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C26/2001 INCOME SUPPORT AAT REVIEW - POLICY INPUT AND NOTIFICATION OF PENDING APPEALS

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DATE OF ISSUE:  12 DECEMBER 2001

INCOME SUPPORT AAT REVIEW – POLICY INPUT AND NOTIFICATION OF PENDING APPEALS

INTRODUCTION

Purpose of instruction

This instruction clarifies the role of the Income Support Policy Section in providing policy input relevant to AAT review involving Income Support and outlines new reporting procedures applicable to Departmental Advocates and other procedures applicable generally to such matters.

Reasons for request

Clearly some AAT reviews involve cases which have implications under both the Veterans' Entitlements Act 1986 (the VEA) and the Social Security Act 1991.  One such case, which raises concerns about means test implications under both Acts only came to the notice of the Income Support Policy Section some weeks after the decision was handed down.  In another matter, policy input was not requested until late in the afternoon on the day of the AAT hearing.  These examples highlight the requirement for advocates to recognise the need for policy advice and for it to be obtained early in the case preparation stage.

Other benefits of reporting process

The reporting process should also improve the quality of cases being defended before the Tribunal as well as assisting the Income Support area to identify additional cases where policy input is warranted.

POLICY ADVICE AVAILABLE FROM INCOME SUPPORT POLICY

Role of Income Support Policy

The Income Support Policy Section is available to provide policy input on all Income Support matters other than those where the substantive issue involves Qualifying Service.  Income Support Policy will liaise with the Department of Family and Community Services or the Legal Services Group as appropriate.

How do I obtain policy advice?

A request for policy advice on a particular AAT case can be sent by e-mail to NAT Policy Advisings Income Support.  The critical date for a response should be specified.

When should Policy direction be obtained?

The following are examples of the types of cases in which policy advice should be sought:

  • Where the section 57 decision overturns the primary determination and AAT review is sought.

  • Where there is doubt over the soundness of the decision on which AAT review is being sought.

  • Where it is anticipated that the AAT decision may have implications beyond the specific case being reviewed.

  • Cases involving rejection of a claim for service pension or income support supplement where there are other than the usual eligibility criteria to be considered eg where residency is in question.

  • More complex cases involving issues such as family discretionary trusts, family private companies, the possible existence of beneficial interests and/or the interpretation of financial statements.

Where it is unnecessary to seek policy input?

The above list is indicative and it is recognised that some Income Support cases are less complex and do not warrant referral to Income Support Policy.  However, as we wish to maintain a monitoring role for all Income Support AAT cases, they should be reported to Income Support Policy on the form attached.


NEW REPORTING PROCESS APPLICABLE TO DEPARTMENTAL ADVOCATES

What matters need to be reported?

An Income Support matter, excepting one where the substantive issue is Qualifying Service, involving an application for AAT review where the primary decision has been reviewed by a delegate under section 57 of the VEA.

What matters do not need to be reported?

It is not necessary to report details of cases to Income Support where the substantive issue is Qualifying Service.  The Disability Compensation Branch monitors these issues and input is sought from Income Support as required

What information needs to be provided?

Please refer to the attachment for details that are required to be reported on an ongoing basis to Income Support Policy

How do I report an IS case?

By e-mailing the completed attachment to NAT Policy Advisings Income Support.

HEARINGS ON THE PAPERS

Instructions required

If the AAT or an Advocate wishes to have an Income Support matter determined by the AAT “on the papers”, specific approval to do so should be sought from either the Director Income Support Policy or the Branch Head, Income Support.

The minute requesting instructions to have the matter determined on the papers should provide:

  • a brief outline of the issue;
  • an assessment whether the case is unique or may have more general implications for Income Support;
  • reasons for the request.

E-mail the request for these instructions to: NAT Policy Advisings Income Support.

Authorised by

Roger Winzenberg

Branch Head

INCOME SUPPORT

REPORT OF INCOME SUPPORT AAT APPLICATION

Name of case

Brief outline of issue(s) including legislative references to the VEA.

Does your assessment of the reviewable decision indicate that it is sound, if not why not?

Next critical action (eg 1st preliminary conference, Directions Hearing, Hearing) and date.

Advocates comment

Advocates name and contact number

C25/2001 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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DATE OF ISSUE:  7 DECEMBER 2001

EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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

New exchange rate A$2.6961

The exchange rate used to convert Pounds Sterling to Australian Dollars for income support assessment purposes has changed from one Pound = A$2.7871 to one Pound Sterling equals A$2.6961 (ie A$1 = ?0.3709).

This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 7 December 2001.

Date of effect
11 December 2001

Effective from 11 December 2001 the current exchange rate will change.

On pension payday 27 December 2001 (pay period 13) pensioners will receive a full instalment at the new assessed rate.

Date of processing run

Processing to implement the new exchange rate is scheduled for the evening of Tuesday 11 December 2001.

Automatic
superannuation processing

The amount recorded as BRI non-indexed super type 08 or BRI indexed super type 09 will be varied by applying the exchange rate to the amount recorded, to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 27 December 2001 – ie 11 December 2001.

Advice letters

The advice letters for this exercise will be joint advices where both members of a couple are in receipt of BRI and their pension payment varies.  Age Pensioners will receive separate advices.

The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.

IBM GSA implications

IBM GSA will be producing the cartridge and will forward it to Security Mailing in Sydney.

Overseas, Special Register and Enclosure Advices

Overseas, Special Register, Enclosure Advice letters (ie cases where a change to treatment entitlement occurs) and reduction to nil cases will be separated by IBM GSA and despatched to the State Office for manual distribution.  This arrangement is the same for daily advice letters.

Mail out of bulk advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by 17 December 2001.

British DP case paid Rent Assistance

Income Support pensioners who are in receipt of Rent Assistance (RA) and who also receive British Disability Pension direct from Britain (not EATS and Composite cases) should have that Disability Pension converted to $A using the BRI exchange rate.  RA should be manually recalculated.  These cases can be extracted through AIS by each state.  If you have any problem please contact Nasreen Haque on the number below.

Note: If DP has already been assessed as income in determining Hardship cases it should not also be assessed as income for RA.

Contact officer

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

Nasreen Haque           Telephone:   (02) 6289 1125

Roger Winzenberg
Branch Head
Income Support

7 December 2001

POUND STERLING EXCHANGE RATE

Foreign exchange periodExchange rate

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4366

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

12 August 98

0.3663

2.7300

13 August 98

to

9 Sept 98

0.3817

2.6199

10 Sept 98

to

21 October 98

0.3690

2.7100

22 October 98

to

4 Nov 98

0.3505

2.8531

5 Nov 98

to

2 Dec 98

0.3676

2.7203

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

9 August 99

0.4271

2.3414

10 August 99

to

1 Nov 99

0.4105

2.4361

2 Nov 99

to

10 Jan 00

0.3952

2.5304

11 Jan 00

to

6 March 00

0.4069

2.4576

7 March 00

to

1 May 00

0.3927

2.5465

2 May 00

to

29 May 00

0.3807

2.6267

30 May 00

to

10 July 00

0.3907

2.5595

11 July 00

to

16 Oct 00

0.4022

2.4863

17 Oct 00

to

2 April 01

0.3737

2.6759

3 April 01

to

14 May 01

0.3550

2.8169

15 May 01

to

23 July 01

0.3674

2.7218

24 July 01

to

6 August 01

0.3803

2.6295

7 August 01

To

1 October 01

0.3701

2.7020

2 October 01

To

29 October 01

0.3430

2.9155

30 October 01

10 December 01

0.3588

2.7871

11 December 01

To

0.3709

2.6961

C24/2001 Repatriation Pharmaceutical Benefits Card (Orange Card)

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DATE OF ISSUE:  05 DECEMBER 2001

Repatriation Pharmaceutical Benefits Card (Orange Card)

Purpose

The purpose of this Departmental Instruction is to provide legislation, policy and procedural systems information with regards to the 2001/2002 Budget Initiative, “Extend Access to the Repatriation Pharmaceutical Benefits Scheme (RPBS) for British Commonwealth and Allied veterans (BCAL)”, commonly known as the BCAL or Orange Card initiative.

Commencement

The changes commence on 1 January 2002.

Authorised by

ROGER WINZENBERG

Branch Head

INCOME SUPPORT

Part 1 – Policy and Legislation

Extension of access to the RPBS

Introduction

From 1 January 2002, access to the Repatriation Pharmaceutical Benefits Scheme (RPBS) will be extended to eligible Commonwealth and Allied veterans and Allied mariners (herein referred to as BCAL veterans).

Legislation

The Veterans' Affairs Legislation Amendment (2001 Budget Measures) Act 2001, No. 102, 2001 received Royal Assent on 4 September 2001.  Schedule 1 of this Act inserts new Part VA Extension of the Repatriation Pharmaceutical Benefits Scheme.

Link to Act: http://scaleplus.law.gov.au/html/comact/11/6390/top.htm [5]

New card

BCAL veterans who are eligible for the RPBS under this extension of eligibility will receive a plastic Repatriation Pharmaceutical Benefits Card (Orange Card).

Eligibility for card

To be eligible for the Orange Card a BCAL veteran must:

  1. Be 70 years of age or older; and
  2. Have rendered qualifying service for either WWI or WWII; and
  3. Have been an Australian resident for a continuous period of at least 10 years (or an aggregate period of 10 years, where one of those periods is at least 5 years).

Legislative ref: s 93M VEA

Note that the Orange Card is not subject to the income or assets tests.

Card benefits – medicines

The Orange Card will give BCAL veterans access to all medicines listed in the Pharmaceutical Benefits Scheme (PBS) as well as those items (including  medicines and dressings) listed in the RPBS at the concessional rate.  This means that BCAL veterans will have access to prior approval authorisation for non-listed items through the Veterans' Affairs Pharmaceutical Approval Centre (VAPAC).

More info: for more detailed information on the benefits of the Orange Card, refer to HSV 69, Repatriation Pharmaceutical Benefits Card (Orange Card) on DVA Facts: http://internet-mirror/factsheets/default.htm [6]

Card benefits - PA

The Orange Card entitles the holder to receive the Pharmaceutical Allowance (PA).

Legislative ref: para 118A(1)(c)

Some Orange Card holders may already receive PA as part of their Service Pension or Disability Pension entitlement, or in some cases if they already hold a Repatriation Health Card – for Specific Conditions (White Card) or receive it as part of a Centrelink entitlement.  Note that in cases where PA is already received, it will not be paid twice.

Legislative ref: ss 118B(1A), 118B(2).

No treatment

The Orange Card does NOT entitle the holder to receive any treatment benefits.

Legislative ref: ss 93L(2) VEA

Dual card eligibility –orange & white

Where a veteran holds both a White Card and an Orange Card:

  • the White Card should be used for prescribing both treatment and PBS/RPBS listed medicines for treatment of their accepted conditions;
  • the Orange Card should be used for prescribing PBS/RPBS listed medicines for treatment of all other conditions (there is NO treatment entitlement).

Dual card eligibility –orange & gold

Some Gold Card holders will also be eligible for the new Orange Card.  This group will have the new eligibility (PBB) recorded, but will not be issued with the Orange Card.  If they lose eligibility for the Gold Card, the Orange Card will be automatically issued.

Claim form

A new claim form, Claim for a Repatriation Pharmaceutical Benefits Card, D2622 is available on DVA Forms.

Link: http://internet-mirror/clientforms/default.htm [7]

Fact Sheet

A new fact sheet, Repatriation Pharmaceutical Benefits Card (Orange Card), HSV 69 is available on DVA Facts.

Link: http://internet-mirror/factsheets/default.htm [6]

RPBS

A copy of the RPBS is available on CLIK, in the Legislation Library, under Health Schemes and Determinations.

Part 2 – Systems and Procedures

Service Pension New Claims

Processing a New Claim with Orange Card eligibility

Processing a Service Pension New Claim through PIPS/PC alone will not automatically produce an Orange Card.  Follow the process shown in the table below for Service Pension New Claims where the veteran is also eligible for an Orange Card.

Step

Action

1

Register an RPB QS claim in CMS (in addition to the New Claim registration)

2

Set attribute to 'Successful'

3

Record 'PBB' eligibility in EATERS (using EN.BC)

4

Process New Claim through PIPS/PC

5

De-register DP Grant (this was automatically created when PBB eligibility was set)

Important: Remember that the process to set PBB eligibility in EATERS will generate an Orange Card - it is not dependent on finalisation of a PIPS/PC case.  This means that the card will still be produced and sent by HIC - for example if the claim results in a rejection (e.g. income/assets in excess), or for some reason the PIPS/PC case is not finalised for some weeks (e.g. perhaps further investigation in necessary).  If you don't want the card to go out, PBB eligibility should be set to 'OFF' to prevent the card being printed.  This must be done in a timely manner.

SP entitlement code

Remember that the SP entitlement code should be changed to an appropriate BCAL type code in Adult Details when processing the claim in PIPS/PC.

New warning

A new Warning will appear in PIPS/PC at create Worksheet and Authorise, for cases where certain SP entitlement codes exist.  The warning is a reminder that EATERS has to be used to set Orange Card eligibility.

Advice – doe pre 1/1/02

New Claims advices (where DoE is prior to 1 Jan 2002) will not have an Orange Card paragraph included in the daily advice.   A standard letter should be sent to advise the veteran of Orange Card eligibility – SLS 'Grant from Claim Pre Jan02' may be used.

Advice – doe on or after 1/1/02

New Claims advices (where DoE is on or after 1 Jan 2002) will have an Orange Card paragraph included in the daily advice, provided EATERS action has been done to set eligibility.

Orange Card only claims

BCAL claims (card only) determined after 28/11/01

Where a veteran lodges a claim for an Orange Card (card only) and the case is determined after 28 November 2001, follow the process shown in the table below.

Step

Action

1

Register an RPB QS claim in CMS

2

If eligible, set attribute to 'Successful'

3

Record 'PBB' eligibility in EATERS (using EN.BC)

4

'Record Decision' in EATERS

5

Grant Pharmaceutical Allowance where appropriate

6

Advise veteran – standard letter.

Other eligibilities - no

If there are no other eligibilities recorded for that veteran, a DP Grant will be automatically registered in CMS – this should be used to grant PA where appropriate.

Other eligibilities - yes

If other eligibilities are recorded for that veteran (e.g. a White Card), a CMS case will not be registered – a DP Data Change case will have to be registered manually.

Interstate Transfers

Interstate Transfers – new transaction EN.BC

There is one minor change to the way in which Interstate Transfers are handled.  From 1 January 2002, and only where the veteran has an Orange Card, an EATERS transaction must be completed prior to the transfer-in action in PIPS/PC.

The transaction is exactly the same as for treatment card issue, except the transaction used to data collect in EATERS will be EN.BC.  Records Administration staff and other staff who process Interstate Transfers need to be aware of this new transaction.

Pharmaceutical Allowance Processing

PA processing

The majority of Orange Card holders will already receive PA through another entitlement.  Orange Card holders who require payment of PA are likely to be holders of a Commonwealth Seniors' Health Card, or in receipt of nothing at all from DVA or Centrelink.

Other eligibilities - no

If there are no other eligibilities recorded for a veteran, a 'DP Grant' will be automatically registered in CMS when EATERS action is completed – this should be used to grant PA.

Other eligibilities - yes

If other eligibilities are recorded for a Veteran, a CMS case will not be registered – a 'DP Data Change' case must be registered manually in CMS and PA granted using that registration.

Daily Advices and Standard Letters

Daily advices

Some changes have been made to daily advices to cater for the Orange Card.  Additional paragraphs will be included in daily advices when card eligibility changes, when a New Claim is processed and when pensioners transfer interstate.

Standard Letters

A new batch of letters dealing with acknowledgments, grants and rejections are located under the new 'BCAL Card' tab in IS Standard Letters.  Note that Standard letters relating to CSHC, where the claimant is also eligible for an Orange Card, are located in the new CSHC tab.

System Changes

EATERS – PBB elig type

EATERS has been changed to recognise the new Orange Card.  A new eligibility type 'PBB' has been created for the card.   Eligibility for the Orange Card cannot be set to a date that is prior to 1 January 2002.

EATERS – EN.BC

A new screen 'EN.BC' has been created in EATERS – this screen should be used to set the new eligibility for the Orange Card.  The Country Code field in this screen already exists and new country codes have been created for the BCAL group of Veterans.  These new country codes are at Attachment A – Country Codes.

The functionality of this new screen is no different to existing screens – to make changes to a veteran's eligibility, a CMS case has to be registered and 'Stage Completed' to “Await Prepare Record'.

Entitlement Card (EC)  Changes

Changes have been made to accommodate the new card.  The commands and the functionality in EC have not changed.  There has been an additional field added to EC – 'RPBC card'.  If you need to inquire on or update a veteran's record where that veteran holds an Orange Card, type Y in that field.  If the field is left blank, other card eligibility will be displayed.

VIEW changes

VIEW changes include:

  • the addition of a new folder in the Eligibility Tab;
  • a new folder in the Cards Tab; and
  • a new card type in the Summary Tab.

Attachment A – Country Codes

WAR PREFIX CODE

ENTITLEMENT NAME

COUNTRY CODE

A

Algeria - WW2

DZ

A

Argentina - WW2

AR

A

Belgium - WW1

BE

A

Belgium - WW2

BE

A

Brazil - WW2

BR

BUR

Burma

BU

A

Bulgaria - WW2

BG

A

China - WW2

CN

A

Chile - WW2

CL

CN

Canadian - WW1

CA

CNX

Canadian - WW2

CA

A

Czechoslovakia - WW2

CZ

A

Denmark - WW2

DK

A

Egypt - WW2

EG

A

Estonia - WW2

EE

A

Ethiopia - WW2

ET

A

Finland - WW2

FI

A

France - WW1

FR

A

France - WW2

FR

A

Greece - WW1

GR

A

Greece - WW2

GR

HKX

Hong Kong - WW2

HK

A

Netherlands - WW2

NL

A

Hungary - WW2

HU

IND

INDIA (all conflicts)

IN

A

Italy - WW1

IT

A

Italy - WW2

IT

A

Japan - WW1

JA

A

Latvia - WW2

LV

A

Liberia - WW2

LR

MAL

Malaysian Pensioners

MA

A

Montenegro - WW1

YU

MTX

Malta - WW2

MT

N

New Zealand - WW1

NZ

A

Norway - WW2

NO

WAR PREFIX CODE

ENTITLEMENT NAME

COUNTRY CODE

NX

New Zealand - WW2

NZ

P

British - WW2

GB

A

Panama - WW2

PA

A

Poland - WW2

PL

PMS

British Merchant Navy - WW1

GB

A

Portugal - WW1

PT

PSW

British Merchant Navy - WW2

GB

PX

British - WW2

GB

RD

Rhodesia - WW1

ZW

RDX

Rhodesia - WW2

ZW

A

Rumania - WW1

RO

A

Russia - WW1

RU

A

Russia - WW2

RU

SA

South Africa - WW1

SA

SAX

South Africa - WW2

SA

A

Serbia - WW1

YU

A

Syria - WW2

SY

A

Uruguay - WW2

UY

A

United States - WW1

US

A

United States - WW2

US

A

Venezuala - WW2

VE

A

Yugoslavia - WW2

YU

C23/2001 Commonwealth Seniors Health Card: Changes to Claims Management System and Death Processing System

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DATE OF ISSUE:  6 DECEMBER 2001

Commonwealth Seniors Health Card:  Changes to Claims Management System and Death Processing System

Purpose

This Departmental Instruction is to advise of enhancements that will be introduced to further automate processing of Claims Management System (CMS) and Death Processing System (DPS) actions for Commonwealth Seniors Health Card holders.

Background

A Stateline was circulated in September 2001 which described the introduction of system changes to facilitate the processing of CSHC claims.  That Stateline indicated that further enhancements were being made to the system to further automate CMS and DPS processing capabilities.

Implementation Date

The enhancements to CMS and DPS will be introduced during the week commencing Monday 10 December 2001.  Contact officers for the CSHC project will be informed when the promotions are made.

Attachments

There are two attachments which describe the CMS and DPS processing changes.

Contact Officer

Any questions regarding these changes should be directed to David Owen by e-mail or phone (02 6289 6685).

Roger Winzenberg

Branch Head

INCOME SUPPORT


Attachment 1:  CMS Processing Changes

Introduction

This attachment outlines the changes to the way CMS actions will be processed for CSHC claims.

Current Processing

Currently the recording of, and all changes to, a “Senior's Card” registration are totally manual .

The following table provides the steps that are currently required.

Step

Action

1

Register a CMS case via CM.CI screen in “Await Prepare Record” stage.

2

Update case attributes via CM.UA.  Note either of the mandatory attributes; “Successful claim” or “Unsuccessful Claim”, must be set.

3

Update the stage via CM.SC screen.

