C06/2004 MARCH 2004 GLOBAL REFRESH OF MANAGED INVESTMENTS (MIs) AND SHARES (SHs) LETTER PRODUCTION AND MAILOUT

External

Departmental Instruction

DATE OF ISSUE: 17 MARCH 2004

MARCH 2004 GLOBAL REFRESH OF MANAGED INVESTMENTS (MIs) AND SHARES (SHs) LETTER PRODUCTION AND MAILOUT

Purpose of Instruction

This Departmental Instruction is to provide information about processing arrangements for the March 2004 Global Refresh of Managed Investments and Shares advice letter production and mailout.

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT

16 March 2004

Overview

Introduction

In March and September of each year the Department varies certain pension and allowance rates and thresholds in line with movements in the Consumer Price Index (CPI) and/or Male Total Average Weekly Earnings (MTAWE). Letters are usually only sent to those pensioners on less than the maximum rate of income support pension who have managed investments (MIs) and/or shares (SHs) recorded in their assessment. However, due to the change in the deemed interest rates we will now be writing to all pensioners on less than the maximum rate of income support pension.

This Departmental Instruction provides information about the advice letter production and mailout and advises of the significant issues relating to this exercise. Letters will be sent to pensioners affected by the events as set out in the following paragraph.

Significant Issues- of Managed Investment and Share Global Refresh Mailout

The March 2004 Global Refresh mailout will incorporate the following events for payday 1 April 2004 (WEF 20 March 2004). Issues of significance with regard to this mailout are as follows:

Letters will be sent to all less than maximum rate income support recipients;
There will be a deeming rate change from 2.5% to 3% for amounts up to $35,600 ($59,400 per couple) and from 4% to 5% for amounts over $35,600 ($59,400 per couple);
The asset value of managed investment (MI) and share (SH) data will be reassessed;
A Shares and Managed Investments Attachment will be provided for all less than maximum rate income support recipients who have MIs and/or SHs recorded in their assessment. This Attachment will provide a complete listing of the client's MIs and/or SHs regardless of what has been reassessed;
A 'Total Financial Assets' Table showing the value of a client's deemed income per fortnight will print in the body of the advice for all recipients;
If a treatment change occurs as a result of the reassessment a letter will be produced;
Tasmanian overseas residents' letters will have their full overseas postal address printed on their letter, which will be sent from the Mailing House;

Significant Issues- of Managed Investment and Share Global Refresh Mailout – Continued

An advice sequence number will be added to the information in the footer of the advice – this is a new enhancement and will aid the mailing house in reconciling numbers when handling our bulk advices;
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 Offices Printers. Advice Exceptions resulting from the processing run will print on an Exceptions report in the State Office Printers.

Letter Content

Advice Letter Target Audience

A letter will be produced for the following clients:

All Less than maximum rate service pensioners (SP), income support supplement recipients (ISS) and age pensioners (AP);
Maximum rate SP/ISS/AP recipients who move to less than maximum rate as a result of the reassessment;
Less than maximum rate SP/ISS/AP recipients who move to maximum rate as a result of the reassessment;
SP/ISS/AP recipients who are reduced to nil as a result of the reassessment; and
Treatment changes as a result of the Statutory Increase (SI) or global refresh of MIs and/or SHs reassessment.

Financial Assets Reassess-ment

The asset value of managed investment and/or share data will be reassessed as part of this process. Clients with MI and/or SH data recorded in their assessment will receive a paragraph advising them of the ...Change to Value of Shares and/or Managed Investments...

Managed Investments and/or Shares Information Attachment

All less than maximum rate income support recipients with MIs and/or SHs recorded in their assessment will receive a complete listing of all their Managed Investments and/or Shares regardless of which MIs and/or SHs have been reassessed.

A full Income and Assets Attachment will not be provided.

CPI	There will be a brief reference made in the advice letters about the CPI increase.

Male Total Average Weekly Earnings (MTAWE)

There will be a brief reference to MTAWE made in the advice letters.

