price to be paid by instalments, the amount of the unpaid instalments is not an asset that can be disregarded under RAFS.

All farming assets must be divested

One of the aims of the initiative is to have older farmers retire from farming.  In keeping with this, it is necessary for the farmer to dispose of, (either by gift or sale) all their farming interests. The only exemption is the dwelling house and curtilage (ie up to 2 hectares of surrounding land), on the farm.

It is a requirement that all of the property and farm assets be transferred, including any farm encumbrances (eg, mortgages and overdrafts) that are taken into account in working out the net value of the farm enterprise must be transferred.

Shares must be divested

Shares or units held in farming co-operatives that are essential to the running of the farm enterprise and shares the farmer may own in other farms must be divested.

A farmer who owns or has shares in more than one farm would be required to divest all farming interests and properties.

Financial assets must be withdrawn

If the farmer holds Income Equalisation Deposits, Farm Management Deposits, etc,these must be withdrawn on retirement.  The rules of these schemes do not allow the deposits to be transferred to another person.  If the person withdraws the deposit and subsequently gives the cash away, the gift cannot be disregarded under RAFS as it is not a transfer of a farm asset.

Farm jointly owned

Where both the retiring farmer and spouse own the farm enterprise, both partners must divest their interests to the younger generation.  The value of the entire farm enterprise must be equal to or less than $500,000.

Where the retiring farmer and another person (ie, farming partnership) own the farm enterprise, only the farmer has to divest his/her share.  However the value of the entire farm enterprise must be equal or less than $500,000.

Farm owned by a private company

Where the farm was owned by a private company, in order to facilitate a transfer between two natural persons, the farm and farm assets will need to be first transferred from the company to the farmer.  The farmer can then transfer the land to the younger generation in order to access the scheme in the usual way.

Note that there must be a transfer of legal title to land - a person cannot give the eligible descendant their shares in a private company which owns the farm land and access the scheme.

Farm owned by a trust

Where the farm is owned by a trust, the farmer must transfer their trusteeship to the descendant, as the trustee of a trust is the legal owner of the land held within a trust.

Life interest in house and curtilage can be retained

Where the farmer retains a life interest in the dwelling house on the farm, and any surrounding land of up to 2 hectares (ie curtilage), the farmer will be treated as a homeowner and the value of the house and curtilage will be an exempt asset when calculating the value of the person's assets.  The lower assets threshold applies, and rent assistance will not be payable.

If the farmer later vacates the house, the value of the life interest will be included as an asset.

If the life interest is relinquished, the deprivation provisions will apply.

House and curtilage can be excised

If local zoning laws allow, the farmer may choose instead to excise the house and curtilage from the remainder of the farm and retain ownership of that portion. This is also permitted, provided that the area of land retained does not exceed the 2 hectare limit.

Leasehold over house and curtilage can be retained

Another option is for the farmer to retain a leasehold over their house and curtilage, where the farm is held under a pastoral lease. This is not to be confused with a common rental agreement  - a qualifying farmer must retain an interest in the house and curtilage which gives them security of tenure. Where the delegate is satisfied that the farmer has retained reasonable security of tenure, the market value of the house and curtilage is disregarded in calculating the value of the farm and relevant farm assets

Verification of life interest

There is no requirement for the life interest to be evidenced in writing, however, it would be prudent for customers to take steps to protect their interest. Freehold interests can be verified by requesting a copy of the certificate of title, and a leasehold interest will be created by a written agreement between the eligible descendant and the qualifying farmer.

Eligible former partners can qualify

Where an eligible former partner of a qualifying farmer has an interest in the farm, that person may also benefit from the scheme, even though they themselves may not meet the definition of a qualifying farmer.

Conditions apply

The following conditions apply to eligible former partners wishing to access RAFS:

• the person was, but no longer is (because of death, divorce, etc), the partner of a farmer;
• on the day on which the relationship ceased, the farmer met the definition of a ‘qualifying farmer';
• the person has not since become a member of another couple (If the person has again become a member of a couple since the death or separation from the farmer, they will not meet the definition of an eligible former partner, even if the subsequent relationship has now ceased) ; and
• the person currently has a qualifying interest in the farm of the qualifying farmer.