If the stage is progressed to:

  1. “Prepare Recording” then move to Step 4.
  2. “Case Finalisation” then move to Step 5.
  3. “Case Withdrawn” Then move to Step 6.

4

Update the stage from “Prepare Recording” via CM.SC screen.  Note that the stage can only be progressed back to “Await Prepare Record”.

5

The case if now finalised and will be included in the appropriate CMS reports.

6

The case has been withdrawn.

Changes

There is currently no interaction between CMS and the new CSHC recording facility in VIEW.  The enhancements to be introduced will provide automatic case progression functionality as a part of the VIEW recording process.

New Processing

Following the introduction of the enhanced functionality there will be two options with regard to CMS actions.  These two options are:

  • Manually registering a case via CM.CI in “Await Prepare Record” stage.
  • No manual interaction at all.

If a CMS action ...

... been manually created then when the CSHC eligibility is recorded in VIEW...

has

  •     the attribute will be automatically updated according to the claim's success.
  •     the stage will be automatically progressed to “Case Finalised”.

has not

  •     a “Senior's Card” action will be automatically created with a receipt date equal to the date of processing.
  •     the attribute will be automatically updated according to the claim's success.  Eg.  if the CSHC eligibility is recorded as “On” then the mandatory attribute, “Successful Claim”, will be set to “Y”
  • the stage will be automatically progressed to “Case Finalised”.

Points to note

There are several points to note regarding then new functionality:

  • If a case is manually created then it can still be withdrawn if required.
  • If a case is automatically created the CMS reporting will not reflect the correct time taken to process and, therefore, it is still preferable to manually register the claim upon receipt.


Attachment 2:  DPS Processing Changes

Introduction

This attachment outlines the changes to the way DPS actions will be processed for CSHC holder who die.

Current Processing

Currently the CSHC eligibility is only recorded in the database as a “SHC” BELI type.  The recording of a date of death (DOD) for a CSHC holder triggers:

  • DPS to “Off” the “SHC” BELI (as well as any other BELI) for the DOD
  • the card system to remove the card eligibility.

Changes

The introduction of the new CSHC recording  facility in VIEW and the (possible) eligibility of CSHC holders to telephone allowance has necessitated the introduction of extra database records.  Unfortunately, technical issues with system environments preclude DPS from being able to update these new records upon a client's death.

The changes that will be introduced will update these new records upon a client's death.

New Processing

A new program will be introduced to run immediately following DPS each evening.  DPS will provide the same functionality as it currently does with the new program providing the required updates to the new records.

For each CSHC client that has a DOD recorded and is processed by DPS the following will occur:

  • The CSHC eligibility recorded in VIEW (specifically in the CL_BEN_ELIG O* table) will be set to “Off” with “Effective Date” equal to the DOD and “Decision Date” equal to the date of processing.
  • A check is made to ensure that the BELI has been turned off.
  • If the deceased client has not been reassessed (with a corresponding new DPS assessment) then the file number is inserted into the TA reassessment trigger table (specifically CL_TO_RECORD_TSI).  This is because a DPS reassessment will reassess TA for the deceased and any partner but if this has not occurred the TA reassessment trigger must be set.

DPS Reports

A new section has been added to the daily DPS report which lists the file number, client suffix and unique identifier for any client who has had the CSHC record turned off and TA recalculated.

Points to note

There are several points to note regarding then new functionality:

  • This functionality will ordinarily be fully automatic.
  • If the case is not processed by DPS automatically then the CSHC record should be checked and set to “Off” in VIEW manually if required.  These cases will appear on the existing DPS report as requiring manual processing.

C22/2001 ENHANCEMENT TO DEATH PROCESSING RELATING TO THE LOSS OF TREATMENT TO SURVIVING VETERANS FOLLOWING DPS REASSESSMENT

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DATE OF ISSUE:  26 NOVEMBER 2001

ENHANCEMENT TO DEATH PROCESSING RELATING TO THE LOSS OF TREATMENT TO SURVIVING VETERANS FOLLOWING DPS REASSESSMENT

Purpose

The purpose of this Departmental Instruction is to provide information about system changes impacting treatment eligibility during the bereavement period for the surviving veteran.

Start date

The changes commenced on 26 November 2001.

Reason for change

Issue

Reassessments of the survivor's income and assets carried out at the time of death by the Death Processing System can result in the loss of treatment entitlement during the bereavement period.  Under the Veterans' Entitlements Act 1986 (VEA), any determination by Commission to reduce entitlement as a result of death should take effect at the end of the bereavement period

Aim of change

The main aim is to stop veterans from losing their treatment from an incorrect date and also to make sure they are advised of any future loss of benefits.

Who is affected?

There are very few cases that this scenario affects.

Summary of Old System

DPS

DPS would reassess from the day of death the income and assets in the clients assessment.  Where there were joint income and assets these generally were halved and held under the survivors' ownership.  Income and Assets held under ownership of the deceased were deleted from the survivors' new assessment.

Reassessment

With the reassessment of income and assets the surviving veteran may have income or assets which would result in the loss of treatment, either TSP or TSD.  If no other entitlement to treatment exists then DPS would put up an OFF date for the client's eligibility as being the day after death.  No advice is produced that notifies the veteran of this loss.

Summary of DPS Enhancement

Commencement date

The changes commence in the Production Environment on 26 November 2001.

Enhancement

Based on the low number of cases falling into this scenario, in addition to the complexities of DPS, the most cost effective option is for DPS to identify these cases and report them out for manual processing.  Manual processing will require a PIPS transaction to terminate the deceased from the assessment, as well as additional work on the surviving client's assessment and/or treatment entitlement.

Business Rules

DPS will identify those surviving veterans who will lose their treatment entitlement because of the reassessment performed by DPS.

DPS will report out for manual actioning, including creating a CMS case registration, the processing of the death of the partner.

DPS will produce on the Processing Report and also on the Daily Report a message alerting the actioning officer of the reason for manual action.  (The message will read “FOR INFO – SURVIVOR LOSING TREATMENT – PIPS CASE CREATED”)

Treatment

Because it is possible for a client to have more than one eligibility for Treatment we must be careful to only identify those clients that would actually suffer a true loss of treatment entitlement.

Eg. a client who might lose TSP and TSD but still have eligibility under TDE, TQX or TDP should NOT be identified by DPS.  If the client only had TSP, and is now reassessed to be above the limits for provision of Treatment, then he will be identified by DPS.

Manual PIPS PC Action

When the CMS case is created by DPS a PIPS PC case must be actioned to terminate the deceased client from the assessment.  This should be done as per normal bereavement procedures.

Losing TSP

Where the client has lost TSP but retains a payment of Service Pension another case should be created to make the now single assessment a manual rates case.  The correct rates of payment should be entered.  This is to prevent any $FORT's, other BAL processes or accidental PIPS PC cases being actioned during the bereavement period that creates the need to be made manual rates.

The actioning officer must also change the date on the EN.OT screen that relates to treatment OFF date to be the correct OFF date.  That being date of death + 99 days.

It is possible to use the POG facility within Manual Rates Screen to set up the TSP OFF date but care needs to be taken to have as the Effective date of the case the same date as the TSP OFF date created by the first PIPS case.  Ie. The next available payday date as used by the BELI system.

A Standard Bereavement advice should be produced and sent that includes the notification of loss of treatment at the end of bereavement period.

At the end of the Bereavement period and usually as a result of the 13 week reassessment of income and assets the client should be removed from being manual rates and treatment cancelled.

Losing TSD

Where the client has lost TSD (has lost payment of Service Pension) there is no need for another case to be created to make the single assessment a manual rates case.

The surviving client now has a method of assessment as DP Only.  Having this method of assessment should prevent any $FORT's, other BAL processes or accidental PIPs PC cases being actioned during the bereavement period that might impact on the clients assessment.

The actioning officer must change the date on the EN.OT screen that relates to treatment OFF date to be the correct OFF date.  That being date of death + 99 days.

It is advisable that States monitor these cases to ensure that treatment OFF dates are actioned properly and the correct advices produced.

Contact

Contact officer for enquiries relating to this topic is Steve Claypole on 02 6289 6792

Roger Winzenberg

BRANCH HEAD

INCOME SUPPORT

C21/2001 VETERANS' CHILDREN EDUCATION SCHEME (VCES) - RATES OF EDUCATION ALLOWANCE EFFECTIVE FROM 1 JANUARY 2002

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DATE OF ISSUE:  13 NOVEMBER 2001

VETERANS' CHILDREN EDUCATION SCHEME (VCES) - RATES OF EDUCATION ALLOWANCE EFFECTIVE FROM 1 JANUARY 2002

The purpose of this instruction is to advise the rates of education allowance for VCES in 2002.

Attachment A sets out the increased rates of education allowance.  These rates are effective on and from the first payday in January 2002.

Attachment B sets out the methods used to set the education allowance rate for the age/education level categories.

The contact officer for enquiries on these rates is Ann Donnelly, Disability Compensation Branch, National Office on (02) 6289 6439.

W R MAXWELL

Division Head

Compensation and Support

......  November 2001

Attachment A

VETERANS' CHILDREN EDUCATION SCHEME

EDUCATION ALLOWANCES EFFECTIVE 1 JANUARY 2002

Primary Students

The annual education allowance for primary students is $181.80

Secondary/Tertiary Students (fortnightly rates)

Students

At Home

$

Living Away from Home  $

Homeless

$

Under 16 years

37.40

199.41

301.70

16 – 17 years

165.10

301.70

301.70

18 years and over

198.60

301.70

301.70

Secondary/Tertiary Double Orphans (fortnightly rates)

Double Orphans

$

Under 16

164.50

16 - 20 years

301.70

21 years and over

366.40


Attachment B

Age/Education Level

Method of Indexation / Increase

Primary students

indexed annually in line with CPI for the previous financial year (in accordance with the provisions of section 1191(1) table item 3A of the Social Security Act 1991)

Secondary/tertiary students aged under 16 and living at home

indexed annually in line with CPI for the previous financial year (in accordance with the provisions of section 1191(1) table item 3A of the Social Security Act 1991)

Secondary/tertiary students aged under 16 and living away from home

aligned with the rate for Assistance to Isolated Children (AIC) as determined by the Department of Education, Training and Youth Affairs

Secondary/tertiary students aged over 16 and living at home or away from home

increased annually and aligned with the maximum rates for Youth Allowance as determined by the Department of Family and Community Services under part 3.5 of the Social Security Act 1991

Secondary/tertiary homeless students

increased annually and aligned to the maximum rate for Youth Allowance for people who are independent as determined by the Department of Family and Community Services under point 1067G-B3 of the Social Security Act 1991

Double orphans aged under 16

set by using formula:  VCES double orphan education allowance rate for 16 to 20 year olds less the amount of the double orphan's pension

Double orphans aged 16 to 20

the equivalent of  the Youth Allowance rate for 18 years and over living away from home

Double orphans aged 21 and over

the equivalent of the maximum rate of Youth Allowance Special Rate

Double orphans at “frozen” rates

students on “frozen rates” remain on that rate until such time as the frozen amount is equivalent to, or less than, the DO rate that they would be entitled to due to age

(Refer to C31/98 [11] for origin of and need for “frozen” rates)

C20/2001 PROPERTY VALUATION EXERCISE - 2001/2002 FINANCIAL YEAR

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DATE OF ISSUE:  13 NOVEMBER 2001

PROPERTY VALUATION EXERCISE – 2001/2002 FINANCIAL YEAR

Purpose

The purpose of this Departmental Instruction is to provide information on the various stages of the annual property valuation exercise.

Background

Every November, specific income support cases requiring a property valuation are automatically selected and forwarded to the Australian Valuation Office (AVO) for valuation by April in the following year.  Once the valuations have been completed, they are forwarded back to DVA with the new valuation amount.  The output is then forwarded to the State Offices for updating.

A listing of manual cases is also produced at the time of the bulk run.  State Offices are required to manually prepare and forward these cases to the AVO.

Due to the implementation of IPS schedules previously printed for State Office use are no longer available.  Automatic and Manual cases will be provided to the states in a Microsoft Excel format.

Stage 1

Production run

The data extraction was carried out on 3 November 2001.  The data containing information on the automatic review was forwarded to the AVO on 13 November 2001.  Excel spreadsheets for automatic and manual cases have been provided to the State Offices.

Number of cases extracted

The data has been extracted through the AD Hoc Inquires System (AIS).

The following is a breakdown of automatic and manual cases extracted from this years bulk run:

State

Auto

Manual

NSW

646

210

VIC

716

142

QLD

550

128

SA

140

41

WA

166

64

TAS

153

13

Total

2,371

598

Criterion for extracting cases

The following criteria was used for extracting cases:

  • All income support and income support supplement recipients who are asset tested;

All income support and income support supplement recipients who are income tested but have assets within $10,000 of their prescribed assets limit and have property, business, farm or sublet portion of their home.

Cases excluded from exercise

The following pensioners have been excluded from this year's bulk run.

  • Pensioners who have had an AVO property valuation done since the last bulk run (26 November 2000);
  • All single pensioners who are assessed as blinded and are not paid rent assistance;
  • All couples where both are assessed as blinded and are not paid rent assistance.

Stage 2

State Office to action manual cases

Manual cases have been forwarded to the State Offices in an Excel format for further action.

State Office action is required to provide the AVO with a form containing detailed information on each of the manual cases where a property valuation is required.  Records are to be kept and a Claims Management Systems (CMS) case should be created to ensure that all such requests are returned by the AVO and action completed.

Stage 3

AVO conduct valuations

The AVO will conduct the necessary valuations in the period from December 2001 to April 2002.  The AVO will update the valuation information and forward the updated information to DVA by the end of April 2002.

Stage 4

Updated data forwarded to State Offices

Printouts and an Excel spreadsheet of the updated property valuations will be provided to the contact officer in each State Office.  These reports can be expected early May 2002.

Stage 5

State Office update valuations

Once the updated data is received manual action will be required to update the Central Data Base (CDB) to take effect in conjunction with the indexation of the free areas in July 2002 (Ordinary Income Free Area, Asset Value Limit & Adjusted Income Free Area).  Cases where the value of property has reduced may be actioned for increase of the service pension from the next convenient payday.

Date of valuation to be used

All States should use 3 November 2001 as the date of valuation when updating cases from this exercise.

It is essential that this date be used to enable all the appropriate cases to be selected for next year's exercise.  Using another date creates complications for the bulk extraction.

Processing Information

Screens and processing information for PIPS/PC can be found in Departmental Instruction C54/96 [13].

Contact Officer

The contact officer for this exercise is Nasreen Haque (02) 6289 1125, Business Operations and Support Section, Income Support Branch.

ROGER WINZENBERG

Branch Head

INCOME SUPPORT

13 November 2001

C19/2001 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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DATE OF ISSUE:  29 OCTOBER 2001

EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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

New exchange rate A$2.7871

The exchange rate used to convert Pounds Sterling to Australian Dollars for income support assessment purposes has changed from one Pound = A$2.9155 to one Pound Sterling equals A$2.7871 (ie A$1 = ?0.3588).

This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 26 October 2001.

Date of effect
30 October 2001

Effective from 30 October 2001 the current exchange rate will change.

On pension payday 15 November 2001 (pay period 10) pensioners will receive a full instalment at the new assessed rate.

Date of processing run

Processing to implement the new exchange rate is scheduled for the evening of Tuesday 30 October 2001.

Automatic
superannuation processing

The amount recorded as BRI non-indexed super type 08 or BRI indexed super type 09 will be varied by applying the exchange rate to the amount recorded, to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 15 November 2001 – ie 30 October 2001.

Advice letters

The advice letters for this exercise will be joint advices where both members of a couple are in receipt of BRI and their pension payment varies.  Age Pensioners will receive separate advices.

The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.

IBM GSA implications

IBM GSA will be producing the cartridge and will forward it to Security Mailing in Sydney.

Overseas, Special Register and Enclosure Advices

Overseas, Special Register, Enclosure Advice letters (ie cases where a change to treatment entitlement occurs) and reduction to nil cases will be separated by IBM GSA and despatched to the State Office for manual distribution.  This arrangement is the same for daily advice letters.

Mail out of bulk advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by 5 November 2001.

British DP case paid Rent Assistance

Income Support pensioners who are in receipt of Rent Assistance (RA) and who also receive British Disability Pension direct from Britain (not EATS and Composite cases) should have that Disability Pension converted to $A using the BRI exchange rate.  RA should be manually recalculated.  These cases can be extracted through AIS by each state.  If you have any problem please contact Nasreen Haque on the number below.

Note: If DP has already been assessed as income in determining Hardship cases it should not also be assessed as income for RA.

Contact officer

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

Nasreen Haque           Telephone:   (02) 6289 1125

Roger Winzenberg
Branch Head
Income Support

29 October 2001


POUND STERLING EXCHANGE RATE

Foreign exchange periodExchange rate

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4366

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

12 August 98

0.3663

2.7300

13 August 98

to

9 Sept 98

0.3817

2.6199

10 Sept 98

to

21 October 98

0.3690

2.7100

22 October 98

to

4 Nov 98

0.3505

2.8531

5 Nov 98

to

2 Dec 98

0.3676

2.7203

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

9 August 99

0.4271

2.3414

10 August 99

to

1 Nov 99

0.4105

2.4361

2 Nov 99

to

10 Jan 00

0.3952

2.5304

11 Jan 00

to

6 March 00

0.4069

2.4576

7 March 00

to

1 May 00

0.3927

2.5465

2 May 00

to

29 May 00

0.3807

2.6267

30 May 00

to

10 July 00

0.3907

2.5595

11 July 00

to

16 Oct 00

0.4022

2.4863

17 Oct 00

to

2 April 01

0.3737

2.6759

3 April 01

to

14 May 01

0.3550

2.8169

15 May 01

to

23 July 01

0.3674

2.7218

24 July 01

to

6 August 01

0.3803

2.6295

7 August 01

To

1 October 01

0.3701

2.7020

2 October 01

To

29 October 01

0.3430

2.9155

30 October 01

0.3588

2.7871

C18/2001 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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DATE OF ISSUE:  2 October 2001

EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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

New exchange rate A$2.9155

The exchange rate used to convert Pounds Sterling to Australian Dollars for income support assessment purposes has changed from one Pound = A$2.7020 to one Pound Sterling equals A$2.9155 (ie A$1 = 0.3430 Pounds).

This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 28 September 2001.

Date of effect
2 October 2001

Effective from 2 October 2001 the current exchange rate will change.

On pension payday 18 October 2001 (pay period 08) pensioners will receive a full instalment at the new assessed rate.

Date of processing run

Processing to implement the new exchange rate is scheduled for the evening of Monday 1 October 2001.

Automatic
superannuation processing

The amount recorded as BRI non-indexed super type 08 or BRI indexed super type 09 will be varied by applying the exchange rate to the amount recorded, to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 18 October 2001 – ie 2 October 2001.

Advice letters

The advice letters for this exercise will be joint advices where both members of a couple are in receipt of BRI and their pension payment varies.  Age Pensioners will receive separate advices.

The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.

IBM GSA implications

IBM GSA will be producing the cartridge and will forward it to Security Mailing in Sydney.

Overseas, Special Register and Enclosure Advices

Overseas, Special Register, Enclosure Advice letters (ie cases where a change to treatment entitlement occurs) and reduction to nil cases will be separated by IBM GSA and despatched to the State Office for manual distribution.  This arrangement is the same for daily advice letters.

Mail out of bulk advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by 8 October 2001.

British DP case paid Rent Assistance

Income Support pensioners who are in receipt of Rent Assistance (RA) and who also receive British Disability Pension direct from Britain (not EATS and Composite cases) should have that Disability Pension converted to $A using the BRI exchange rate.  RA should be manually recalculated.  These cases can be extracted through AIS by each state.  If you have any problem please contact Nasreen Haque on the number below.

Note: If DP has already been assessed as income in determining Hardship cases it should not also be assessed as income for RA.

Contact officer

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

Nasreen Haque           Telephone:   (02) 6289 1125

Roger Winzenberg
Branch Head
Income Support

2 October 2001


POUND STERLING EXCHANGE RATE

Foreign exchange periodExchange rate

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4366

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

12 August 98

0.3663

2.7300

13 August 98

to

9 Sept 98

0.3817

2.6199

10 Sept 98

to

21 October 98

0.3690

2.7100

22 October 98

to

4 Nov 98

0.3505

2.8531

5 Nov 98

to

2 Dec 98

0.3676

2.7203

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

9 August 99

0.4271

2.3414

10 August 99

to

1 Nov 99

0.4105

2.4361

2 Nov 99

to

10 Jan 00

0.3952

2.5304

11 Jan 00

to

6 March 00

0.4069

2.4576

7 March 00

to

1 May 00

0.3927

2.5465

2 May 00

to

29 May 00

0.3807

2.6267

30 May 00

to

10 July 00

0.3907

2.5595

11 July 00

to

16 Oct 00

0.4022

2.4863

17 Oct 00

to

2 April 01

0.3737

2.6759

3 April 01

to

14 May 01

0.3550

2.8169

15 May 01

to

23 July 01

0.3674

2.7218

24 July 01

to

6 August 01

0.3803

2.6295

7 August 01

To

1 October 01

0.3701

2.7020

2 October 01

0.3430

2.9155

C17/2001 SEPTEMBER 2001 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

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DATE OF ISSUE:  14 SEPTEMBER 2001

SEPTEMBER 2001 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

Purpose of Instruction

This Departmental Instruction is to provide information about processing arrangements for the September 2001 global refresh advice letter mailout.