Advice on CPI and MTAWE variations will also be included in the March edition of Vetaffairs – Vetaffairs distribution is to commence on Thursday, 1 — st April 2004 to be completed by Thursday, 8 — th April 2004.

Obligations suppressed

Obligations are to be suppressed for all letters produced. Reference will be made to previous obligations issued to clients and in the case of Service Pension and Income Support Supplement recipients, reference will also be made to obligations provided in the 'You and Your Pension' Booklet.

The Financial Obligations paragraph (including the Prescribed Rates) will be present in the advice for all clients (excluding clients who are blinded pensioners or clients who are reduced to nil).

Deeming Rate Explanation Paragraphs

All letters will provide a deeming explanation paragraph and information on the new deeming rates. A table showing the 'Total Financial Assets' held and the value of those assets will also be provided.

$1 Minimum Variation Rules

The $1min rules will be applied to all less than max rate SP and ISS variation cases ie., an increase or reduction must be equal to or greater than a $1 amount to receive an advice.

$1min rules do not apply to Age Pensioners.

Continuation Cases

Cases where the 'old rate' resulting from the Statutory Increase (SI) processing and the 'new rate' resulting from MI/SH refresh end up being the same amount after the reassessment will not have an advice produced.

Treatment Advices to be Checked

As is the procedure for quarterly processing all Enclosure (treatment changes) advice letters will be printed at the IBM printhub and sent via courier to each State Office. We request that these letters be checked for accuracy prior to sending, and reconciled against the reports received by each State Office.

Tasmanian Clients with Overseas Postal Address

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

The advice letters for Tasmanian overseas clients will be printed, enveloped and sent from the mailing house. This is a change from previous years where the letters were sent back to the Tasmanian State Office for posting.

Changes to Group Destination

Addressed Advices

Changes were made late last year to the address destination for clients with a Group Destination other than the Public Trustee. A client's advice will no longer go to the Group Destination address but to the client's postal address. Where the Group Destination address is that of the Public Trustee, advice letters will be streamed and printed at the IBM Printhub at St Leonards in Sydney and forwarded to each State Office for checking and dispatch.

Blinded Clients to Receive Single Advices

Where, in a joint assessment one member of a couple is blind, each member of the couple will receive a separate advice where the non-blind member is on less than the maximum rate of income support pension.

General Information Sheet

Each letter will contain a General Information Sheet (GIS). This will act as the consistent last page for gatemarking purposes at the mailing house.

Single & Joint Letters

All Service Pensioners and Income Support Supplement recipient couples will receive a joint letter, provided the pensioner addresses are identical.

Age Pensioner couples will receive separate letters.

Advice Sequential Numbering in Footer

An advice sequence number will be added to the footer of each client record for all batch advice runs where the advices are sent to the Mailing House for processing. The sequence number will be 9 characters long with a 3 character prefix for run identifier and 6 digits for the actual sequence number eg., R1S012345 QTLY 14/3/2004 04:08 UIN000498431 QPX123467. This sequence number will aid the mailing house in reconciling advice numbers as well as assisting in the reconciliation of Australia Post reports used for postal discount purposes.

Production of Advice Letters

SI Processing

SI Processing is scheduled to run from PM Friday, 19 — th March 2004 through until approximately PM Sunday, 21 — st March 2004.

Critical Dates

Processing Weekend within DVA (includes 'advices' processing)	Friday (pm) 19 — th March 2004 – Sunday (pm) 21 — st March 2004
Commence dispatch of Production Data to SMS	Monday, 22 — nd March 2004
Commence printing Advice Letters	Tuesday, 23 — rd March 2004
End Printing Advice Letters	Friday, 26 — th March 2004
National Lodgement of Advice Letters with Australia Post	By COB Friday, 26 — th March 2004

Client Numbers

The following is a summary of client numbers in each State. The numbers are approximates only:

STATE	NO. OF LETTERS
New South Wales (incl ACT)	21,078
Victoria	15,369
Queensland	14,747
Western Australia	7,854
South Australia	6,919
Tasmania	2,292
Tasmania – Overseas	584
TOTAL	68,843

Printing of Letters

Security Mailing Services (SMS) Sydney, will print, fold and insert advice letters in the week from Tuesday, 23 — rd March 2004 through until Friday, 26 — th March 2004.