For example, a married couple who owned the farm jointly have divorced, but have not reached a property settlement .  The property is still farmed by one partner, but the other has moved off the farm and derives most of their income from employment.  As the former partner does not receive any income from the property, they will not be a qualifying farmer, but they are an eligible former partner of a qualifying farmer

Widow as qualifying farmer

In most cases, a widowed person will meet the definition of a qualifying farmer themselves.

For example, a woman has worked on her husband's farm since 1950.  On his death in 1995, she became the owner of the property.  Although she has not owned the farm for more than 15 years, she was the legal owner as at 15 September 1997 and had worked on the property for more than 20 years.

Other eligibility criteria apply

The former partner must still satisfy the other eligibility criteria for RAFS, for example, the farmer's income test.

Farm must be transferred to eligible descendant

The farmer must transfer the farm to a younger person or persons who are eligible descendants, or to an eligible descendant/s and their partner jointly.  The farmer cannot transfer the farm to a trust or company, regardless of who constitutes the shareholders.  The farm must be transferred to a natural person or persons.

The above does not preclude transfer of the farm to a trust, as long as the trustee is an eligible descendant, or an eligible descendant and their spouse.

Definition of eligible descendant

An eligible descendant in relation to the farmer or their partner includes:

• their child, step-child or adopted child;
• a descendant in direct line of a child described above, eg, a grandchild;

or

• another person who, in the opinion of the Commission, should be treated as a child or descendant in direct line of a child.

Commission discretion

The Commission discretion will only usually be exercised in cases where the farmer does not have a child, grandchild, etc to whom they can leave the property.  In these cases, a more distant relation such as a niece or a nephew who has been working the property can be considered an eligible descendant.

Definition of eligible descendant's active involvement

Generally, the younger generation will need to establish that they had, over the three years immediately before the transfer of the farm, been actively involved in the farm.

A person will normally have to demonstrate that they had, during the three years:

• contributed a significant part of their labour to the farm enterprise; and
• derived a significant part of their income from the farm enterprise.

Definition of eligible descendant's active involvement

Where the farm is being transferred to a child and their spouse (ie a couple), it is not necessary for both of these people to meet the active involvement rule.

For example, where a farm is being transferred to a daughter and son-in-law, provided that the son-in-law can demonstrate active involvement in the farm, it will not be relevant that the daughter may have worked off the farm.

Definition of significant part of income and labour

In considering whether a significant part of the person's labour and income were related to the farm, the general rule will be:

that at least half of the person's time and income were involved over the three years.

An indication of a family member's major source of income can be obtained from their tax-returns.

Farm transferred to more than one child

Where the farmer wishes to transfer the farm to a number of children, it will be necessary for each of them to demonstrate an active involvement in the farm.  If they cannot all demonstrate an involvement, RAFS cannot be accessed.

Eligible descendant engaged in studies or off-farm work

The family member can be accepted as having been actively involved in the farm for the three years immediately before the date of transfer where they were undertaking educational studies or training in areas relevant to the farm during all or part of the three year period (eg, agriculture, horticulture, business management).

Some family members will have been forced to obtain off-farm income as a result of the farm being unable to support the younger generation.

In both these cases, the family member should have contributed a proportion of their labour to the family farm during term or annual breaks or holiday periods from their job, weekends, or before or after work.

Introduction

The following is a modified version of the method statement for the farmer's income test.  For more detail, see section 49J(1), VEA.

Step 1

total non-farm income

Work out the amount of the person's ordinary income (other than ordinary income from farming) for each of the last 3 financial years before the day on which the transfer was completed.  These years are called the income test years.

If the person was a member of a couple on the day the transfer was completed, work out the amount of his or her partner's ordinary income (other than ordinary income from farming) for the three income test years.

Add up all the amounts obtained to work out the person's total non-farm income.

Step 2

total farm income

Work out the amount of the person's ordinary income from farming for each of the three income test years.

If the person was a member of a couple, work out the amount of his or her partner's ordinary income from farming for the three income test years.

Add up all the amounts of positive income for both the person and the person's partner and deduct from that total the amounts of negative income (if any) for both the person and the person's partner.  The result is called the person's total farm income, and may be positive or negative.

Step 3

total income for the 3 income test years

Work out the person's total income for the 3 income test years:

• if the person's total farm income is a positive amount - by adding that

amount to the amount of the farmer's total non-farm income; or

• If the person's total farm income is a negative amount - by deducting that

amount from the amount of the person's total non-farm income.

