Place holder node for 2014
DATE OF ISSUE: 19 August 2014
2015 Commonwealth Seniors Health Card (CSHC)
Purpose |
To provide information about the annual bulk issue of the 201 — 5 Commonwealth Seniors Health Card (C — SHC). |
Background |
The CSHC was introduced on 1 July 1994. The card is re-issued annually and entitles the card holder to pharmaceuticals listed on the Pharmaceutical Benefits Scheme at a concessional rate, the Medicare Safety Net threshold and concessional fares on the Great Southern Rail service. In addition, CSHC holders may be entitled to further state/territory concessions on presentation of their card to the relevant department or authority. CSHC holders may also be entitled to a quarterly payment from DVA. |
Eligibility |
The CSHC is intended to assist eligible veterans and their partners (including widow/widowers, and war widow/widowers) of pension age who fail to qualify for income support due to assets or income in excess of the current limit. Eligibility is determined manually by state office staff. |
Eligibility for residents of Norfolk Island |
Residents of Norfolk Island are regarded as Australian residents for the purposes of determining eligibility for a CSHC. This is due to changes to [glossary:section 5Q VEA which includes Norfolk Island in the definition of Australia, allowing access to various income support payments and benefits including the CSHC. Residents of Norfolk Island may therefore be issued with a CSHC if all of the eligibility criteria are met. |
CSHC Carrier |
The 2015 CSHC will be issued on a CSHC Carrier sheet which sets out information about the card and the cardholder's obligations. A copy of the CSHC Carrier is included at Attachment A [3]. |
CSHC Adjusted Taxable Income |
The CSHC income test is based on the annual adjusted taxable income. Annual adjusted taxable income is the total of:
|
CSHC Income Limit |
The CSHC income limits are as follows:
The limits are increased for each dependent child by $639.60. Legislation is before Parliament to index the CSHC income limits in September each year. Due to the uncertainty around the passage of this legislation, income limits are not included on the CSHC Carrier this year. Income limits will be re-instated on the Carrier when legislation is passed and indexed limits are known. |
Change of Validity Period |
Previously the validity period of the CSHC ended on 30 September. Commencing with the 2015 annual bulk issue, the card will remain valid up to and including 31 December. |
Move Production to November |
With the change of validity period to 31 December, the CSHC production will be moved to November 2015 for the 2016 annual bulk issue. The change to the production schedule will allow sufficient time to include the indexed income limits on the Carrier. |
Numbers |
The number of cards and carriers to be produced for the bulk issue is estimated to be 5,3 — 00. |
Dates |
The following dates apply to the 201 — 5 annual bulk issue: |
Task |
Date |
Production data extract |
28 August 2014 |
Implement changes to daily template |
6:00 pm 28 August 2014 |
Produce reports for states |
29 August 2014 |
Mailing house commence printing, enveloping and lodgement of cards |
1 September 2014 |
Final lodgement date with Australia Post |
5 September 201 — 4 |
Reports |
Summary and Non-Issued Reports will be emailed to State Contacts and SSO on Friday, 29 August 2014. In addition, status reports regarding the progress of the printing, enveloping and lodgement of cards will be provided to the State Contacts, the Client Contact Performance Team and DVA VANQISH as appropriate. |
|
Daily Template |
Changes to the daily template will be implemented on Thursday, 28 August 2014 at 6pm Eastern Standard Time. Testing of the new daily template was conducted by the State Contacts and ICTSB prior to implementation. Following implementation, State Contacts are to provide samples of the CSHC output to the project coordinator for quality assurance purposes. The samples should include a new grant and a replacement for every state and territory. |
|
Disposal of Old CSHC Stock |
For 2015, as there will be changes to the text, all old CSHC stock must not be used after Thursday 28 August 2014. The old stock should be disposed of securely. State Contacts are to notify the project coordinator the number of CSHC stock to be discarded. This information will be used to work out the stock requirements for the following year. |
|
New CSHC Stock |
New CSHC stock has been sent to State Contacts. The stock is an accountable item and should be stored securely. Additional stock in batches of one hundred will be provided on request. State Contacts should email the stock request to the Cards and Advices team in Sydney. |
|
Daily Issues |
State locations can commence using the new CSHC stock from Friday 29 August 2015 for daily issue. |
|
Location Contacts |
The CSHC State Contacts are. |
|
Location |
Contact |
NSW / ACT |
Roula Bayon / Paul Fisher |
QLD |
Sharon Golden |
VIC |
Daniel Luba |
SA / NT |
Bee Measham / Marion Colliver |
WA |
Margarete Mumme / Michelle Pauly |
TAS |
Guy Siberry |
Please advise the project co-coordinator if there are any changes to the contact officers listed above.
Project Coordinator |
The project coordinator for the bulk issue of the 2015 CSHC is: Elis Lam Cards & Advices Income Support & Grants Phone: (02) 9213 7244 E-mail: Elis.Lam@dva.gov.au:LEGIS/VEA/section 5Q] [4] |
Richard Magor
Assistant Secretary
Income Support & Grants
19 August 201 — 4
DATE OF ISSUE: 18 August 2014
Department of Agriculture - Farm Household Allowance
Purpose |
To advise staff of the Department of Agriculture's new Farm Household Allowance (FHA), paid by the Department of Human Services (DHS) and how this will affect the Department of Veterans' Affairs (DVA) client compensation and income support payment assessments. |
Key Points |
|
Background |
In the 2013-14 Budget, the Government announced its main contribution to the National Drought Program Reform of a new Farm Household Allowance to support farmers and their partners when they are in hardship. The package is designed to encourage farmers to plan for the future and better manage risks, including the risks associated with drought. This package replaces the Exceptional Circumstances arrangements. |
Background continued |
The Farm Household Allowance will be paid by DHS fortnightly at a rate equivalent to Newstart Allowance (or Youth Allowance for those under 22 years old). A Health Care Card will be provided and support through a case manager to help recipients assess their situation and develop a plan for the future. The new Allowance will be available for those 16 years old or over for up to three years to give farm families time to improve their circumstances. |
Mutual Exclusion |
The Farm Household Support legislation aims to be consistent with existing social security law and is treated in a similar manner to other income support payments under the Social Security Act 1991 (SSA) such as Newstart Allowance. Eligibility for the new allowance cannot be granted if the person currently receives income support. Education Allowances paid under the Veterans' Children Education Scheme (VCES) or the Military Rehabilitation and Compensation Act Education and Training Scheme (MRCAETS) are not to be paid in addition to the FHA. The FHA is not payable to War Widow [7][glossary:(er)s:] or the Military Rehabilitation and Compensation Act 2004 (MRCA) Wholly Dependent Partners receiving a pension or those that have received a lump sum. |
Income Support |
The Farm Household Allowance is not payable if a person is receiving a Service Pension or Income Support Supplement under the Veterans' Entitlements Act 1986 (VEA), or an income support payment under the SSA, such as Age Pension. Additionally, a DVA client receiving the Farm Household Allowance cannot also receive:
because the FHA is considered a social security benefit (Section 93(1) item 4 of the Farm Household Support Act 2014 refers). |
DFISA |
As 'adjusted disability pension' is exempt in the Farm Household Allowance income test assessed by DHS (section 95 item 1 of the Farm Household Support Act 2014 refers) no DFISA will be payable by DVA in respect of the FHA. For an explanation of 'adjusted disability pension [7]' and 'DFISA' see the Consolidated Library of Information and Knowledge (CLIK) Compensation & Support Policy [glossary:Chapter 5.9.1. |
War Widow Pension and Wholly Dependent Partner payment |
Farm Household Allowance is not payable if a person is receiving a War Widow(er)'s Pension under the VEA. There are some exceptions for those in receipt of the DVA pension continuously since before 1 November 1986 and also received a social security benefit. A clearance will be required with DHS when granting a War Widow(er)'s Pension or the MRCA Wholly Dependent Partner payment (periodic or lump sum) so that the FHA can be cancelled by DHS. |
Incapacity Payments |
For those in receipt of MRCA or SRCA Incapacity payments, the FHA can be paid in addition to incapacity payments but the FHA is reduced dollar for dollar as per usual compensation offsetting arrangements. |
Permanent Impairment |
Permanent Impairment compensation does not affect the payment of Farm Household Allowance because it is included in the definition of 'adjusted disability pension:CSPOL/5.9.1] [8]' (VEA s.118NA(d)) and this is excluded from the FHA income test (section 95 item 1 of the Farm Household Support Act 2014 refers). |
Education Schemes |
Mutual exclusions also apply to the FHA and payments under the DVA education scheme (section 38(6)(a) of the FHS Act 2014 refers). A clearance is required with DHS when granting an education allowance to a client who is in receipt of the FHA. |
Other Exceptions |
The Orphan's Pension or MRCA Eligible Young Person's payment do not affect the Farm Household Allowance. |
DHS Clearances |
To prevent clients being overpaid, please conduct a clearance with DHS when granting new mutually exclusive DVA payments where the person has declared they are in receipt of FHA. For example, if a deceased veteran farmer's wife and daughter (under 25 years old) are running the farm and both are in receipt of FHA and then the daughter decides to take up full?time study, a clearance with DHS will ensure that the FHA ceases the day before the commencement of study when the DVA Education Allowance commences. |
Department of Agriculture |
The Farm Household Support Act 2014 and the Farm Household Support (Consequential and Transitional Provisions) Act 2014 received Royal Assent on 28 — th March 2014. On 15 May 2014, it was proclaimed that the Farm Household Allowance would commence from 1 July 2014. Section 38 of the Farm Household Support Act 2014 lists the mutual exclusions and exceptions. The Farm Household Support (Consequential and Transitional Provisions) Act 2014 repealed the Farm Household Support Act 1992. |
Department of Veterans' Affairs |
References to the repealed Farm Household Support Act 1992 in sections 49J(5)(c) and 49Y(5)(c) of the Veterans' Entitlements Act 1986 under the definition of non?assessable income for the redundant Retirement Assistance for Farmers' schemes were repealed as part of these changes. |
Contact |
Please address any questions regarding this Departmental Instruction to Georgina Dudzinski of New Initiatives in the Rehabilitation and Entitlements Policy branch on x14895 or by email to georgina.dudzinski@dva.gov.au [9]. |
Mark Harrigan
Assistant Secretary
Rehabilitation and Entitlements Policy Branch
Rehabilitation and Support Division
August 2014
Disability compensation payment (known before 2022 as disability pension), for the purposes of service pension, income support supplement and veteran payment, means:
Please note that the Disability Compensation Payment is legally a pension by way of compensation under the VEA so that concessional benefits under state, territory and local government legislation to pensioners/pensions under the VEA are not denied.
A war widow/widower is generally a person who immediately before their partners death, was the partner of, or was legally married to:
Refer to 5E(1) [10] of the VEA for the full definition.
An age pension is a means tested [7] income support payment [7] paid by Centrelink [7] or DVA [7] on behalf of the Department of Families, Housing, Community Services and Indigenous Affairs. The majority of age pensions are paid through Centrelink. However, eligible veterans [7] who have an accepted disability [7] or receive a Disability Compensation Payment [7] from DVA, but do not have qualifying service [7], may be paid their age pension by DVA. Their partner may also receive their age pension from DVA, if eligible.
ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.
On 1 January 2022, both DFISA and the Disability Income Rent Test were removed. Thus the term Adjusted Disability Pension was made redundant. The following is for historical reference only.
Section 118NA of the VEA defined adjusted disability pension as:
Adjusted disability pension did not include war widow's/widower's pension [7], or payments made by other governments to compensate for war or service related injuries.