Lodgement of Letters – Friday, 19th March 2004

All State's letters will be lodged with Australia Post on Friday, 26th March 2004. A representative from National Office will notify and confirm all lodgement details.

The State Office Contacts for this exercise will be given progress reports and advised of any changes to this timetable.

Foreign Pension Refresh Program known as GROOVER

The foreign pension refresh program referred to as 'GROOVER' (Global Refresh Of Overseas Exchange Rates) is a separate processing exercise to the March Global Refresh and is tentatively scheduled to run on either the evening of the 22 — nd or the 23 — rd March 2004 - following the March Global Refresh processing. The effective date of the Foreign Pensions Refresh Run is 20 — th March 2004 for payday 1 — st April 2004.

Separate advices are produced for clients who have foreign pensions, excluding the British Social Security Pension and British Official Public Service/Forces pension types (08 & 09). Clients whose pension has been varied will receive an advice. Please note that the advice letters produced from this processing will be printed at the IMB Printhub and couriered to each State Office for checking and posting once the March 2004 quarterly letters have been dispatched.

Issues Requiring State Office Action

Group Destination and Enclosure Advice Letters

Group Destination addressed letters and Enclosure (treatment changes) advice letters will be printed at the IBM Printhub at St Leonards in Sydney and sent via courier to each State Office. These should be checked for accuracy, and reconciled against the reports received by each State Office.

Each State Office will receive an advices exceptions report containing details of the enclosures and group destination advices. We will advise SSOs in each State when to expect delivery of these letters. Please notify Pat Webb, Advices and Cards Team on (02) 9213 7288 if the letters do not arrive or if they do not match the reports.

Reprints of Advices Available using VIEW – Advices Tab

Reprints of individual Quarterly Advice letters can be requested via VIEW – Advices Tab reprint facility immediately following the processing weekend.

'HELD' Advices to be Forced

As part of the Batch processing run any advices in 'Held' status will be forced to print. Forced held advices will print at each respective State Office's nominated printer as part of the production processing. Please ensure your designated printer is fully operational during the processing period. These advices will need to be checked to ensure the information in them is correct prior to posting.

Holding of daily advice letters

Daily payment advice letters produced after the processing run on the weekend of 20 — th – 21 — st March 2004, should be held pending notification that the March 2004 quarterly letters have been dispatched. This will ensure that pensioners receive their advice letters in chronological order.

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

Following the March SI and Global Refresh 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 Point of Contact

A contact person from each State has previously been identified to act as a liaison point for the National Office Advices Team and will be the responsible person for distributing any information regarding the global refresh and mailout to staff.

State Office Contacts for the March processing are:

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: Kim Gooding - 08 9366 8549/John Gliddon - 08 9366 8417

TAS: Bryon Kelly – 03 6221 6698

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 National Office Contact Officer, Pat Webb. Please forward your feedback on this exercise to the National Office Contact Officer, noting the nature of the query together with any relevant information – every effort will be made to develop solutions to address any concerns raised. Please ensure that problems are reported as early as possible.

Contacts

There will be one National Office contact for this mailout. Any queries regarding advice wording, data cartridges, mail house printing and lodgement of letters with Australia Post should be referred to:

Pat Webb

(02) 9213 7288 (Phone)

(02) 9213 7889 (Fax)

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

Systems issues should be directed to:

Warren Walsh on (02) 9213 7254 or Renee Arkinstall on (02) 6289 6777.

Letter Mockups

Letter Content

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

All recommendations received have been taken into consideration for the final version of paragraphs and sequencing. An email will be forwarded to the State Contact Officers advising of the changes in respect of all comments received.

