C22/2007 September 2007 Global Refresh of Managed Investments and Shares Letter Production and Mailout

External

Departmental Instruction

DATE OF ISSUE: 4 September 2007

September 2007 Global Refresh of Managed Investments and Shares Letter Production and Mailout

Purpose of Instruction

This Departmental Instruction is to provide you with information about the processing arrangements for the September 200 — 7 Global Refresh of Managed Investments (MIs) and Shares (SHs) advice letter production and mailout.

John Sadeik

National Manager

Income Support

September 200 — 7

Overview

Introduction

Each quarter the Department varies pensions and allowances in accordance with provisions contained in the VEA (Statutory Increase or 'SI'). In March and September of each year, the Consumer Price Index (CPI), the Male Total Average Weekly Earnings (MTAWE) and the Global Refresh of Managed Investments (MIs) and Shares (SHs) data are usually combined as one quarterly reassessment routine.

This quarter the Department will be sending advice letters to those pensioners on less than the maximum rate of service pension, income support supplement or age pension who have MIs and/or SHs recorded in their assessment. DVA will also be writing to those clients who have an increase in their pension payment and who are either Assets tested pre and post the September 2007 Statutory Increase processing or who change from being Assets tested to Income tested following the September 2007 SI processing regardless of whether they have MIs and/or SHs recorded in their assessment.

Advice letters will also be sent to some DVA Age Pensioners who are eligible to commence payment of DFISA, or whose DFISA payment is cancelled following the processing run.

DVA Age Pensioners whose DFISA payment has increased or reduced will only receive an advice following the SI and Global Refresh processing if they have MIs and/or SHs in their assessment.

This Departmental Instruction provides information about the advice letter production and mailout for this processing exercise and advises of any significant issues relating to the mailout.

Significant Issues- of Managed Investment and Share Global Refresh Mailout

The September 200 — 7 Global Refresh mailout will incorporate the following events for payday 27 September 200 — 7 (WEF 20 September 200 — 7). Issues of significance with regard to this mailout are as follows:

Letters will be sent to all less than maximum rate income support recipients who have MIs and/or SHs recorded in their assessment;
Letters will be sent to those clients who were Assets tested pre and post September 2007 SI processing and to those clients who may change from being Assets tested to being Income tested following the processing and who have an increase in their rate of pension - regardless of whether they have MIs and/or SHs recorded in their assessment;

A new paragraph will be provided for those Assets to Assets tested clients and those Assets to Income tested clients advising them of the Assets test taper rate changes which were part of the 2007 Budget;
A 'SH and MI Information Attachment' will be provided for all income support recipients who have MIs and/or SHs in their assessment. This Information Attachment will provide a complete listing of the client's MIs and/or SHs regardless of what has been reassessed;
The General Information Sheet (GIS) will not be produced as part of the advice letter to be sent to each client in September.
DVA Age Pensioner clients who commence payment of DFISA, or whose DFISA payment is cancelled will receive an advice letter following the September 200 — 7 SI processing and Global Refresh processing run, regardless of whether they have MIs and/or SHs in their assessment;
There will be a paragraph advising eligible clients of the Utilities Allowance (UA) payment. The UA payment is to be paid to veterans and their partners who are of veteran pension age and receiving a service pension or income support supplement. If a pensioner is receiving age pension - UA is payable if they are age pension age;
Age Equalisation age increases were effective from 1 July 2007, increasing the ages of female veterans from 63 to 63.5 and non-female veterans from 58 to 58.5;
There will be a paragraph advising eligible clients of their Telephone Allowance payment;
A letter will be produced for clients who have MIs and/or SHs recorded in their assessment and whose payment of Rent Assistance (RA) has varied as a result of the reassessment - this includes clients whose income support pension is paid at the nil rate or their income support pension has not been varied; and
If a treatment change occurs as a result of the reassessment a letter will be produced.