DATE OF ISSUE: 14 July 2014
Property Valuation Exercise - 2013/2014 FY
Replaces DI No. |
C15/2013 [12] |
Purpose |
The purpose of this Departmental Instruction is to provide information on the annual property valuation exercise. Details of the process and procedures are provided as follows. |
Overview |
Historically, income support cases requiring a property valuation, which were within the prescribed parameters, were selected and forwarded to the Australian Valuation Office (AVO) for valuation. The closure of the AVO from 30 June 2014 and its associated 'wind down' resulted in more narrow prescribed parameters being used to reduce the number of cases selected as part of this year's exercise, such as urban properties using desktop valuations only. |
Criteria for extracting cases |
The following criteria were used to extract the cases for the assessment. All income support pension recipients (SP, Partner SP, AP or ISS) who:
Excluded cases included:
|
Data extraction |
The data was extracted in February 2014 and details of 500 properties were provided to AVO on 14 March 2014. |
AVO conduct valuations |
The AVO returned the updated valuation information to DVA |
Updating property value & pension |
A DVA scheduled run to automatically upload and reassess the client's record by the AVO batch reassessment program for continuation and assets tested reduction cases occurred on 8 July 2014. |
Auto update & case numbers |
The auto update occurred on 8 July 2014. The following is a breakdown of the case numbers for this 2013/2014 exercise. 352 cases were auto processed and of these 106 cases resulted in continuations. The following table provides a state overview of the cases reduced and cancelled. |
NSW |
QLD |
SA |
TAS |
VIC |
WA |
|
Reduction |
66 |
41 |
11 |
5 |
74 |
36 |
Cancelled |
8 |
3 |
0 |
0 |
1 |
1 |
Total |
74 |
44 |
11 |
5 |
75 |
37 |
56 cases were identified as requiring an increase in rate and these require manual processing. The following table provides an overview of cases requiring manual processing and further investigation.
Increases |
Frozen status |
Dec'd/Canc/DP Only |
Further Investigation |
56 |
1 |
11 |
79 |
Manual cases |
Robert Manton, Assistant Director Reviews, Income Support & Grants Branch in Adelaide, will oversee the investigation and processing of manual cases from this year's exercise. Income support staff in Adelaide will action these cases, which include the following:
|
3 month grace period |
There is a maximum 3 month grace period commencing from the date of the new pension rate determination for those income tested pensioners affected by property reviews. The grace period enables pensioners to rearrange their circumstances if they choose, before the pension is varied due to the property valuation. For the 2013 / 2014 property valuation exercise, 13 potential cases were identified as possibly affected by this rule. Where the pensioner qualifies for the 3 month period of grace, the determination to reduce pension will need to be made and the pensioner notified accordingly. |
Date of valuation to be used in PIPS |
The date of valuation to be used is 31 May 201 — 4 when updating cases in PIPS for this exercise. This is the date that the AVO has used to value the properties. |
DoE – reduced property value |
The date of effect where the value of the property has reduced is the date the new valuation data was returned from the AVO, |
DoE – increased property value |
For cases where the value of the property has either increased or remained unchanged, the date of effect is 8 July 2014, being the day 1 of the first pay period after 1 July, which is the usual effective date of the annual indexation of the Ordinary Income Free Area, Asset Value Limit and Adjusted Income Free Area. |
List of extracted cases |
A spreadsheet [13] containing the lists of cases identified for the annual exercise is available from TRIM (container 1403155), link: The cases are separated into the following categories with the worksheets labeled accordingly:
|
Future Property valuation exercises |
The next annual exercise parameters and process will be developed once a new valuation provider has been contracted. This process is currently in the tender stage. |
Contact Officers |
The annual exercise is managed by the Reviews and Governance management team in Adelaide:
|
Luke Brown
A/g Assistant Secretary
Income Support & Grants Branch
14 July 201 — 4
DATE OF ISSUE: 2 July 2014
July 2014 - Reassessment of ComSuper and Victoria State Based Superannuation Pensions
Replaces DI No. |
N/A |
Purpose of instruction |
The purpose of this Departmental Instruction is to provide information about advice production from the July 2014 ComSuper and Victoria state based superannuation reassessment. |
Background |
ComSuper pensions include Commonwealth Superannuation Scheme (CSS), Public Sector Superannuation Scheme (PSS), Defence Force Retirement Scheme (DFRB), Defence Force Retirement and Death Benefit Scheme (DFRDB) and Military Superannuation Benefit Scheme (MSBS) superannuation pensions. These pensions are adjusted bi-annually in January and July. The cost of living increase to be applied to most ComSuper pensions in July 2014 is 1.3%. The indexation increase to be applied to DFRB/DFRDB pensions for superannuants aged 55 years and older in July 2014 is 1.5%. The July 2014 ComSuper reassessment run will also include an update to Victoria state based superannuation schemes (Vic ESS Super, Vic VISION Super, Vic Health Super and Vic ESSS Supers). The increase to be applied to the Victoria state based superannuation pensions in July 2014 is 1.95%. |
Processing date |
Reassessment processing to reflect the July 2014 increases is scheduled to run overnight on Tuesday, 8 July 2014. Following completion of processing, the advice data files will be transmitted to the mailing house for printing and lodgment. |
Effective date |
The effective date of reassessment will be 8 July 2014. On pension payday 24 July 2014, pensioners will receive a full instalment at the new assessed rate. |
Advice letter target audience |
A letter will be produced for income support pensioners in receipt of ComSuper and/or Victoria state based super, whose pension rate is varied by the reassessment run. There will be approximately 20,000 advice letters produced nationally. |
Advices content and presentation |
The advice will comprise of a 2 page letter and a Payment Information Attachment. The advice will inform clients of the outcome to their pension reassessment and provide information on gross superannuation income, deductible and/or non-deductible amounts. The information relating to their super payment is presented in a tabular format. The advice will also provide the client with their Financial Obligations (prescribed rates) and a right of review. Please see Attachment A which shows a sample of:
|
Printing and mailing of advice letters |
With some exceptions explained below, advice letters will be printed and mailed through the Department's contracted mailing house, Computershare. All letters will be lodged with Australia Post as a national lodgment by close of business Thursday 17 July 2014. |
Advices for Overseas Addressees |
Advice letters produced for Tasmanian State Office clients who have an overseas address will be printed, enveloped and sent from the mailing house. |
Enclosure (Treatment change) Advice Letters |
Enclosure (treatment change) letters will be printed separately at nominated state location printers. They are to be mailed by close of business Thursday, 17 July 2014. The streamed advice letters should be checked for accuracy, and reconciled against reports received in each location to ensure they reflect the correct treatment paragraphs. If any advice with incorrect treatment information is found, please consult with the Income Support Contact Officers listed below to ensure correct information is provided in the manual replacement advice. |
Reduction to Nil Letters |
Any Reduction to Nil advice letters will be printed at the nominated printer in each location. Staff are required to include a Commonwealth Seniors Health Card (CSHC) claim form, a CSHC fact sheet and a reply paid envelope with the advice letter. |
'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 the nominated printer in each office. These advices should then be reviewed for appropriate action. |
Location of printers |
The streamed advices are to be printed at the following printers: |
SA |
VSSOPR06 |
TAS |
VTSOPR03 |
WA |
VWSOPR01 |
VIC |
VVSOPR02 |
NSW |
N607P |
QLD |
VQSOPR01 |
DVA – Income Support Contact Officers |
A contact person from each location acts as a liaison point for the Advices Team, and to assist with the handling of streamed advices printed at each nominated location printer. The Income Support Location Contacts for the July 2014 ComSuper processing exercise are as follows: |
NSW/ACT VIC QLD SA/NT WA TAS |
Genia Sacharczuk/Steven Weston Greg Heitsch Stephen Hamill Maria Nasilowski Michelle Pauly/Margarete Mumme Daimeon Horne |
Contacts |
For Advice issues – Anissa Lam (02) 9213 7169. For Systems issues – Kevin Chapman (02) 6289 6749. |
Luke Brown
A/g Assistant Secretary
Income Support & Grants
2 July 2014
ATTACHMENT A
COMSUPER ADVICE FOR CLIENT WITH A 'DEDUCTIBLE AMOUNT'
GPO Box 9998, Brisbane QLD 4001 |
|
Telephone:
Capital city callers: 133 254
Non-Capital city callers: 1800 555 254
123 456 789 044 — Facsimile: (07) 3223 8479
JOHN SMITH
MARY SMITH — 8 July 2014
123 SAMPLE STREET
MODELTOWN QLD 4010
YOUR FILE NUMBER IS QX123456
Dear Mr and Mrs SMITH,
This is to advise that your T-PENSION-SP-ISS-AP has been reduced. This change will take effect from 8 July 2014.
Name |
Description |
Gross Income |
Deductible Amount (tax free component) |
Assessed Income |
JOHN SMITH |
ComSuper (CSS & PSS) |
$585.95 |
$135.50 |
$450.45 |
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 $xxx.xx per fortnight or the value of your combined assets is more than $xxx,xxx.xx.
If you have any questions regarding this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [15] for contact details.
Yours sincerely,
ALISON STANLEY
Deputy Commissioner
as Delegate of the Secretary and Repatriation Commission
PAYMENT INFORMATION ATTACHMENT
The Department calculates your payments on a daily basis. This means that your fortnightly payment is made up of 14 days of entitlement. Therefore, when there is a change to your circumstances on any particular day in the fortnight - your payment will be adjusted from that day. For that reason your payment may be different for one or two paydays after a reassessment.
Payment for 24 JULY 2014Veteran Partner
TOTAL FORTNIGHTLY PAYMENTxxx.xx xxx.xx
This is made up of:
- xxxxxxxxx xxxxxxxxxxxxxxx.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.
BOTH VET AND SPOUSE HAVE INCOME FROM SUPER – THEY
DO NOT HAVE 'DEDUCTIBLE AMOUNT'
GPO Box 9998, Brisbane QLD 4001 |
|
Telephone:
Capital city callers: 133 254
Non-Capital city callers: 1800 555 254
123 456 789 044 — Facsimile: (07) 3223 8479
JOHN SMITH
MARY SMITH — 8 July 2014
123 SAMPLE STREET
MODELTOWN QLD 4010
YOUR FILE NUMBER IS QX123456
Dear Mr and Mrs SMITH,
This is to advise that your T-PENSION-SP-ISS-AP has been reduced. This change will take effect from 8 July 2014.
Name |
Description |
Assessed Income |
JOHN SMITH |
ComSuper (DFRDB & MSBS) |
$450.95 |
MARY SMITH |
ComSuper (CSS & PSS) |
$265.00 |
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 $xxx.xx per fortnight or the value of your combined assets is more than $xxx,xxx.xx.
If you have any questions regarding this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [15] for contact details.
Yours sincerely,
ALISON STANLEY
Deputy Commissioner
as Delegate of the Secretary and Repatriation Commission
ATTACHMENT
CLIENT HAS INCOME FROM SUPER WITH A 'DEDUCTIBLE AMOUNT' AND WITHOUT A 'DEDUCTIBLE AMOUNT'
GPO Box 9998, Brisbane QLD 4001 |
|
Telephone:
Capital city callers: 133 254
Non-Capital city callers: 1800 555 254
123 456 789 044 — Facsimile: (07) 3223 8479
JOHN SMITH
123 SAMPLE STREET — 8 July 2014
MODELTOWN QLD 4010
YOUR FILE NUMBER IS QX123456
Dear Mr SMITH,
This is to advise that your T-PENSION-SP-ISS-AP has been reduced. This change will take effect from 8 July 2014.