Details of the proposed content of the letters are provided at Attachment A. Please note: the 'new' rates, apart from the deeming rates, have not been reflected in the General Information Sheet

Example letters:

Example 1 – Overall Reduction – either from Maximum Rate to Less than Maximum Rate or Decrease of Less than Maximum Rate amount WITH MI/SH in assessment – Deeming Rate change.
Example 2 – Overall Reduction – either from Maximum Rate to Less than Maximum Rate or Decrease of Less than Maximum Rate amount WITHOUT MI/SH in assessment - Deeming Rate change.
Example 3 – Increase to Max Rate, WITH MI/SH in assessment - Deeming Rate Change.
Example 4 - Age pension increase, DP in payment, WITHOUT MI/SH in assessment – Deeming Rate change.
Example 5 – Reduction to Nil case WITH MI/SHs in assessment - Deeming Rate change.

Letter Variables

Please note, in the following samples:

Letterhead, DC name and signature block will change according to State;
The words “service pension”, “age pension”, “income support supplement” each represent variables which will appear for those clients in receipt of the applicable pension.
State specific 'closing' paragraphs with the preferred contact telephone number for Income Support related issues will be used for this mailout.

ATTACHMENT A

EXAMPLE 1: MOCKUP WITH MIs/SHs with DEEMING RATE CHANGE

OVERALL REDUCTION – EITHER FROM MAXIMUM RATE TO LESS THAN MAXIMUM RATE OR REDUCTION IN LESS THAN MAXIMUM RATE AMOUNT WITH MIs/SHs IN ASSESSMENT.
SERVICE PENSIONERS
MARRIED ASSESSMENT
WITH TELEPHONE ALLOWANCE

GPO Box 651, Brisbane QLD 4001

Contact: State Office

Telephone: Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

14 March 2004

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs SMITH,

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

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed. The adjusted value of these investments has been used to work out your service pension payment and has resulted in an overall decrease to the amount of service pension paid to you.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter. This Attachment details all your shares and/or managed investments regardless of whether there has been a change to that share or managed investment. It is important that you check that this list is a full and accurate statement of your shares and/or managed investments.

We have not provided you with a complete listing of the income or assets you may have in your assessment however, they continue to be used in assessing the amount of service pension you are paid.

Your pension has also been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 March 2004.

Payment Information

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

Deemed Interest Rate Change – Financial Assets

With effect from 20 March 2004, the deemed interest rates will change. The new deemed income rates of 3% for amounts up to $35,600 ($59,400 per couple) and 5% for amounts over $35,600 ($59,400 per couple), will be used to work out the amount of income recorded for your financial assets.

This has resulted in a change to the income amounts used to work out your rate of service pension.

Total Financial Assets

FINANCIAL ASSETS	DEEMED INTEREST RATE	DEEMED INCOME PER FORTNIGHT
$XX,XXX.XX	3%	$XX.XX
$XX,XXX.XX	5%	$XX.XX
$XX,XXX.XX		$XXX.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.

Telephone Allowance

Your quarterly telephone allowance will be paid on T-DATE-OF-PAYMENT, 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 this letter. The current telephone allowance rates are:

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 gross income from all sources is more than $XXXX.XX per fortnight or the value of your combined assets, apart from your home, is more than $XXXXXX.XX. 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

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

ATTACHMENTS

Payment Information Attachment – YES

Managed Investments and/or Shares Information Attachment – YES

General Information Sheet - YES

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.

Payment for 01 APRIL 2004 VeteranPartner

TOTAL FORTNIGHTLY PAYMENTxxx.xx — xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.xx

Payment for 15 APRIL 2004VeteranPartner

TOTAL FORTNIGHTLY PAYMENTxxx.xx — xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.xx

Payment Destination

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
01/04/04	J SMITH	BSA 574286330	$xxx.xx
	M SMITH	BSA 574286330	$xxx.xx
		TOTAL	$xxx.xx
15/04/04	J SMITH	BSA 574286330	$xxx.xx
	M SMITH	BSA 574286330	$xxx.xx
		TOTAL	$xxx.xx

Please Note: If you have an overpayment or lump sum advance which is currently being recovered (by deductions from your fortnightly pension), the amount paid into your account may be less than the total fortnightly payment shown above.

