DATE OF ISSUE: 17 November 2008
Exchange Rate Variation of Pounds Sterling – Effect on Income Support & Disability Pensioners
Amended by DI No. |
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 & disability pensions for those in receipt of all income paid in Pounds Sterling:
|
New Exchange Rate |
The exchange rate used to convert Pounds Sterling to Australian Dollars for income support assessment purposes has changed from one Pound Sterling = A$2.4284 to one Pound Sterling equals A$2.2758 (i.e. $A1 = £0.4394). This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 14 November 2008. |
Date of Effect18 November 2008 & Interaction with Deeming Rate Change Exercise |
Effective from 18 November 2008 the current exchange rate will change. On pension payday 4 December 2008 pensioners with relevant British income would usually expect to receive a full installment at the new assessed rate. However, it should be noted that payday 4 December 2008 is also the payday from which the November 2008 deeming rate change will apply. This means that the pension rate payable could change again following reassessment for the same payday by the deeming rate change exercise. A typical scenario is that pensioners with both British income and deemed financial assets will first receive an advice, as below, if pension rate varies due to the exchange rate. This will be followed some days later by a deeming rate change advice if pension rate is further altered by the deeming exercise. More information on the deeming rate change exercise will be provided shortly. |
Automatic Processing |
Processing to implement the new exchange rate is scheduled for the evening of Monday, 17 November 2008. Amounts recorded as foreign super type non-government British other income (07), 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 18 November 2008 for payday 4 December 2008. |
Non-Government British Other Income (07) |
Previously non-government British other income (07) was refreshed every six months in March and September with other foreign currencies (GROOVER). As a result of a review of British pensions approved by the Repatriation Commission all sterling payments, including British other income (07) are adjusted in uniform exchange rate variations. |
British DP Cases |
Income Support pensioners who are in receipt of ISS, age pension (AP) or service pension with rent assistance (SPRA); 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 SPRA should be recalculated by doing a PIPS assessment. These cases can be extracted through AIS by each location. 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 |
EATS and Composite cases are subject to the daily exchange rate variation of plus or minus 2.5%. These cases can be extracted through AIS by each location and recalculated by doing a PIPS assessment. Attachment A shows the amount per fortnight in Australian dollars to be applied for the varying United Kingdom amounts. For further details refer to Departmental Instruction DI 22/2005 issued by Veterans' Compensation. |
Printing & Lodgement of Letters |
SALMAT will print, envelope and lodge the advice letters with Australia Post on or before 21 November 2008. An advice letter will only be produced for cases where there is a variation in payment. The letters will be two pages and include the new exchange rate, amount of income and new ongoing pension amount. Joint letters will be produced where both members of a couple are in receipt of pension from the British government and their pension varies. Age pensioners will receive separate advices. |
Tasmanian Overseas Clients |
Tasmanian clients who have an overseas postal address will have the full overseas address printed on their advice letters. The advice letters will be printed, enveloped and sent from the mailing house. |
Streamed Advices |
The following will be streamed for printing by IBM GSA and sent by courier to each location:
|
Contact officer |
The contact officer for this exercise is Sarah Paras: x16534. |
John Sadeik
National Manager
Income Support
17 November 2008
ATTACHMENT A
POUND STERLING EXCHANGE RATE FOR PENSIONS FROM UK GOVERNMENT
Foreign exchange period Exchange rate
From |
To |
$ in £ |
£ in $ |
18 November 2008 |
0.4394 |
2.2758 |
|
21 October 2008 |
17 November 2008 |
0.4118 |
2.4284 |
23 September 2008 |
20 October 2008 |
0.4629 |
2.1603 |
26 August 2008 |
22 September 2008 |
0.4753 |
2.1039 |
20 May 2008 |
25 August 2008 |
0.4902 |
2.0400 |
26 February 2008 |
19 May 2008 |
0.4733 |
2.1128 |
15 January 2008 |
25 February 2008 |
0.4553 |
2.1964 |
9 October 2007 |
14 January 2008 |
0.4425 |
2.2599 |
28 August 2007 |
8 October 2007 |
0.4186 |
2.3889 |
3 July 2007 |
27 August 2007 |
0.4315 |
2.3175 |
27 March 07 |
2 July 2007 |
0.4164 |
2.4015 |
10 October 06 |
26 March 07 |
0.4047 |
2.4710 |
11 April 06 |
9 October 06 |
0.4170 |
2.3981 |
30 August 05 |
10 April 06 |
0.4277 |
2.3381 |
2 August 05 |
29 August 05 |
0.4398 |
2.2738 |
21 June 05 |
1 August 05 |
0.4263 |
2.3458 |
1 February 05 |
20 June 05 |
0.4126 |
2.4237 |
4 January 05 |
31 January 05 |
0.4004 |
2.4975 |
23 November 04 |
3 January 05 |
0.4202 |
2.3798 |
12 October 04 |
22 November 04 |
0.4065 |
2.4600 |
20 July 04 |
11 October 04 |
0.3938 |
2.5394 |
6 July 04 |
19 July 04 |
0.3828 |
2.6123 |
25 May 04 |
5 July 04 |
0.3961 |
2.5246 |
2 March 04 |
24 May 04 |
0.4200 |
2.3810 |
25 November 03 |
1 March 04 |
0.4308 |
2.3213 |