Name |
Description |
Gross Income |
Deductible Amount (tax free component) |
Assessed Income |
JOHN SMITH |
ComSuper (CSS & PSS) |
$585.95 |
$135.50 |
$450.45 |
JOHN SMITH |
ComSuper (DFRDB & MSBS) |
$846.44 |
$0.00 |
$846.44 |
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 from all sources is more than $xxx.xx per fortnight or the value of your total assets is more than $xxx,xxx.xx.
If you have any questions regarding this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [15] for contact details.
Yours sincerely,
ALISON STANLEY
Deputy Commissioner
as Delegate of the Secretary and Repatriation Commission
ATTACHMENT
DATE OF ISSUE: 6 June 2014
June 2014 Statutory Increase Processing - Production and Mailout of Advice Letters with Payment Summaries, Standalone Payment Summaries (Issued Without a Covering Letter), and Medicare Levy Exemption Certificate
Replaces DI No. |
N/A |
Purpose of Instruction |
This Departmental Instruction is to provide information about the processing arrangements for the June 2014 Statutory Increase (SI) processing of advice letters with payment summaries, Standalone Payment Summaries (issued without a covering letter), and Medicare Levy Exemption Certificate production and mailout. |
Richard Magor
Assistant Secretary
Income Support & Grants
06 June 2014
Introduction |
In June each year the Department undertakes a bulk exercise to issue all pensioner households with advice letters to persons in receipt of service pension, age pension including those in payment of Defence Force Income Support Allowance (DFISA) only, or income support supplement. The majority of these letters will include Payment Summaries for the end of the financial year. Standalone Payment Summaries (issued without a covering letter) and Medicare Levy Exemption Certificates will also be issued at this time. The estimated number of mailpacks is given at Attachment A. |
Major features of SI |
Issues of significance with regard to this mailout are as follows:
|
Processing Weekend –13/06/2014 – 15/06/2014 |
Processing is scheduled to run from Friday evening, 13 June 2014 to Sunday, 15 June 2014. Any pension variations resulting from this exercise will be effective from 1 July 2014 for payday 10 July 2014. |
Processing period within DVA – (includes 'advices' processing) |
Friday (pm) 13 June 2014 – Sunday (pm) 15 June 2014 |
Commencement of mailout production for advice letters with payment summaries, SAPS and MLECs |
Wednesday, 18 June 2014 |
Progressive lodgment of all Advice Letters, SAPS and MLECs with Australia Post |
Commencing Wednesday, 25 June 2014 and completed by CoB Tuesday, 1 July 2014 |
Letter Production
|
Computershare, located in Sydney, will print the advice letters, SAPS and MLECs, insert the ATO flyers where applicable, envelope and lodge all mail with Australia Post. |
Lodgment of Letters |
Letters will be progressively lodged with Australia Post commencing Wednesday, 25 June 2014. All letters are to be posted by CoB Tuesday, 1 July 2014. |
Letters and Attachments |
Copies of the expected advice letter content for this run are reproduced at Attachment B. Samples of the Payment Summary and Medicare Levy Exemption Certificate are reproduced at Attachment C and Attachment D, respectively. |
Single and Joint Advices |
All service pensioners and income support supplement recipient couples will receive a joint advice, provided both members of a couple, including the illness separated, have the same IMS postal address recorded. Age pensioners receive single advice letters unless otherwise requested. Important to note: Staff are reminded that if a client in a joint assessment requests separate or single advices, they need to update this information using the mainframe PRODIMS – Client Correspondence (CO.CO) Screen prior to the processing run to initiate the client request. Advice default requests in CO.CO will override the DOCGEN advice rules. |
Full Obligations & Full Income and Assets List |
Full Obligations and Full Income and Assets attachments will be issued to pensioners receiving pension at less than the maximum rate. This is in line with the Repatriation Commission policy that:
Full Obligations will not be issued to SP/ISS/AP recipients receiving the maximum rate of pension. This is in line with the Repatriation Commission policy that:
|
Financial Obligations including Prescribed Rates |
The Financial Obligations paragraph, which includes prescribed rates information, will be present in the advices for all maximum rate SP/ISS/AP pensioners. |
Payment Information Attachment |
SP/ISS/AP pensioners who remain on maximum rate following the processing will not have a Payment Information Attachment printed as part of their advice as they are considered to be continuation cases. SP/ISS/AP pensioners whose pension rates have varied following the processing will receive a Payment Information Attachment. |
Tasmanian Office Clients with Overseas Postal Address |
Advice letters for Tasmanian Office clients with an overseas postal address will have their advices printed and posted directly from the Mailing House. |
Non Taxable Pensioners |
Those pensioners whose pensions are not taxable (eg. those in payment of invalidity service pension and who are under 65 years of age) will receive an advice letter with a payment summary. As the number of Medicare Levy exemption days will be recorded on the payment summary, a separate MLEC will not be required. |
PAYG Payment Summary |
Payment summaries will be issued to all clients who received a payment from DVA during the 2013/2014 financial year. Clients will be sent a payment summary listing both taxable and tax exempt (i.e. non-taxable) payments. The tax exempt payment information will be broken into the following categories:
Payment summaries will form part of the advice letter for all income support payment recipients. Where a payment summary is sent without a covering letter, it is referred to as a Standalone Payment Summary (SAPS). Payment summaries will not be sent to clients who are under 16 years of age on 30 June 2014, and did not receive a taxable payment in the financial year 2013/2014. A sample of the payment summary can be found at Attachment C.
|
General Information Sheet (GIS) |
Each advice letter, except those for overseas pensioners, will have a General Information Sheet (GIS). The GIS provides details of payment rates, income and asset thresholds, deeming rates and thresholds, treatment thresholds, rent assistance rates and other payment information. There will be a separate GIS for clients assessed under the transitional rules and for those assessed under the non-transitional rules because different rates and thresholds apply. Some components of the pension supplement (pension supplement non-taxable and pension supplement flexible) are not payable to overseas pensioners. Therefore, the information provided on the GIS is not applicable to them. For this reason, overseas pensioners will not be issued with the GIS to avoid confusion. |
ATO insert – Do you need to lodge a tax return?' |
A 'pensioner flyer' produced by the ATO titled “Do you need to lodge a tax return?” will only be included in the advice letters produced for those in payment of less than the maximum rate of income support pension, those being issued a SAPS or a MLEC. The flyer will not be sent to those clients being paid at the maximum rate of income support pension. Each location will be supplied with a quantity of the flyers to insert with their Enclosures (treatment changes) or Reduction to Nil advice letters which will print at each location's nominated printer. |
Pensioners to Contact ATO with Taxation Questions |
It is important for DVA staff to note that pensioners have been advised in their letters to contact the Australian Taxation Office on 13 28 61 if they have any questions about taxation. Should pensioners ring DVA offices with questions relating to taxation matters, staff should refer them to the Australian Taxation Office on 13 28 61. IMPORTANT NOTE: DVA staff must not offer advice about taxation liability or the need to lodge a tax return.
|
Information on Tax Thresholds in VIEW |
The 'Senior Australians Tax Offset' and 'Pensioner Tax Offset' amounts are displayed in the 'Tax Threshold Amounts' folder in the 'Fin Year Certificate' tab in VIEW. The 2013/2014 threshold amounts will be available in VIEW from 1 July 2014. Additional information about these thresholds is provided via VIEW Online Help. |
SAPS – sent without a covering letter |
SAPS will be produced for the following categories:
|
SAPS – posted directly to clients from the Mailing House |
All SAPS, with the exception for overseas addressees listed above, are to be printed and enveloped at the mailing house, and lodged with Australia Post directly from the mailing house. In June 2013, DVA issued 80,715 SAPS. It is estimated that a similar number of SAPS will be issued in 2014 based on this statistic. |
SAPS – Overseas Addressees |
SAPS for clients who reside overseas and who are no longer in payment will not be printed at the mailing house. A zip file of each SAPS category will be emailed to each location contact officer. It lists the clients who reside overseas who are to receive a SAPS. Staff should request a re-print for those overseas clients listed on the report and send their SAPS directly to them. |
SAPS – Unknown Addressees |
Where a client has an 'unknown address' recorded, a SAPS will not be produced. A listing of clients with an 'unknown address' will be provided to each location contact officer. |
SAPS – For Deceased Clients |
SAPS for clients who have died during the financial year will not be printed at the mailing house. Staff will be able to request a re-print of a deceased client's payment summary when required from 1 July 2014. |
SAPS Reports |
A SAPS report is generated for each of the following categories:
A report file for each category will be emailed in a zip file to the contact officer in each location. |
Return Address if not Delivered |
All SAPS mailpacks sent from the mailing house will be enveloped in a single window-faced envelope with a return address of GPO Box 9998 in your Capital City. |
Payment Summary Reprint Facility - VIEW Advices Tab |
From 1 July 2014, payment summaries for the 2013 - 2014 financial year may be re-generated using the 'Payment Summary Reprint' facility located under the Advices Tab in VIEW. |
Payment Summary Template |
The June SI Income Support contact officers will be provided with a 2013 - 2014 Payment Summary Template. |
Medicare Levy Exemption Certificates (MLEC) |
A MLEC will be issued to those Gold Card beneficiaries who are not in receipt of an income support payment and who do not receive an advice letter, that is:
The number of Medicare Levy exemption days, where applicable, will be stated on the payment summary for all other pensioners. A sample of the Medicare Levy Exemption Certificate to be issued in 2014 can be found at Attachment D.