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT

Overview

Introduction

We do not send advice letters in September to all pensioners whose pensions are adjusted because of the CPI increase that applies for 20 September 2001.  Information on these increases is contained in the latest edition of VetAffairs (distribution commences on 4 — th September 2001 - 13 — th September 2001).  However, letters will be sent to pensioners affected by the events set out in the following paragraph.

Significant Issues - of Managed Investment and Share Global Refresh Mailout

The September 2001 Quarterly mailout will incorporate the following events for payday 4 October 2001 (WEF 20 September 2001):

  •       The asset value of managed investment and share data will be reassessed;
  •       The Full Income and Assets Attachment will be suppressed for this exercise and will be replaced with a full listing of the client's Managed Investments and/or Shares regardless of what has been reassessed.  This is a 'new' strategy designed to reduce the volume of low outcome pension review work that traditionally increases following a quarterly mailout;
  •       Treatment changes as a result of the SI or Global refresh reassessment.

Letter Content

Advice Letter Target Audience

A letter will be produced only for those clients who have Managed Investments (MIs) and/or Shares (SHs) in their assessment and who meet the following:

  •       Less than maximum rate service pensioners (SP), income support supplement recipients (ISS) and age pensioners (AP)
  •       Max rate SP/ISS/AP who move to less than max rate as a result of the reassessment
  •       Less than max rate SP/ISS/AP who move to max rate as a result of the reassessment
  •       Reduction to nil cases as a result of the reassessment
  •       Treatment changes as a result of the Statutory Increase (SI) or Global Refresh of Managed Investments and/or Shares reassessment.

New Advice Format and Content - replacement of Full Income and Asset Attachment with a Managed Investment and Shares  Information Attachment

A 'new' Attachment listing ALL Managed Investments and/or Shares a client has in their assessment has been included for the September 2001 processing run.  A paragraph explaining the 'new' Attachment will also print in the body of the letter.

This Attachment replaces the Full Income and Assets Listing that has been used previously.  We have advised clients that we have not provided them with a complete listing of any other income or assets they may have in their assessment as they have not changed, but they continue to be used in assessing the amount of pension they are paid.

Financial Assets Reassessment

The asset value of managed investment and share data will be reassessed as part of this process.  Clients with MI and/or SH data in their assessment will receive a paragraph advising them of the ...Change to value of shares and managed investments...

CPI

There will be a brief reference made in the advice letters about the CPI increase after the 'Change to value of shares and managed investments' paragraph.

Male Total Average Weekly Earnings (MTAWE)

There will be a brief reference to MTAWE made in the advice letters after the 'Change to value of shares and managed investments' paragraph.

Advice on CPI and MTAWE variations will be included in the September edition of VetAffairs.

Obligations suppressed

Obligations are to be suppressed for all letters produced.  Reference will be made to previous obligations issued to clients and in the case of Service Pension and Income Support Supplement recipients reference will also be made to obligations provided in the 'You and Your Pension' Booklet.

The Financial Obligations paragraph (including the Prescribed Rates) will be present in the advice for all clients (excluding Blinded pensioners and clients reduced to nil.)

$1 Minimum Variation Rules

The $1min rules will be applied to all less than max rate SP and ISS variation cases ie., an increase or reduction must be equal to or greater than a $1 amount to receive an advice.

$1min rules do not apply to Age Pensioners.

Continuation Cases

Cases where the 'old rate' resulting from the Statutory Increase (SI) processing and the 'new rate' resulting from MI/SH refresh end up being the same amount after the reassessment will not have an advice produced.

Treatment Advices to be Checked

As is the procedure for quarterly processing all Special Register, Overseas and Enclosure (treatment changes) advice letters will be printed by IBM in Melbourne and sent via courier to each State Office.  We always request that these be checked for accuracy, and reconciled against the reports received by each State Office.

There is a known problem with 'treatment entitlement' processing which will require you to check all enclosure advices.  You will need to check the client's treatment entitlement to ensure they have received the correct treatment card information in their advice appropriate to the client's change in treatment eligibility.

The program in processing these cases, applies the period of grace (POG) provisions against all clients, and if there is a TSP change then the advice will be streamed as an enclosure advice.  The program does not look at any higher priority treatment eligibility such as TQX or TDP.  As a result, in some cases the advice may not have a treatment paragraph - this may be appropriate to the particular case as the client may have a higher priority treatment eligibility precluding him/her from any changes to treatment.  Letters should only be sent in this instance if the client has MIs/SHs in their assessment.

However, for those clients who have had a valid treatment change, regardless of whether they have MIs/SHs in their assessment - their letter should be sent.

General Information Sheet

Each letter will contain a General Information Sheet (GIS).  This will act as the consistent last page for gatemarking purposes at the mailing house.  The GIS provides details of new rates and threshold information.

Single & Joint Letters

All Service Pensioners and Income Support Supplement recipient couples will receive a joint letter, provided the pensioner addresses are identical.

Age Pensioner couples will receive separate letters.

Production of Advice Letters

Processing

Processing is scheduled to run from Thursday evening 20 — th September until Monday evening 24 — th September 2001.

Critical Dates

Processing Weekend within DVA (includes 'advices' processing)

Thursday (pm), 20 — th September 2001 - Monday (pm), 24 — th September 2001

Dispatch Production Data to SMS

Tuesday, 25 — th September 2001

Commence Printing Advice Letters

Wednesday, 26 — th September 2001

End Printing Advice Letters

Thursday, 27 — th September 2001

Lodgement of Advice Letters with Australia Post

Friday, 28 — th September 2001

Client Numbers

The following is a summary of client numbers in each State.  The numbers are approximates only:

STATE

NO. OF LETTERS

(Approx Only Based on March 2001 SI Statistics and includes Special Register, Overseas and Enclosures)

New South Wales

10,722

Victoria

7,748

Queensland

6,143

Western Australia

2,766

South Australia

3,020

Tasmania

1,194

TOTAL

31,593

Printing of Letters

Security Mailing Services (SMS) Sydney, will print, fold and insert advice letters in the week from Tuesday 25 — th September thru till Friday 28 — th September 2001.

Lodgement of Letters

All letters will be lodged with Australia Post on Friday 28th September 2001.  A representative from National Office will notify details of lodgement for each State as they occur.

The State Office Contacts for this exercise will be given progress reports and advised of any changes to this timetable.

Issues Requiring State Office Action

Special Register, Overseas & Enclosures

Special Register, Overseas and Enclosure (treatment changes) advice letters will be printed by IBM in Melbourne and sent via courier to each State Office.  These should be checked for accuracy, and reconciled against the reports received by each State Office.  This arrangement is the same as for daily advice letters.

Each State Office will receive a report detailing the advice letters produced in each of these categories.  We will advise SSOs in each State when to expect delivery of these letters, and it is essential that Systems Delivery is notified if they do not arrive.  It is also necessary to advise Carol Walsh, Systems Delivery on (02) 6289 6729 if the delivered letters do not exactly match the reports.

Please note the reference to the section on 'Treatment Advices to be Checked' mentioned earlier in this Departmental Instruction.  We request that all treatment advices be checked for accuracy prior to posting.

Monitoring of Pensioner Contact Following Mailout

The intake of pensioner initiated reviews (PIRs) increases significantly following the quarterly advice mailouts, and anecdotal evidence suggests that a proportion of PIRs received following the quarterly mailout produce nil, or low outcomes for the pensioner.  The inclusion of Full Income and Asset listings is considered to be a major factor contributing to this increased workload.  As part of the review strategy to reduce the volume of low outcome pensioner review work we have replaced the Full Income and Asset listing with a Managed Investment and Share Information Attachment.

To ascertain the effectiveness of this strategy we will be monitoring the intake of PIRs following the quarterly mailout.  We also require feedback from staff on the level of pensioner contact following the mailout.  In particular, we need information to gauge the impact that the new MI/SH Information Attachment has had on the number of phone calls received in comparison to what you would 'normally' expect to receive.

Managers will be contacted in the weeks following the mailout in respect of feedback received.

Reprints of selected letters

Any requests for reprints of individual Quarterly Advice letters should be referred to System Support Officers to organise a reprint.

'HELD' Advices to be Forced

As part of the Batch processing run any advices in 'Held' status will be forced to print.  Forced held advices will print at each respective State Office's nominated printer as part of the production processing.  Please ensure your designated printer is fully operational during the processing period.  These advices will need to be checked to ensure the information in them is correct prior to posting.

Holding of daily advice letters

Daily payment advice letters produced after the processing run of 20 - 24 September 2001, may be sent to clients who do not have MIs and/or SHs in their assessment and therefore have not been updated as part of the Global Refresh.

However, payment advice letters produced for clients who have MIs and/or SHs must be withheld pending notification that the quarterly letters have been dispatched.  This will ensure that pensioner's receive their advice letters in chronological order.

$FORT run - Monday 17 September 2001

$FORT has been scheduled to run on Monday night 17 September 2001.  Advices from this run should be sent immediately.

State Office Contacts

State Office Point of Contact

A contact person from each State has previously been identified to act as a liaison point for the National Office Advices Team and will be the responsible person for distributing any information regarding the global refresh mailout to staff.

State Office Contacts for the September quarterly processing are:

NSW: Genia Sacharczuk

VIC: Peter Rogers

QLD: Steve Jensen/ Roger Vickerstaff

SA: Graham Bate

WA: Kim Gooding/John Gliddon

TAS: Chris Craven

ACT: Martin McGlashan

National Office Contacts

Feedback from State Offices

Any concerns regarding letters produced as part of this run should be directed to the National Office Contact Officer, Pat Webb.  At the end of this process we will be collecting and collating all State feedback to analyse issues raised and develop solutions to address any concerns raised.  Any problems noted should be reported to the National Office Contact Officer with the nature of the query and any relevant information pertaining to the query.  Please ensure that problems are reported as early as possible.

Contacts

There will be one National Office contact for this mailout.  Any queries regarding advice wording, data cartridges, mail house printing and letters lodgement should be referred to:

Pat Webb

(02) 6289 6444 (Phone)

(02) 6289 6553 (Fax)

Systems issues should be directed to:

Carol Walsh on (02) 6289 6729

Letter Mockups

Letters

Prior to the issue of this Departmental Instruction, System Support Officers and Manager's Income Support were provided with copies of the proposed paragraph sequencing and mock-ups of advice letters for this run.

A number of recommendations were received and have been taken into consideration for the final version of paragraphs and sequencing.  An email will be forwarded to the September SI State Contact Officers advising of the changes in respect of all comments received.

Copies of the amended advice letters for this run are at Attachments A and B of this DI.

Attachment A – Paragraph sequencing

Attachment B – Advice Letter Examples

Example 1: Overall Decrease - either from Max Rate to less than Max Rate or decrease in Less than Max Rate Amount, Payment Attachment, MI/SH Information Attachment, General Information Sheet (GIS)

Example 2: Increase from Less than Max Rate to Maximum Rate, Payment Attachment, MI/SH Information Attachment, and GIS

Example 3: Overall increase - remaining on Less than maximum rate, Payment Attachment, MI/SH Information Attachment, and GIS

Example 4: Age Pension increase remaining on Less than Max Rate, Disability Pension in payment, Payment Attachment, MI/SH Information Attachment, and GIS

Example 5: Reduction to Nil as a result of MI/SH reassessment, Payment Attachment, MI/SH Information Attachment, GIS

Letter Variables

Please note, in the following samples:

  •       Letterhead, DC name and signature block will change according to State;
  •       The words “service pension”, “age pension”, “income support supplement” each represent variables which will appear for those clients in receipt of the applicable pension.
  •       State specific 'closing' paragraphs with the preferred contact telephone number for Income Support related issues will be used for this mailout.
  •       The bolded and underlined wording shown in the mock-up advices attached, is present to highlight the wording changes - wording in the production advices will not be reflected in this manner.


ATTACHMENT A

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

Note: Advices will only be produced for clients with Shares and/or Managed Investments in their assessment or those with treatment entitlement card changes.

Paragraph

To Whom

State specific letterhead

All

Opening

All

Change to value of shares and managed investments

All

Effective Date

All

“You have been increased to the maximum rate of pension”

All increase to max rate cases

Your DP has/has not been varied

Those with DP,WWP

Reduction to Nil para

Reduction to Nil cases

Payment Information

All

Payment Diversion Table

All

Fringe Benefits

Reduction to Nil cases

Your Right to Re-Apply

Reduction to Nil cases

Treatment On/Off

Any cases where a change in treatment eligibility is detected (with or without MI/SHs in assessment)

Financial Obligations (incl Prescribed Rates)

All (not Reduction to Nil cases or Blinded clients)

Your Obligations (reference to previous)

All (not Reduction to Nil cases)

Changes You Have Already Told Us About

All

Your Right of Review

All

State specific closing paragraph and Signature

All

Payment Information Attachment

All

Managed Investment and/or Shares Information Attachment

All

General Information Sheet

All


ATTACHMENT B

EXAMPLE 1: Overall Decrease - either from Maximum Rate to Less than Max Rate or Decrease of Less than Max Rate amount.

T-ADVICE-RETURN-ADDRESS _

_

Commonwealth Department of

Veterans' Affairs

Contact:STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS

T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

Change to Value of Shares and Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your T-PENSION-SP-ISS-AP payment and has resulted in an overall decrease to the amount of T-PENSION-SP-ISS-AP paid to you.  Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the Managed Investments and Shares Information Attachment included in this letter.  This Attachment details all your managed investments and/or shares regardless of whether there has been a change to that managed investment or share.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they remain unchanged.  However, they continue to be used in assessing the amount of T-PENSION-SP-ISS-AP you are paid.

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

This change will take effect from T-CLNT-EFFECTIVE DATE.


Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

T-PAYDIVER-DATE

T-PAYDIV-PAYEE

T-PAYDIV-PAYDEST

T-PAYDIV-AMOUNT

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive Remote Area Allowance) if your income is more than $XXXX.XX per fortnight or the value of your assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'. These obligations still apply.

Changes You Have Already Told Us About

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised.  This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply for a review, you must do so within the next three months.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452.  For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins


PAYMENT INFORMATION ATTACHMENT

The Department now calculates T-PENSION-SP-ISS-AP payments on a daily basis.  This means that your fortnightly pension payment is now 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.

Listed below are the payment tables showing the different amounts of pension you will receive on the paydays that are affected, with the final payment table showing your ongoing payment.

PAYMENTS TO XXXXX  XXXXXXX and XXXXX XXXXXXX for

Pension Payday 04 OCTOBER 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx    x.xx

PAYMENTS TO XXXXX  XXXXXXX and XXXXX XXXXXXX for

Pension Payday 18 OCTOBER 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx    x.xx


MANAGED INVESTMENTS AND SHARES INFORMATION

Information current as at T-ADVICE-PRINT-DATE

You are receiving T-PENSION-SP-ISS-AP at less than the maximum rate payable.

You are currently paid under the T-INCOME-ASSET-TEST test.  The total of your fortnightly income is T-TOTAL-FORT-INCOME.  The total of all your assets (excluding any deductible assets) is T-TOTAL-ASSETS.

Information about your T-SHARES-AND-OR-MIS is provided below.

Your T-SHARES-AND-OR-MIS have been automatically updated.  The information below sets out the new values for these products.

Listed Securities and Unlisted Public Securities

Description

No. of Shares

Asset Amount

XXXXXX

X,XXX

$XX,XXX.XX

QQQQQQQQQQQQQ

XXX

$    X,XXX.XX

Managed Investments

Description

Units

Asset Amount

VVVVVVVVVV

XX

$XX.XX

CCCCCCCCCCCCC

XXX

$XX.XX

Note: Income from financial assets is deemed.

Please note:  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they remain unchanged.  However, they continue to be used in assessing the amount of T-PENSION-SP-ISS-AP you are paid.

You need to notify the Department if the list of your Managed Investments and/or Shares is incomplete or incorrect; or the number of shares or units you hold has changed.


This is an example of the General Information Sheet (GIS) for Service Pensioners that will be used in the September mailout.  There is a separate GIS for both income support supplement recipients and age pensioners. PLEASE NOTE: The rates and thresholds have been updated to reflect all changes.

GENERAL INFORMATION ON SERVICE PENSION RATES AND LIMITS

(Information current as at T-ADVICE-PRINT-DATE)

MAXIMUM RATES OF SERVICE PENSION (excludes pharmaceutical allowance)

Singles Rate$410.50 (per fortnight)

Couples Rate (each)$342.60 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$112.00$1,152.75

Couples Rate (combined)$200.00$1,927.50

These limits may increase for each dependent child or student up to the age of T-CHILD-AGE, or if rent assistance is payable.

PENSION ASSETS LIMIT

Before Service Pension ReducesCut Off*

Home Owner

Singles Rate$141,000$280,000

Couples Rate (combined)$200,500$431,000

Non Home Owner

Singles Rate$242,000$381,000

Couples Rate (combined)$301,500$532,000

These limits may increase for each dependent child or student up to the age of T-CHILD-AGE, or if rent assistance is payable.

NOTE: *Income and assets cut off limits applies to all service pensioners except blinded service pensioners.

GOLD CARD INFORMATION

GOLD CARD INCOME CUT OFF LIMIT

Singles Rate$321.50 (per fortnight)

Couples Rate (combined)$561.50 (per fortnight)

Add $68.60 per fortnight for each dependent child or student to the age of T-CHILD-AGE.


GOLD CARD ASSETS CUT OFF LIMIT

Home Owner

Singles Rate$169,000

Couples Rate (combined)$248,750

Non Home Owner

Singles Rate$270,000

Couples Rate (combined)$349,750

Add approximately $6,000 for each dependent child or student up to the age of T-CHILD-AGE.

NOTE 1: These income and asset limits apply to the Gold Card only.  Different income and asset limits apply to the pension.  These limits can be found at the top of the page.

NOTE 2: If you are a World War II veteran or mariner aged 70 years or over, who served in Australia's Defence Forces or Australia's Merchant Navy between 3 September 1939 and 29 October 1945, and have qualifying service from that conflict, the above Gold Card income and asset cut off limits do not apply to you as your Gold Card is not affected by your income and assets.

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:

Singles

Low Rate:- 3% interest up to the threshold of $33,400

High Rate:- 4.5% interest for the remaining balance

Couples

Low Rate:- 3% interest up to the threshold of $55,800

High Rate:- 4.5% interest for the remaining balance

ILLNESS SEPARATED COUPLES

Couples separated due to ill health are paid at 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.  The amount of rent assistance you receive 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.

When calculating the amount of rent assistance payable to a service pension recipient, any disability pension received by that person or their partner, is counted as income and may reduce the rate of rent assistance payable.


Maximum Amount of Rent Assistance Payable (per fortnight)

No children1-2 children3 or more

children

Singles Rate$89.60$104.80$118.80

Couples Rate

(combined)$84.40$104.80$118.80

Rent Limits (per fortnight)

No children1-2 children3 or more

children

Singles Rate$79.40$104.60$104.60

Couples Rate

(combined)$129.40$154.60$154.60


EXAMPLE 2:  Increase from Less than Maximum Rate to Maximum Rate, MI/SH in assessment.

T-ADVICE-RETURN-ADDRESS _

_

Commonwealth Department of

Veterans' Affairs

Contact:STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS

T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Change to Value of Shares and Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your T-PENSION-SP-ISS-AP payment and has resulted in an increase to the amount of T-PENSION-SP-ISS-AP paid to you. Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the Managed Investments and Shares Information Attachment included in this letter.  This Attachment details all your managed investments and/or shares regardless of whether there has been a change to that managed investment or share.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they remain unchanged.  However, they continue to be used in assessing the amount of T-PENSION-SP-ISS-AP you are paid.

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

This change will take effect from T-CLNT-EFFECTIVE DATE.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

T-PAYDIVER-DATE

T-PAYDIV-PAYEE

T-PAYDIV-PAYDEST

T-PAYDIV-AMOUNT

You have been increased to the maximum rate of T-PENSION-SP-ISS-AP.

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive Remote Area Allowance) if your income is more than $XXXX.XX per fortnight or the value of your assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'. These obligations still apply.

