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Compensation and Support Reference Library
Departmental Instructions
2005
- C05/2005 Exchange rate variation of Pounds Sterling - Effect on Income Support Pensioners
DATE OF ISSUE: 21 January 2005
Exchange rate variation of Pounds Sterling – Effect on Income Support Pensioners
Purpose of Instruction |
The purpose of this Departmental Instruction is to provide information about the Pounds Sterling exchange rate variation exercise. |
Introduction |
Following the recent variation in UK - Australian exchange rates, DVA will apply a new exchange rate for the assessment of the rate of income support pensions for those in receipt of the following British government pensions:
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New exchange rate A$2.4237 |
The exchange rate used to convert Pounds Sterling to Australian Dollars for income support assessment purposes has changed from one Pound = A$2.4975 to one Pound Sterling equals A$2.4237 (ie A$1 = £0.4126). This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 14 January 2005. |
Date of effect1 February 2005 |
Effective from 1 February 2005 the current exchange rate will change. On pension payday 17 February 2005 (pay period 17) pensioners will receive a full instalment at the new assessed rate. |
Continued on next page
Date of processing run |
Processing to implement the new exchange rate is scheduled for the evening of Monday 31 January 2005. |
Automaticprocessing |
Amounts recorded as foreign super type British Social Security Pension (08) or British Official Public Service/Forces Pension (09) will be varied by applying the exchange rate to the pounds sterling amount recorded, to determine the new rate of pension in Australian dollars. The income support payment will then be reassessed automatically. |
Manual cases |
Cases with actions in submission or determined status will not be processed automatically and will be frozen. These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for action. Any cases processed through PIPS should be reassessed with effect from 1 February 2005 for payday 17 February 2005. |
Advice letters |
The advice letters for this exercise will be joint advices where both members of a couple are in receipt of pension from the British government and their pension payment varies. Age pensioners will receive separate advices. The letter will advise the new exchange rate and the amount of income. An advice will only be produced for cases where a variation in payment results. |
IBM GSA implications |
IBM GSA will produce the cartridge and forward it to Security Mailing Services (SMS) in Sydney. |
Overseas, Special Register and Enclosure Advices |
Overseas cases for all states apart from TAS clients, Special Register, Enclosure Advice letters (ie cases where a change to treatment entitlement occurs) and reduction to nil cases will be separated by IBM GSA and despatched to State Offices for manual distribution. This arrangement is the same as for daily advice letters. |
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. |
Continued on next page
Mail out of bulk advices |
Security Mailing will print and prepare the advices for lodgement with Australia Post by 10 February 2005. |
British DP Cases |
Income Support pensioners who are in receipt of ISS, age pension (AP) and rent assistance (RA); and, who also receive disability (war) pension direct from Britain should have that disability pension converted to $A using this exchange rate. ISS, AP and RA should be recalculated by doing a PIPS assessment. These cases can be extracted through AIS by each state. If you have any questions please contact Sarah Paras on the number below. Note: If DP has already been assessed as income in determining hardship cases it should not also be assessed as income for RA. |
EATS and Composite cases |
No variation should be made to disability payments made by Australia on behalf of Britain. A different exchange rate currently applies to EATS and composite cases. DI C29/2000 refers. A project is under way to investigate unifying or at least reducing the number of pounds sterling exchange rates used in DVA, and to determine a new way of establishing the EATS and Composite exchange rate since the UK have stopped providing it. Shane Redfern (ext 16765) is the Income Support contact for this project. |
Contact officer |
The Income Support Branch contact officer is: Sarah Paras Telephone: (02) 6289 6534 |
Jeanette Ricketts
Branch Head
INCOME SUPPORT
21 January 2005
POUND STERLING EXCHANGE RATE FOR PENSIONS FROM UK GOVERNMENT
Foreign exchange periodExchange rate
New Date of Effect Rules |
||||
3 April 01 |
to |
14 May 01 |
0.3550 |
2.8169 |
15 May 01 |
to |
23 July 01 |
0.3674 |
2.7218 |
24 July 01 |
to |
6 August 01 |
0.3803 |
2.6295 |
7 August 01 |
to |
1 October 01 |
0.3701 |
2.7020 |
2 October 01 |
to |
29 October 01 |
0.3430 |
2.9155 |
30 October 01 |
to |
10 December 01 |
0.3588 |
2.7871 |
11 December 01 |
to |
7 January 02 |
0.3709 |
2.6961 |
8 January 02 |
to |
18 March 02 |
0.3612 |
2.7685 |
19 March 02 |
to |
27 May 02 |
0.3723 |
2.6860 |
28 May 02 |
to |
10 June 02 |
0.3830 |
2.6110 |
11 June 02 |
to |
08 July 02 |
0.3928 |
2.5258 |
09 July 02 |
to |
22 July 02 |
0.3758 |
2.6610 |
23 July 02 |
to |
05 August 02 |
0.3643 |
2.7450 |
06 August 02 |
to |
02 September 02 |
0.3503 |
2.8547 |
03 September 02 |
to |
03 March 03 |
0.3620 |
2.7624 |
04 March 03 |
to |
28 April 03 |
0.3816 |
2.6205 |
29 April 03 |
to |
26 May 03 |
0.3929 |
2.5452 |
27 May 03 |
to |
1 September 03 |
0.4064 |
2.4606 |
2 September 03 |
to |
24 November 03 |
0.4168 |
2.3992 |
25 November 03 |
to |
1 March 2004 |
0.4308 |
2.3213 |
2 March 2004 |
to |
24 May 2004 |
0.4200 |
2.3810 |
25 May 2004 |
to |
5 July 2004 |
0.3961 |
2.5246 |
6 July 2004 |
to |
19 July 2004 |
0.3828 |
2.6123 |
20 July 2004 |
to |
11 October 2004 |
0.3938 |
2.5394 |
12 October 2004 |
to |
22 November 04 |
0.4065 |
2.4600 |
23 November 04 |
to |
3 January 05 |
0.4202 |
2.3798 |
4 January 05 |
to |
31 January 05 |
0.4004 |
2.4975 |
1 February 05 |
to |
0.4126 |
2.4237 |
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