|
Medicare levy exemption – For Blind Pensioners |
Blind pensioners in receipt of an income support payment are eligible for full or half Medicare Levy exemption. The number of eligible exemption days will be printed on their Payment Summaries. |
Zip File of MLEC Reports |
A report of all clients who receive a MLEC will be produced and emailed in a zip file to the nominated contact officer. A MLEC will not be produced where a client has an 'unknown address' recorded. However, a report will be produced and emailed in a zip file to all contact officers, listing those clients who are eligible to receive a MLEC but have an unknown address recorded. |
MLEC Template |
The June SI location contact officers will be provided with a MLEC Word template for manual issues of MLECs if required. |
ZIP Files of Advice Schedule Reports |
A Zip File listing details of all clients who receive an advice will be emailed to the nominated contact officer in each location during the week following the processing run. The Zip File replaces the Advices Schedule Report, which is too large to print on printers. |
Enclosure (Treatment change) Advice Letters |
Following the June SI processing, the Enclosure (treatment change) letters will be printed at the nominated printer at each location. It is requested that the streamed advice letters be checked for accuracy, and reconciled against the reports received in each location to ensure they reflect the correct treatment paragraphs. If any advice with incorrect treatment information is found, please consult with the Income Support System Support Officers to ensure correct information is provided in the manual replacement advice. |
Reduction to Nil Letters |
Following the June SI processing, any Reduction to Nil advice letters will be printed at the nominated printer at each location. Staff are required to include a Commonwealth Seniors Health Card (CSHC) claim form, a CSHC fact sheet and a reply paid envelope with the advice in the mailpack. |
'HELD' Advices to be Forced |
As part of the Batch processing run all advices in 'Held' status will be forced to print. Forced 'held' advices will print at the nominated printer in each respective location as part of the production run. All forced advices will need to be checked to ensure the content of the advices is correct prior to posting to clients. |
Handling of Daily Advices |
Cases processed prior to the SI run should have the daily advice dispatched prior to the June advice letter being sent. Daily advices processed after the cutoff date of 13 June 2014 should be held by staff in each location until confirmation is received from the June SI Business Co-ordinator to release such advices. This will ensure that pensioners receive their advices in chronological order. |
Reprints of June SI Advices via 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. |
Staff Requests for Reprints of Daily Advices – Pre-SI Processing |
The 'Reprint' scheduled jobs which produce the requested reprints of daily advices by staff are postponed as part of the SI processing. Any requests for an advice reprint on the day of the commencement of the SI processing will not be actioned until after the SI run when the next 'Reprint' job is submitted. 'Unprinted' advice reprint requests will then print when the next 'Reprint' job is submitted. |
DVA – Income Support Contact Officers |
A contact person from each location acts as a liaison point for the Advices Team, and to assist with handling of streamed advices printed at each of the nominated location's printers. The Income Support (IS) Contacts for the June 2014 quarterly processing exercise are as follows: |
NSW/ACT VIC QLD SA/NT WA TAS |
Genia Sacharczuk/Steven Weston Greg Heitsch Stephen Hamill Maria Nasilowski Michelle Pauly/Margarete Mumme Daimeon Horne |
Feedback from Staff |
Any concerns regarding letters produced as part of this run should be directed to the Advices Help Desk – ACT mailbox [17]. Please ensure that any problems are reported without delay. |
Contact Details |
Any queries regarding advice wording, mail house printing and letter lodgement should be directed to the Advices Help Desk – ACT mailbox [17]. |
ATTACHMENT A
HOUSEHOLDS TO RECEIVE ADVICE LETTERS WITH PAYMENT SUMMARIES OR STANDALONE PAYMENT SUMMARIES OR MEDICARE LEVY EXEMPTION CERTIFICATES
ESTIMATES BASED ON 2013 STATISTICS
STATE |
JOB 1 - Less than Maximum Rate |
JOB 2 - Maximum rate |
JOB 3 - Overseas |
Total no of advice letters (Job 1+2+3) |
JOB 4 - Standalone Payment Summary |
JOB 5 - Medicare Levy Exemption Certificate |
NSW |
15398 |
39158 |
- |
54556 |
26245 |
476 |
VIC |
11026 |
26093 |
- |
37119 |
15836 |
317 |
QLD |
11077 |
22269 |
- |
33346 |
23081 |
192 |
SA |
7537 |
16372 |
- |
23909 |
5890 |
88 |
WA |
5613 |
10295 |
- |
15908 |
7654 |
136 |
TAS |
1831 |
4030 |
651 |
6512 |
2009 |
0 |
TOTAL |
52482 |
118217 |
651 |
171350 |
80715 |
1209 |
Please note:
ATTACHMENT B
JUNE 2014 SI PARAGRAPH CONTENT
Example 1:
GPO Box 9998 Brisbane QLD 4001 |
|
Telephone:
Capital city callers: 133 254
Non-capital city callers: 1800 555 254
Facsimile: (07) 3223 8479
14 June 2014
044 123 456 789
MR JOHN SMITH
MRS MARY SMITH
123 SAMPLE STREET
MODELTOWN QLD 4010
YOUR FILE NUMBER IS QX000000
Dear Mr and Mrs SMITH,
This is to advise you that your service pension has been increased. This change will take effect from 1 July 2014.
Payment Information
Details of your fortnightly payments are provided in the Payment Information Attachment.
Cost of living changes to the Income and Assets Test
Recent increases in the cost of living have been applied to the following income and assets limits for service pension:
For details on these changes, please refer to the General Information Sheet which is attached to this letter.
Issue of 2013/2014 Financial Year Payment Summaries
As it is the end of the 2013/2014 financial year, Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.
Payment Summary for JOHN SMITH is enclosed with this letter.
Payment Summary for MARY SMITH is enclosed with this letter.
If you are unsure as to whether you are required to lodge a tax return or if you have any questions about taxation matters you should contact the Australian Taxation Office on 13 28 61.
Department of Veterans' Affairs' staff are unable to assist with taxation enquiries.
Medicare Levy Exemption
If you have been eligible for full treatment at departmental expense during the past financial year, you are eligible for a full or half exemption from payment of the Medicare levy for that period. The number of days you are eligible for a full or half Medicare levy exemption is shown on your Payment Summary.
Your Income and Assets
Your service pension is assessed under the assets test using your income and assets as shown in the attached list. It is important that you check that this list is a full and accurate statement of your income and assets.
Events You Must Tell Us About
Details of your obligations to notify us of changes to your circumstances are included in the attachment 'Statement of Obligations - Important Information You Should Retain'. These apply to both you and your partner and it is important that you both read them.
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.
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 this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [18] for contact details.
Yours sincerely,
ALISON STANLEY
Deputy Commissioner
as Delegate of the Secretary and Repatriation Commission
ATTACHMENTS
PAYMENT INFORMATION ATTACHMENT
The Department 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 10 JULY 2014 VeteranPartner
TOTAL FORTNIGHTLY PAYMENT$xxx.xx$xxx.xx
This is made up of:
- xxxxxxxxx xxxxxxxxxxxx xxx.xx xxx.xx
- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.xx
Payment for 24 JULY 2014 VeteranPartner
TOTAL FORTNIGHTLY PAYMENT$xxx.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.
INCOME AND ASSETS ATTACHMENT
(Information currently used to assess your pension)
The following is a complete list of your Income and Assets as recorded by the Department. If any details are incorrect or have been omitted you should notify the Department within 14 days (28 days if you are living overseas or receive remote area allowance). Please note that failure to fulfil this obligation may lead to your service pension being overpaid. Such overpayments are recoverable.
You are receiving service pension at less than the maximum rate payable.
The amount that you are paid depends on your combined income and assets but does not include the home in which you live. The pension is calculated under two separate tests: an income test and an assets test. The test that pays the lower rate of pension is the one that applies.
You are currently paid under the assets test. The total of your assessed fortnightly income is $X,XXX.XX. The total of all your assets (excluding any deductible assets) is $XXX,XXX.XX. Details of how your pension has been assessed are shown below.
FINANCIAL ASSETS
Savings and Cheque Accounts
Description |
Account Number |
Asset Amount |
XXXXXXXX |
XXXXXXXXXXX |
$XXXX.XX |
XXXXXXXX |
XXXXXXXX |
$XXX.XX |
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 |
$XXX.XX |
CCCCCCCCCCCCC |
XXX |
$XXX.XX |
Total Financial Assets
FINANCIAL ASSETS VALUE |
DEEMED INTEREST RATE |
DEEMED INCOME PER FORTNIGHT |
$XX,XXX.XX |
X.X% |
$XX.XX |
$ XX.XX |
X.X% |
$XX.XX |
$XX,XXX.XX |
$XX.XX |
What is Deemed Income?
For pension purposes, income from financial assets such as accounts with banks, building societies and credit unions, loans, bonds, debentures, gifts, shares, managed investments and bullion is deemed. The value of all your financial assets are added together, and deemed interest rates are applied to calculate the income.
At present, deemed income is calculated as follows, on the total of all your financial assets:
$0 to $XX,XXX - at X.X%
$XX,XXX + - at Y.Y%
If your investments are earning more than the X.X% or Y.Y% deeming rates, this additional income will not affect the rate of your T-PENSION-SP-ISS-AP.
IMPORTANT: You only need to notify the department if there are any changes to the value of your financial assets, as shown above. You do not need to advise of any changes to the interest rates of these investments.
OTHER INCOME AND ASSETS
The following assets are those, which do not have deeming applied to them but are still used to determine your rate of pension.
Home Assets
The asset and/or income values shown below are the amounts used for pension purposes.
Miscellaneous Assets
Direct Income
STATEMENT OF OBLIGATIONS
IMPORTANT INFORMATION YOU SHOULD RETAIN
(Information current as at T-ADVICE-PRINT-DATE)
Events You Must Tell Us About
You must tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if any of the events listed below occur. These events may affect the amount of service pension you receive. If you do not tell us of any of these changes you may be overpaid. We are entitled under section 205 [19] of the Veterans' Entitlements Act 1986 to recover this overpayment.
You will also need to tell us the date any changes to your circumstances occur.
When you are telling us of changes to your circumstances you should do this by telephoning or visiting any Department of Veterans' Affairs Office, or by writing to the Deputy Commissioner.
Obligations - Financial
You currently receive service pension at less than the maximum rate because your assets are above the current threshold.
You are obliged by law 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. You must also notify this Department if your combined gross income from all sources increases above $X,XXX.XX per fortnight. This will ensure that your service pension continues to be paid at the correct rate.
If your combined assets are reduced, any increase in pension can only be made the day your new details are received by us.
The following information may assist you to decide what you need to tell us about:
Some examples of what you need to tell us about
Some examples of what you do not need to tell us about
(This information is obtained from the finance industry)
Obligations – Domestic Situation
You must tell us if:
Obligations – Homeowner
As a homeowner, you must tell us full details if:
Obligations – General
Conclusion
The above are your full obligations to the Department. If you have any queries about any of the above matters please contact this office at the address or telephone number shown at the top of this letter.
Example of the General Information Sheet (GIS) for Service Pensioners (non-transitional). There are separate GIS for transitional, income support supplement and age pension recipients. |
GENERAL INFORMATION ON SERVICE PENSION RATES AND LIMITS
(Information current as at 1 July 2014)
MAXIMUM RATES OF SERVICE PENSION (including supplements)
Singles Rate$XXX.XX (per fortnight)
Couples Rate (each)$XXX.XX (per fortnight)
PENSION INCOME LIMIT (per fortnight) Income Free Area Cut Off
Singles Limit $XXX.XX$X,XXX.XX
Couples Limit (combined) $XXX.XX$X,XXX.XX
INCOME TEST : Pension rate is reduced by 50 cents for each dollar of income above the income free area.
PENSION ASSETS LIMIT Assets Free Area Cut Off
Home Owner
Singles Limit $XXX,XXX $XXX,XXX
Couples Limit (combined) $XXX,XXX$X,XXX,XXX
Non Home Owner
Singles Limit $XXX,XXX $XXX,XXX
Couples Limit (combined) $XXX,XXX$X,XXX,XXX
ASSETS TEST : Pension rate is reduced by 37.5 cents for every $250 of assets above the assets free area.
NOTE:
GOLD CARD INFORMATION
The Gold Card income and assets limits shown in the next section do not apply if:
The Gold Card income and assets limits shown in the next section apply if:
GOLD CARD INCOME CUT OFF LIMITS
Singles Limit $XXX.XX (per fortnight)
Couples Limit (combined) $XXX.XX (per fortnight)
GOLD CARD ASSETS CUT OFF LIMITS
Home OwnerNon Home Owner
Singles Limit$XXX,XXX$XXX,XXX
Couples Limit (combined)$XXX,XXX$XXX,XXX
DEEMING
Deeming assumes that any money you have invested in financial assets is earning a particular amount of income regardless of the actual amount earned. The deeming rates are:
SinglesLow Rate:- 2.0% interest up to the threshold of $48,000
High Rate:- 3.5% interest for the remaining balance
CouplesLow Rate:- 2.0% interest up to the threshold of $79,600
High Rate:- 3.5% interest for the remaining balance
ILLNESS SEPARATED COUPLES
Couples separated due to ill health are paid the single rate of service pension but have their income and assets assessed as a couple.
RENT ASSISTANCE
You may be eligible for rent assistance if you pay rent to a non-government body or landlord. Rent assistance is not payable if you reside in a government funded (approved) nursing home, or in government funded housing.
The amount of rent assistance you received depends on the amount of rent you pay and your family circumstances. Rent assistance is paid at the rate of 75 cents in the dollar for every dollar you pay over the set rent limits.
Maximum Amount of Rent Assistance Payable (per fortnight)
No children1-2 children3 or more children
Singles Rate$XXX.XX$XXX.XX$XXX.XX
Couples Rate(combined)$XXX.XX$XXX.XX$XXX.XX
Rent Limit (per fortnight)
No children1-2 children3 or more children
Singles Limit$XXX.XX$XXX.XX$XXX.XX
Couples Limit (combined)$XXX.XX$XXX.XX$XXX.XX
GIFTING
A gift is an asset which is given away or disposed of without receiving the market value of that gift in return. A gift may be either a cash amount or non cash assets such as a car or other property.