Changes You Have Already Told Us About

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised.  This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply for a review, you must do so within the next three months.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452.  For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Payment Information Attachment

ATTACHMENT

Managed Investments and/or Shares Information Attachment

ATTACHMENT

General Information Sheet
EXAMPLE 3:  Overall Increase remaining on Less than Maximum Rate, MI/SH in assessment

T-ADVICE-RETURN-ADDRESS _

_

Commonwealth Department of

Veterans' Affairs

Contact:STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS

T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Change to Value of Shares and Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your T-PENSION-SP-ISS-AP payment and has resulted in an increase to the amount of T-PENSION-SP-ISS-AP paid to you. Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the Managed Investments and Shares Information Attachment included in this letter.  This Attachment details all your managed investments and/or shares regardless of whether there has been a change to that managed investment or share.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they remain unchanged.  However, they continue to be used in assessing the amount of T-PENSION-SP-ISS-AP you are paid.

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

This change will take effect from T-CLNT-EFFECTIVE DATE.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

T-PAYDIVER-DATE

T-PAYDIV-PAYEE

T-PAYDIV-PAYDEST

T-PAYDIV-AMOUNT

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive Remote Area Allowance) if your income is more than $XXXX.XX per fortnight or the value of your assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters and the booklet 'You and Your Pension'.  These obligations still apply.

Changes You Have Already Told Us About

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised.  This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with this variation to your pension, you may apply to have it reviewed by a Review Officer at this office.  If you do decide to apply for a review, you must do so within the next three months.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452.  For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Payment Information Attachment

ATTACHMENT

Managed Investments and/or Shares Information Attachment

ATTACHMENT

General Information Sheet


EXAMPLE 4:  Age Pension Increase remaining on Less than Maximum Rate, Disability Pension in payment, Managed Investments/Shares Information

T-ADVICE-RETURN-ADDRESS _

_

Commonwealth Department of

Veterans' Affairs

Contact:STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS

T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Change to Value of Shares and Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your T-PENSION-SP-ISS-AP payment and has resulted in an increase to the amount of T-PENSION-SP-ISS-AP paid to you. Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the Managed Investments and Shares Information Attachment included in this letter.  This Attachment details all your managed investments and/or shares regardless of whether there has been a change to that managed investment or share.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they remain unchanged.  However, they continue to be used in assessing the amount of T-PENSION-SP-ISS-AP you are paid.

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

This change will take effect from T-CLNT-EFFECTIVE DATE.

The amount of disability pension paid to you has varied.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

T-PAYDIVER-DATE

T-PAYDIV-PAYEE

T-PAYDIV-PAYDEST

T-PAYDIV-AMOUNT

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas) if your income is more than $XXXX.XX per fortnight or the value of your assets, apart from your home, is more than $XXXXXX.XX.  Income includes deemed income from your financial assets and income from other sources.

Other Obligations

We have explained your obligations to you in previous letters. These obligations still apply.

Changes You Have Already Told Us About

If you have told us recently about a change to your income and assets or your domestic situation, it may not have been processed before this letter was sent.  If this is the case, we will send you another letter providing details of your new pension assessment when that change has been finalised.  This normally takes no more than 4 weeks.

Your Right of Review

If you do not agree with a decision, you may apply to have it reviewed by a Review Officer at this office.  If you decide to apply it may be to your advantage to do so quickly.  If you apply for a review of the decision more than 13 weeks from the day this notice is given to you, arrears can only be paid from the date we receive your application.  A request for a review must be in writing and set out your reasons for seeking a review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452.  For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Payment Information Attachment

ATTACHMENT

Managed Investments and/or Shares Information Attachment

ATTACHMENT

General Information Sheet

EXAMPLE 5:  Reduction to Nil, MI/SH Information Attachment

T-ADVICE-RETURN-ADDRESS _

_

Commonwealth Department of

Veterans' Affairs

Contact:STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS

T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Change to Value of Shares and Managed Investments

The asset value of your shares which are listed on the Australian Stock Exchange and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your T-PENSION-SP-ISS-AP payment and has resulted in an increase to the amount of T-PENSION-SP-ISS-AP paid to you. Please note that the value of other income and assets you may have has not been affected by this reassessment.

Please refer to the Managed Investments and Shares Information Attachment included in this letter.  This Attachment details all your managed investments and/or shares regardless of whether there has been a change to that managed investment or share.  We have not provided you with a complete listing of any other income or assets you may have in your assessment, as they remain unchanged.  However, they continue to be used in assessing the amount of T-PENSION-SP-ISS-AP you are paid.

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

This change will take effect from T-CLNT-EFFECTIVE DATE.

The amount of disability pension paid to you has varied.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

T-PAYDIVER-DATE

T-PAYDIV-PAYEE

T-PAYDIV-PAYDEST

T-PAYDIV-AMOUNT

Fringe Benefits

As you are no longer eligible for a T-PENSION-SP-ISS-AP you no longer qualify for fringe benefits from this Department.  Please destroy your existing Pensioner Concession Card.

Your Right of Re-Apply

You may re-apply to have your T-PENSION-SP-ISS-AP restored at any time if your income and/or assets fall below the limits that would allow for payment of the pension.

Changes You Have Already Told Us About

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 about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452.  For any other inquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT - Payment Information Attachment

ATTACHMENT - Managed Investments and/or Shares Information Attachment

ATTACHMENT - General Information Sheet

C16/2001 2002 ISSUE OF PENSIONER CONCESSION CARDS (PCCs)

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DATE OF ISSUE:  4 SEPTEMBER 2001

2002 ISSUE OF PENSIONER CONCESSION CARDS (PCCs)

Purpose of Instruction

This Departmental Instruction provides information on

The format and issuing of the 2002 PCCs;

Procedures for applying for replacement travel vouchers; and

Arrangements for the ongoing daily issuing of PCCs.

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT

September 5, 2001

Overview of this year's exercise

Background

The PCC is issued by the Commonwealth Government to all income support recipients to prove eligibility for a range of Commonwealth and State/Territory benefits and concessions.  DVA is responsible for issuing the PCC to DVA clients (including Centrelink Age Pensioners being paid by DVA).

The PCC is issued annually either through a bulk issue or through individual daily issue for clients who become eligible.

The following table provides a summary timetable of key dates in this year's PCC process.

This Event

Is scheduled to occur

Data Extract and Download

8 – 9 September

Bulk Printing of PCCs

17 September – 12 October

Lodgement with Australia Post

From 4 October

Concession Information Sheet

A State specific “Concessions Information” sheet will be inserted during the bulk printing for VIC, TAS and QLD married carriers.  This is in order to provide information that is unable to fit onto the carrier due to the number of vouchers these States require.

Cross Reference Cases

Where there is a cross reference for a person, the 2002 PCC bulk issue will be issued in the payment (ie cross referenced) number.

Partner's on PCCs

The PCC program will include the following in order to follow current DFACs policy regarding the issue of Centrelink PCC's:

Where both members of a couple are in receipt of an income support payment, they will be cross-listed as dependants on one another's cards.

If spouse/defacto of a veteran is not eligible or payable, but is present in the assessment then spouse/defacto is added as a dependant to the veterans card (blind veterans included).

Veterans who are not in payment (and therefore will not receive a PCC), will appear as a dependant on the PCC of their blinded service pension partner.

The number of children that will be listed on a PCC is six.  If there are more than six dependant children in the assessment, a separate card will be issued listing the veteran and remaining children.

What remains the same
  • Single pensioner PCCs will be the same format as previous years i.e. one carrier; one card with vouchers attached. 
  • On-going daily issues of PCCs will be produced in the same format as previous years i.e. one carrier, one card regardless of single/couple status.
  • The pensioner's name will be constructed as follows: forename, 2 — nd initial, 3 — rd initial (where applicable) and surname (all in title case) with the exception of MAC/MC surnames, these will be printed in upper case on the card.
  • The pensioner's name will be printed in title case with the street address, suburb and state printed in upper case on the card.
  • The pensioner's name and address (street, suburb and state) will be printed in upper case on the carrier.
  • Victoria will issue replacement vouchers on behalf of their State Transport Authority throughout the year.
  • South Australia will issue replacement vouchers on behalf of their State Transport Authority throughout the year.
  • Blind clients will have a hole punched in the top right hand corner of the card and the word “BLIND” printed at the top of the card.
  • PCC Summary Report will be produced on CD-ROM.
  • A 2002 state specific fridge magnet calendar will be inserted in each envelope.


Production of PCCs

Card Production

The printing of the approximately 370,000 2002 PCCs will commence on Thursday 20 September, following the extract of client data on the weekend of 8 - 9 September.

The 2002 PCC will be personalised, enveloped and despatched by the mailing house – Security Mailing Services in Sydney.  Lodgement with Australia Post will commence on 4 October and expected to be completed by Friday 12 October.

Card Numbers

The approximate numbers for each State/Territory for the bulk issue in September 2001 are as follows:

State/Territory

No. of PCCs

New South Wales

124,256

Victoria

82,873

Queensland

74,952

South Australia

34,761

Western Australia

34,076

Tasmania

13,188

NT

610

ACT

2,998

TOTAL

367,714

2002 PCC Stock

For the 2002 bulk PCC issue, there will be 2 different carriers – one for couples (to be used in the bulk issue only) and one for singles.  The pre-printed format of the rear of the card for both singles and couples cards will be the same as the 2001 card with a “Valid from Oct 2001 to Dec 2002” date.

The DVA National contact numbers, State Office street locations and postal addresses will be included on the carrier.

Carrier Layout

The 2002 carrier layout for single pensioners remains the same as the layout for the 2001 carrier, with the vouchers printed at the bottom of the carrier.

The 2002 carrier layout for couples will incorporate 2 cards positioned at the bottom edge of an A4 carrier and the appropriate number of vouchers positioned where they best fit on the carrier and depending on which State the PCC is issued.

For couples PCC units, the left card and left column of vouchers will be personalised with the client's details (the right side card and vouchers being used for the person's partner details).

Blind Pensioners – Special PCCs

The word 'BLIND' will be printed in 14 point lettering on the top centre of the 2002 PCC for blind pensioners.  The PCC for blind pensioners issued during the bulk exercise will have a hole punched in the top right hand corner of the card.

Special Register PCCs

Special Register and Special Register Blind clients PCCs will be enveloped and forwarded directly to each State Office for checking prior to dispatch to the Special Register addresses.

Fridge Magnet Calendar

A State specific 2002 magnetic refrigerator calendar will be included with the bulk issue of PCCs.


Vouchers

The number of vouchers attached to the carriers will vary with each State/Territory and will be separated from the carrier with perforations.  The vouchers will include the pensioner's name and entitlement numbers, and in the case of Tasmania will also contain the pensioner's address and Date of Grant.

The vouchers provide fields for personal details to be lasered.  The information required to be lasered onto vouchers are as follows:

For this State

And this Card/Carrier

This information will be inserted onto the Voucher

NSW

NIL (Single & Couples)

NIL

ACT

NIL (Single & Couples)

NIL

NT

NIL (Single & Couples)

NIL

VIC

Single (2 vouchers)

Name

Entitlement Number

VIC

Couple (4 vouchers)

Names

Entitlement Numbers

QLD

Single (4 vouchers)

Name

Entitlement Number

QLD

Couple (8 vouchers)

Names

Entitlement Numbers

SA

Single (2 vouchers)

Name

Entitlement Number

SA

Couples (4 vouchers)

Names

Entitlement Numbers

WA

Single (1 voucher)

Name

Entitlement Number

WA

Couples (2 vouchers)

Names

Entitlement Numbers

TAS

Single (4 vouchers)

Name

Address

Date of Grant

Entitlement Number

No. of Dependants

TAS

Couple (8 vouchers)

Names

Addresses

Date of Grant

Entitlement Numbers

No. of Dependants

Bulk Issue Reports

Reports

State offices will be provided with the following listings of cases following the bulk extract:

  • Rejection Report of clients who did not receive a PCC and the reason, eg clients with an overseas address;
  • Special Register clients;
  • Blind Cases – listing cases of blind pensioners who receive a PCC; and
  • Blind and Special Register Cases – listing cases where the pensioner is blind and a Special Register Case.

The reports will be addressed to the State Office PCC contact officers.  You should expect the reports on Monday 10 September, following the data extraction processing on the weekend of 8-9 September.

CD-ROM

At the completion of the exercise the mailing house will provide each State office with a summary report on CD-ROM that lists the PCC recipients from the bulk issue.  The CD-ROM is expected to be dispatched to the nominated State contact officers by the end of October.

The CD-ROM files (*.pdf format) can be accessed via Acrobat Reader 3.0 which can be found on the DVA LAN.  From the Start up menu select Departmental/Applications/Internet Tools/Acrobat Reader 3.0.


Daily Issuing of PCC Cards and Vouchers

New and replacement PCC's

The procedures for the ongoing issuing of new and replacement PCCs remain the same as in other years i.e., new and replacement issues of PCCs are to be extracted by batch processing each night for printing daily on the local printers located in each State Office.

The last automatic daily extract for any issue/reissue of the 2001 PCCs will be on Friday, 7 September 2001.

Formatting and any re-alignment of local printers to accommodate the 2002 PCC will be addressed by the PCC National Office, IMU programmers.  Please advise Robert Krajina on 02 6289 6044 as soon as possible if you experience any difficulties in printing replacement or new grant PCCs.

Manual Voucher Issue

From Monday, 10 September 2001, all new grant and card replacement transactions will generate a 2002 PCC record on the client data base with an expiry date of 31/12/2002 for all States. The 2001 PCC stock must not be used for daily issues, from and including Monday, 10 September 2001.  However, any new grant or transfer-in between 10 September and 31 December 2001 still requires manually issued 2001-travel voucher/s and 2001 stock is to be used.

Replacement PCC's – voided Vouchers

Voucher personalisation should be suppressed for all replacement or re-issued cards for clients.  The card will be personalised and issued on the carrier, however, the vouchers will remain attached to the carrier but will be voided with XXXX's.  This includes clients who:

  • Have had a 2002 DVA PCC processed with vouchers, then lost and regained eligibility during the course of the year; or
  • Centrelink Transfer In cases, as they would have already received their PCC and vouchers from Centrelink.

Voucher Replacement

For most States, neither Centrelink nor DVA will have the facility to issue replacement vouchers.  The PCC carriers display a warning stating that DVA cannot issue replacement vouchers.  Where State rail authorities have provided them, contacts and procedures for applying for replacement vouchers are listed at attachment A.

All cardholders are entitled to only one issue of vouchers for their residential State each calendar year except where a cardholder transfers to another State.  New grants of income support pension must not be provided with concession vouchers if they have received a PCC with vouchers in the same calendar year.

Replacement vouchers in
S A & VIC

As in previous years SA Rail have given the South Australian State Office authority to issue replacement vouchers on their behalf.

The South Australian carrier includes contact numbers for pensioners to contact for replacements.

The Victorian Rail Authority have given the Victorian State Office authority to issue replacement vouchers on their behalf.

The Victorian carrier includes contact numbers for pensioners to contact for replacements.

Blind Pensioners

When issuing a blind pensioner a PCC in the daily issue, the PCC stock provided and current issuing procedures should apply.  The reprint program will enable the word 'BLIND' to be printed on the PCC.

Normal PCC stock should be used for blind pensioners.

New PCC Stock

All State Offices should have received stock of 2002 PCCs by 31 August. The fridge magnet calendar stocks will be supplied to the State Offices during the first week in September.

Report Problems to National Office

Staff are reminded that it is important that they keep a log of problems identified following the bulk issue of PCCs.  Every endeavour will be made to rectify any identified problems.

Contact Officer

The contact officer for this exercise is Robert Krajina on 02 6289 6044 or fax 02 6289 6553.

ATTACHMENT A

Arrangements for providing replacement Travel Vouchers for Pensioner Concession Cardholders in 2002

VIC — The Victorian Rail Authority continue to give the DVA Victorian State Office authority to issue replacement vouchers on their behalf for an indefinite period.

QLD(07) 3235 2222

For a period after the bulk issue Queensland Rail have given authority to our QLD State Office to issue replacement vouchers on their behalf.  System changes will enable QLD State Office to issue these vouchers until 30 November 2001 without the system automatically voiding the vouchers.

Queensland Rail (QR) have set up a Rail Concession Unit where people can apply for replacement vouchers and sign a Statutory Declaration in respect of lost/damaged vouchers.  A photocopy of the pensioner's PCC is also required.  QR do a computer check and only replace unused vouchers.  The vouchers can only be replaced once in a calendar year.

For non-metropolitan clients, the unit has an arrangement with local rail stations to fax the Statutory Declaration to the RCU, and send the original letter.  Alternatively, people can get a Statutory Declaration at the local police station, pay their half fare concession and apply for a refund to the voucher equivalent after their travel.  This procedure should be confirmed by ringing the above number in the first instance.

SA — SA Rail continue to give the DVA South Australian State Office authority to issue replacement vouchers on their behalf indefinitely

WA(08) 9326 2222 – Westrail Switch

For a period up until the 31 — st January 2002, Westrail have given authority to our WA State Office to issue replacement vouchers on their behalf.

After this date people can phone Westrail to apply for replacement vouchers.

Note:  Westrail may charge for replacement vouchers.

C15/2001 Pension Impact of changes to taxation imputation credit rules

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DATE OF ISSUE:  10 AUGUST 2001

Pension Impact of changes to taxation imputation credit rules

Purpose

This Departmental Instruction provides assessment information relating to franked dividends.

Background

Prior to 1 July 2000, for taxation purposes Centrelink and Veterans' Affairs income support payment recipients could only take advantage of the imputation credits from franked dividends if they lodged tax returns and paid income tax.  The credits were used by the Australian Taxation Office (ATO) to reduce a persons tax liability.  Customers below the taxable income thresholds could not take advantage of the credits because they had no tax liability to be reduced.  Also those on lower marginal rates of tax could not fully utilise the credit.

The imputation credit rules were changed with the introduction of the new tax system to enable shareholders to access imputation credits regardless of whether they pay income tax or not.

Pensioners and others holding shares that attract imputation credits can access the value of the imputation credit from tax refunds for the 2000/01 financial year.  From 1 July 2001 companies will be able to provide early refund to a shareholder at the time the dividend is paid.

What is a franked dividend?

Franked dividends are defined in section 160AQF of the Income Tax Assessment Act 1936 (see attachment).  They are dividends, or shares of company profits, paid or credited by an Australian resident company from profits that have had Australian company tax paid on them.

Franked dividends can be wholly or partially franked, that is, either the whole or part of the amount of the dividend carries an imputation credit.

What is an imputation credit?

An imputation credit is a credit to a person owning shares for the tax that has already been paid by the issuing company on their dividends.  These are known as franking credits.

Pre 1 January 2002 income test assessment

Publicly Listed Shares

Shares in a publicly listed company are part of a person's financial assets.  The assessable income for income support pension purposes is the deemed income.  The changes to imputation credits will not change these rules.

Private Trust or Private Company Shares

Under current rules, dividends on shares including franking credits from a private company or private trust should be held as income for the individual for 12 months from the date of the distribution/refund.  The gross amount of the dividend payment is assessable.

It is important that income support pensioners advise of receipt of dividends and imputation credits from private trusts and private companies at the time they are received.

1 January 2002 rule change.

Private Trusts & Private Company Shares

From 1 January 2002, if a pensioner is attributed with the assets or income of a private trust or private company, there will be no need to advise of the receipt of imputation credits.  This is because the net assessable income of the private trust or private company will be attributed to the attributable stakeholder(s).

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT

Attachment

s160AQF
ITAA 1936

INCOME TAX ASSESSMENT ACT 1936

Part IIIA Franking of Dividends

Division 5 Franking of Dividends

Subdivision A Franking

160AQF What constitutes franking with a franked amount.

(1) Current class A franked dividend multiplied by specified percentage

Where:

(a) a frankable dividend (in this subsection called the "current dividend") is

     paid to a shareholder in a company; and

(b) the company is a resident at the time of payment; and

(c) if the current dividend is paid under a resolution:

  1. before the reckoning day for the current dividend, the company  makes a declaration that each dividend to which the resolution relates is a class A franked dividend to the extent of a percentage (not exceeding 100%) specified in the declaration in relation to the dividend; and

  1. the percentage so specified is the same for each of the dividends to which the resolution relates; and

(d) if the current dividend is not paid under a resolution - the company makes          a declaration before the reckoning day for the  current dividend that the current dividend is a class A franked dividend to the extent of a percentage (not exceeding 100%) specified in the declaration;

the current dividend shall be taken to have been class A franked to the extent

of the amount calculated in accordance with the formula:

C14/2001 ISSUE OF 2001/02 COMMONWEALTH SENIORS HEALTH CARD (CSHC)

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DATE OF ISSUE:  10 AUGUST 2001

ISSUE OF 2001/02 COMMONWEALTH SENIORS HEALTH CARD (CSHC)

PURPOSE

To provide information about the bulk issue of the 2001/02 Commonwealth Seniors Health Card (CSHC).