Letter Content - September 2007 Global Refresh of MIs and/or SHs Mailout

Advice Letter Target Audience – September Global Refresh of MIs and/or SHs

A letter will be produced for the following clients following the September 200 — 7 Global Refresh of MIs and/or SHs processing:

All less than maximum rate service pensioners (SP), income support supplement recipients (ISS) and age pensioners (AP) including those in receipt of DFISA, who have MIs and/or SHs recorded in their assessment;
Maximum rate SP/ISS/AP recipients who have MIs and/or SHs in their assessment who move to less than the maximum rate as a result of the reassessment;
Less than maximum rate SP/ISS/AP recipients who have MIs and/or SHs in their assessment and who move to the maximum rate as a result of the reassessment;
SP/ISS/AP recipients who have MIs and/or SHs in their assessment and are reduced to nil as a result of the reassessment;
All SP/ISS/AP recipients who were Assets Tested pre and post the 2007 September SI processing regardless of whether they have MIs and/or SHs in their assessment;
All SP/ISS/AP recipients who were Assets tested pre SI processing but who become Income tested following the S — I processing and whose pension results in an increase – regardless of whether they have MIs and/or SHs in their assessment;
All DVA Age Pensioners who commence payment of DFISA, or whose DFISA payment is cancelled will receive an advice letter, regardless of whether they have MIs and/or SHs in their assessment; and
Treatment changes as a result of the Statutory Increase (SI) or global refresh of MIs and/or SHs reassessment.

Defence Force Income Support Allowance (DFISA)

All DVA Age Pensioner clients with or without DFISA in payment, who are paid at less than the maximum rate of pension and, who have MIs and/or SHs in their assessment will receive an advice letter following the Global Refresh processing.

In addition, an advice will be produced for those clients who commence payment of DFISA or whose DFISA payment is cancelled following the September processing regardless of whether they have MIs and/or SHs in their assessment.

An example of the advice letter — s to clients with MIs and/or SHs and in payment of DFISA is shown at ATTACHMENT A.

Introductory Paragraphs for SP/ISS/AP Client's Advices

AP clients in receipt of DFISA will have 'multiple outcome' paragraphs printing as part of their introductory paragraphs - advising them of a variation to their AP payment and DFISA payment.

All AP/SP/ISS client letters will have either the single or multiple outcome introductory paragraphs printing, advising them of the outcome of their payments, as follows:

Multiple Outcome Paragraphs:

This is to advise you that your:

Age pension has been increased/reduced/reduced to nil.
Defence Force Income Support Supplement (DFISA) has varied.
Rent assistance has been reduced.

This c — hange will take effect from 20 September 200 — 7.

Single Outcome Paragraph:

This is to advise you that your service pension has been increased/reduced. This change will take effect from 20 September 200 — 7.

Financial Assets Reassess-ment

The asset value of MI and/or SH 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....

This paragraph advises clients about the reassessment program and explains that... 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 pension and has resulted in an increase, (or an overall reduction) to the amount of pension paid to you.' OR ..'has resulted in your pension being reduced to nil.'

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 MIs and/or SHs regardless of which MIs and/or SHs have been reassessed.

We will not be providing clients with a listing of their Full Income and Assets.

CPI	There will be a brief reference made in all 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 September edition of Vetaffairs, which is to be distributed between Thursday, 13 September 2007 and Friday, 21 September 2007.

Assets Test Taper Rate Changes – All Assets Tested and Assets Tested to Income Tested Clients to Receive an Advice Specific Paragraph

Due to the changes in the Asset — s Test Taper Rate we will be extending the selection of clients who are to receive an advice letter following the September 2007 SI and Global Refresh of MIs and/or SHs processing – an advice letter will be produced for clients who are assets tested pre and post September SI processing or who change to income tested where they result in an increase in their pension payment. These pensioners will receive an advice letter regardless of whether they have MIs and/or SHs in their assessment.

The following paragraphs will print in the advice letters for those clients who go from assets to assets tested or assets to income tested with an increase in pension following the September processing. These paragraphs will only be generated for the September 2007 processing run.

Assets Tested to Assets Tested – Paragraph Wording for Clients

20 September 2007 Changes to the Assets Test

Your pension has been reassessed using the new reduction rate and your increased rate of pension will take effect from 20 September 2007.