You must notify us if you give away a total of $10,000 or more in a tax year or $30,000 over a rolling five-year period.
The amount above either limit will continue to be counted as if it were still your asset for a period of 5 years and may therefore continue to affect your pension. We will also deem income on the value of any gift above either limit for 5 years.
Example 2:
GPO Box 9998 Brisbane QLD 4001 |
|
Telephone:
Capital city callers: 133 254
Non-capital city callers: 1800 555 254
Facsimile: (07) 3223 8479
14 June 2014
045 123 456 789
MR ROBERT MURDOCH
223 SAMPLE STREET
MODELTOWN QLD 4010
YOUR FILE NUMBER IS QX000000
Dear Mr MURDOCH,
This is to advise you that your:
This change will take affect from 1 July 2014.
Payment Information
Details of your fortnightly payments are provided in the Payment Information Attachment.
Cost of living changes to the Income and Assets Test
Recent increases in the cost of living have been applied to the following income and assets limits for age pension:
For details on these changes, please refer to the General Information Sheet which is attached to this letter.
Issue of 2013/2014 Financial Year Payment Summaries
As it is the end of the 2013/2014 financial year, Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.
Payment Summary for ROBERT MURDOCH is enclosed with this letter.
If you are unsure as to whether you are required to lodge a tax return or if you have any questions about taxation matters you should contact the Australian Taxation Office on
13 28 61.
Department of Veterans' Affairs' staff are unable to assist with taxation enquiries.
Medicare Levy Exemption
If you have been eligible for full treatment at departmental expense during the past financial year, you are eligible for a full or half exemption from payment of the Medicare levy for that period. The number of days you are eligible for a full or half Medicare levy exemption is shown on your Payment Summary.
If you were previously being paid by Centrelink, they will issue a Payment Summary to you separately.
Your Income and Assets
Your service pension is assessed under the assets test using your income and assets as shown in the attached list. It is important that you check that this list is a full and accurate statement of your income and assets.
Events You Must Tell Us About
Details of your obligations to notify us of changes to your circumstances are included in the attachment 'Statement of Obligations - Important Information You Should Retain'. These apply to both you and your partner and it is important that you both read them.
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.
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, you can only be paid an adjustment from the date we receive your application. Requests for review may be made in person, by telephone or in 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.
If you have any questions regarding this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [18] for contact details.
Yours sincerely,
ALISON STANLEY
Deputy Commissioner as Delegate of the Secretary
ATTACHMENTS
Example 3:
GPO Box 9998 Brisbane QLD 4001 |
|
Telephone:
Capital city callers: 133 254
Non-Capital city callers: 1800 555 254
Facsimile: (07) 3223 8479
14 June 2014
046 123 456 789
MR BILL BROWN
323 SAMPLE STREET
MODELTOWN QLD 4010
YOUR FILE NUMBER IS QX000000
Dear Mr BROWN,
I am writing to you about your service pension payment from Veterans' Affairs. You currently receive the maximum rate of service pension and this amount remains unchanged.
Cost of living changes to the Income and Assets Test
Recent increases in the cost of living have been applied to the following income and assets limits for service pension:
For details on these changes please refer to the General Information Sheet which is attached to this letter.
Issue of 2013/2014 Financial Year Payment Summaries
As it is the end of the 2013/2014 financial year, Payment Summaries are being issued. You will need this information if you are required to lodge a tax return.
Payment Summary for BILL BROWN is enclosed with this letter.
If you are unsure as to whether you are required to lodge a tax return or if you have any questions about taxation matters you should contact the Australian Taxation Office on
13 28 61.
Department of Veterans' Affairs' staff are unable to assist with taxation enquiries.
Medicare Levy Exemption
If you have been eligible for full treatment at departmental expense during the past financial year, you are eligible for a full or half exemption from payment of the Medicare levy for that period. The number of days you are eligible for a full or half Medicare levy exemption is shown on your Payment Summary.
Financial Obligations
You need to tell us within 14 days (28 days if you are living overseas or receive remote area allowance) if your total income from all sources is more than $XXX.XX per fortnight or the value of your total assets is more than $XXX,XXX.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.
If you have any questions regarding this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [18] for contact details.
Yours sincerely,
ALISON STANLEY
Deputy Commissioner
as Delegate of the Secretary and Repatriation Commission
ATTACHMENTS
ATTACHMENT C
GPO Box 9998 in your Capital City
XXXX SMITH
XXXXXXXX STREET
SUBURB STATE POSTCODE
PAYG PAYMENT SUMMARY
INDIVIDUAL NON BUSINESS
Payment Summary for the year ending 30 June 2014
Payee Details
XXXX SMITH
XXXXXXX STREET
SUBURB STATE POSTCODE
DVA file number |
QX000000 |
Payee's tax file number |
444 444 444 |
Total tax withheld |
$XXX.XX |
Gross taxable payments |
$XXXX.XX |
Total tax exempt payments |
$XXXXX.XX |
- Tax-free pensions and benefits |
$XXXX.XX |
- Other tax exempt payments |
$XXXX.XX
|
Medicare levy full or half exemption days |
XXX |
Remote area allowance |
$XXX.XX |
Payer Details
Payer's ABN or withholding number: 2396 4290 824
Payer's name: Department of Veterans' Affairs
Signature of authorised person: ALISON STANLEY
Date: 14/06/14
See notes on reverse.
Notes:
Total tax withheld: The amount Veterans' Affairs has deducted from your payments for tax. If you have an amount in total tax withheld, you should lodge a tax return to ensure that you receive any refund of withheld tax you may be entitled to. If no tax was withheld, you may still have to lodge a tax return.
Gross taxable payments: The amount you should include as income under 'Australian Government pensions and allowances' in the Income section if you are completing a tax return.
Total tax exempt payments: The total of the tax exempt payments you were paid for the tax year, including Tax-free pensions and benefits and Other tax exempt payments.
Tax-free pensions and benefits: Tax exempt payments that you should include on your tax return under 'Tax-free Government Pensions or Benefits'. This amount may also need to be declared on your spouse's tax return as 'spouse's tax exempt pension income'.
Other tax exempt payments: Tax exempt payments that you do not need to show on your tax return.
Medicare levy exemption: A holder of a Veterans' Affairs Gold Card for medical treatment is eligible for a full or half exemption from paying the Medicare Levy. If you are eligible for an exemption, your number of Medicare Levy exemption days is shown on this payment summary. The number of days shown should be included in the Medicare levy section of your tax return.
Remote area allowance: You will need to include your Remote area allowance separately on your tax return if you are claiming a zone tax offset.
Further assistance: If you have any taxation enquiries, including whether you need to lodge a tax return or whether you qualify for a full or half Medicare Levy exemption, read the Individual tax return instructions for the relevant financial year, call the Australian Taxation Office on 13 28 61 between 8.00 am and 6.00 pm Monday to Friday, or visit www.ato.gov.au [20]. Enquiries about your payments should be directed to the Department of Veterans' Affairs.
The Australian Taxation Office checks information shown in tax returns
against information provided by the Department of Veterans'Affairs.
ATTACHMENT D
SAMPLE OF MEDICARE LEVY EXEMPTION CERTIFICATE
GPO Box 9998
In Your Capital City
Client name
Client address
Client address
Medicare Levy Exemption Certificate
Dear Beneficiary
This is your Medicare Levy Exemption Certificate showing the number of days you were eligible for full or half exemption from payment of the Medicare Levy. This exemption applies because you were eligible for full treatment at the expense of the Department of Veterans' Affairs during those days.
Your File Number is: XXXXXXXX
The number of days you are eligible for a full or half Medicare Levy Exemption during 2013/2014 is: XXX
Please note: If you lodge an income tax return YOU DO NOT NEED TO ATTACH this Certificate to your tax return. However, you should retain this Certificate for your records.
If you need to lodge a tax return, the number of days you were eligible for full or half exemption will need to be stated against the relevant question on your tax return.
If you have any enquiries about the number of days, please contact your nearest DVA office.
If you have any enquiries about whether you are fully or half exempt from the payment of Medicare levy, read Individual tax return instructions 2014 or contact the Australian Taxation Office on 13 28 61.