HISTORY & CONCESSIONS PROVIDED

The CSHC was introduced on 1 July 1994 and currently provides entitlement to Commonwealth Concessions only.  This entitlement is currently limited to concessional pharmaceuticals listed on the Pharmaceutical Benefits Scheme (PBS).  Access to the Commonwealth Dental Program by the CSHC holders ceased on 1 January 1997 and eligibility for hearing services became unavailable from 1 July 1997.

The income test limits for the CSHC changed on 1 July 2001.  As at 1 September 2001, all CSHC holders will be eligible for Telephone Allowance (TA) with payment occurring on 20 September.  This will have a significant effect on the amount of CSHCs issued as many Gold Cardholders who were eligible for a CSHC but did not previously apply, may now apply in order to obtain the TA.

ELIGIBILITY

The CSHC is intended to assist those retirees and other eligible veterans of pension age who fail to qualify for pension due to assets or income in excess of the current limit.

To be eligible for the CSHC, a person must:

  • be a veteran who has rendered qualifying service or the partner, non-illness separated spouse or widow(er) of such a veteran; and
  • have reached pension age; and
  • be an Australian resident living in Australia; and
  • not be in receipt of service pension, income support supplement or a social security pension or benefit; and
  • satisfy the CSHC income test.

Eligibility is determined manually by State Office staff.

PENSION AGE

Pension age for males is 60 years of age (or greater) with QS, and 65 years of age (or greater) without QS.

Pension age for female veterans is:

  • 56.5 years of age for those born from 1 July 1943 and 31 December 1944
  • 57 years for those born from 1 January 1945 to 30 June 1946.

Pension age for female non-veterans is:

  • 61.5 years for those born from 1 July 1938 to 31 December 1939 and
  • 62 years for those born from 1 January 1940 to 30 June 1941.

A detailed table of Pension Age can be found at section 5R and 5QB of the VEA.

THE CSHC INCOME TEST

The current CSHC taxable income test limits have been increased as a result of recent Budget changes and are as follows:

  • single - $50,000
  • partnered - $80,000
  • illness separated - $100,000
  • plus an additional amount per year for each dependant child - $639.60.

PRODUCTION, TIMING AND LOCATION

The bulk printing of the 2001-02 cards will commence on 22 August 2001.  The amount of cards as at 3 August was 5,504, however this number is expected to increase prior to the bulk run with the introduction of the TA that is available to CSHC holders.  The live data extract will be undertaken on 16 August and CSHC recipients should receive their cards no later than 14 September.

CARD NUMBERS

Following is the State by State breakdown of the expected numbers of CSHCs to be issued in the bulk run and the quantity of the blank stock to be supplied to the State Offices for daily card issue.  You will notice the blank supply for daily issue is very high in relation to the bulk issue amounts, this is to allow for the anticipated increase in new grants.

State

No. - Bulk issue

Blank supply

for daily issue

NSW

1945

800

VIC

1309

800

QLD

826

500

WA

922

400

SA

409

400

TAS

93

300

TOTAL

5504

3200

FORMAT OF CARDS/ CARRIER

The card has not changed from last year.   The carrier will continue to be a single A4 cut sheet format stationery, printed on the front and back. The card and carrier is identical for each State.  However, during the personalising process, slightly different information will be printed on the carrier for each State.

EXPIRY DATE

The expiry date for all CSHCs will be 30 September 2002.

POST PRODUCTION REPORTS

A copy of the post-production schedule reports will be sent to each office by National Office.   IMU Branch will forward all reports to Business Operations & Support in National Office who will then forward them on to the respective State Office contacts.

DAILY ISSUES & SUPPLIES OF BLANK STOCK

The new templates for the daily issue are to be used from Friday 17 August.  The new templates have the expiry date of 30 September 2002. This means States will only need to issue one card for any new grants after 17 August 2001.  ie the card will show: “Valid from: 17 August 2001 to 30 September 2002.

The blank stock for the daily issue of CSHCs will be forwarded by SMS to the State Office's nominated officers by 15 August.

STATE

QUANTITY

CONTACT

PHONE

FAX

NSW

800

Sue Cooney

(02) 9213 7874

(02) 9212 7885

VIC

800

Peter Rogers

(03) 9284 6379

(03) 9284 6797

QLD

500

Carolyn Lindsay

(07) 3223 8842

(07) 3223 8533

WA

400

John Gliddon

(08) 9366 8417

(08) 9366 8239

SA

400

Maria Lewandowski

(08) 8290 0439

(08) 8290 0412

TAS

300

Bryon Kelly

(03) 6221 6684

(03) 6221 6601

REPORT DAILY ISSUE DIFFICULTIES

Any difficulties in relation to daily issues should be reported to the contact officers in National Office.

Robert Krajina                                          David Hollaway

Tel:  (02) 6289 6044          OR                Tel:  (02) 6289 6347

Fax:  (02) 6289 6553                               Fax: (02) 6289 6553

JEANETTE RICKETS

BRANCH HEAD

INCOME SUPPORT BRANCH

     August 2001

C13/2001 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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DATE OF ISSUE:  8 AUGUST 2001

EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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

New exchange rate A$2.7020

The exchange rate used to convert Pounds Sterling to Australian Dollars for income support assessment purposes has changed from one Pound = A$2.6295 to one Pound Sterling equals A$2.7020 (ie A$1 = 0.3701 Pounds).

This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 6 July 2001.

Date of effect
7 August 2001

Effective from 7 August 2001 the current exchange rate will change.

On pension payday 23 August 2001 (pay period 04) pensioners will receive a full instalment at the new assessed rate.

Date of processing run

Processing to implement the new exchange rate is scheduled for the evening of Monday 6 August 2001.

Automatic
superannuation processing

The amount recorded as BRI non-indexed super type 08 or BRI indexed super type 09 will be varied by applying the exchange rate to the amount recorded, to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 23 August 2001 – ie 7 August 2001.

Advice letters

The advice letters for this exercise will be joint advices where both members of a couple are in receipt of BRI and their pension payment varies.  Age Pensioners will receive separate advices.

The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.

IBM GSA implications

IBM GSA will be producing the cartridge and will forward it to Security Mailing in Sydney.

Overseas, Special Register and Enclosure Advices

Overseas, Special Register, Enclosure Advice letters (ie cases where a change to treatment entitlement occurs) and reduction to nil cases will be separated by IBM GSA and despatched to the State Office for manual distribution.  This arrangement is the same for daily advice letters.

Mail out of bulk advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by 13 August 2001.

British DP case paid Rent Assistance

Income Support pensioners who are in receipt of Rent Assistance (RA) and who also receive British Disability Pension direct from Britain (not EATS and Composite cases) should have that Disability Pension converted to $A using the BRI exchange rate.  RA should be manually recalculated.  These cases can be extracted through AIS by each state.  If you have any problem please contact Nasreen Haque on the number below.

Note: If DP has already been assessed as income in determining Hardship cases it should not also be assessed as income for RA.

Contact officer

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

Nasreen Haque           Telephone:   (02) 6289 1125

Jeanette Ricketts
Branch Head
Income Support

     August 2001


POUND STERLING EXCHANGE RATE

Foreign exchange periodExchange rate

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4366

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

12 August 98

0.3663

2.7300

13 August 98

to

9 Sept 98

0.3817

2.6199

10 Sept 98

to

21 October 98

0.3690

2.7100

22 October 98

to

4 Nov 98

0.3505

2.8531

5 Nov 98

to

2 Dec 98

0.3676

2.7203

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

9 August 99

0.4271

2.3414

10 August 99

to

1 Nov 99

0.4105

2.4361

2 Nov 99

to

10 Jan 00

0.3952

2.5304

11 Jan 00

to

6 March 00

0.4069

2.4576

7 March 00

to

1 May 00

0.3927

2.5465

2 May 00

to

29 May 00

0.3807

2.6267

30 May 00

to

10 July 00

0.3907

2.5595

11 July 00

to

16 Oct 00

0.4022

2.4863

17 Oct 00

to

2 April 01

0.3737

2.6759

3 April 01

to

14 May 01

0.3550

2.8169

15 May 01

to

23 July 01

0.3674

2.7218

24 July 01

to

6 August 01

0.3803

2.6295

7 August 01

0.3701

2.7020

C12/2001 AMENDMENT TO DEPARTMENTAL INSTRUCTION (DI) C06/2001 - 'JUNE 2001 STATUTORY INCREASE ADVICE LETTER, PAYMENT SUMMARY AND MEDICARE LEVY EXEMPTION CERTIFICATE MAILOUT'

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DATE OF ISSUE:  24 JULY 2001

AMENDMENT TO DEPARTMENTAL INSTRUCTION (DI) C06/2001 - 'JUNE 2001 STATUTORY INCREASE ADVICE LETTER, PAYMENT SUMMARY AND MEDICARE LEVY EXEMPTION CERTIFICATE MAILOUT'

Purpose of Instruction

The purpose of this departmental instruction is to amend Departmental Instruction C06/2001 [22] issued on 21/06/2001 which provided information about processing arrangements for the June 2001 Statutory Increase letter, Payment Summary (formerly named Group Certificate), and Medicare Levy Exemption Certificate mailout.

Amendment

Department Instruction C06/2001 [22] advised that all pensioners would receive a full Income and Asset Attachment as part of their June Statutory Increase advice letter.

Pensioners were not issued with a full Income and Asset Attachment as part of this advice mailout.

Contact Officer

Any queries on this matter should be directed to Pat Webb on telephone (02) 6289 6444.

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT

C11/2001 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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DATE OF ISSUE:  19 JULY 2001

EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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

New exchange rate A$2.6295

The exchange rate used to convert Pounds Sterling to Australian Dollars for income support assessment purposes has changed from one Pound = A$2.721 to one Pound Sterling equals A$2.6295 (ie A$1 = 0.3803 Pounds).

This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 22 June 2001.

Date of effect
24 July 2001

Effective from 24 July 2001 the current exchange rate will change.

On pension payday 9 August 2001 (pay period 03) pensioners will receive a full instalment at the new assessed rate.

Date of processing run

Processing to implement the new exchange rate is scheduled for the evening of Monday 23 July 2001.

Automatic
superannuation processing

The amount recorded as BRI non-indexed super type 08 or BRI indexed super type 09 will be varied by applying the exchange rate to the amount recorded, to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 9 August 2001 – ie 24 July 2001.

Advice letters

The advice letters for this exercise will be joint advices where both members of a couple are in receipt of BRI and their pension payment varies.  Age Pensioners will receive separate advices.

The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.

IBM GSA implications

IBM GSA will be producing the cartridge and will forward it to Security Mailing in Sydney.

Overseas, Special Register and Enclosure Advices

Overseas, Special Register, Enclosure Advice letters (ie cases where a change to treatment entitlement occurs) and reduction to nil cases will be separated by IBM GSA and despatched to the State Office for manual distribution.  This arrangement is the same for daily advice letters.

Mail out of bulk advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by 1 August 2001.

British DP case paid Rent Assistance

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

Contact officer

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

Nasreen Haque           Telephone:   (02) 6289 1125

Kevin Chapman           Telephone:   (02) 6289 6749

Bob Turner
A/g Branch Head
Income Support

19 July 2001

POUND STERLING EXCHANGE RATE

Foreign exchange periodExchange rate

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4366

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

12 August 98

0.3663

2.7300

13 August 98

to

9 Sept 98

0.3817

2.6199

10 Sept 98

to

21 October 98

0.3690

2.7100

22 October 98

to

4 Nov 98

0.3505

2.8531

5 Nov 98

to

2 Dec 98

0.3676

2.7203

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

9 August 99

0.4271

2.3414

10 August 99

to

1 Nov 99

0.4105

2.4361

2 Nov 99

to

10 Jan 00

0.3952

2.5304

11 Jan 00

to

6 March 00

0.4069

2.4576

7 March 00

to

1 May 00

0.3927

2.5465

2 May 00

to

29 May 00

0.3807

2.6267

30 May 00

to

10 July 00

0.3907

2.5595

11 July 00

to

16 Oct 00

0.4022

2.4863

17 Oct 00

to

2 April 01

0.3737

2.6759

3 April 01

to

14 May 01

0.3550

2.8169

15 May 01

to

23 July 01

0.3674

2.7218

24 July 01

0.3803

2.6295

C10/2001 RELEASE OF YOU and YOUR PENSION 2001 EDITION

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DATE OF ISSUE:  11 JULY 2001

RELEASE OF YOU and YOUR PENSION 2001 EDITION

Purpose

The purpose of this departmental instruction is to set out revised procedures for providing newly granted income support pensioners with the 2001 edition of You and Your Pension.

It also sets out the changes to the letters from the Integrated Advices system for new grants of service pension, income support supplement and social security age pension (paid by DVA).

Related Documents

This departmental instruction should be read in conjunction with:

  • Stateline, You & Your Pension (All States) dated  July 2001.

BOB TURNER

A/BRANCH HEAD

INCOME SUPPORT

Introduction

The hard copy of You and Your Pension was first printed in June 1998 and direct mailed to all pensioners in receipt of service pension and income support supplement.  The production of the book followed extensive consultation with veterans, ex service representatives and staff.

Objectives of You and Your Pension

The objectives of You and Your Pension are to:

  • improve pensioner's understanding of their benefits, rights and obligations;
  • reduce the worry many pensioners have about fulfilling their obligations;
  • reduce workload through pensioners being better informed of the events they do and do not need to tell DVA about; and
  • provide comprehensive information about the full range of DVA benefits and services available to income support pensioners.

The issue of the book with a covering letter (ie the new grant advice) is also a legal notification of obligations under section 54 of the VEA and sections 67 and 68 of the SSA.

Background

Prior to stocks of You and Your Pension running out, the book was sent with the new grant advices for newly granted service pensioners and income support supplement recipients.  Obligations were suppressed in the advices and pensioners were referred to the book for information about their benefits, rights and obligations.

Since stocks have run out, staff have reverted to advices which contain full obligations for new grants of service pension and income support supplement.  In some states, lists have also been kept of pensioners to whom the new  book can be sent.

Which letters have changed

There are changes to the new grant letters.  The letters that will change are:

  • SP and ISS grants
  • AP grants (the 2001 edition of You and Your Pension contains information for age pensioners paid by DVA)
  • new grant of partner SP, vet already in payment

What the changes are for SP and ISS grants

The obligation paragraph has been changed so that when SP or ISS is granted, obligations can be suppressed and the book sent with the advice.  When obligations are suppressed, the following paragraph will be included in the grant letter:

Events you need to tell us about

You must notify within 14 days (28 days if you live overseas or receive remote area allowance) of changes to your circumstances which might affect the rate of your pension.  The attached booklet You and Your Pension is a notice under section 54 of the Veterans' Entitlements Act and sets out your obligations to ensure that your pension is paid at the correct rate.  If you do not tell us of any of these changes you may be overpaid.  We are entitled under the above Act to recover any overpayments.

The booklet also includes the following information:

  • things you don't need to tell us about;
  • additional allowances and benefits;
  • the income and assets tests and how different types of income and assets are counted for pension purposes;
  • your obligations and rights as a recipient; and
  • other services available from Veterans' Affairs.

What the changes are for AP grants

The obligation paragraph has been changed so that when AP is granted, obligations can be suppressed and the book sent with the advice.  When obligations are suppressed, the following paragraph will be included in the letter:

Events you need to tell us about

You must notify us within 14 days (28 days if you are living overseas) of changes to your circumstances which might affect the rate of your pension.  If you become aware that you have received or are to receive a compensation payment, you must tell us within 7 days (28 days if you are living overseas).  The attached booklet You and Your Pension sets out your obligations to ensure that your pension is paid at the right rate.  If you do not tell us of any of these changes you may be overpaid.  We are entitled under social security law to recover any overpayments.

The booklet also includes the following information:

  • things you don't need to tell us about;
  • additional allowances and benefits;
  • the income and assets tests and how different types of income and assets are counted for pension purposes;
  • your obligations and rights as a recipient; and
  • other services available from Veterans' Affairs.

What the changes are for new grants to partner SP

The following paragraph is a new paragraph for new grants partner SP.  It will be included in the letter when obligations are suppressed.

A copy of the booklet You and Your Pension should have previously been sent to your partner.  If you do not have a copy of the booklet you should contact the Department and request a copy.

Effective date

The revised letters will go into production effective from 23 July 2001.  Stocks of You and Your Pension should be available in the States from

20 July 2001.

Who is affected?

All new grants of service pension, income support supplement and social security age pension (paid by DVA) effective from 23 July 2001.

Procedures for requesting letters for new grants of SP, ISS and AP

When granting a new service pension, income support supplement or social security age pension, it will be necessary to suppress printing the full listing of obligations.  These obligations are contained in You and Your Pension.

The following table sets out the new procedures for requesting letters for new grants of SP, ISS and AP.

Step

Action

1

As part of the granting a new pension procedure go to the 'advice' screen in PIPS

2

Change the default selection of “full” under the obligations section to “suppress”.  This will:

  • insert the paragraphs mentioned above
  • suppress the pensioner's full listing of obligations from being printed in the Integrated Advices system letter

3

After the letter has been printed, include a copy of the booklet You and Your Pension with the letter package to be mailed to the pensioner.

Additional procedures for blind pensioners

For newly granted service pensioners, income support supplement recipients and social security age pensioners who are blind, it will be necessary to send an audio cassette version of You and Your Pension as well as the booklet.

If “blind” is selected in the 'adult details' screen of PIPS then an audio cassette should also be included in the letter package.

Where blind pensioners are members of a couple, one booklet and one audio cassette is required.

Note that the cassette is not yet available.  Advice about timeframe for availability of cassette will follow.

Stocks of You and Your Pension

Stocks of You and Your Pension may only be requested from the warehouse by the contact officer in each State Office.

Contact officer

The Income Support Branch contact officer for this exercise is:

Jill de Vaus     Telephone (07) 3223 8516

C09/2001 CHANGE TO DEEMING RATE (JULY 2001)

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DATE OF ISSUE:  22 JUNE 2001

CHANGE TO DEEMING RATE (JULY 2001)

Purpose

The purpose of this departmental instruction is to provide policy advice relating to a change in the deemed interest rates applicable to financial assets effective 1 July 2001.

Related Documents

This departmental instruction should be read in conjunction with the:

  • Stateline, June Quarterly SI to SSO (All States) dated 19 June 2001; and
  • Departmental Instruction, C06-2001, June 2001 Statutory Increase Advice Letter, Payment Summary and Medicare Levy Exemption Certificate Mailout date 21/06/2001.

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT


Legislation

Division 3 of Part IIIB of the Veterans' Entitlements Act 1986 contains the rules relating to deemed income from financial assets.

Section 46J of the Veterans' Entitlements Act 1986 provides that the below threshold rate and the above threshold rate are the rates applicable for the purposes of Division 1B or Part 3.10 of the Social Security Act 1991.

Section 1082 of the Social Security Act 1991 provides that the Minister for Family and Community Services must determine the below threshold rate and the above threshold rate via disallowable instrument.

Determination

On 12 June 2001, the Minister for Family and Community Services determined that the deeming threshold rates should be reduced.  Social Security (Threshold Rates) Determination 2001 refers.  The determination varies the threshold rates for Division 1B of Part 3.10 of the Social Security Act.

The disallowable instrument also revoked the Social Security (Threshold Rates) Determination 2000.

Announcement

The change to the deemed interest rates was announced by the Minister for Family and Community Services on 20 June 2001.

Revised Deeming Rates

From 1 July 2001 the:

  • Below Threshold rate will reduce from  3.5% to 3.0%; and
  • Above Threshold rates will reduce from 5.5% to 4.5%.

Deeming Thresholds

From 1 July 2001, the deeming threshold are being increased as follows:

  • Not a member of a couple will increase from $31,600 to $33,400;
  • Partnered Combined will increase from $52,600 to $55,800.

This increase is due to annual indexation and has occurred separately to the Minister's determination in relation to the below and above threshold rates of interest applicable to the income testing of financial assets.

Impact

The combined impact of these changes for reduced rate income support pension recipients is an increase in pension.

Action

Changes to pension processing systems has been undertaken.  Changes to procedural and pensioner information such as FactSheets, Clik is currently underway.

The advice letters that will be issued for the June Quarterly Statutory Increase reflects the new deemed income rates and thresholds.

Q&As

A modified version of Q&As prepared by the Department of Family and Community Services are set out at attachment A.


Attachment A

INFORMATION ON JULY 1 REDUCTION IN DEEMING RATES

Q1. What are the new deeming rates from 1 July 2001?

The lower deeming rate will be 3%, and the higher deeming rate will be 4.5%.  These deeming rates will apply as follows:

  • 3% for the first $33,400 of total financial investments held by a single income support pensioner;
  • 3% for the first $55,800 of total financial investments held by a pensioner couple;

Note: The $ figures above are the increased deeming thresholds from 1 July 2001.  The deeming thresholds are the maximum investment amount assessed at the lower deeming rate.