...........................................................................Continued over page

AssetsTest Taper Rate Changes – All Assets Tested and Assets Tested to Income Tested Clients to Receive an Advice Specific Paragraph Cont'd

Assets Tested to Income Tested – Paragraph Wording for Clients

20 September 2007 Changes to the Assets Test

A change to legislation to halve the assets test taper rate with effect from 20 September 2007 has resulted in an increase to the amount of income support pension paid to you. From 20 September 2007, for every $1,000 of assets you own over the relevant assets value limit your income support pension is reduced by only $1.50 per fortnight. Prior to 20 September 2007 this reduction rate was $3.00 per fortnight. It is important to note, however, that the current income test still applies. Income support pensions are assessed using both an income and an assets test. The test that results in the lower a — mount of pension is the one that is applied.

Your pension has been reassessed using the halved assets test taper rate and this has resulted in your pension switching from being assessed under the assets test to assessment under the income test.

Obligations

to be Suppressed

Full and Partial 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 service pensioner and income support supplement pensioners who are reduced to nil.

Age pensioners who are reduced to nil, but continue in payment of DFISA will receive their Financial Obligations paragraph including their prescribed rates.

Telephone Allowance

Pensioners entitled to a telephone allowance (TA) payment will receive a paragraph advising them about their quarterly payment and the date of that payment – 2 — 7 September 200 — 7. The TA paragraph will advise pensioners that ....'TA is a separate payment and is not included in your total fortnightly payment information referred to in the letter.'

Utilities Allowance

Utilities Allowance (UA) is to be paid twice yearly in March and September. Where the payment of UA is in line with the SI payday for March and September, the advice letters will generate the UA paragraph providing the client meets the eligibility criteria.

Eligibility criteria for payment of UA is:

male, equal to or greater than 60 years on 20 September 200 — 7, in payment of SP or ISS, OR
female, equal to or greater than 58.5 on 20 September 200 — 7, in payment of SP or ISS, OR
male, equal to or greater than 65 years on 20 September 200 — 7, in payment of Age pension, OR

female, equal to or greater than 63.5 years on 20 September 200 — 7, in payment of Age Pension.

**Please note age equalisation increases in the ages of female veterans and female non-veterans by 6 months as of 1 July 2007.

The UA paragraph wording in the advice will read:

'Utilities allowance is a payment made to you to assist with the payment of energy, rates and water expenses. The half-yearly instalment of utilities allowance, will be paid on 27 September 2007. The utilities allowance is a separate payment and is not included in your total fortnightly payment information referred to in this letter. The current rates for utilities allowance are:

Singles Rate - $XX.XX

Couples Rate (each) - $XX.XX'

Clients who reside overseas are not eligible to receive the UA payment.

Treatment Advices to be Checked

For the September 2007 Global Refresh the Enclosure (treatment) advice letters will be printed at the nominated printer at each location. These advices would normally be printed at the IBM Printhub but due to a problem with the printing of quarterly advices at the Printhub we will be printing these directly to your nominated printer.

It is suggested that these letters be checked for accuracy, and reconciled against the reports received in each location to ensure they reflect the correct treatment paragraphs It should be noted that not all clients who have an advice produced due to a treatment change will have MIs and/or SHs in their assessment. Clients who do not have MIs and/or SHs in the assessment will not have MIs and/or SHs related paragraphs printing in their advice.

Tasmanian Clients with Overseas Postal Address

Advice letters for Tasmanian Office clients with an overseas postal address will have their advices printed and posted from the Mailing House.

Blind Clients will not receive an advice

Blind clients will not receive an advice. Where a member of a couple is assessed as 'blind' - a single advice will only be produced for the non-blind member who may be affected by the processing.

An exception to this rule is where a Blind client with MIs and/or SHs in their assessment is also in payment of rent assistance (RA), which is subject to the income and assets tests and as such, may result in a variation to their RA payment. Where there is a variation to the RA payment for these clients, an advice will be produced.

General Information Sheet

The General Information Sheet (GIS) will not be produced as part of each client's letter for the September processing. The GIS is to be sent out to all clients once per year as part of the June SI mailout. The GIS will continue to be produced as part of the daily advice letter production for SP, ISS and AP grant advice letters.