Yours faithfully
Deputy Commissioner
DATE OF ISSUE: 15 April 2014
Exchange Rate Variation of Pounds Sterling – Effect on Income Support & Disability Pensioners
Replaces DI No. |
N/A |
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 and 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 equals A$1.7599 - to one Pound Sterling equals A$1.7144 (i.e. A$1 = ?0.5833) This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 11 April 2014. |
Date of Effect and Payday
|
Effective from 15 April 2014 the current exchange rate will change. On pension payday 1 May 2014 pensioners with relevant British income will receive a full instalment at the new assessed rate. |
Automatic Processing |
Processing to implement the new exchange rate is scheduled for the evening of Tuesday, 15 April 2014. 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 15 April 2014 for payday 1 May 2014. |
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 Australian dollars 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 |
The contracted mailing house will print, envelope and lodge the advice letters with Australia Post on or before Wednesday 23 April 2014. An advice letter will only be produced for cases where there is a variation in payment. The letters will be four pages and include the new exchange rate, the amount of income and the 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 unless joint advices have been requested. |
Estimated Advice Numbers
|
The estimated number of advices to be produced is 4,300 based on the January 2014 advices mailout statistics. |
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 advices of the following types of cases will be streamed for printing to local printers at each state location:
The nominated local printers are: |
SA |
VSSOPR06 |
TAS |
VTSOPR03 |
WA |
VWSOPR01 |
VIC |
VVSOPR02 |
NSW |
N607P |
QLD |
VQSOPR01 |
Contact officers |
The contact officer for this exercise is Ganes Jagadeeswaran (27310). |
Richard Magor
Assistant Secretary
Income Support & Grants
15 April 2014
1
ATTACHMENT - A
POUND STERLING EXCHANGE RATE FOR PENSIONS FROM UK GOVERNMENT
Foreign exchange periodExchange rate
From |
To |
$ in ? |
? in $ |
15 April 2014 |
0.5833 |
1.7144 |
|
7 January 2014 |
14 April 2014 |
0.5682 |
1.7599 |
10 December 2013 |
6 January 2014 |
0.5837 |
1.7132 |
20 August 2013 |
9 December 2013 |
0.6107 |
1.6375 |
25 June 2013 |
19 August 2013 |
0.6303 |
1.5865 |
28 May 2013 |
24 June 2013 |
0.6718 |
1.4885 |
5 March 2013 |
27 May 2013 |
0.6978 |
1.4331 |
22 April 2013 |
4 March 2013 |
0.6802 |
1.4702 |
16 October 2012 |
21 April 2013 |
0.6619 |
1.5108 |
24 July 12 |
15 October 2012 |
0.6835 |
1.4631 |
23 June 12 |
23 July 12 |
0.6666 |
1.5002 |
26 May 12 |
22 June 12 |
0.6466 |
1.5466 |
17 April 12 |
25 May 12 |
0.6734 |
1.4850 |
7 February 12 |
16 April 12 |
0.6993 |
1.4300 |
10 April 12 |
6 February 12 |
0.6801 |
1.4704 |
29 November 11 |
9 April 12 |
0.6586 |
1.5184 |
1 November 11 |
28 November 11 |
0.6757 |
1.4799 |
18 October 11 |
31 October 11 |
0.6537 |
1.5298 |
3 May 11 |
17 October 11 |
0.6721 |
1.4879 |
25 April 11 |
2 May 11 |
0.6506 |
1.5370 |
11 April 11 |
24 April 11 |
0.6731 |
1.4857 |
5 October 10 |
10 April 11 |
0.6304 |
1.5863 |
1 June 10 |
4 October 10 |
0.6052 |
1.6523 |
23 March 10 |
31 May 10 |
0.6260 |
1.5974 |
20 October 09 |
22 March 10 |
0.5779 |
1.7304 |
6 October 09 |
19 October 09 |
0.5542 |
1.8044 |
19 May 09 |
5 October 09 |
0.5112 |
1.9562 |
7 April 09 |
18 May 09 |
0.4942 |
2.0235 |
10 February 09 |
6 April 09 |
0.4718 |
2.1195 |
13 April 09 |
9 February 09 |
0.4882 |
2.0483 |
18 November 08 |
12 April 09 |
0.4394 |
2.2758 |
21 October 08 |
17 November 08 |
0.4118 |
2.4284 |
23 September 08 |
20 October 08 |
0.4629 |
2.1603 |
26 August 08 |
22 September 08 |
0.4753 |
2.1039 |
20 May 08 |
25 August 08 |
0.4902 |
2.0400 |
26 February 08 |
19 May 08 |
0.4733 |
2.1128 |
15 April 08 |
25 February 08 |
0.4553 |
2.1964 |
9 October 07 |
14 April 08 |
0.4425 |
2.2599 |
28 August 07 |
8 October 07 |
0.4186 |
2.3889 |
3 October 07 |
27 August 07 |
0.4315 |
2.3175 |
27 March 07 |
2 October 07 |
0.4164 |
2.4015 |
10 October 06 |
26 March 07 |
0.4047 |
2.4710 |
DATE OF ISSUE: 14 April 2014
Indexation of British Official Public Service and Armed Forces Pensions
Replaces DI No. |
N/A |
Purpose |
The purpose of this Departmental Instruction is to advise of processing arrangements for the automatic indexation of British Official Public Service and Armed Forces pensions (formerly Indexed BRI, code 09). The reason for the change of terminology was explained in DI C04/2004 [23] British Income. |
Increase in Public Service Pensions |
The British Government has announced that British Public Service Pensions will rise in April 2014 by 2.7% in line with their Retail Price Index. The pensions affected are listed below and should be recorded on PIPS as foreign superannuation (British Official Public Service/Forces):
|
Date of effect |
The date of effect to be used for the variation is 15 April 2014, for payday 1 May 2014. |
The conversion factor for this indexation is 1.027 |
The new amount of pounds sterling to be recorded will be calculated as follows: The variation percentage (2.70%) ----------------------------- + 1 = Conversion factor 100 The Australian dollar amount will then be reassessed accordingly. The conversion factor for this indexation is 1.027. |
Date of processing run |
The processing run for this exercise will take place on Monday 14 April 2014. |
Manual cases |
Cases that are in investigation, submission or determination status at the time of the run will be frozen and listed for subsequent manual processing. |
Advice Letters |
A one-page advice will be generated for all clients who have a variation to their rate of DVA pension payment because of the indexation exercise. All advices produced from this processing exercise will be printed as batch advices on printers in the State locations. Please check advice schedules to reconcile Group Destination cases, and check all advices before they are sent to ensure they contain correct information. |
Indexation of British war pensions |
British war pensions (British DP) will also increase by 2.7% on 7 April 2014. A separate Departmental Instruction will be issued about the application of this increase to:
|
Indexation of British social security pension |
British social security pensions will not be indexed automatically. See Part 10, Chapter 1, Section 5 of the CLIK Policy and Procedure Libraries for more information. |
Contact officers |
The Income Support contact officers for this exercise are Greg Doube (ext 50559) and Trevor Catt (ext 48681). |
Richard Magor
National Manager
Income Support and Grants
DATE OF ISSUE: 4 March 2014
March 2014 Global Refresh of Managed Investments, Shares and Overseas Exchange Rates – Letter Production and Mailouts
Replaces DI No. |
N/A |
Purpose of Instruction |
This Departmental Instruction is to provide you with information about the processing arrangements for:
|
Introduction |
Each quarter the Department varies pensions and allowances in accordance with provisions contained in the Veterans' Entitlements Act 1986 (Statutory Increase or 'SI'). In March and September of each year, the movements in Cost of Living Index and the Global Refresh of Managed Investments (MIs) and Shares (SHs) data are usually combined as one quarterly reassessment process. This quarter the Department will be sending advice letters to pensioners on less than the maximum rate of service pension (SP), income support supplement (ISS) or age pension (AP) who have MIs and/or SHs recorded in their assessment and who are affected by the Global Refresh of MIs and/or SHs reassessment. Advice letters will also be sent to AP recipients who commence receiving Defence Force Income Support Allowance (DFISA), or whose DFISA payment is cancelled following the processing run. AP recipients 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 process, and provides information on significant issues relating to the mailout. |
Significant Issues |
Issues of significance with regard to this mailout are as follows:
|
Advice Letter Target Audience |
A letter will be produced for the following clients after the March 2014 Global Refresh of MIs and/or SHs processing:
|
Introductory Paragraphs |
All letters will have either a single outcome paragraph or a multiple outcome paragraph made up of dot points to advise the pension outcome. Examples are: Single Outcome Paragraph: This is to advise you that your service pension has been increased/reduced/reduced to nil. This change will take effect from 20 March 2014.
Multiple Outcome Paragraphs: This is to advise you that your:
This change will take effect from 20 March 2014.
|
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 SHs 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 payment and has resulted in a variation to the amount of pension paid to you....'
OR
'has resulted in your pension being varied to nil....'
|
Managed Investments and/or Shares Information Attachment |
All less than maximum rate income support recipients with MIs and/or SHs will receive a full listing of all their MIs and/or SHs regardless of which MIs and/or SHs have been reassessed. Clients will not be issued with a full listing of their Income and Assets. |
Change to Pension due to Indexation Increases |
All letters will continue to have the paragraph advising that 'Your pension has been adjusted in line with increases in the cost of living or wages where applicable.' Information on indexation adjustments and pension increase will also be provided in the March edition of Vetaffairs, which is to be distributed from Friday 21 March 2014. |
Obligations |
Full and Partial obligations are to be suppressed. Reference will be made to obligations issued to clients in previous letters. For SP and ISS recipients, reference will also be made to obligations provided in the 'You and Your Pension' Booklet. A Financial Obligations paragraph (including the Prescribed Rates), will be present in the advice for all clients, except for pensioners who are reduced to nil. AP clients who are reduced to nil, but eligible for payment of DFISA will receive their Financial Obligations paragraph including their prescribed rates. |
Right of Review |
A right of review paragraph will be included in all letters. |
No MI and SH Refresh for Bereavement Period cases |
Pensioners currently in a bereavement period will not have their MI and/or SH values refreshed in this SI run. The batch processing will only apply the statutory increase to their pension rates. A full MI/SH data refresh should be done as part of their post-bereavement review. |
Treatment Advices to be Checked |
The Enclosure (treatment) advice letters will be printed at the nominated printer at each location. These letters should be checked for accuracy, and reconciled against the reports received in each location to ensure they reflect the correct treatment paragraphs before they are mailed to the clients. 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 in their advice. |
Tasmanian Overseas Clients' Advices |
Advice letters for Tasmanian Office clients with an overseas postal address will have their advices printed and posted directly from the Mailing House. |
No Advices for Blind Clients |
Blind clients will not receive an advice. Where a member of a couple is assessed as 'blind', a single advice will 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 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 March processing. For information, the GIS will only be produced in the following circumstances:
Pensioners who reside overseas permanently will not be given the GIS to avoid confusion, because some components of the pension supplement (PS non-taxable and PS flexible) are not payable to overseas pensioners. |
Single & Joint Addressed Letters |
All SP and ISS recipient couples will receive a joint advice, provided the pensioner addresses are identical. 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. This includes illness separated couples. AP couples will receive separate letters. Important to note: Staff are reminded when granting AP or when clients in a joint assessment request separate advices, this information can be recorded in mainframe PRODIMS - Client Correspondence Client Options (CO.CO) Screen. The advice default requests set in CO.CO will override DOCGEN and PIPS advice rules. |
SI Processing |
SI Processing will commence on Friday night, 7 March 2014, following the completion of the IPS FORT processing, and will run through until Sunday 9 March 2014. |
Critical Dates |
Processing within DVA (includes 'advices' processing) |
Friday (9 pm) 7 March to Sunday 9 March 2014 |
Transmission of Production Data to Mailing House |
Monday 10 March 2014 |
Mailing House to commence lodgement of Advice Letters with Australia Post |
Friday, 21 March 2014 |
Mailing House to complete lodgment of all Advice Letters by COB |
Monday, 24 March 2014 |
Expected Client Numbers |
The number of letters to be sent nationally is approximately 24,000 based on September 2013 SI mailout statistics (the last comparable exercise). For reference, the number of mailpacks generated for each location in the September 2013 SI mailout are listed below: |
STATE |
NUMBER OF ADVICE LETTERS |
NSW & ACT |
7,417 |
VIC |
5,641 |
QLD |
5,842 |
SA & NT |
2,119 |
WA |
2,333 |
TAS |
793 |
TAS OVERSEAS |
59 |
TOTAL |
24,204 |
Printing of Letters |
Computershare Communication Services located in Ermington NSW will print, fold, insert and lodge the advice letters. |
National Lodgement of Letters |
Letters will be lodged nationally with Australia Post on Friday 21 March and be completed by Monday 24 March 2014. A representative from the Cards and Advices Team will notify and confirm all lodgment details. The Income Support contact officers for this exercise will be given progress reports and advised of any changes to this timetable. |
Holding of daily advice letters |
Daily advice letters produced from Monday 10 March 2014 should be held pending notification that the March 2014 quarterly letters have been dispatched. This will ensure that pensioners receive their advice letters in chronological order. |
DFISA Advices from Centrelink Processing |
DVA will be suppressing all Centrelink daily DFISA variation advices with an effective date of 20 March 2014, which are transmitted to DVA following the Centrelink processing run. All other advices will print as part of the normal processing, including Centrelink DFISA 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 March 2014 Global Refresh processing and is scheduled to run on the evening of Wednesday, 12 March 2014. The effective date of the Foreign Pensions Refresh Run is 20 March 2014 for payday 3 April 2014. Separate Foreign Income advices are produced for clients who have foreign income, and whose pensions have been varied because of the GROOVER run. A sample GROOVER advice can be found at Attachment B. About 700 GROOVER advices are expected. These advices will be printed at nominated printer of each location. A small number of streamed advices also will be printed at nominated printers at each location. These letters should be checked for accuracy, reconciled against the advice schedule reports, and held pending notification of the successful lodgement of the March quarterly advices. This will ensure that pensioners receive their advice letters in chronological order. Please note: the British Social Security Pension (type 08), British Official Public Service/Forces pension (type 09) and British Other Income (type 07) are not included in the GROOVER update. Instead they are regularly updated in British Pensions exchange rate variation exercises (commonly known as BRI runs) whenever the Pound Sterling exchange rate varies by 2.5% or more. |
Streamed Advices |
Several categories of advices are streamed out to print at location printers, as they require additional checking and manual actions. The following advice types are streamed:
They are to be printed at state office printers listed below: |
SA |
VSSOPR06 |
TAS |
VTSOPR03 |
WA |
VWSOPR01 |
VIC |
VVSOPR02 |
NSW |
N607P |
QLD |
VQSOPR01 |
These advices, in particular treatment eligibility change advices, should be checked for accuracy, and reconciled against the reports received by each Office. Reduction to Nil advice letters also require inclusion of Commonwealth Seniors Health Card (CSHC) claim forms, CSHC fact sheets and reply paid envelopes to the mailpacks. |
|
ZIP Files of Advice Schedule Reports |
A Zip File listing details of all clients who receive an advice will be emailed to the Contact Officers following the processing run. The Zip File replaces the Advices Schedule Report, which is too large to print on the printers in each office. |
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 |
Prior to the SI Batch processing run, any advices in 'Held' status will be forced to print to each location nominated printer. 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. |
Income Support Contact Officers |
A contact person from each location is required to act as a liaison point for the Cards and Advices Team and is to be the responsible person for distributing any information regarding the March 2014 Global Refresh mailout to staff. The Income Support (IS) contacts for the March 2014 quarterly processing exercise are listed below: VIC:Greg Heitsch QLD:Stephen Hamill SA:Maria Nasilowski WA:Michelle Pauly / Margarete Mumme TAS:Daimeon Horne |
Cards & Advices Team Contact Details |
Any queries regarding this mailout should be referred to: Ganes Jagadeeswaran (02) 9213 7310 or speed dial 27310 |
Richard Magor
Assistant Secretary
Income Support and Grants Branch
4 February 2014
Advice Samples |
Details of the proposed content of the SI letters are included in Attachment A.