SHARES AND MANAGED INVESTMENTS INFORMATION

(Information current as at 14 March 2004)

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 gross fortnightly income is $x,xxx.xx. The total of all your assets (excluding any deductible assets) is $xxx,xxx.xx.

Information about your shares and managed investments is provided below.

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed. The information below sets out the new values for these products.

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 Information: We have not provided you with a complete listing of the income or assets you may have in your assessment however, they continue to be used in assessing the amount of T-PENSION-SP-ISS-AP you are paid. If they have changed, please notify the Department immediately.

You need to tell us within 14 days (28 days if you are living overseas T-SP-ISS-AP-OBS ) if the above list of your Shares and/or Managed Investments is incomplete or incorrect; or if the number of shares or units you hold has changed. Please note that failure to advise of incorrect or missing information about your shares or managed investments, or about other income or asset changes, may lead to your pension being overpaid. Such overpayments are recoverable.

This is an example of the General Information Sheet (GIS) for Service Pensioners that will be used in the March 2004 mailout. There is a separate GIS for both income support supplement and age pensioner recipients. Production printing of the GIS is restricted to one page – two images. PLEASE NOTE: Rates and thresholds, apart from the deeming rate change, have not been updated to reflect changes as changes have not been released at the time of producing this document.

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$452.80 (per fortnight)

Couples Rate (each)$378.00 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$120.00$1,266.50

Couples Rate (combined)$212.00$2,116.50

PENSION ASSETS LIMIT

Pension Before Service ReducesCut Off*

Home Owner

Singles Rate$149,500$302,500

Couples Rate (combined)$212,500$466,500

Non Home Owner

Singles Rate$257,500$410,500

Couples Rate (combined)$320,500$574,500

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 $341.25 (per fortnight)

Couples Rate (combined) $594.00 (per fortnight)

Add $73.10 per fortnight for each dependent child or student to the age of 22.

ASSETS

Home OwnerNon Home Owner

Singles Rate$179,250$287,250

Couples Rate (combined)$263,500$371,500

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 $35,600

High Rate:- 5% interest for the remaining balance

Couples

Low Rate:- 3% interest up to the threshold of $59,400

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)$94.40

Couples Rate (combined, no children)$89.20

Rent Thresholds (per fortnight)

Singles Rate (no children)$83.80

Couples Rate (combined, no children) $136.60

EXAMPLE 2: MOCKUP WITH DEEMING RATE CHANGE ONLY

OVERALL REDUCTION – EITHER FROM MAXIMUM RATE TO LESS THAN MAXIMUM RATE OR REDUCTION IN LESS THAN MAXIMUM RATE AMOUNT
NIL MIs/SHs
SERVICE PENSIONERS
MARRIED ASSESSMENT
WITH TELEPHONE ALLOWANCE

GPO Box 651, Brisbane QLD 4001

Contact: State Office

Telephone: Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

JOHN BROWN GPO Box 651 Brisbane Qld 4001

MARY BROWN Telephone:

30 PHILLIP STREET General inquiries: 133 254

IPSWICH QLD 4010 Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 32238585

14 March 2004

YOUR FILE NUMBER IS QX123457

Dear Mr and Mrs BROWN,

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

Your pension has been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 March 2004.

Payment Information

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

Deemed Interest Rate Change – Financial Assets

This has resulted in a change to the income amounts used to work out your rate of service pension.

Total Financial Assets

FINANCIAL ASSETS	DEEMED INTEREST RATE	DEEMED INCOME PER FORTNIGHT
$XX,XXX.XX	3%	$XX.XX
$XX,XXX.XX	5%	$XX.XX
$XX,XXX.XX		$XXX.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.