Single & Joint Addressed Letters

All service pension and income support supplement recipient couples will receive a joint advice, provided the pensioner addresses are identical, this includes illness separated couples. The batch address defaults determining single and joint advices have been aligned with the PIPS PC daily advice defaults. Where both members of a couple have the same postal address recorded - a joint advice will be produced.

Important to note: Staff are reminded when granting Age Pension or for those clients in a joint assessment who request separate or single advices, they need to update this information using the mainframe PRODIMS - Client Correspondence Client Options (CO.CO) Screen - prior to the processing run to initiate the client request. The advice default requests set in CO.CO will override the DOCGEN and PIPS advice rules.

Age pensioner couples will receive separate letters - providing the advice default request has been set in CO.CO.

Production of Advice Letters

SI Processing

SI Processing is scheduled to run from PM Friday, 7 September 200 — 7, following the completion of the IPS FORT processing, through until approximately PM Sunday, 9 September 200 — 7.

Critical Dates

Processing Weekend within DVA (includes 'advices' processing)	Friday (pm) 7 September 200 — 7 – Sunday (pm) 9 September 200 — 7
Transmission of Production Data to Mailing House	Monday, 1 — 0 September 200 — 7
Mailing House to c — ommence printing Advice Letters	Tuesday, 1 — 1 September 200 — 7
Mailing House may c — ommence National lodgment of Advice Letters with Australia Post	From Wednesday, 1 — 2 September 200 — 7
Mailing House to c — omplete lodgment of all State's Advice Letters with Australia Pos — t by COB	F — riday, 1 — 4 September 200 — 7

Expected Client Numbers

The approximate number of letters to be sent nationally following processing is approximately 3 — 1,000 based on March 200 — 6 mailout statistics. We expect a small increase in numbers for this run due to the extended client selection of those who are to receive an advice due to the Assets Taper Rate changes. The September 2007 statistics will be confirmed following processing.

STATE	APPROX NO. OF ADVICE LETTERS
NSW (incl ACT)	9,488
VIC	7,405
QLD	6,776
SA	2,971
WA	2,894
TAS	1,029
TAS OS	53
TOTAL	30,616

Printing of Letters

SALMAT - D — ocument M — anagement Solutions located in Mulgrave, Victoria, will print, fold and insert advice letters from Tuesday, 1 — 1 S — eptember 200 — 7 through until Friday, 1 — 4 September 200 — 7.

National Lodgment of Letters and Dates

Letters will be lodged Nationally on or before Friday, 14 September 2007 with Australia Post.

A representative from the Systems, Cards and Advices Team will notify and confirm all lodgment details.

The Income Support c — ontact o — fficers for this exercise will be given progress reports and advised of any changes to this timetable.

Centrelink DFISA Advices from CPI Processing

DVA will be suppressing the printing of all Centrelink daily DFISA variation advices with an effective date of 20 September 200 — 7, which are transmitted to DVA following the running of the Centrelink CPI processing. All other advices will print as part of the normal processing, including the printing of the CLK DF — ISA cancellation and grant advices.

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 September 200 — 7 Global Refresh processing and is tentatively scheduled to run on the evening of Wednesday, 12 September 2007 - after the September Global Refresh processing. The effective date of the Foreign Pensions Refresh Run is 20 September 200 — 7 for payday 2 — 7 September 200 — 7.

Separate Foreign Income advices are produced for clients who have foreign pensions, excluding the British Social Security Pension (type 08), British Official Public Service/Forces pension (type 09) and British Other Income (type 07).

Clients whose pension has been varied will receive an advice.

Please note that British Other Income (type 07) was previously refreshed as part of GROOVER processing however, following a review of British pensions, the Repatriation Commission approved the adjustment of all sterling payments as part of the uniform exchange rate variation exercises. British other income (type 07) is now reassessed automatically as part of the British Pensions exchange rate variation processing runs not as part of the GROOVER processing.

Please note that the advice letters produced from this processing will be printed at the IBM Printhub and couriered to each Office for posting after the September 200 — 7 quarterly letters have been dispatched.

Issues Requiring Staff Action

Enclosure (Treatment Changes) Advice Letters

Enclosure (treatment changes) advice letters will be printed at the nominated printer in each location. Printer Identification as per state location — s is as follows:

SA – S116P

TAS – T003P

WA – W014P

VIC – V011P

NSW – N604P

QLD – 1403P

These advices should be checked for accuracy, and reconciled against the reports received by each Office.