Attachment B contains a sample of the GROOVER advice. |
Letter Variables |
Please note, in the enclosed examples:
|
1
ATTACHMENT A
EXAMPLE 1A:
GPO Box 9998, Brisbane QLD 4001 |
|
Telephone:
Capital city callers: 1 — 33 254
Non-Capital city callers: 1800 555 254
123 456 789 044 — Facsimile: (07) 3223 8585
JOHN SMITH
MARY SMITH — 8 March 2014
29 MARGARET STREET
IPSWICH QLD 4010
YOUR FILE NUMBER IS QX999999
Dear Mr and Mrs SMITH,
This is to advise you that your service pension has been increased. This change will take effect from 20 March 2014.
Details of your fortnightly payments are provided in the Payment Information Attachment.
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 payment and has resulted in a variation to the amount of 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 have in your assessment, as they remain unchanged. However, they continue to be used in assessing the amount of pension you are paid.
Your pension has been adjusted in line with increases in the cost of living or wages where applicable.
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 is more than $XXXXXX.XX.
We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'. These obligations still apply.
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.
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 this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [18] for contact details.
Yours sincerely,
ALISON STANLEY
Deputy Commissioner
as Delegate of the Secretary and Repatriation Commission
PAYMENT INFORMATION ATTACHMENT
The Department calculates your payments on a daily basis. This means that your fortnightly payment is made up of 14 days of entitlement. Therefore, when there is a change to your circumstances on any particular day in the fortnight - your payment will be adjusted from that day. For that reason your payment may be different for one or two paydays after a reassessment.
Payment for 3 April 2014VeteranPartner
TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx
This is made up of:
- xxxxxxxxx xxxxxxxxxxxxxxx.xxxxx.xx
- xxxxxxxxxxx xxxxxxxxxxxx x.xx x.xx
Payment for 17 April 2014VeteranPartner
TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx
This is made up of:
- xxxxxxxxx xxxxxxxxxxxxxxx.xxxxx.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 payment, the amount paid into your account may be less than the total fortnightly payment shown above.
SHARES AND MANAGED INVESTMENTS INFORMATION
(Information currently used to assess your pension)
You are receiving service pension at less than the maximum rate payable. (If the 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 value of your shares which are listed on the Australian Stock Exchange and/or your 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 — X |
$XX — X.XX |
CCCCCCCCCCCCC |
XXX |
$XX — X.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:
* * * * * * * * * * * * * * * * * * * * * * *
LETTERHEAD
* * * * * * * * * * * * * * * * * * * * * * *
This is to advise you that your:
This change will take effect from 20 March 2014.
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 payment and has resulted in a variation to the amount of 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 have in your assessment, as they remain unchanged. However, they continue to be used in assessing the amount of pension you are paid.
Your pension has been adjusted in line with increases in the cost of living or wages where applicable.
You need to tell us within 14 days (28 days if you are living overseas) if you gain or dispose of any assets, or the value of your total existing assets varies, or your gross income from all sources increases above $XXX.XX per fortnight.
We have explained your obligations to you in previous letters. These obligations still apply.
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.
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, you can only be paid an adjustment from the date we receive your application. Requests for review may be made in person, by telephone or in 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.
If you have any questions regarding this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [18] for contact details.
Yours sincerely,
* * * * * * * * * * * * * * * * * * * * * * * * * * *
DEPUTY COMMISSIONER SIGNATURE BLOCK
* * * * * * * * * * * * * * * * * * * * * * * * * * *
EXAMPLE 3A:
* * * * * * * * * * * * * * * * * * * * * * *
LETTERHEAD
* * * * * * * * * * * * * * * * * * * * * * *
This is to advise you that your:
This change will take effect from 20 March 2014.
Details of your fortnightly payments are provided in the Payment Information Attachment.
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 payment and has resulted in your pension being varied 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.
We have not provided you with a complete listing of any other income or assets you have in your assessment, as they remain unchanged. However, they continue to be used in assessing the amount of pension you are paid.
Your pension has been adjusted in line with increases in the cost of living or wages where applicable.
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.
Commonwealth Seniors Health Card
As your income support pension has been cancelled, you may be eligible for a Commonwealth Seniors Health Card (CSHC) providing you are of pension age. If granted, you may be eligible for seniors supplement and Clean Energy Supplement. A CSHC claim form and a fact sheet are enclosed for your information. If you do not already have a CSHC from Centrelink and would like to claim a CSHC from the Department of Veterans' Affairs, please return your claim form in the envelope provided.
Seniors Supplement
As your income support pension has been cancelled, your gold card may entitle you to seniors supplement. Seniors supplement is paid quarterly in March, June, September and December. If you are eligible, you will be notified separately.
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.
DVA Factsheet IS30 Pension Rates, Limits and Allowances Summary is regularly updated to reflect the latest pension rates and limits. To obtain a copy, please contact us or visit our web site at www.dva.gov.au [18].
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 this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [18] for contact details.
* * * * * * * * * * * * * * * * * * * * * * * * * * *
DEPUTY COMMISSIONER SIGNATURE BLOCK
* * * * * * * * * * * * * * * * * * * * * * * * * * *
ATTACHMENT B
EXAMPLE OF GROOVER ADVICE:
* * * * * * * * * * * * * * * * * * * * * * *
LETTERHEAD
* * * * * * * * * * * * * * * * * * * * * * *
This is to advise you that your service pension has been increased. This change will take effect from 20 March 2014.
The rate of exchange used to convert your Foreign Income to Australian Dollars for income support pension assessment purposes has been reviewed. The new rate of exchange is shown below.
If the Foreign Income per fortnight amount shown below is not the same as the gross amount (in foreign currency) you are currently receiving, you should notify the Department within 14 days (28 days if you are living overseas or receive remote area allowance). The Foreign Income per fortnight amount shown below may be incorrect if you have received an increase in your foreign payment, or the amount has been recorded incorrectly.
Foreign Income
Description |
Foreign Income per fortnight |
Exchange Rate |
Assessed Income per fortnight |
Euro |
xxx.xxx |
x.xxxx |
$xxx.xx |
Turkish Lira |
xxx.xxx |
x.xxxx |
$xxx.xx |
Details of your fortnightly payments are provided in the Payment Information Attachment.
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 is more than $XXXXXX.XX.
If you do not agree with this decision, you may apply to have it reviewed by a Review Officer at this office. If you do decide to apply for a review, you must do so within three months of being advised of this decision. A request for review must be in writing and set out your reasons for seeking this review.
If you have any questions regarding this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [18] for contact details.
* * * * * * * * * * * * * * * * * * * * * * * * * * *
DEPUTY COMMISSIONER SIGNATURE BLOCK
* * * * * * * * * * * * * * * * * * * * * * * * * * *
DATE OF ISSUE: 9 January 2014
Exchange Rate Variation of Pounds Sterling - Effect on Income Support & Disability Pensioners
Replaces DI No. |
N/A |
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 and 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 equals A$1.7132 - to one Pound Sterling equals A$1.7599 (i.e. A$1 = ?0.5682) This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 3 Jaunary 2014. |
Date of Effect7 January 2014 |
Effective from 7 January 2014 the current exchange rate will change. On pension payday 23 January 2014 pensioners with relevant British income will receive a full instalment at the new assessed rate. |
Automatic Processing |
Processing to implement the new exchange rate is scheduled for the evening of Wednesday, 8 January 2014. 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 7 January 2014 for payday 23 January 2014. |
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 Australian dollars 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 |
The contracted mailing house will print, envelope and lodge the advice letters with Australia Post on or before 20 January 2014. An advice letter will only be produced for cases where there is a variation in payment. The letters will be four pages and include the new exchange rate, the amount of income and the 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 unless joint advices have been requested. |
Estimated Advice Numbers |
The estimated number of advices to be produced is 4,000. |
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 advices of the following types of cases will be streamed for printing to local printers at each state location:
The nominated local printers are: SA — VSSOPR06 TAS — VTSOPR03 WA — VWSOPR01 VIC — V — VSOPR02 NSW — N60 — 7 — P QLD — VQSOPR01 |
Contact officers |
The contact officer for this exercise is Ganes Jagadeeswaran (27310). |
Grant McCorry
A/g Assistant Secretary
Income Support & Grants
9 January 2014
1
ATTACHMENT A
POUND STERLING EXCHANGE RATE FOR PENSIONS FROM UK GOVERNMENT
Foreign exchange periodExchange rate
From |
To |
$ in ? |
? in $ |
7 January 2014 |
0.5682 |
1.7599 |
|
10 December 2013 |
6 January 2014 |
0.5837 |
1.7132 |
20 August 2013 |
9 December 2013 |
0.6107 |
1.6375 |
25 June 2013 |
19 August 2013 |
0.6303 |
1.5865 |
28 May 2013 |
24 June 2013 |
0.6718 |
1.4885 |
5 March 2013 |
27 May 2013 |
0.6978 |
1.4331 |
22 January 2013 |
4 March 2013 |
0.6802 |
1.4702 |
16 October 2012 |
21 January 2013 |
0.6619 |
1.5108 |
24 July 12 |
15 October 2012 |
0.6835 |
1.4631 |
23 June 12 |
23 July 12 |
0.6666 |
1.5002 |
26 May 12 |
22 June 12 |
0.6466 |
1.5466 |
17 April 12 |
25 May 12 |
0.6734 |
1.4850 |
7 February 12 |
16 April 12 |
0.6993 |
1.4300 |
10 January 12 |
6 February 12 |
0.6801 |
1.4704 |
29 November 11 |
9 January 12 |
0.6586 |
1.5184 |
1 November 11 |
28 November 11 |
0.6757 |
1.4799 |
18 October 11 |
31 October 11 |
0.6537 |
1.5298 |
3 May 11 |
17 October 11 |
0.6721 |
1.4879 |
25 January 11 |
2 May 11 |
0.6506 |
1.5370 |
11 January 11 |
24 January 11 |
0.6731 |
1.4857 |
5 October 10 |
10 January 11 |
0.6304 |
1.5863 |
1 June 10 |
4 October 10 |
0.6052 |