Step 4

maximum basic rate of age service pension

The maximum basic rate of age service pension on the day the farm or qualifying interest in the farm was transferred (the operative day) multiplied by 3 for the 3 income test years, is considered to be the person's maximum basic entitlement.

If the person was a member of a couple at any time during the 3 income test years, twice the maximum basic rate for a partnered person should be used.  This rate is them multiplied by three for the three income test years to arrive at their maximum basic entitlement.

Step 5

compare total income for 3 years to maximum basic entitlement

If the person's total income for the 3 income test years is less than the person's maximum basic entitlement, the person satisfies the farmer's income test.

If the person's total income for the 3 income test years equals or exceeds the person's maximum basic entitlement, the person does not satisfy the farmer's income test.

Normal income and assets test applies

If the farmer or the farming couple satisfy the farmer's income test for RAFS eligibility, they must then also satisfy the normal income and assets test to receive an income support pension payment or an increase in an income support pension payment.

Life interest may be retained

The farmer or the farming couple may retain a life interest in the farm in the form of the house and curtilage.  This will not be considered an asset for the purpose of the assets test if it is the principal home.

Forgone wages provisions do not apply

The farmer cannot use the ‘forgone wages' provisions in addition to RAFS.

Inroduction

In arriving at non-farm income, deemed income will not be calculated on financial assets.  Income from financial assets should be assessed using the actual income amount received, as disclosed on the income tax return.

Section 49J(2), VEA contains an explanation of non-farm income.

Financial assets

For bank accounts, cash deposits, debentures, loans etc the income assessed will be the interest paid.  For shares and managed investments, this will be dividends or distributions paid, which may also include capital gains.  Imputation credits or foreign tax credits should not be included as income. Income from annuities and other income streams should be assessed based on the net taxable income on the tax return, for ease of assessment.

Gifts

If any gifts have been made by the farmer or their partner during the three years prior to divestment, no income will be included in the farmer's income test as no actual return is received.  However, if the person is able to qualify for a pension or allowance by using RAFS, these gifts may be caught by the deprivation provisions when calculating the rate of pension or allowance payable under the income and assets tests.

Payments not assessed as income

When calculating income, the following payments will not be assessed as income:

• income support payments, including Family Payment, from the Department of Social Security/ Centrelink;
• AUSTUDY or ABSTUDY;
• payments made under the Farm Household Support Act 1992;
• payments made under the Veterans' Entitlement Act;
• eligible termination payments.

All other income normally assessable under the pensions income test will be taken into account.

Introduction

Income from the farming business should be determined using the normal assessment method.

Section 49J(3) VEA contains an explanation of farm income.

Sole trader

Where the farm business was run by the farmer as a sole trader, farm income will include the net profit or loss made in each year.  The net profit should be adjusted for any tax deductions claimed which are not allowable reductions from business income.

Partnerships

Where the farm business was run by the farmer as a partner in a partnership, farm income will include the farmer's (and if a member of a couple, their partner's) share of the net profit or loss made in each year.  The net profit should be adjusted for any tax deductions claimed which are not allowable reductions from business income.

Trusts or private companies

Where the farm business operates through a trust or private company, an assessment of actual income distributions, dividends, directors fees etc will need to be made.

Client impact

The number of DVA clients estimated to benefit from this scheme is 300.  This is derived from an estimate of eligible farmers, based on DSS statistics and ABS figures.

Advice for pensioners

Farmers who are contemplating a transfer of their farm and farm assets to the younger generation in order to access RAFS should be strongly advised to seek professional advice in the areas of succession planning and legal and taxation matters.

Forms

There is no change to application forms.  The existing application forms for service pension (D503) and ISS should be used.  Applicants need to fill in the details of the gifting of their farm in Question 55 of the D503.

System registration

Cases will be processed as normal SP and ISS claims.  There is a new attribute called ‘Exempt Farm' on the CMS.  This is currently in the testing stage.  The attribute is essential to monitor take-up rates and to allow the Minister and Parliament to gauge the success of the initiative.  The attribute is linked to the following claim types:

04 new claim age

06 new claim dependant

09 Dept initiated action

10 Pensioner initiated review

22 ISS new claim

23 ISS review

24 DSS new claim age.

There are no other system changes arising out of this initiative.