The deeming thresholds are indexed annually from 1 July in line with the cost of living.

Q2. What are the deeming rates and who decides them?

The deeming rates are used to assess income from financial investments for pension and allowance purposes.  The deeming rates are set by the Minister for Family and Community Services.

Q3. Why has the Minister for Family and Community Services (Senator Amanda Vanstone) decided to reduce the deeming rates?

Senator Vanstone advised that she took into account reductions in interest rates, and general decreases in the returns available to people from a range of widely available investments.

The deeming rates are used in place of actual returns to assess income for social security payments.  They therefore need to be realistic.

Q4. How will my pension payment be affected by the reduction in the deeming rates?

The reduction in deeming rates will cause increases in payments for most pensioners who currently receive a reduced payment under the income test.

The reduction in deeming rates will not affect payments to pensioners who currently receive a full pension.  This is because their assessed income will continue to be below the income test free area.

Q5. Why did the Minister for Family and Community Services (Senator Vanstone) choose 1 July as the date for the deeming rates reduction?

This date was chosen for the change in deeming rates because it coincides with other changes that automatically take effect from 1 July.  The other changes (in addition to the increase in the deeming thresholds) are cost of living increases in the income and assets test free areas.  This will increase payments to income support pensioners receiving a reduced payment.  It should be simpler for pensioners if all of these changes are made at the same time.

Q6. How much can I have in financial investments before my payment is reduced?

At the new deeming rates and thresholds, single or widowed pensioners whose only source of income is from financial investments can have up to $75,800 in financial investments and still receive the full pension under the income test.

Pensioner couples whose only source of income is from financial investments can have up to $134,100 in financial investments and still receive the full pension under the income test.

These amounts are lower for people with other sources of income.

Q7. I have some money in a deeming account.  Will the interest rate on this account change?

You would need to ask your financial institution.  This is because financial institutions decide the interest rates on the accounts they offer.  This includes the accounts that are often referred to as “deeming” accounts – because the financial institution has decided to pay interest rates that are generally based on the deeming rates.

TABLE

New deeming rates and thresholds to apply from 1 July 2001:

  • 3% for the first $33,400 of financial investments held by a single pensioner;
  • 3% for the first $55,800 of financial investments held by a pensioner couple.
Deeming rates and thresholds before 1 July 2001:
  • 3.5% for the first $31,600 of financial investments held by a single pensioner;
  • 3.5% for the first $52,600 of financial investments held by a pensioner couple.

C08/2001 ENHANCE DEBT RECOVERY

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DATE OF ISSUE:  22 JUNE 2001

ENHANCE DEBT RECOVERY

Purpose

The purpose of this Departmental Instruction is to provide legislation, policy and procedural information with regards to the 1999/2000 Budget Initiative, Enhance Debt Recovery.

Start date

The changes commence on 1 July 2001.

Authorised by

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT


Table of Contents

PART 1LEGISLATION and POLICY................................................

Reason for change.............................................................

Summary of old rules............................................................

Notices......................................................................

Penalty interest................................................................

New administrative charge........................................................

Misdirected funds recall..........................................................

Time limit on recovery proceedings..................................................

Transitional Provisions...........................................................

Other miscellaneous changes.....................................................


PART 1LEGISLATION and POLICY

Reason for change

Introduction

From 1 July 2001, changes to some of the debt recovery provisions in the Veterans' Entitlements Act 1986 (VEA) were introduced via the 1999/2000 Budget measure known as 'Enhance Debt Recovery'.

Note: similar changes to the social security law will affect age pensioners paid by DVA.

Background

Feedback and past experience has highlighted inequities with parts of the old debt recovery policy, including:

  • Imposition of an administrative charge even where a debtor is making repayments; and
  • Not having the legislative authority to recall funds that have been released after a person's death, or released to an incorrect bank account.

Aim of change

The aim of the changes is to overcome these difficulties by:

  • Not imposing an administrative charge on a debtor who is making an effort to repay; and
  • Ensuring that public monies are directed to those most in need, by being able to recover misdirected funds.

Who is affected?

Service pensioners and Income Support Supplement recipients and Age Pensioners paid by DVA are affected by the changes.


Summary of old rules

Application of admin charge

Prior to 1 July 2001, an administrative charge was applied under the VEA, when the debt:

  • arose due to a breach of the VEA, such as failure to notify within the notification period; and
  • was greater than $200; and
  • was not repaid within 3 months after the person was advised in writing of the amount of the debt.

Note: there was no penalty interest provision under the VEA.

Amount of admin charge
  • The administrative charge was a one off charge, calculated by adding $15 + 10% of the balance outstanding after 3 months.
  • The admin charge could not exceed $515.

Example: if $250 was outstanding after 3 months, the admin charge calculated would be $40 (i.e. $15 + $25).

Age pensioners

Prior to 1 July 2001, penalty interest was imposed on age pensioners under the Social Security Act 1991 (SSA) when:

  • The person was not in payment; and
  • The person had not repaid the debt or entered into an agreement to repay the debt within a specified time frame.

Note: there was no administrative charge provision under the SSA.


Summary of new rules

Commencement date

The new rules commence on 1 July 2001.

New penalty interest

Penalty interest can be applied to debts if the debtor is no longer in payment and fails to enter into, or breaks an existing, repayment arrangement.

New admin charge

A one off administrative charge of $50 will be applied to debts that are liable to have penalty interest applied.

FI recall

DVA will have the authority to recall misdirected funds from financial institutions.

Who is affected?

The new rules apply to:

  • service pensioners;
  • income support supplement recipients; and
  • age pensioners paid by DVA.


Notices

First notice

If a recoverable debt:

  • has not been repaid; and
  • hasn't been waived under paragraph 206(1)(b),

in order to recover the debt, Commission must write to the person.  The letter that has to be sent is called a 'notice' (e.g. this will be a daily advice sent to the person following, for example, a PIR that has resulted in an overpayment).

Legislative Ref: ss 205AAA(1).

Due and payable

The debt is due and payable on the 28 — th day after the date of the notice.

Example: A notice is issued on 2 March.  The debt is due on 30 March.

Legislative Ref: ss205AAA(2)

Further notice

A further notice may be issued if the:

  • debt has not been wholly repaid; and
  • person has not entered into an arrangement to repay the debt; or
  • person has entered into an arrangement but has failed to make a payment.

This applies to a person who is not currently in payment.  In most cases, where a person is in payment, recovery would be effected via instalments of pension or by another method as agreed with the person and a further notice would not be required.

Legislative Ref: ss205AAA(3)

Continued on next page


Notices, Continued

What's in a further notice?

A further notice must specify the following details:

  • date the notice was issued (the date of the further notice);
  • reason the debt was incurred;
  • period to which the debt relates;
  • amount of the debt;
  • due date for payment;
  • repayment options;
  • contact details for inquiries;
  • effects of penalty interest and administrative charge; and
  • how penalty interest is calculated.

Legislative Ref: paragraphs 205AAA(3)(c) – (f)

When is a first notice a further notice?

If a first notice includes details about:

  • effects of penalty interest and administrative charge; and
  • how penalty interest is calculated,

it can be counted as a further notice.

Legislative Ref: ss205AAA(4)


Penalty interest

Application

A person may be liable to pay penalty interest on a debt if the:

  • person has received a 'further notice'; and
  • person is not in receipt of pension, allowance or other pecuniary benefit under the VEA or social security law.

Legislative Ref: ss205AAB(1)

Liability – no arrangement to pay

A person is liable to pay penalty interest from and including the day after the 'final payment day':

  • if the person has not entered into an arrangement, to pay the debt, on or before the final payment day; and
  • they have been notified in writing about the effects of penalty interest.

Legislative Ref: ss205AAB(2)

Liability – arrangement to pay broken on or before final payment day

A person is liable to pay penalty interest from and including the day after the final payment day:

  • if the person has entered into an arrangement to pay the debt; and
  • they have been notified in writing about the effects of penalty interest; and
  • if the person fails to make a payment, as arranged, on or before the final payment day.

Legislative Ref: paragraph 205AAB(3)(d)

Liability – arrangement to pay broken after final payment day

A person is liable to pay penalty interest from and including the day after the last payment was made :

  • if the person has entered into an arrangement to pay the debt; and
  • they have been notified in writing about the effects of penalty interest; and
  • if the person fails to make a payment, as arranged, after the final payment day.

Legislative Ref: paragraph 205AAB(3)(e)

Note: penalty interest cannot be applied before the day after the final payment day.

Continued on next page


Penalty interest, Continued

Final payment day

The final payment day is the later of the following days:

  • 90 — th day after the day on which the debt was due and payable (the debt is due and payable on the 28 — th day after the date of the notice); or
  • 28 — th day after the date of the further notice.

Legislative Ref: ss205AAB(4).

In other words the final payment day cannot be earlier than the 118 — th day after the date of the notice.

Example: A notice is issued on 2 March.  The debt is due on 30 March.  The final payment day is 90 days after 30 March, which is 28 June.  Therefore the person is liable to pay penalty interest from 29 June.

Final payment day – SSA

There is another dot point applicable to age pensioners paid by DVA, in addition to the final payment day rules above.

  • 90 — th day after the day an Authorised Review Officer makes a decision, if a request for review has been made within 90 days after receipt of a first notice.

Legislative Ref: ss1229A(4) SSA.

Example: First notice issued 1 August.  Request for review made within 90 days of receipt of notice, on 10 August.  ARO makes decision 1 September.  Final payment day is 90 days after 1 September decision, being 30 November.

Admin error

A person is not liable to pay penalty interest on a debt, or on any portion of a debt, that arose due to administrative error.

Legislative Ref: ss205AAB(2A)

Recovery

Penalty interest is recoverable as if it were a recoverable debt under section 205 VEA.

Legislative Ref: ss205AAB(5)

Continued on next page


Penalty interest, Continued

Order of recovery

Any repayments made reduce the original debt first.  Once the original amount is wholly repaid, then repayments go towards reducing the penalty interest component, then the administrative charge, as shown in the following table.

Legislative Ref: ss205AAB(6)

IF a repayment is made, and original debt is...

THEN reduce...

not wholly repaid

original debt by the repayment amount until wholly repaid

wholly repaid

penalty interest debt by the repayment amount until wholly repaid

wholly repaid and penalty interest is wholly repaid

admin charge debt by the repayment amount until wholly repaid

Discretion to not apply

If Commission is satisfied that a person has a reasonable excuse for not entering into a repayment arrangement or for breaking one, it has the discretion not to apply penalty interest at all, or for a particular period.

Legislative Ref: s205AAC

Calculation

Penalty interest is calculated daily.

Interest rate

Penalty interest is set at the lower deeming rate.

Legislative Ref: s205AAE

Type of interest

Penalty interest is simple, not compound.

Method
  1. [Annual interest rate expressed as a decimal] ? [365 days] = daily percentage rate
  2. [daily percentage rate] ? [amount of debt] = Penalty Interest daily amount
  3. [Penalty Interest daily amount] ? [number of days being applied for] = amount of Penalty Interest to be added to debt

Continued on next page


Penalty interest, Continued

Example
  • Debt = $2000
  • Penalty Interest rate = 3% (deeming rate as @ 1 July 2001)
  • Penalty Interest applied to debt balance at end of each month
  • Months are June and July, therefore 30 and 31 days respectively.

June

Step

Action

1

[0.03] ? [365] = 0.0000821

2

[0.0000958] ? $2000.00 = $0.1642?

3

[$0.1642?] ? [30 days] = $4.93

Debt now

$2004.93

July

Step

Action

1

[0.03] ? [365] = 0.0000821

2

[0.0000821] ? $2000.00 = $0.1642?

3

[$0.1642?] ? [31 days] = $5.09

Debt now

$2010.02


New administrative charge

Amount

The new rules remove the old administrative charge and replace it with a flat one-off charge of $50.

Legislative Ref: ss205AAD(1)

Application

The administrative charge is added to the debt when the person first becomes liable to pay penalty interest in respect of the debt.

Legislative Ref: ss205AAD(1)

Recovery

The administrative charge is a debt due to the Commonwealth, and is recoverable under section 205 VEA.

Legislative Ref: ss205AAD(2)

Contrast to old admin charge

Unlike the old administrative charge, there does not have to be a breach of the VEA, nor does the debt have to be over $200, before the administrative charge can be applied.


Misdirected funds recall

Introduction

New provisions under section 205AB VEA provide the authority to recover misdirected funds from financial institutions.

Payment made to incorrect a/c

If a pension is paid to an incorrect account, Commission has the authority to recover it from the financial institution.  The request to recover by Commission must be in writing.

Legislative Ref: ss205AB(1)

Payment made after death

If a pension is paid to a pensioner's account, after the pensioner's death, Commission may recover it from the financial institution.  This applies to any single accounts kept by the pensioner, or any joint accounts kept by the pensioner and any other persons.  The request to recover by Commission must be in writing.

Legislative Ref: ss205AB(2)

Pmt made after death – letter to estate

As soon as possible after requesting repayment, Commission must write to the deceased estate explaining why recovery action is being taken and how much is being recovered.

Legislative Ref: ss205AB(2A)


Time limit on recovery proceedings

Change to rules

Changes to section 206 VEA mean that recovery action can be commenced up to 6 years after an officer becomes aware (or could reasonably be expected to have become aware) of the circumstances that gave rise to the debt.

Legislative Ref: ss206(2)

Old rules

Under the old section 206 provisions, recovery action could not commence after more than 6 years from the date a debt arose, unless it arose due to a false statement/representation or failure or omission to comply with the Act.  In those cases, recovery action could commence up to 6 years from the day an office became aware of the false statement/representation or failure or omission to comply.

Contrast

The new rules mean that regardless of whether there is a false statement/representation or failure or omission to comply, recovery action can commence up to 6 years from the date the officer became aware of the debt.

Application of new rules

The new rules apply to any debts that:

  • are owed at 1 July 2001; and
  • arise after 1 July 2001.


Transitional Provisions

Application & transitional

'Application and transitional' provisions are inserted at Item 9 of the new Act.  The following is an explanation of these provisions.

Hyperlink: click on this link and scroll down to Item 9.

http://scaleplus.law.gov.au/html/comact/11/6326/0/CM000090.htm [27]

Item 9, Clause (1)

The provisions that repeal the old administrative charge & apply the new administrative charge and penalty interest, apply to debts that become recoverable from 1 July 2001.

Item 9, Clause (2)

If a debt was recoverable prior to 1 July 2001, the transitional provisions apply.

Item 9, Clause (3)

If receiving payment under VEA or social security law as at 1 July 2001:

  1. if they were not liable before 1 July 2001 to pay the old administrative charge they won't ever have to pay it, and they won't have to pay the new administrative charge or penalty interest either; or
  2. if they had become liable before 1 July 2001 to pay the old administrative charge, they will still be liable for it, but they won't become liable for the new administrative charge and penalty interest.

Item 9, Clause (4)

If not receiving payment under VEA or social security law as at 1 July 2001 and they had repaid part of their debt before 1 July 2001:

  1. if they had become liable before 1 July 2001 to pay the old administrative charge they will still be liable for it, but if they fail to make a payment in accordance with their repayment arrangement, Commission can also apply the new penalty interest (but not the new administrative charge) – providing a further notice under 205AAA(3) is issued; or
  2. if they were not liable before 1 July 2001 to pay the old administrative charge and they fail to make a payment in accordance with their repayment arrangement on or after 1 July 2001, Commission can apply the new penalty interest and administrative charge - providing a further notice under 205AAA(3) is issued.

Continued on next page


Transitional Provisions, Continued

Clause 9, Item (5)

If not receiving payment under VEA or social security law as at 1 July 2001 and they had not repaid any part of their debt before 1 July 2001:

  1. if they had become liable before 1 July 2001 to pay the old administrative charge they will still be liable for it; or
  2. if they had not become liable before 1 July 2001 to pay the old administrative charge, Commission can apply the new penalty interest and administrative charge - providing a further notice under 205AAA(3) is issued.

Clause 9, Item (6)

This provision ensures that the provision dealing with recovery action not being taken after the expiration of the 6 year period starting on the first day on which we become aware of the debt, or could reasonably have been expected to have done so, applies to debts owing as at 1 July 2001 and debts that arise after 1 July 2001.

Table

The following table illustrates the application of the transitional provisions.

IF @ 1/7/01 receiving payment

& debt {PART PAID/ UNPAID} pre 1 July 2001...

Liable old Admin Charge pre 1/7/01

THEN pay old Admin Charge

IF fail to make repmt

Pay new Admin Charge

Pay new Penalty Interest

Y

N/A

N

N

N/A

N

N

Y

N/A

Y

Y

N/A

N

N

N

PART PAID

Y

Y

Y

N

Y

N

PART PAID

N

N

Y

Y

Y

N

UNPAID

Y

Y

N/A

N

N

N

UNPAID

N

N

N/A

Y

Y


Other miscellaneous changes

Changes to VEA

Changes to the Veterans' Entitlements Act 1986 (VEA), were effected in the Family and Community Services and Veterans' Affairs Legislation Amendment (Debt Recovery) Act 2001, No. 47, 2001.  The Act received Royal Assent on 12 June 2001. Changes not discussed elsewhere are listed here.

Hyperlink to full text of Act: http://scaleplus.law.gov.au/html/comact/11/6335/top.htm [28]

Methods of recovery

Section 205 VEA has been amended to allow overpayments to be recovered by any one of the following methods or combination of methods:

  • Deductions
  • Proceedings in a court
  • Instalments
  • Payment notice

C07/2001 CALCULATION OF PAYMENT OF CERTAIN PENSIONS & ALLOWANCES DP DOE

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DATE OF ISSUE:  21 JUNE 2001

CALCULATION OF PAYMENT OF CERTAIN PENSIONS & ALLOWANCES “DP DOE”

Purpose

The purpose of this Departmental Instruction is to provide legislation, policy and procedural information with regards to the 2000/2001 Budget Initiative, Calculation of Payment of Certain Pensions and Allowances, commonly known as DP Date Of Effect (DP DOE).

Start date

The changes commence on 10 July 2001.

Authorised by

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT


Table of Contents

Reason for change.............................................................

Summary of old rules............................................................

Summary of new rules...........................................................

Payments affected..............................................................

Commencements & variations – calculating daily rates & pension instalments...................

Pension Period................................................................

Cancellations and deaths – ineligibility for payment......................................

Legislative changes.............................................................

Transitional Provisions...........................................................


Reason for change

Introduction

From 10 July 2001, changes to the Veterans' Entitlements Act 1986 (VEA) were introduced via the 2000/2001 Budget measure known as 'Calculation of payment of certain pensions and allowances'.

Aim of change

This initiative was proposed as a minor administrative simplification.  The aim being to align the payment of Compensation instalments with Income Support payment arrangements, thereby providing simplification and consistency across systems and administration.

Who is affected?

The changes affect DVA compensation pensions and allowances paid to disability pensioners and war widow/ers.


Summary of old rules

Payment of instalments

Under pre 10 July 2001 rules, instalments of DP were paid:

  • neither in advance nor in arrears; and
  • a full instalment was received fortnightly.

Eligibility for payment

To be eligible for payment of an instalment on a payday, the pensioner had to be alive and entitled to receive payment on the payday.


Summary of new rules

Commencement date

The changes commence on 10 July 2001.

Payment of instalments

Under the new rules, instalments of DP are paid:

  • in arrears; and
  • by instalments relating to each pension period, based on daily entitlement.

Legislative ref: ss121(1) VEA

Eligibility for payment

To be eligible for payment of an instalment on a payday the pensioner has to be either:

  1. eligible for payment on the last day of the pension period (cancellations); or
  2. alive and eligible for payment during the pension period (deaths).

Legislative ref: ss121(3) & (4) VEA


Payments affected

Payments affected

The payments affected by the changes are:

  • disability pension;
  • war widow/er's pension; and
  • most compensation allowances (see below).

Payments not affected

The payments not affected by the changes are:

  • Victoria Cross Allowance;
  • Temporary Incapacity Allowance;
  • Loss of Earnings Allowance; and
  • VCES payments.

Legislative ref: s121 VEA


Commencements & variations – calculating daily rates & pension instalments

Application

The rules regarding daily rates and instalments apply to:

  • commencements (grants); and
  • variations (increases, reductions and suspensions).

Pension instalment

The pension instalment paid on the fortnightly payday, is made up of a maximum of 14 daily amounts.

Daily rate

The daily rate is calculated by dividing the fortnightly rate of pension by 14.

Legislative ref: ss121(6) VEA.