Each Office will receive, via email a zip file advices report containing details of all advices sent, including enclosure advices.

These advices will print at your printers immediately following the processing and should be available on your printer by start of business on Monday 10 September 2007.

ZIP Files of Advice Schedule Reports

A Zip File listing details of all clients who receive an advice will be emailed to the Income Support System Support Officer in each Office during the week following the processing run. The Zip File replaces the Advices Schedule Report, whi — ch is too large to print on the printers in each office.

Reduction to Nil Letters

A — ny Reduction to Nil advice letters resulting from the September processing will be printed at your location at the nominated printer. Staff are required to include a Commonwealth Seniors Health Card (CSHC) claim form, a CSHC fact sheet and an envelope for clients to return the completed form in.

MOA 15 or MOA 16 Cases - An advice to be produced

Clients who have MIs and/or SHs in their assessment and are paid War Widows Pension and Rent Assistance (RA) but whose income support supplement or service pension is paid at the nil rate will receive an advice letter advising them if their RA has varied following the Global Refresh.

Reprints of Advices Available using VIEW – Advices Tab

Reprints of individual advice letters produced from the quarterly processing can be requested via VIEW - Advices Tab reprint facility. Quarterly advice reprints are available and can be requested from day one of the next quarter ie., March quarterly advices from 01/04/yyyy, June quarterly advices from 01/07/yyyy and September quarterly advices from 01/10/yyyy.

'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 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 8 - 9 September 200 — 7, should be held pending notification that the September 200 — 7 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 September 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.

Income Support Contact Officers

NSW: Genia Sacharczuk – 02 9213 7106

VIC: Gavin Inglis - 03 9284 6379

QLD: Steve Jensen – 07 3223 8835

SA: Carolyn Conroy - 08 8290 0425

WA: John Gliddon - 08 9366 8417

TAS: Bryon Kelly – 03 6221 6698

ACT/NSW Location Contacts

Feedback from Staff

Any concerns regarding letters produced as part of this run should be direct — ed to Pat Webb the September Global Refresh Business Co-ordinator located in New South Wales. Please forward your feedback on this exercise to the Business Co-ordinator, 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.

Contact Details

Any queries re — garding this mailout should be referred to:

Pat Webb

(02) 9213 7288 (Phone)

(02) 9213 7889 (Fax)

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

Mock-ups of Letters to be Produced

Letter Content

Prior to the issue of this Departmental Instruction, comments were sought from staff in each location who were provided with copies of the proposed paragraph sequencing and mock-ups of advice letters for this run.

All feedback received from staff was extremely positive with no requests for changes to the proposed advice letter content.

Details of the proposed content of the letters, including sample letters and sequencing of paragraphs are included in Attachment A.

Attachment A – Paragraph sequencing and Advice Letter Examples:

Example 1A: SP Increase - Less than Max to Less than Maximum Rate- with MIs/SHs in assessment, Income tested,TA in Payment, Utilities Allowance (UA) in payment.

Example 2A: SP Increase – remaining on Less than maximum rate, Assets tested to Assets tested, NIL MIs and/or SHs in assessment, TA in Payment, UA in payment.

Example 3A: SP Increase – remaining on Less than maximum rate, Assets tested to Assets tested, with MIs and/or SHs in assessment TA in Payment, NIL UA in payment.

Example 4A: SP Increase – remaining on Less than maximum rate, Assets Tested to Income Tested. NIL MIs and/or SHs in assessment, TA in payment, UA in payment.

Example 5A: ISS Increase remaining on Less than Maximum Rate, with MIs/SHs in assessment,

Nil TA in Payment, UA in payment, RA in payment.

Example 6A: SP Reduction to Nil SP Reduction to Nil. with MIs and/or SHs in assessment, Nil TA in payment and Nil UA in payment.

Example 7A: Age Pensioner Increase, DFISA varied, with MIs and/or SHs in assessment, TA in payment, UA in payment, Income tested

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; and
State specific 'closing' paragraphs with the preferred contact telephone number for Income Support related issues will be used for this mailout.