Telephone Allowance

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

Your Right of Review

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

Payment Information Attachment – YES

Managed Investments and/or Shares Information Attachment – NO

General Information Sheet - YES

PAYMENT INFORMATION ATTACHMENT

Payment for 01 APRIL 2004 VeteranPartner

TOTAL FORTNIGHTLY PAYMENTxxx.xx — xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.xx

Payment for 15 APRIL 2004VeteranPartner

TOTAL FORTNIGHTLY PAYMENTxxx.xx — xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.xx

Payment Destination

The following table shows where your pension payments are going.

Date	Name	Payment Destination	Amount Deposited
01/04/04	J SMITH	BSA 574286330	$xxx.xx
	M SMITH	BSA 574286330	$xxx.xx
		TOTAL	$xxx.xx
15/04/04	J SMITH	BSA 574286330	$xxx.xx
	M SMITH	BSA 574286330	$xxx.xx
		TOTAL	$xxx.xx

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$452.80 (per fortnight)

Couples Rate (each)$378.00 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$120.00$1,266.50

Couples Rate (combined)$212.00$2,116.50

PENSION ASSETS LIMIT

Pension Before Service ReducesCut Off*

Home Owner

Singles Rate$149,500$302,500

Couples Rate (combined)$212,500$466,500

Non Home Owner

Singles Rate$257,500$410,500

Couples Rate (combined)$320,500$574,500

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 $341.25 (per fortnight)

Couples Rate (combined) $594.00 (per fortnight)

Add $73.10 per fortnight for each dependent child or student to the age of 22.

ASSETS

Home OwnerNon Home Owner

Singles Rate$179,250$287,250

Couples Rate (combined)$263,500$371,500

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 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 $35,600

High Rate:- 5% interest for the remaining balance

Couples

Low Rate:- 3% interest up to the threshold of $59,400

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

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)$94.40

Couples Rate (combined, no children)$89.20

Rent Thresholds (per fortnight)

Singles Rate (no children)$83.80

Couples Rate (combined, no children) $136.60

EXAMPLE 3: MOCKUP WITH MIs/SHS & DEEMING RATE CHANGE ONLY

OVERALL INCREASE – REMAINING ON LESS THAN MAXIMUM RATE OF INCOME SUPPORT SUPPLEMENT WITH MIs/SHs IN ASSESSMENT
INCOME SUPPORT SUPPLEMENT – SINGLE ADVICE – WITHOUT TELEPHONE ALLOWANCE

GPO Box 651, Brisbane QLD 4001

Contact:State Office

Telephone:

Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

GERALDINE THOMPSON — GPO Box 651 Brisbane Qld 4001

29 MARGARET STREET — Telephone:

IPSWICH QLD 4010 — General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 32238585

14 March 2004

YOUR FILE NUMBER IS QX666666

Dear Mrs THOMPSON,

I am writing to you about your income support supplement payment from Veterans' Affairs.

Change to Value of Shares and/or Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed. The adjusted value of these investments has been used to work out your income support supplement payment and has resulted in an increase to the amount of income support supplement paid to you.

We have not provided you with a complete listing of the income or assets you may have in your assessment however, they continue to be used in assessing the amount of income support supplement you are paid.

Your pension has also been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 March 2004.

Payment Information

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

Deemed Interest Rate Change – Financial Assets

This has resulted in a change to the income amounts used to work out your rate of income support supplement.

Total Financial Assets

FINANCIAL ASSETS	DEEMED INTEREST RATE	DEEMED INCOME PER FORTNIGHT
$XX,XXX.XX	3%	$XX.XX
$XX,XXX.XX	5%	$XX.XX
$XX,XXX.XX		$XXX.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.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive Remote Area Allowance) if your gross income is more than $XXXX.XX per fortnight or the value of your assets, apart from your home, is more than $XXXXXX.XX. 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

ATTACHMENT

Payment Information Attachment - YES

Managed Investments and/or Shares Information Attachment – YES
General Information Sheet - YES