Example: calculating daily rate
  • A pensioner is granted 50% DP.
  • Assume 50% DP is a fortnightly rate of $134.35.
  • The daily rate is $134.35 ? 14 = $9.5964

Example: calculating pension instalment
  • 50% DP is granted with effect from 23 September 2001
  • The pension period this falls in runs from 18 September to 1 October
  • The pensioner is entitled to receive 9 days payment in the pension period, from 23 September to 1 October inclusive
  • The daily rate is $9.5964
  • The instalment is 9 days @ $9.5964
  • The instalment payable in respect of payday 4 October is $86.37 (rounded to the nearest cent)

Example: Dep DP to WWP
  • TPI Veteran dies on 20 September
  • Widow was on Dependent DP of $8.42
  • Widow eligible for War Widow's Pension from 21 September
  • The instalment in respect of payday 4 October is (($8.42/14) ? 3 days) + (($427/14) ? 11 days) = $337.30
  • No DP instalment is payable for the veteran in respect of payday 4 October


Pension Period

Introduction

The concept of a pension period used in the calculation of income support instalments, is introduced for compensation payments.

Definition

A pension period is a period of 2 weeks that starts 2 days before a pension payday (i.e. Tuesday) and ends 2 days before the next payday (i.e. close of business Monday).

Legislative ref: ss5Q(1) VEA

Relating a pension period to an instalment of pension

The amount paid as an instalment of pension depends on the number of days during the pension period that the pensioner is entitled to receive payment.  In other words, on a payday, the instalment paid is made up of the daily rate payable on each day in the relevant pension period.

Legislative ref: ss121(2) VEA

Diagram: A pension period is illustrated in the diagram below.

Sun

Mon

Tue

Wed

Thu

Fri

Sat

Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

Day 7

Day 8

Day 9

Day 10

Day 11

Day 12

Day 13

Day 14

PAYDAY

KEY

pension period

payday relating to pension period

Continued on next page


Pension Period, Continued

Example: fortnightly instalment for DP increase
  • 50% DP is increased to 80% with effect from 23 September 2001
  • The pension period this falls in runs from 18 September to 1 October
  • The pension payday that relates to the pension period is 4 October
  • The pensioner is entitled to receive 5 days at the 50% rate (18 Sep – 22 Sep) and 9 days at the 80% rate (23 Sep – 1 Oct) on payday 4 October.
  • The daily rate for 50% is $134.35 ? 14 = $9.5964
  • The daily rate for 80% is $214.96 ? 14 = $15.3542
  • Fortnightly instalment = (5 days ? $9.5964) + (9 days ? $15.3542)
  • ($47.982 + $138.1878) = $186.17 (rounded to the nearest cent) payable in respect of payday 4 October

Note: the example is intended only to show that the daily rate may vary within a pay period and does not address any arrears that may be payable.

Diagram: the daily rates payable in the pension period 18 September to 1 October are shown in the diagram below to illustrate that a pension instalment can be made up of different daily rates.

Sun

Mon

Tue

Wed

Thu

Fri

Sat

18

50%/14

19

50%/14

20

50%/14

21

50%/14

22

50%/14

23

80%/14

24

80%/14

25

80%/14

26

80%/14

27

80%/14

28

80%/14

29

80%/14

30

80%/14

1

80%/14

2

3

4

$186.17

Paid in arrears

Pension is said to be paid in arrears because the pension instalment is payable on the next payday after the end of the pension period to which the instalment relates.

Legislative ref: ss121(5) VEA

Procedure: suspensions & reductions

For administrative simplicity, where possible it is recommended that suspensions and reductions be effected from Day 1 of a pension period.  The effect of this is similar to the now obsolete practice of reducing/suspending from the 'current reduction date'.


Cancellations and deaths – ineligibility for payment

Introduction

In principle the rules, relating to payment of an instalment on cancellation or death, are not changing.  The only difference is that eligibility for payment is linked to a pension period, rather than a payday.

Old rules

Under pre 10 July 2001 rules, the pensioner had to be entitled to receive payment on the payday, to receive the fortnightly instalment of pension.

New rules

Under the new rules for:

  • Cancellations: the pensioner has to be eligible for payment on the last day of a pension period, to receive the instalment of pension.  In other words, if a person is not eligible for payment on the last day of the pension period, then nothing is payable to the person in relation to that pension period.
  • Deaths: similarly, if a person dies during a pension period, no instalment is payable in relation to that pension period.

Legislative ref: ss121(3) & (4) VEA


Legislative changes

Purpose

The following information is a legislative reference for significant changes.

Act

The Veterans' Affairs Legislation Amendment (Budget Measures) Act 2000, No. 157, 2000 received Royal Assent on 21 December 2000.  Schedule 5 is the applicable Schedule in the Act.

Link: http://scaleplus.law.gov.au/html/comact/10/6271/to... [30]

Pension period

The definition of pension period in subsection 5Q(1) is aligned with the IS-DOE definition.  Pension period is defined as a period of 2 weeks that starts 2 days before a pension payday (i.e. Tuesday) and ends 2 days before the next payday (i.e. c.o.b. Monday).

Effective date of new grant

Section 5S is repealed.  This basically allows DP pension and allowances to be granted effective from a day other than a payday.

Determination of claims & apps for increase

New subsection 19(5F) says that a determination takes effect from the date on which the determination is made, or from such later or earlier date as specified in the determination.

Attendant Allowance

Under old rules, ss98(4) states that where a veteran is cared for at public expense in a hospital or other institution, Attendant Allowance is not payable from the 1 — st pension payday after the veteran enters care, ending on the day they cease being cared for.

In principle there is no change to this rule.  However, ss 98(4) has been amended to make Attendant Allowance not payable from the 1 — st day of the 1 — st pension period after the veteran enters care.  In effect, this makes the allowance not payable from the pension payday relating to that pension period.

Continued on next page


Legislative changes, Continued

Commence-ment of allowances

Where application for:

  • clothing allowance;
  • attendant allowance; or
  • recreation transport allowance,

is made more than 3 months after a determination is made that an injury or disease was war caused, changes to paragraph 114(2)(b) allow for these allowances to be paid from the date the veteran's application is received, instead of from the 1 — st payday after the application is received.

VVRS

Changes are made to some of the provisions relating to the Veterans' Vocational Rehabilitation Scheme (Part VIA).  The changes basically convert pension reduction amounts to daily rates.

Pension instalments

Section 121 is repealed and substituted.  For the purpose of this provision, pension does not include Victoria Cross Allowance, Temporary Incapacity Allowance, Loss of Earnings Allowance, Service Pension or Income Support Supplement (note, a policy decision also excludes VCES).  Pension does include DP, WWP, and other DP allowances not mentioned above.  The changes are outlined in the table below and compared to the 'old' rules:

New

Old

Pension becomes payable in arrears

Pension is paid neither in advance nor in arrears, but on the payday, if the person is eligible on that payday

Pension instalments relate to a pension period

An instalment is paid on the payday that falls after the pension period

The daily rate of pension is calculated by dividing the fortnightly pension rate by 14

An instalment of pension is made up of only the days that a person was eligible in a pension period; with 2 exceptions below:

If not eligible on the last day of a pension period, no instalment is paid in relation to that pension period

On death, no instalment is paid in relation to the pension period in which the person dies

Transitional provisions

Transitional provisions are contained in Schedule 5 of the Bill, starting at Clause 33.

More info: More details are provided in the following section.


Transitional Provisions

What are they

Transitional provisions are a set of rules that enable the changeover from the current payday based system to the pension period based system.  They tell you which set of rules to apply based on the date a change occurs.

Last payday based pmt

The last pay-day based pension payment under old rules will be paid on 12 July 2001.

1st pension period

The 1 — st pension period is 10-23 July 2001.

1st period based pay day

The 1 — st pension period based pension payment will be made on payday 26 July 2001.

Commenceme-nt

The following table explains whether a grant of pension is payday or period based if it occurs during the transitional period.  Note, if a person has no change to their rate of pension during July 2001, the usual instalment will be received on paydays 12 & 26 July.

If a pension becomes payable to a person...

Payment is...

On or before 9 July 2001

Pay day based.  Full instalment on the next payday, up to & including p/d 12/07/01

On or after 10 July 2001

Period based.  Instalment calculated on actual number of days entitled during the pension period.

Commence-ment examples
  • Example 1: DP is granted 9 July 2001.  A full instalment of DP is payable in respect of payday 12 July.
  • Example 2: DP is granted 10 July 2001.  No instalment of DP is payable in respect of payday 12 July.  A full instalment of DP is payable in respect of payday 26 July.
  • Example 3: DP is granted 14 July 2001.  No instalment of DP is payable in respect of payday 12 July.  A 10 day instalment of DP is payable in respect of payday 26 July.

Continued on next page


Transitional Provisions, Continued

Variation, suspension, cancellation

The following table explains whether a variation, suspension or cancellation is pay-day or pension-period based if it occurs during the transitional period.

If the variation, suspension or cancellation takes effect...

Then the payment is...

On or before 9 July 2001

Payday based- full instalment varied, suspended or cancelled on the next payday up to & including p/d 12/07/01

On or after 10 July 2001

Period based- variations and suspensions take effect from actual date of change; for cancellations pensioner must be eligible for whole pension period or nothing payable on next payday.

Variation... examples
  • Example 1: DP is cancelled 9 July 2001.  No instalment of DP is payable in respect of payday 12 July.
  • Example 2: DP is cancelled 10 July 2001.  A full instalment of DP is payable in respect of payday 12 July.  No instalment of DP is payable in respect of payday 26 July.

Variations... taking effect on 12 July

Note that where a cancellation, suspension or variation would have taken effect on payday 12 July 2001, the transitional rules provide for it to take effect on 10 July instead.  This provides administrative simplicity in the payment of instalments during the transitional period.

Example: TTI is to be reduced to 100% with effect payday 12 July.  Instead the reduction will take effect 10 July.  Therefore, the instalment of DP paid in respect of payday 12 July is a full instalment paid at the TTI rate.  The instalment of DP paid in respect of payday 26 July is a full 14 day instalment paid at the reduced 100% rate.

C06/2001 JUNE 2001 STATUTORY INCREASE ADVICE LETTER, PAYMENT SUMMARY AND MEDICARE LEVY EXEMPTION CERTIFICATE MAILOUT

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DATE OF ISSUE:  21 JUNE 2001

JUNE 2001 STATUTORY INCREASE ADVICE LETTER, PAYMENT SUMMARY AND MEDICARE LEVY EXEMPTION CERTIFICATE MAILOUT

Purpose of Instruction

This Departmental Instruction is to provide information about processing arrangements for the June 2001 Statutory Increase letter, Payment Summary (formerly named Group Certificate), and Medicare Levy Exemption Certificate mailout.

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT


Overview

Introduction

In June each year, the Department undertakes a bulk exercise to issue approximately 350,000 households with advice letters to persons in receipt of service pension, age pension or income support supplement.  The majority of these letters will include PAYG (Pay As You Go) Payment Summaries for the end of the financial year.  (The Australian Taxation Office (ATO) have advised that as part of the new tax reforms, Group Certificates have been renamed 'PAYG Payment Summary - individual non business).

Medicare Levy Exemption Certificates will also be issued at this time.

Significant issues

The June 2001 mailout will incorporate the following events for pay day 12 July 2001.

  • Production of advice letters to all service pensioners, age pensioners and income support supplement recipients;
  • Adjustment of pension rates, allowances and thresholds in accordance with adjustments to the Income Free Area or Assets Free Area and deeming thresholds;
  • Full Income and Assets Attachment provided to all pensioners;
  • The Full Obligations Attachment will be suppressed for all pensioners, however reference will be made to previous obligations issued;
  • All pensioners, (excluding Blinded pensioners) will receive the Financial Obligations paragraph which will include their prescribed rates in the advice letter;
  • The ATO have advised that as part of the new tax reforms, Group Certificates have been renamed 'PAYG Payment Summary - individual non business' and 'tax deductions' now referred to as PAYG withholdings;
  • End of financial year Payment Summary production;
  • Standalone Payment Summaries and Educational Allowance Payment Summaries issued to those eligible pensioners who do not receive an advice letter;
  • Production and issue of Medicare Levy Exemption Certificates;
  • Advice to pensioners of any gain or loss of treatment eligibility;
  • Payment of Telephone Allowance to those eligible; and
  • Deeming interest rate changes have been announced commencing 1 July 2001.


Production of Advice Letters

Processing Weekend -

21/06/01 -

25/06/01

Processing is scheduled to run from Thursday evening 21 June until Monday evening 25 June 2001 with any pension variations effective from 1 July 2001 for payday 12 July 2001.

Critical Dates

Processing period within DVA - (includes 'advices' processing).

Thursday (pm) 21 June 2001 - Monday (pm) 25 June 2001

Commence Dispatch of production data to SMS and 'sign-off' duties.

Tuesday, 26 June 2001 (pm)

Commence printing advice letters (SMS)

Wednesday, 27 June 2001

All production data delivered to SMS

Thursday, 28 June 2001 (pm)

Progressive lodgement of all State's Advice Letters with Australia Post (SMS) to be completed.

Friday, 6 July 2001

Letter Production

Security Mailing Services, Kingsgrove, Sydney will print the advice letters, add inserts and envelope them.  Production of letters is expected to occur over period 27June – 6 July 2001.

Lodgement of Letters

Letters will be progressively lodged with Australia Post once a complete State's letters have been enveloped.  All letters are to be posted by Friday, 6 July 2001.


Number of Pensioner Households Affected

Estimated Numbers

The estimated number of households to receive a Payment Summary and/or Medicare Levy Exemption Certificate information is as follows:

Type

NSW

VIC

QLD

SA

WA

TAS

AUST

SP

58,823

39,971

39,368

18,598

18,036

7,939

182,735

ISS

28,275

19,780

15,834

6,834

5,411

2,825

78,959

AP

2,971

2,101

1,526

724

710

124

8,156

DP*

30,124

20,515

16,488

6,528

6,951

2,520

83,126

TOTAL

120,193

82,367

73216

32,684

31,108

13,408

352,976

*  Medicare Levy Exemption Certificate to these pensioners only


Letter Content

Letters

Prior to the issue of this Departmental Instruction, System Support Officers and Managers Income Support were provided with copies of the proposed paragraph sequencing and mock-ups of advice letters for this run.

A number of recommendations were received and have been taken into consideration for the final version of paragraphs and sequencing.  Details of the Paragraph Sequencing and Target Audience can be found at Attachment A.  Copies of the expected advice letter content for this run are reproduced at Attachment B to this DI.

PAYG (Pay As You Go) Payment Summary -individual Non-business
  • Service Pension, or
  • Age Pension, or
  • Income Support Supplement

The information previously reported on a Group Certificate is now reported on a PAYG (Pay As You Go) Payment Summary - individual non-business.  Payment Summaries will be issued to all pensioners whose pensions are taxable.  Payment Summaries for those pensioners without PAYG (Pay As You Go) withholding's (tax deductions) will form part of the advice letter sent from the mailing house.

Payment Summaries for those pensioners who have had PAYG withholding's (tax deductions) during the year, will be sent to the State Offices for checking prior to mailing.

Payment Summaries for those pensioners who were in payment for part of the financial year but are no longer in payment will be sent to the State Offices for checking prior to mailing.

Educational Allowance Payment Summaries will be sent to the State Offices for checking prior to mailing.

Payment Summaries for those New South Wales (only) pensioners who died during the financial year will be sent to the NSW State Office  contact officer.


Page Numbering of Advice Letters

The Payment Summary when included in the advice will be sequenced to print after the Payment information Attachment (showing payboxes) at the end of the advice but before the General Information Sheet.  While the Payment Summaries form part of the advice they do not have page numbering printed on them.

Please note that the page numbering of the advice letters resulted in some confusion for pensioners in last year's mailout as the Payment Summaries were not page numbered but were sequenced in the middle of the advice letter.  This will again be the case for this year's mailout.  It should be explained to pensioners who may query this that they aren't missing any pages.  We need to use the General Information Sheet for gatemarking purposes at the mailing house and that is the reason the GIS appears as the last page of the advice letter.

General Information Sheet (GIS)

Each letter will have a General Information Sheet (GIS).  The GIS will be sequenced to print after the Payment Summary - the GIS must be used as the consistent last page to enable the enveloping machines at the mailing house, to identify the last page of each letter ie., gatemarking purposes.

Income and Assets Attachment

All pensioners (exluding Blinded) will receive a full listing of their income and assets in the Income and Assets Attachment which will print after the Payment Information Attachment but before the Payment Summary(s).

Obligations

Obligations are to be suppressed for all letters produced.  Reference will be made to previous obligations issued to clients.

The Financial Obligations paragraph (including the Prescribed Rates) will be present in the advice for all clients (excluding Blinded pensioners).


Telephone Allowance

Letters will inform pensioners entitled to a telephone allowance payment about their quarterly payment.  This para will also advise that the TA payment is a separate payment and is not included in with your total fortnightly payment as referred to in the Payment Information Attachment showing the payment boxes.

Non Taxable Pensioners

Those pensioners whose pensions are not taxable (eg, service pension on the grounds of permanent incapacity and under 65 years of age for males, 62 years for females) will receive an advice letter only.  A Medicare Levy Exemption Certificate (MLEC) will be issued separately for these clients.  Their MLEC certificates will be sent from the mailing house direct to these clients.

Letter Content

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

Medicare Levy Exemption Certificates

(MLEC)

A Medicare Levy Exemption Certificate will be issued to those Gold Card beneficiaries who are not in receipt of a taxable income support pension and who do not receive an advice letter ie,

  • War widows who do not receive income support supplement; or
  • those veterans who are eligible for a gold card due to their disability entitlement, and who are not in receipt of an income support payment; or
  • Australian WWII veterans with Qualifying Service and over 70 years of age and who are not in receipt of an income support payment.

The number of medicare levy exemption days, where applicable, will be stated on the Payment Summary for all other pensioners.

Insert

A 'pensioner flyer' produced by the Australian Taxation Office (ATO), in conjunction with Centrelink and DVA will be included with all advice letters issued in this exercise.  It is hoped that this flyer will significantly reduce the number of queries the State Office receives about taxation matters.  The brochure is titled “Do you Need to lodge a Tax Return?”.  This brochure will be included with all Payment Summaries and Medicare Levy Exemption Certificates.

Each of the State offices will be supplied with a quantity of the flyers to insert with Special Register, Enclosures and Payment Summary PAYG withholding cases prior to the advices being sent.


Issues Requiring State Office Action

Special Register and Overseas

Overseas cases for Tasmania will be sent on a cartridge to Security Mailing Services for printing.  Other States overseas letters will be printed by IBM in Melbourne and forwarded to the State Offices in with other daily advice output ie, CCPS, DPS, for checking and mailing.

All Special Register letters will be printed by IBM in Melbourne and forwarded to each of the State Offices with other daily output for checking and mailing.  States have been provided with the following insert to be included in letters to these pensioners:

  • ATO brochure “Do you need to lodge a tax return?”

Enclosure Letters

As is the procedure for quarterly processing Enclosure (treatment) advice letters will be printed by IBM in Melbourne and sent via courier to each State Office.  We always request that these be checked for accuracy, and reconciled against the reports received by each State Office.

There is a known problem with 'treatment entitlement' which will require you to check all enclosure advices.  You will need to check each client's treatment eligibility to ensure they have received the correct treatment paragraph in their advice appropriate to the client's change in treatment eligibility.

The program in processing these cases, applies the period of grace provisions against all clients, and if there is a TSP change then the advice will be streamed as an enclosure advice.  The program does not look at any higher priority treatment eligibility such as TQX.  As a result, in some cases the advice may not have a treatment paragraph - which may be appropriate to the particular case as the client may have a higher priority treatment eligibility precluding him/her from any changes to treatment.


'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 now print in each respective State Office's nominated printer as part of the production run.  Please ensure your nominated printer is fully operational on Thursday evening, 21 June 2001 as the forced advices will print at that time.  All forced advices will need to be checked to ensure the information in them is correct prior to posting.

Handling of Daily Advices

Cases processed in advance for 12 July 2001 should have the daily advice dispatched prior to the June advice letter being sent.

Daily payment advices processed after the processing run on 21-25 June 2001 for 12 July 2001, should be held by the State Offices until confirmation is received from the June SI Business Co-ordinator to release such advices.  This will ensure that pensioners who have pension variations processed for payday 12 July 2001 will receive their daily advice after the quarterly advice rather than in advance of it.

To minimise the number of daily advices to be held whilst the June advices are processed, it is suggested that only manual cases (and essential processing) should be processed for payday 12 July 2001.

Tax Deduction Cases

The Payment Summaries for those pensioners who have had PAYG withholdings (tax deductions) will be sent to the State Office Contact Officer for this exercise for checking prior to mailing.

Reprints of selected letters

Any requests for reprints of individual advices from this mailout should be referred to System Support Officers to organise a reprint.