ATTACHMENT A

EXAMPLE 1A:

OVERALL INCREASE – EITHER FROM LESS THAN MAXIMUM RATE TO LESS THAN MAXIMUM RATE OR INCREASE FROM LESS THAN MAXIMUM RATE TO MAX RATE AMOUNT
SINGLE OUTCOME
MIs/SHs IN ASSESSMENT
SERVICE PENSIONERS
MARRIED ASSESSMENT
INCOME TESTED
TELEPHONE ALLOWANCE IN PAYMENT
UTILITIES ALLOWANCE IN PAYMENT

GPO Box 651, Brisbane QLD 4001

Contact: Brisbane Office

Telephone: Bank of Queensland Centre

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

29 MARGARET STREET Telephone:

IPSWICH QLD 4010 Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8479

9 September 2007

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs SMITH,

This is to advise you that your service pension has been increased. This change will take effect from 20 September 2007.

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 increase to the amount of service pension paid to you. The value of other income and assets you may have has not been affected by this reassessment.

Please refer to the 'Shares and Managed Investments Information' Attachment included in this letter. This Attachment details all of 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 any other income or assets you may have in your assessment, as they have not been changed in this 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).

Payment Information

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

Telephone Allowance

Your quarterly telephone allowance will be paid on 27 September 2007, 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 quarterly telephone allowance rates are:

Singles Rate - $XX.XX

Couples Rate (each) - $X.XX

World War I Veterans - $XX.XX

Utilities Allowance

Utilities allowance is a payment made to you to assist with the payment of energy, rates and water expenses. The half-yearly instalment of the utilities allowance will be paid on 27 September 2007. The utilities allowance is a separate payment and is not included in your total fortnightly payment information referred to in this letter. The current rates of utilities allowance are:

Singles Rate - $XX.XX

Couples Rate (each) - $XX.XX

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.

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 regarding Income Support issues you should contact us on 1300 550 452 (Capital city callers) or 1800 550 452 (Non-Capital city callers). For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

PAYMENT INFORMATION ATTACHMENT

The Department now calculates 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 27 September 2007VeteranPartner

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 11 October 2007VeteranPartner

TOTAL FORTNIGHTLY PAYMENTxxx.xx — xxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxx — xxx.xx — xxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.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 9 September 2007)

You are receiving service pension at less than the maximum rate payable. (If client goes from LMAX to MAX rate this sentence will read: 'You are receiving service pension at 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 values of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments have been automatically updated.

The asset values of any unlisted public company shares, overseas shares, options, rights and futures or account based managed investments you hold have not been updated. You must tell us if the asset value of these investments has varied by $1,000 or more.

The information below sets out the values for the shares and/or managed investments in your current assessment.

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 any other income or assets you may have in your assessment, as they have not been changed in this assessment. However, they continue to be used in assessing the amount of service pension 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 or receive remote area allowance) 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.

EXAMPLE 2A:

OVERALL INCREASE – FROM LESS THAN MAXIMUM RATE TO LESS THAN MAXIMUM RATE
SINGLE OUTCOME
NIL MIs/SHs IN ASSESSMENT
SERVICE PENSIONERS
MARRIED ASSESSMENT
ASSETS TESTED TO ASSETS TESTED
TELEPHONE ALLOWANCE IN PAYMENT
UTILITIES ALLOWANCE IN PAYMENT

GPO Box 651, Brisbane QLD 4001

Contact: Brisbane Office

Telephone: Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

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

PETER KENNEDY GPO Box 651 Brisbane Qld 4001

SARAH KENNEDY

34 HENRY STREET Telephone:

TOOWOOMBA QLD 4010 Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8479

9 September 2007

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs KENNEDY,

This is to advise you that your service pension has been increased. This change will take effect from 20 September 2007.

20 September 2007 Changes to the Assets Test

Your pension has been reassessed using the new reduction rate and your increased rate of pension will take effect from 20 September 2007.

