Purpose of Instruction

The purpose of this Departmental Instruction is to clarify DI C23/99, of 22 July 1999, in relation to the effective date.

Processing for payday 29 July 1999 is the first BRI run done under the date of effect provisions.  Therefore, the date of effect for the increase is 13 July 1999.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 29 July 1999 – ie 13 July 1999.

Introduction

Following the recent variation in foreign exchange rates, it is appropriate for DVA to apply a new exchange rate for income support pension assessment purposes.

Effective Date 13 July 1999

Effective from 13 July 1999 the current exchange rate will change.  On pension payday 29 July 1999 pensioners will receive a full instalment at the new assessed rate.

New Rate

A$2.3414

The exchange rate will change from one Pound Sterling equals A$2.4516 to one Pound Sterling equals A$2.3414 (ie $A1 = 0.4271 pounds). This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 9 July 1999.

Timetable

The DVA exercise was scheduled for processing on Wednesday evening, 21 July 1999.

Automatic

Superannuation processing

The amount recorded as BRI non-indexed or BRI indexed will be varied by applying the exchange rate to the amount recorded, to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 29 July 1999 – ie 13 July 1999.

Advice Letters

The advice letters for this exercise will be joint advices.  The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.  The date of effect shown in the advices will be 13 July 1999.

New Claims and Centrelink Transfers–In with an Existing OTA

Any New Claims or Centrelink Transfers-In with a date of effect between 14 July 1999 and 26 July 1999 where BRI is recorded will have to be identified and a manual adjustment made to the existing One Time Amount (OTA) on the PMF.

These cases can be identified through CMS by requesting specific classifications completed between the relevant dates.  The information should not be sought through AIS.

The OTA can be amended by using a General Purpose coding sheet.  To calculate the OTA remember to use the new assessed rate of pension.

BRI advices for these cases will display a date of effect of 13 July 1999, ignoring the fact that pension may have been granted from a later date.  You will not be able to intercept these advices because they are sent direct to Australia Post by Security Mailing.

Regulation 45A Procedures

Finance Regulation 45A no longer exists.  We are currently liasing with the Authorising Officer in our Finance Branch to find out what this will be replaced with.

IBM GSA Implications

IBM GSA will be producing the cartridge and will forward it to Security Mailing in Sydney.  Overseas, Special Register and cases where a change to treatment entitlement occurs will be separated by IBM GSA and despatched to the State Office for manual distribution.

Mail out of Bulk Advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by Monday 26 July 1999.

British DP case paid Rent Assistance

Income Support pensioners who are in receipt of Rent Assistance (RA) and who also receive British Disability Pension direct from Britain (not EATS and Composite cases) should have that disability pension converted to $A using the BRI exchange rate.  The resulting reassessment of their income support pension could vary the RA paid.  A listing of affected cases can be obtained from Kevin Chapman, Systems Delivery Unit.

Contact Officer

The Income Support Branch contact officers for the exercise will be:

Lucy Berger              Telephone:   (02) 6289 6013

Kevin Chapman         Telephone:   (02) 6289 6749

£

$

17 Feb 94

to

16 March 94

0.4708

2.1240

17 Mar 94

to

3 August 94

0.4902

2.0400

4 August 94

to

23 Nov 94

0.4762

2.1000

24 Nov 94

to

7 Dec. 94

0.4576

2.1853

8 Dec. 94

to

21 Dec. 94

0.4723

2.1173

22 Dec. 94

to

15 March 95

0.4898

2.0416

16 March 95

to

26 April 95

0.4770

2.0964

27 April 95

to

13 Sept. 95

0.4576

2.1853

14 Sept 95

to

11 Oct. 95

0.4774

2.0947

12 Oct. 95

to

10 April 96

0.4899

2.0412

11 April 96

to

8 May 96

0.5050

1.9802

9 May 96

to

4 Dec 96

0.5191

1.9264

5 Dec 96

to

12 Feb 97

0.4873

2.0521

13 Feb 97

to

9 April 97

0.4685

2.1345

10 April 97

to

21 May 97

0.4941

2.0239

22 May 97

to

30 July 97

0.4812

2.0781

31 July 97

to

3 Dec 97

0.4542

2.2017

4 Dec 97

to

28 Jan 98

0.4235

2.3613

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4366

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

12 August 98

0.3663

2.7300

13 August 98

to

9 Sept 98

0.3817

2.6199

10 Sept 98

to

21 October 98

0.3690

2.7100

22 October 98

to

4 Nov 98

0.3505

2.8531

5 Nov 98

to

2 Dec 98

0.3676

2.7203

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

0.4271

2.3414