1.6523 |
23 March 10 |
31 May 10 |
0.6260 |
1.5974 |
20 October 09 |
22 March 10 |
0.5779 |
1.7304 |
6 October 09 |
19 October 09 |
0.5542 |
1.8044 |
19 May 09 |
5 October 09 |
0.5112 |
1.9562 |
7 April 09 |
18 May 09 |
0.4942 |
2.0235 |
10 February 09 |
6 April 09 |
0.4718 |
2.1195 |
13 January 09 |
9 February 09 |
0.4882 |
2.0483 |
18 November 08 |
12 January 09 |
0.4394 |
2.2758 |
21 October 08 |
17 November 08 |
0.4118 |
2.4284 |
23 September 08 |
20 October 08 |
0.4629 |
2.1603 |
26 August 08 |
22 September 08 |
0.4753 |
2.1039 |
20 May 08 |
25 August 08 |
0.4902 |
2.0400 |
26 February 08 |
19 May 08 |
0.4733 |
2.1128 |
25 February 08 |
0.4553 |
2.1964 |
|
9 October 07 |
14 January 08 |
0.4425 |
2.2599 |
28 August 07 |
8 October 07 |
0.4186 |
2.3889 |
3 October 07 |
27 August 07 |
0.4315 |
2.3175 |
27 March 07 |
2 October 07 |
0.4164 |
2.4015 |
10 October 06 |
26 March 07 |
0.4047 |
2.4710 |
11 April 06 |
9 October 06 |
0.4170 |
2.3981 |
DATE OF ISSUE: 6 January 2014
January 2014 – Reassessment of Comsuper and Victoria State Based Superannuation Pensions
Replaces DI No. |
N/A |
Purpose of instruction |
The purpose of this Departmental Instruction is to provide information about advice production from the January 2014 ComSuper and Victoria state based superannuation reassessment. |
Background |
ComSuper includes Commonwealth Superannuation Scheme (CSS), Public Sector Superannuation Scheme (PSS), Defence Force Retirement and Death Benefit Scheme (DFRDB) & Military Superannuation Benefit Scheme (MSBS) Superannuation pensions. It is adjusted bi-annually in January and July. The cost of living increase to be applied to the ComSuper pensions in January 2014 is 1.60%. The January 2014 ComSuper reassessment run will also include an update to some Victoria state based superannuation schemes (Vic ESSSuper and Vic VISION Super). The increase to be applied to the Victoria state based superannuation pensions in January 2014 is 0.78%. Please note – Vic Health Super and Vic Electrical Super have not provided DVA with their indexation details as yet. Unless information is received by close of business on Monday 6 January for inclusion in this processing run, affected clients will be reassessed in future batch runs. |
Processing date |
Reassessment processing to reflect the January 2014 CPI increases is scheduled to run overnight on Tuesday, 7 January 2014. Following completion of processing, the advice data files will be transmitted to the mailing house for printing and lodgment. |
Effective date |
The effective date of reassessment will be 7 January 2014. On pension payday 23 January 2014, pensioners will receive a full instalment at the new assessed rate. |
Advice letter target audience |
A letter will be produced for income support pensioners in receipt of ComSuper, ESSSuper or VISION Super, whose pension rate is varied by the reassessment run. There will be approximately 20,000 advice letters produced nationally. |
Advices content and presentation |
The advice will comprise of a 2 page letter and a Payment Information Attachment. The advice will inform clients of the outcome to their pension reassessment and provide information on gross superannuation income, deductible and/or non-deductible amounts. The information relating to their super payment is presented in a tabular format. The advice will also provide the client with their Financial Obligations (prescribed rates) and a right of review. Please see Attachment A which shows a sample of:
|
Printing and mailing of advice letters |
With some exceptions explained below, advice letters will be printed and mailed through the Department's contracted mailing house, Computershare. All letters will be lodged with Australia Post as a national lodgment by close of business Thursday 16 January 2014. |
Advices for Overseas Addressees |
Advice letters produced for Tasmanian State Office clients who have an overseas address will be printed, enveloped and sent from the mailing house. |
Enclosure (Treatment change) Advice Letters |
Enclosure (treatment change) letters will be printed separately at nominated state location printers. They are to be mailed by close of business Thursday, 16 January 2014. The streamed advice letters should be checked for accuracy, and reconciled against reports received in each location to ensure they reflect the correct treatment paragraphs. If any advice with incorrect treatment information is found, please consult with the Income Support Contact Officers listed below to ensure correct information is provided in the manual replacement advice. |
Reduction to Nil Letters |
Any Reduction to Nil advice letters will be printed at the nominated printer in each location. Staff are required to include a Commonwealth Seniors Health Card (CSHC) claim form, a CSHC fact sheet and a reply paid envelope with the advice letter.
|
'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 the nominated printer in each office. These advices should then be reviewed for appropriate action. |
Location of printers |
The streamed advices are to be printed at the following printers: SA — VSSOPR06 TAS — VTSOPR03 WA — VWSOPR01 VIC — VVSOPR02 NSW — N607P QLD — VQSOPR01 |
DVA – Income Support Contact Officers |
A contact person from each location acts as a liaison point for the Advices Team, and to assist with the handling of streamed advices printed at each nominated location printer. The Income Support Location Contacts for the January 2014 ComSuper processing exercise are as follows: NSW:Genia Sacharczuk VIC:Greg Heitsch QLD:Stephen Hamill SA:Maria Nasilowski WA:Michelle Pauly TAS:Daimeon Horne |
Contacts |
For Advice issues – Ganes Jagadeeswaran (02) 9213 7310. For Systems issues – Kevin Chapman (02) 6289 6749. |
Grant McCorry
Acting Assistant Secretary
Income Support and Grants Branch
3 January 2014
ATTACHMENT A
COMSUPER ADVICES FOR CLIENT WITH A 'DEDUCTIBLE AMOUNT'
GPO Box 9998, Brisbane QLD 4001 |
|
Telephone:
Capital city callers: 133 254
Non-Capital city callers: 1800 555 254
123 456 789 044 — Facsimile: (07) 3223 8479
JOHN SMITH
MARY SMITH — 7 January 2014
123 SAMPLE STREET
MODELTOWN QLD 4010
YOUR FILE NUMBER IS QX123456
Dear Mr and Mrs SMITH,
This is to advise that your T-PENSION-SP-ISS-AP has been reduced. This change will take effect from 7 January 2014.
Name |
Description |
Gross Income |
Deductible Amount (tax free component) |
Assessed Income |
JOHN SMITH |
ComSuper (CSS & PSS) |
$585.95 |
$135.50 |
$450.45 |
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 $xxx.xx per fortnight or the value of your combined assets is more than $xxx,xxx.xx.
If you have any questions regarding this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [18] for contact details.
Yours sincerely,
ALISON STANLEY
Deputy Commissioner
as Delegate of the Secretary and Repatriation Commission
PAYMENT INFORMATION ATTACHMENT
The Department calculates your payments on a daily basis. This means that your fortnightly payment is made up of 14 days of entitlement. Therefore, when there is a change to your circumstances on any particular day in the fortnight - your payment will be adjusted from that day. For that reason your payment may be different for one or two paydays after a reassessment.
Payment for 23 JANUARY 2014Veteran Partner
TOTAL FORTNIGHTLY PAYMENTxxx.xx xxx.xx
This is made up of:
- xxxxxxxxx xxxxxxxxxxxxxxx.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.
CLIENT DOES NOT HAVE A 'DEDUCTIBLE AMOUNT' - BOTH VET AND SPOUSE HAVE INCOME FROM SUPER
GPO Box 9998, Brisbane QLD 4001 |
|
Telephone:
Capital city callers: 133 254
Non-Capital city callers: 1800 555 254
123 456 789 044 — Facsimile: (07) 3223 8479
JOHN SMITH
MARY SMITH — 7 January 2014
123 SAMPLE STREET
MODELTOWN QLD 4010
YOUR FILE NUMBER IS QX123456
Dear Mr and Mrs SMITH,
This is to advise that your T-PENSION-SP-ISS-AP has been reduced. This change will take effect from 7 January 2014.
Name |
Description |
Assessed Income |
JOHN SMITH |
ComSuper (DFRDB & MSBS) |
$450.95 |
MARY SMITH |
ComSuper (CSS & PSS) |
$265.00 |
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 $xxx.xx per fortnight or the value of your combined assets is more than $xxx,xxx.xx.
If you have any questions regarding this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [18] for contact details.
Yours sincerely,
ALISON STANLEY
Deputy Commissioner
as Delegate of the Secretary and Repatriation Commission
ATTACHMENT
CLIENT HAS INCOME FROM SUPER WITH A 'DEDUCTIBLE AMOUNT' AND WITHOUT A DEDUCTIBLE AMOUNT
GPO Box 9998, Brisbane QLD 4001 |
|
Telephone:
Capital city callers: 133 254
Non-Capital city callers: 1800 555 254
123 456 789 044 — Facsimile: (07) 3223 8479
JOHN SMITH
123 SAMPLE STREET — 7 January 2014
MODELTOWN QLD 4010
YOUR FILE NUMBER IS QX123456
Dear Mr SMITH,
This is to advise that your T-PENSION-SP-ISS-AP has been reduced. This change will take effect from 7 January 2014.
Name |
Description |
Gross Income |
Deductible Amount (tax free component) |
Assessed Income |
JOHN SMITH |
ComSuper (CSS & PSS) |
$585.95 |
$135.50 |
$450.45 |
JOHN SMITH |
ComSuper (DFRDB & MSBS) |
$846.44 |
$0.00 |
$846.44 |
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 from all sources is more than $xxx.xx per fortnight or the value of your total assets is more than $xxx,xxx.xx.
If you have any questions regarding this letter please contact the Department on the telephone number shown at the top of this letter. If you prefer to communicate with us by mail, e-mail or in person, please view our website at www.dva.gov.au [18] for contact details.
Yours sincerely,
ALISON STANLEY
Deputy Commissioner
as Delegate of the Secretary and Repatriation Commission
ATTACHMENT
18/08/14 — Page 1
Links
[1] https://clik.dva.gov.au/user/login?destination=comment/reply/24576%23comment-form
[2] https://clik.dva.gov.au/user/login?destination=node/22409%23comment-form
[3] https://clik.dva.gov.au/csrefc14
[4] mailto:Elis.Lam@dva.gov.au
[5] https://clik.dva.gov.au/user/login?destination=node/22675%23comment-form
[6] clikpopup://DEF/Disability Pension
[7] https://clik.dva.gov.au/%23
[8] clikpopup://DEF/Adjusted disability pension/Adjusted DP
[9] mailto:georgina.dudzinski@dva.gov.au
[10] http://www.comlaw.gov.au/Details/C2015C00011
[11] https://clik.dva.gov.au/user/login?destination=node/22344%23comment-form
[12] https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/2013/c152013-annual-property-valuation-exercise-2012-2013-fy
[13] http://sharepoint/programsandprojects/clik/procedures/documents/14315320E.tr5
[14] https://clik.dva.gov.au/user/login?destination=node/22389%23comment-form
[15] http://www.dva.gov.au/
[16] https://clik.dva.gov.au/user/login?destination=node/21709%23comment-form
[17] mailto:CMBADVHD@dva.gov.au
[18] http://www.dva.gov.au
[19] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[20] http://www.ato.gov.au
[21] https://clik.dva.gov.au/user/login?destination=node/21954%23comment-form
[22] https://clik.dva.gov.au/user/login?destination=node/21830%23comment-form
[23] https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/2004/c042004-british-income
[24] http://sharepoint/programsandprojects/clik/procedures/Pages/CLIK%20Procedure%20Library%20-%20Links.aspx
[25] https://clik.dva.gov.au/user/login?destination=node/22562%23comment-form
[26] mailto:ganes.jagadeeswaran@dva.gov.au
[27] https://clik.dva.gov.au/user/login?destination=node/22393%23comment-form
[28] https://clik.dva.gov.au/user/login?destination=node/22554%23comment-form