This section contains details of exempted investments held with financial institutions which are in financial difficulty.

The financial institutions listing alphabetically lists the names of financial institutions which have specific investments exempted from the deeming provisions.

The inclusion of a financial institution in this listing does not mean that all investments administered by that financial institution are exempt.  Only the investments specified in the listing have been granted an exemption.

Each exempted failed investments [3] entry displays alphabetically the names of organisations which have specific investments exempted from the deeming provisions along with the exemption date and the actual income/asset values to be used in assessing service pension or ISS entitlement.

Any investments which do not appear in this listing must be assessed as financial assets and deemed accordingly.  If a pensioner claims an exemption for an investment which does not appear in the listing, the case should be referred to the Investment Database Unit (IDU).

The information provided in the exempted investments listing is as follows:

Institution Name:

The names of the institutions holding the exempted investment/s will be listed

alphabetically.

Investment Name:

The specific names of the investments which have been exempted will

appear alphabetically under the institution name.

Exemption Date:

The effective date of the exemption will appear directly below the specific name of the investment/s which have been exempted.

Asset Value:

The asset value of the investment expressed as a percentage of its face value (eg. if a client has a debenture with a face value of $10,000, and the asset value in the register is 15%, the asset value to be held will be $1,500).

The investment is only exempt from the deemed income rules, not

the asset test rules.  The asset value indicated in the register must be assessed

for assets test purposes.

Income Value:

The actual income from the investment expressed as an interest rate (%), (eg. if a client has a debenture still earning interest, and the income value in the register is 4%, the income to be held will be 4% of the current investment value).

The investment is only exempt from the deemed income rules, not

the normal income test rules.  The income value indicated in the register must

be assessed for income test purposes.

PIPS Recording Procedures:

If the investment is a managed investment, share or account which appears on the DVA Investment Database:

a)the IDU will set the national exemption indicator to 'Yes' and

select all clients holding the investment for reassessment using

the Fortnightly Processing Run.

b)the investments will be monitored via the DVA Investment

Databases, and the IDU will update the actual dividend, rate

and/or price details on the investment to ensure that all clients

are reassessed using the same details.

If the investment is a loan, bond, debenture, bullion or other financial asset:

a)the exempted investments listing will be updated with the

appropriate income, asset and effective date details.

b)these investments will not appear on the DVA Investment

Databases, and processing staff must manually edit the

investment on PIPS PC and re-set the exemption indicator

from 'No' to 'Yes', updating actual interest rate details and the

current asset value.

This section contains details of specific exempted funds and accounts administered by church and charitable organisations which were exempted from deeming prior to 1 January 2010.

From 1 January 2010, deeming exemptions ceased to be granted for new funds and for new investments placed into funds which had been granted a deeming exemption prior to 1 January 2010.

Pensioners who had investments in an exempt fund prior to 1 January 2010 will continue to have their original investment exempted from deeming.  The actual interest earned will be counted as income under the income test.

If a pensioner puts more money into their already exempt investment or makes a new investment with a church and charitable institution on or after 1 January 2010, the deeming exemption will only apply to the amount invested prior to 1 January 2010.

Each exempted church and charitable investments [5] entry displays alphabetically the names of church and charitable organisations which have had specific funds and accounts exempted from the deeming provisions prior to 1 January 2010, along with the exemption date to be used in assessing service pension or ISS entitlement.

The inclusion of a church or charitable organisation in this listing does not mean that all of the funds and accounts administered by that organisation are exempt.  Only the funds and accounts specified in the listing have been granted an exemption.  If a pensioner puts more money into their already exempt investment or makes a new investment with a church and charitable institution on or after 1 January 2010, the deeming exemption will only apply to the amount invested prior to 1 January 2010.

Any funds or accounts which do not appear in this listing must be assessed as financial assets and deemed accordingly.  If a pensioner claims an exemption for a fund or account which does not appear in the listing, the case should be referred to the Investment Database Unit (IDU).

The information provided in the exempted funds and accounts listing is as follows:

Church or Charitable Organisation Name:

The names of the church or charitable organisations administering the

exempted fund/s or account/s will be listed alphabetically.

Fund or Account Name:

The specific names of the funds or accounts which have been exempted prior to 1 January 2010 will appear alphabetically under the church or charitable organisation name.

Exemption Date:

The effective date of the exemption will appear directly below the specific fund/s or account/s which have been exempted.  If a pensioner puts more money into their already exempt investment or makes a new investment with a church and charitable institution on or after 1 January 2010, the deeming exemption will only apply to the amount invested prior to 1 January 2010.

Income Value:

If the fund or account is earning actual income, the actual interest rate (%) must be assessed under the normal income test (eg. if a fund or account is  earning actual interest of say 4%, the income to be held will be 4% of the current investment value).

The fund or account is only exempt from the deemed income rules, not the

normal income test rules.

As the register does not contain details of actual interest rates paid on

exempted fund/s or account/s, the examiner must contact the client or

organisation to find out the actual rate of interest paid, and that actual rate

must be assessed for income test purposes.

Asset Value:

The fund or account is only exempt from the deemed income rules, not the

asset test rules.  The full asset value must be assessed for assets test purposes.

PIPS Recording Procedures:

As these investments are in the form of loans and accounts, they will not appear on the DVA Investment Databases, and processing staff must manually edit the investment on PIPS PC and re-set the exemption indicator from 'No' to 'Yes', updating actual interest rate details and the current asset value.

This section contains details of exempted classes of financial investments.

Each exempted class of financial investments [7] has been exempted from the deeming provisions.

Each exempted class of financial investments is unique and you must follow the class specific instructions documented in the register.

The information provided in the exempted class of financial investments listing is as follows:

Determination Number:

The determination number and the year of the class exemption.

Asset Value:

Each exempted class of financial investments is unique and you must follow

the class specific instructions documented in the register.

Income Value:

Each exempted class of financial investments is unique and you must follow

the class specific instructions documented in the register.

PIPS Recording Procedures:

Each exempted class of financial investments is unique and data collection

procedures will vary for each class exemption.

Contact the Investment Database Unit (IDU) on a case specific basis for PIPS data collection instructions.