Payment Information

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

Telephone Allowance

Singles Rate - $XX.XX

Couples Rate (each) - $X.XX

World War I Veterans - $XX.XX

Utilities Allowance

Singles Rate - $XX.XX

Couples Rate (each) - $XX.XX

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if you gain or dispose of any assets, or the value of your combined existing assets varies, or your combined gross income from all sources increases above $XXX.XX per fortnight.

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,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

Payment Information Attachment - YES

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

EXAMPLE 3A:

OVERALL INCREASE – FROM LESS THAN MAXIMUM RATE TO LESS THAN MAXIMUM RATE
SINGLE OUTCOME
MIs/SHs IN ASSESSMENT
SERVICE PENSIONERS
MARRIED ASSESSMENT
ASSETS TESTED TO ASSETS TESTED
TELEPHONE ALLOWANCE IN PAYMENT
NIL UTILITIES ALLOWANCE IN PAYMENT

GPO Box 651, Brisbane QLD 4001

Contact: Brisbane Office

Telephone: Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

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

DENNIS PARKER GPO Box 651 Brisbane Qld 4001

PHILLIPA JONES

11 CROMBIE STREET Telephone:

CAIRNS QLD 4010 Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8479

9 September 2007

YOUR FILE NUMBER IS QX123456

Dear Sir and Madam,

This is to advise you that your service pension has been increased. This change will take effect from 20 September 2007.

20 September 2007 Changes to the Assets Test

Your pension has been reassessed using the new reduction rate and your increased rate of pension will take effect from 20 September 2007.

Change to Value of Shares and/or Managed Investments

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

Payment Information

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

Telephone Allowance

Singles Rate - $XX.XX

Couples Rate (each) - $X.XX

World War I Veterans - $XX.XX

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,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

Payment Information Attachment - YES

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

EXAMPLE 4A:

OVERALL INCREASE – FROM LESS THAN MAXIMUM RATE TO LESS THAN MAXIMUM RATE
SINGLE OUTCOME
NIL MIs/SHs IN ASSESSMENT
SERVICE PENSIONERS
MARRIED ASSESSMENT
ASSETS TESTED TO INCOME TESTED
TELEPHONE ALLOWANCE IN PAYMENT
UTILITIES ALLOWANCE IN PAYMENT

GPO Box 651, Brisbane QLD 4001

Contact: Brisbane Office

Telephone: Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

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

STEVEN CLARK GPO Box 651 Brisbane Qld 4001

SUSAN CLARK

21 HAY STREET Telephone:

CROWS NEST QLD 4010 Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8479

9 September 2007

YOUR FILE NUMBER IS QX123456

Dear Mr and Mrs CLARK,

This is to advise you that your service pension has been increased. This change will take effect from 20 September 2007.

20 September 2007 Changes to the Assets Test

Your pension has been reassessed using the halved assets test taper rate and this has resulted in your pension switching from being assessed under the assets test to assessment under the income test.

Payment Information

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

Telephone Allowance

Singles Rate - $XX.XX

Couples Rate (each) - $X.XX

World War I Veterans - $XX.XX

Utilities Allowance

Singles Rate - $XX.XX

Couples Rate (each) - $XX.XX

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,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

Payment Information Attachment - YES

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

EXAMPLE 5A:

OVERALL INCREASE – REMAINING ON LESS THAN MAXIMUM RATE OF INCOME SUPPORT SUPPLEMENT
MIs/SHs IN ASSESSMENT
INCOME SUPPORT SUPPLEMENT – SINGLE ADVICE
MULTIPLE OUTCOMES
RENT ASSISTANCE PAYABLE
NIL TELEPHONE ALLOWANCE IN PAYMENT
UTILITIES ALLOWANCE IN PAYMENT
INCOME TESTED

GPO Box 651, Brisbane QLD 4001

Contact: Brisbane Office

Telephone: Bank of Queensland Centre

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

IPSWICH QLD 4010 Telephone:

Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8479

9 September 2007

YOUR FILE NUMBER IS QX666666

Dear Mrs THOMPSON,

This is to advise you that your:

Income support supplement has been increased.
Rent assistance has been increased.

This change will take effect from 20 September 2007.

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. The value of other income and assets you may have has not been affected by this reassessment.

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

Payment Information

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

Utilities Allowance

Singles Rate - $XX.XX

Couples Rate (each) - $XX.XX

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.