EXAMPLE 4: MOCKUP – JUST DEEMING RATE CHANGE

AGE PENSION INCREASE, REMAINING ON LESS THAN MAXIMUM RATE
DISABILITY PENSION IN PAYMENT
SINGLE ASSESSMENT – WITH TELEPHONE ALLOWANCE

GPO Box 651, Brisbane QLD 4001

Contact:State Office

Telephone:

Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

JOHN JONES — PO Box 651 Brisbane Qld 4001

29 MARGARET STREET — Telephone:

IPSWICH QLD 4010 — General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 32238585

14 March 2004

YOUR FILE NUMBER IS QKM10000

Dear Mr JONES,

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

Your pension has been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

This change will take effect from 20 March 2004.

Payment Information

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

Deemed Interest Rate Change – Financial Assets

This has resulted in a change to the income amounts used to work out your rate of age pension.

Total Financial Assets

FINANCIAL ASSETS	DEEMED INTEREST RATE	DEEMED INCOME PER FORTNIGHT
$XX,XXX.XX	3%	$XX.XX
$XX,XXX.XX	5%	$XX.XX
$XX,XXX.XX		$XXX.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.

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) if your gross income is more than $XXXX.XX per fortnight or the value of your assets, apart from your home, is more than $XXXXXX.XX. 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. These obligations still apply.

Changes You Have Already Told Us About

Your Right of Review

If you do not agree with this decision, you can contact your nearest DVA office and discuss the reasons for the decision. If you remain dissatisfied, you may apply to have the decision reviewed by an Authorised Review Officer, with no prior involvement in the case. If you decide to apply for a review more than 13 weeks from the day this notice is given to you, arrears can only be paid from the date we receive your application. Requests for review may be made in person, by telephone or in writing.

Yours sincerely,

DAVID MACKRELL

Deputy Commissioner as Delegate of the Secretary

ATTACHMENTS

Payment Information Attachment - YES

Managed Investments and/or Shares Information Attachment - NO
General Information Sheet - YES

EXAMPLE 5: MOCKUP – WITH MIs/SHs & DEEMING RATE CHANGE

SERVICE PENSION - REDUCTION TO NIL WITH MIs/SHs IN ASSESSMENT
SINGLE ASSESSMENT – WITHOUT TELEPHONE ALLOWANCE

GPO Box 651, Brisbane QLD 4001

Contact:State Office

Telephone:

Macarthur Tower

259 Queen Street

Brisbane Qld 4000

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

WILLIAM TELL — GPO Box 651 Brisbane Qld 4001

29 MARGARET STREET — Telephone:

IPSWICH QLD 4010 — General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1800 13 1945

Facsimile: (07) 32238585

14 March 2004

YOUR FILE NUMBER IS QX333444

Dear Mr TELL,

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

Change to Value of Shares and/or Managed Investments

We have not provided you with a complete listing of the income or assets you may have in your assessment however, they continue to be used in assessing the amount of service pension you are paid.

Your pension has also been adjusted in line with movements in the Consumer Price Index (CPI) and Male Total Average Weekly Earnings (MTAWE).

Your service pension has been reduced to nil because your income and/or assets exceed the limits that allow for payment of the pension.

This change will take effect from 20 March 2004.

Payment Information

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

Deemed Interest Rate Change – Financial Assets

This has resulted in a change to the income amounts used to work out your rate of service pension.

Total Financial Assets

FINANCIAL ASSETS	DEEMED INTEREST RATE	DEEMED INCOME PER FORTNIGHT
$XX,XXX.XX	3%	$XX.XX
$XX,XXX.XX	5%	$XX.XX
$XX,XXX.XX		$XXX.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.

Fringe Benefits

As you are no longer eligible for a service pension you no longer qualify for fringe benefits from this Department. Please destroy your existing Pensioner Concession Card.

Your Right to Re-Apply

You may re-apply to have your service pension restored at any time if your income and/or assets fall below the limits that would allow for payment of the pension.

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

Managed Investments and/or Shares Information Attachment - YES
General Information Sheet - YES