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,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

Payment Information Attachment - YES

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

EXAMPLE 6A:

SERVICE PENSION - REDUCTION TO NIL
MIs/SHs IN ASSESSMENT
RENT ASSISTANCE CANCELLED
SINGLE ASSESSMENT
MULTIPLE OUTCOMES
NIL TELEPHONE ALLOWANCE IN PAYMENT
NIL UTILITIES ALLOWANCE IN PAYMENT

GPO Box 651, Brisbane QLD 4001

Contact: Brisbane Office

Telephone: Bank of Queensland Centre

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

IPSWICH QLD 4010 Telephone:

Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8479

9 September 2007

YOUR FILE NUMBER IS QX333444

Dear Mr TELL,

This is to advise you that your:

service pension has been reduced to nil.

rent assistance has been cancelled.

This change will take effect from 20 September 2007.

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 your service pension being reduced to nil. The value of other income and assets you may have has not been affected by this reassessment.

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

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

Payment Information

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

Pensioner Concession Card

As your service pension is no longer payable, you no longer qualify for fringe benefits from this Department. Please destroy your existing Pensioner Concession Card as it is illegal for this card to be used after cancellation and use can be checked by electronic validation by some concession providers.

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,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary and Repatriation Commission

ATTACHMENTS

Payment Information Attachment - YES

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

DFISA LETTERS

EXAMPLE 7A:

AGE PENSION INCREASE (Less than Max Rate)
INCOME TESTED
MULTIPLE OUTCOMES
DFISA VARIATION

WITH MIs/SHs IN ASSESSMENT.
TELEPHONE ALLOWANCE IN PAYMENT
UTILITIES ALLOWANCE IN PAYMENT

GPO Box 651, Brisbane QLD 4001

Contact: Brisbane Office

Telephone: Bank of Queensland Centre

259 Queen Street

Brisbane Qld 4000

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

PHILLIP JOHNSTON GPO Box 651 Brisbane Qld 4001

30 ELIZABETH STREET

TOOWOOMBA QLD 4045 Telephone:

Capital city callers: 133 254

Non-Capital city callers: 1800 555 254

Facsimile: (07) 3223 8479

9 September 2007

YOUR FILE NUMBER IS QX123456

Dear Mr JOHNSTON,

This is to advise you that your:

Age pension has been increased.
Defence Force Income Support Allowance (DFISA) has varied.

This change will take effect from 20 September 2007.

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 age pension payment and has resulted in an increase to the amount of age pension paid to you. The value of other income and assets you may have has not been affected by this reassessment.

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

Payment Information

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

Telephone Allowance

Singles Rate - $XX.XX

Couples Rate (each) - $X.XX

World War I Veterans - $XX.XX

Utilities Allowance

Singles Rate - $XX.XX

Couples Rate (each) - $XX.XX

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas) 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.

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 Veterans' Affairs 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 writing.

The rate of DFISA paid to you is derived from your age pension assessment. You may seek to have your age pension assessment reviewed if you are dissatisfied with your DFISA rate.

Yours sincerely,

ALISON STANLEY

Deputy Commissioner

As Delegate of the Secretary

PAYMENT INFORMATION ATTACHMENT

Payment for 27 September 2007 Veteran

TOTAL FORTNIGHTLY PAYMENT $XXX.XX

This is made up of:

- Disability pension — XXX.XX

- Defence Force Income Support Allowance XX.XX

- Age pension — XXX.XX

- Pharmaceutical allowance X.XX

Payment for 11 October 2007Veteran

TOTAL FORTNIGHTLY PAYMENT $XXX.XX

This is made up of:

- Disability pension — XXX.XX

- Defence Force Income Support Allowance XX.XX

- Age pension — XXX.XX

- Pharmaceutical allowance X.XX

SHARES AND MANAGED INVESTMENTS INFORMATION

(Information current as at 9 September 2007)

You are receiving age 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 have been automatically updated.

The information below sets out the values for the shares and/or managed investments in your current assessment.

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 any other income or assets you may have in your assessment, as they have not been changed in this assessment. However, they continue to be used in assessing the amount of age pension 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) 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.