New Automatic Payment Summary (Group Certificate) Reprint Facility

Arrangements are being made for an automatic reprint facility of Payment Summaries to be developed.  We expect the reprint facility to be available from 14 July 2001. This reprint facility will be accessible via a new 'Reprint Facility' folder located under the Advices window in VIEW.  A new sub-folder titled 'Payment Summary' will be located under the 'Reprint Facility' folder.

The Payment Summary reprint facility will enable the user to select the financial years for which the veteran requires a reprint, currently only 2 years of history are available in VIEW - therefore only 2 years will be presented for selection.

The proposal also includes a courtesy letter to be produced on standard State Office letterhead advising of the enclosed document(s).  The letter and Reprinted Payment Summary(s) will be printed as part of the regular immediate daily batch advices print job.

A separate Stateline will be provided closer to implementation of this facility providing full details on the Payment Summary Reprint Facility.  Questions regarding this facility should be directed to Renee Arkinstall on 02 6289 6428.

Reprints of Payment Summaries

System Support Officers and State Office contact officers have been provided with a Payment Summary template in Word format for reprint purposes.

Reprints of MLEC

System Support Officers and State Office contact officers have been provided with a Medicare Levy Exemption Certificate word document for any requests of reprints.


State Office Contacts

State Office Contact Officers

NSW  - Genia Sacharczuk  - 02 9213 7106

VIC - Peter Rogers - 03 9284 6379

QLD - Steve Jensen - 07 3223 8835

SA - Graham Bate - 08 8290 0425

WA - Kim Gooding - 08 9366 8549

TAS - Wendy Blackwell - 03 6221 6683

National Office Contacts

Feedback from State Offices

Any concerns regarding letters produced as part of this run should be directed to the June SI Business Co-ordinator in National Office - Pat Webb.  At the end of this process we will be collating all State feedback to analyse any issues raised and develop solutions to address any concerns raised.  Any problems noted should be reported to the Business Co-ordinator, together with any background information detailing the issue.  Please ensure that any problems are reported as early as possible.

Contacts

Any queries regarding advice wording, data cartridges, mail house printing and letter lodgement should be referred to:

Pat Webb

(02) 6289 6444 (Phone)

(02) 6289 6553 (Fax)

OR

David Hollaway

(02) 6289 6347 (Phone)

(02) 6289 6553 (Fax)


ATTACHMENT A

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

PARAGRAPH

TO WHOM

State specific letterhead

All

Opening paragraph

All

Opening Reasons(Cost of living changes to the Income and Assets Test)

All

Effective Date

All

Payment Information

All

Payment Diversion

All

Medicare Levy Exemption Certificate sent separately

Non Taxable

Indexation of Deeming Threshold and Deeming Interest Rate Change

All

Payment Summaries (formerly known as Group Certificates)

Taxable

Payment Summaries issued separately

PAYG Withholding (Tax Deduction) cases

Medicare Levy Exemption

Taxable

Telephone Allowance

All eligible for TA payment

Financial Obligations

All (except Blinded)

General Obligations

All

Changes You Have Already Told Us About

All

Right of Review

All

State Specific Closing

All

Signature Block (State specific)

All

Payment Information Attachment

All

Income and Asset Attachment

All

Payment Summaries

Taxable

General Information Sheet

All


ATTACHMENT B

JUNE PARAGRAPH CONTENT

Example 1: LESS THAN MAXIMUM RATE, MARRIED ASSESSMENT, TA PAYMENT, TAXABLE, PAYMENT SUMMARIES ENCLOSED

T-ADVICE-RETURN-ADDRESS

DVA LOGO

Contact:

Telephone: STATE OFFICE

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1300 13 1945

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

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 T-PENSION-SP-ISS-AP:

  • Income Free Area - this is the amount of income you can have before your T-PENSION-SP-ISS-AP is reduced below the maximum rate payable;

  • Assets Value Limit - this is the amount of assets you can have (other than your family home) before your T-PENSION-SP-ISS-AP is reduced below the maximum rate payable;

  • Deemed Interest Rates - are used to work out the amount of income you receive from any money you have invested in financial assets.  Deeming assumes that any money you have invested in financial assets is earning a particular amount regardless of the actual amount earned; and

  • Deeming Thresholds - these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of T=PENSION-SP-ISS-AP.

This is to advise you that your T-PENSION-SP-ISS-AP has been T-INC-RED-NIL.  This change will take effect from T-CLNT-EFFECTIVE-DATE.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

13/07/00

XXXXXX DDDDD

CBA 59404040

$XXX.XX

TOTAL

$XXX.XX

13/07/00

XXXXXX DDDDD

CBA 59404040

$XXX.XX

TOTAL

$XXX.XX

Payment Summaries (formerly known as Group Certificates)

The Australian Taxation Office (ATO) has advised that as part of the new tax reforms, Group Certificates have been renamed 'Payment Summary'.

As it is the end of the 2000/01 financial year Payment Summaries are being issued.  You will need this information if you are required to lodge a tax return.

Payment Summary for T-CLIENT-NAME is enclosed with this letter.

Payment Summary for T-PTNR-NAME is enclosed with this letter.

You should contact the Australian Taxation Office on 13 2861 if you have any questions about taxation.

Medicare Levy Exemption

If you have been eligible for full treatment at departmental expense during the past financial year, you do not have to pay the Medicare Levy for that period.  The period for which you have been exempt from the levy appears on your Payment Summary.

Indexation of Deeming Threshold and Deeming Interest Rate Change

From pension payday T-CLNT-EFFECTIVE-DATE, both the deeming threshold amounts and the deeming interest rates will change.

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 the deemed interest rates are applied to calculate the income.

The new deeming threshold for a single person will be T-SINGLE-THRSH-DEEMED-AMT and for a couple it will be T-MARRIED-THRSH-DEEMED-AMT.  This is the amount of financial assets you can have before the higher deemed interest rates are applied to the assessment of T-PENSION-SP-ISS-AP.

The new deemed income rate of T-INC-DEEMING-INT-RATE% will be applied for amounts up to T-SINGLE-THRSH-DEEMED-AMT (T-MARRIED-THRSH-DEEMED-AMT per couple) and T-INC-DEEMING-HIGH-RATE% for amounts over T-SINGLE-THRSH-DEEMED-AMT (T-MARRIED-THRSH-DEEMED-AMT per couple), and used to work out the amount of income recorded for your financial assets.

If your investments are earning more that the T-INC-DEEMING-INT-RATE% or T-INC-DEEMING-HIGH-RATE% deeming rates, this additional income will not affect the rate of your service pension.

Telephone Allowance

Your quarterly telephone allowance will be paid on T-DATE-Of-PAYMENT, together with your pension payment.  Your telephone allowance is a separate payment and is not included in your total fortnightly payment information referred to in the letter.  The current telephone allowance rates are:

Singles Rate - $17.20

Couples Rate (each) - $8.60

World War I Veterans - $46.75

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 income from all sources increases above T-TOTAL-INCOME-PLUS-4 per fortnight or your combined assets, apart from your home, exceed T-PRESCR-ASSET-AMT.  Income includes deemed income from your financial assets and income from other sources.

Your Obligations

We have explained your obligations to you in previous letters and 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.

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 set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452.  For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

Deputy Commissioner


PAYMENT INFORMATION ATTACHMENT

The Department now calculates T-PENSION-SP-ISS-AP payments on a daily basis.  This means that your fortnightly pension payment is now 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.

Listed below are the payment tables showing the different amounts of pension you will receive on the paydays that are affected, with the final payment table showing your ongoing payment.

PAYMENTS TO XXXXX  XXXXXXX and XXXXX XXXXXXX for

Pension Payday 12 JULY 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx    x.xx

PAYMENTS TO XXXXX  XXXXXXX and XXXXX XXXXXXX for

Pension Payday 26 JULY 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx    x.xx


INCOME AND ASSETS USED TO ASSESS YOUR PAYMENT

(Information current as at T-ADVICE-PRINT-DATE)

You are receiving T-PENSION-SP-ISS-AP 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 as assets test.  The test that pays the lower rate of pension is the one that applies.

You are currently paid under the T-INCOME-ASSET-TEST test.  The total of your assessed fortnightly income is T-TOTAL-FORT-INCOME.  The total of all your assets (excluding any deductible assets) is T-TOTAL-ASSETS.  Details of how your pension has been assessed are shown below.

Savings and Cheque Accounts

Description

Account Number

Asset Amount

XXXXXXXX

XXXXXXXXXXX

$  XX.XX

@@@@@@@@@@

XXXXXXXX

$XXX.XX

IMPORTANT: We understand that the balances in these types of accounts may fluctuate regularly.

Listed Securities and Unlisted Public Securities

Description

No. of Shares

Asset Amount

XXXXXX

X,XXX

$XX,XXX.XX

QQQQQQQQQQQQQ

XXX

$    X,XXX.XX

Managed Investments

Description

Units

Asset Amount

VVVVVVVVVV

XX

$XX.XX

CCCCCCCCCCCCC

XXX

$XX.XX

Note: Income from financial assets is deemed.

IMPORTANT: 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.

Total Financial Assets

FINANCIAL ASSETS VALUE

DEEMED INTEREST RATE

DEEMED INCOME PER FORTNIGHT

$XX,XXX.XX

3.5%

$X.XX

$         XX.XX

5.5%

$X.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, regardless of the actual interest rates, on the total of all your financial assets:

$0 to T-MARRIED-THRSH-DEEMED-AMT – at T-INC-DEMING-INT-RATE%

T-MARRIED-THRSH-DEEMED-AMT + at T-INC-DEEMING-HIGH-RATE%

If your investments are earning more than the T-INC-DEEMING-INT-RATE% or T-INC-DEEMING-HIGH-RATE% deeming rates, this additional income will not affect the rate of your T-PENSION-SP-ISS-AP.

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.

  • Market value of household contents - $XX,XXX.XX

Miscellaneous Assets

  • T-MISC-ASSET-DESCRIPTION with a net market value of $X,XXX.XX

Direct Income

  • T-DESCRIPT-MISC-EARNINGS - $XXX.XX per fortnight

2001 PAYG Payment
Summary - Individual Non Business
Service Pension

Original

DVA File No: QX999999

Payer's ABN:  2396
4290 824

Tax File Number:  111 111 111

Payment From: 01/07/2000

Payment to: 30/06/2001

Client's Name

Gross payments:

1 — st Line of Client's Address

$0.00

2 — nd Line of Client's Address

3 — rd Line of Client's Address

Medicare Levy

Exemption Days: 0

Remote Area

Allowance: $0.00

Thousands

Hundreds

Tens

Units

Total tax withheld -
whole dollars only in words


NIL


NIL


NIL


NIL

Total tax withheld (whole dollars)

$0.00

Authorised Person:02/07/01

Serial No: 0 000 000 000

?.......................................................................................................................................................................................

2001 PAYG Payment
Summary - Individual Non Business
Service Pension

Client Copy

DVA File No: QX999999

Payer's ABN:  2396
4290 824

Tax File Number:  111 111 111

Payment From: 01/07/2000

Payment to: 30/06/2001

Client's Name

Gross payments:

1 — st Line of Client's Address

$0.00

2 — nd Line of Client's Address

3 — rd Line of Client's Address

Medicare Levy

Exemption Days: 0

Remote Area

Allowance: $0.00

Thousands

Hundreds

Tens

Units

Total tax withheld -
whole dollars only in words


NIL


NIL


NIL


NIL

Total tax withheld (whole dollars)

$0.00

Authorised Person:02/07/01

Serial No: 0 000 000 000

If you need to lodge a tax return, detach the ORIGINAL by cutting along the dotted line, pin it to your tax return and keep theC LIENT COPY for your records.

See Notes On Reverse ?

Notes

1. Total tax withheld

If you have an amount in this box you need to lodge a tax return. This ensures that you receive any refunds of tax you may be entitled to.

2. Gross payments

The 'Gross payments' shown on this statement do not include non-taxable payments such as pharmaceutical allowance, telephone allowance or disability pension. This is the amount you should show as income in your tax return.

3. Remote Area Allowance (RAA)

This amount is not taxable but if you need to lodge a tax return it will reduce any tax offset you may be entitled to.

4. Medicare Levy Exemption

The holders of Veterans' Affairs Gold treatment cards are eligible for exemption from or reduction in the amount of this levy. Where applicable, the number of Medicare Levy Exemption Days is shown on this form.

5. Terminology changes

A PAYG Payment Summary-Individual Non Business was formerly known as a group certificate. A tax offset was called a rebate in previous years.

6. Further assistance

If you have any taxation enquiries call the Australian Taxation Office on 13 2861. Pension enquiries should be directed to the Department of Veterans' Affairs.

Notes

1. Total tax withheld

If you have an amount in this box you need to lodge a tax return. This ensures that you receive any refunds of tax you may be entitled to.

2. Gross payments

The 'Gross payments' shown on this statement do not include non-taxable payments such as pharmaceutical allowance, telephone allowance or disability pension. This is the amount you should show as income in your tax return.

3. Remote Area Allowance (RAA)

This amount is not taxable but if you need to lodge a tax return it will reduce any tax offset you may be entitled to.

4. Medicare Levy Exemption

The holders of Veterans' Affairs Gold treatment cards are eligible for exemption from or reduction in the amount of this levy. Where applicable, the number of Medicare Levy Exemption Days is shown on this form.

5. Terminology changes

A PAYG Payment Summary-Individual Non Business was formerly known as a group certificate. A tax offset was called a rebate in previous years.

6. Further assistance

If you have any taxation enquiries call the Australian Taxation Office on 13 2861. Pension enquiries should be directed to the Department of Veterans' Affairs.

This is an example only of the General Information Sheet (GIS) for Service Pensioners that will be used in the June mailout.  There is a separate GIS for both income support supplement recipients and age pensioners. PLEASE NOTE: All changes to the rates and thresholds have been updated and are reflected in this document.

GENERAL INFORMATION ON SERVICE PENSION RATES AND LIMITS

(Information current as at T-ADVICE-PRINT-DATE)

MAXIMUM RATES OF SERVICE PENSION (excludes pharmaceutical allowance)

Singles Rate$402.00 (per fortnight)

Couples Rate (each)$335.50 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$112.00$1,131.50

Couples Rate (combined)$200.00$1,892.00

These limits may increase for each dependent child or student up to the age of T-CHILD-AGE, or if rent assistance is payable.

PENSION ASSETS LIMIT

Before Service Pension ReducesCut Off*

Home Owner

Singles Rate$141,000$277,000

Couples Rate (combined)$200,500$426,500

Non Home Owner

Singles Rate$242,000$378,000

Couples Rate (combined)$301,500$527,500

These limits may increase for each dependent child or student up to the age of T-CHILD-AGE, or if rent assistance is payable.

NOTE: *Income and assets cut off limits applies to all service pensioners except blinded service pensioners.

GOLD CARD INFORMATION

GOLD CARD INCOME CUT OFF LIMIT

Singles Rate$311.50 (per fortnight)

Couples Rate (combined)$543.00 (per fortnight)

Add $67.10 per fortnight for each dependent child or student to the age of T-CHILD-AGE.


GOLD CARD ASSETS CUT OFF LIMIT

Home Owner

Singles Rate$168,500

Couples Rate (combined)$248,000

Non Home Owner

Singles Rate$269,500

Couples Rate (combined)$349,000

Add approximately $5,750 for each dependent child or student up to the age of T-CHILD-AGE.

NOTE 1: These income and asset limits apply to the Gold Card only.  Different income and asset limits apply to the pension.  These limits can be found at the top of the page.

NOTE 2: If you are a World War 2 veteran or mariner aged 70 years or over, who served in Australia's Defence Forces or Australia's Merchant Navy between 3 September 1939 and 29 October 1945, and have qualifying service from that conflict, the above Gold Card income and asset cut off limits do not apply to you as your Gold Card is not affected by your income and assets.

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:

Singles

Low Rate:- 3% interest up to the threshold of $33,400

High Rate:- 4.5% interest for the remaining balance

Couples

Low Rate:- 3% interest up to the threshold of $55,800

High Rate:- 4.5% interest for the remaining balance

ILLNESS SEPARATED COUPLES

Couples separated due to ill health are paid at 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.  The amount of rent assistance you receive 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.

When calculating the amount of rent assistance payable to a service pension recipient, any disability pension received by that person or their partner, is counted as income and may reduce the rate of rent assistance payable.


Maximum Amount of Rent Assistance Payable (per fortnight)

No children1-2 children3 or more

children

Singles Rate$88.00$102.80$116.60

Couples Rate

(combined)$82.80$102.80$116.60

Rent Limits (per fortnight)

No children1-2 children3 or more

children

Singles Rate$78.00$102.60$102.60

Couples Rate

(combined)$127.00$151.80$151.80


EXAMPLE 2: MAXIMUM RATE CONTINUATION, SINGLE ASSESSMENT, PAYG Withholding (tax deductions made) therefore NIL PAYMENT SUMMARY ENCLOSED WITH ADVICE - PAYMENT SUMMARY TO BE SENT SEPARATELY, TA PAYMENT

T-ADVICE-RETURN-ADDRESS

DVA LOGO

Contact:

Telephone: STATE OFFICE

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1300 13 1945

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

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 T-PENSION-SP-ISS-AP:

  • Income Free Area - this is the amount of income you can have before your T-PENSION-SP-ISS-AP is reduced below the maximum rate payable;

  • Assets Value Limit - this is the amount of assets you can have (other than your family home) before your T-PEBNSION-SP-ISS-AP is reduced below the maximum rate payable;

  • Deemed Interest Rates - are used to work out the amount of income you receive from any money you have invested in financial assets.  Deeming assumes that any money you have invested in financial assets is earning a particular amount regardless of the actual amount earned; and

  • Deeming Thresholds - these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of T-PENSION-SP-ISS-AP.

You currently receive the maximum rate of T-PENSION-SP-ISS-AP and this amount remains unchanged.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

13/07/00

XXXXXX DDDDD

CBA 59404040

$XXX.XX

TOTAL

$XXX.XX

Payment Summaries (formerly called Group Certificates)

The Australian Taxation Office (ATO) has advised that as part of the new tax reforms, Group Certificates have been renamed 'Payment Summary'.

As it is the end of the 1999/00 financial year Payment Summaries are being issued.  You will need this information if you are required to lodge a tax return.

Payment Summary for T-CLIENT-NAME will be mailed separately.

You should contact the Australian Taxation Office on 13 2861 if you have any questions about taxation.

Medicare Levy Exemption

If you have been eligible for full treatment at departmental expense during the past financial year, you do not have to pay the Medicare Levy for that period.  The period for which you have been exempt for the levy appears on your Payment Summary.

Indexation of Deeming Threshold and Deeming Interest Rate Change

From pension payday T-CLNT-EFFECTIVE-DATE, both the deeming threshold amounts and the deeming interest rates will change.

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 the deemed interest rates are applied to calculate the income.

The new deeming threshold for a single person will be T-SINGLE-THRSH-DEEMED-AMT and for a couple it will be T-MARRIED-THRSH-DEEMED-AMT.  This is the amount of financial assets you can have before the higher deemed interest rates are applied to the assessment of T-PENSION-SP-ISS-AP.

The new deemed income rate of T-INC-DEEMING-INT-RATE% will be applied for amounts up to T-SINGLE-THRSH-DEEMED-AMT (T-MARRIED-THRSH-DEEMED-AMT per couple) and T-INC-DEEMING-HIGH-RATE% for amounts over T-SINGLE-THRSH-DEEMED-AMT (T-MARRIED-THRSH-DEEMED-AMT per couple), and used to work out the amount of income recorded for your financial assets.

If your investments are earning more that the T-INC-DEEMING-INT-RATE% or T-INC-DEEMING-HIGH-RATE% deeming rates, this additional income will not affect the rate of your service pension.

Telephone Allowance

Your quarterly telephone allowance will be paid on T-DATE-Of-PAYMENT, together with your pension payment.  Your telephone allowance is a separate payment and is not included in your total fortnightly payment information referred to in this letter.  The current telephone allowance rates are:

Singles Rate - $17.20

Couples Rate (each) - $8.60

World War I Veterans - $46.75

Financial Obligations

You need to tell us within 14 days (28 days if you are living overseas or receive Remote Area Allowance) if your income increases above T-PRESCR-INC-AMT per fortnight or your assets, apart from your home, exceed T-PRESCR-ASSET-AMT.  Income includes deemed income from your financial assets and income from other sources.

Your Obligations

We have explained your obligations to you in previous letters and 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.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452.  For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

Deputy Commissioner


PAYMENT INFORMATION ATTACHMENT

The Department now calculates T-PENSION-SP-ISS-AP payments on a daily basis.  This means that your fortnightly pension payment is now 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.

Listed below are the payment tables showing the different amounts of pension you will receive on the paydays that are affected, with the final payment table showing your ongoing payment.

PAYMENTS TO XXXXX  XXXXXXX for

Pension Payday 12 JULY 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx

PAYMENTS TO XXXXX  XXXXXXX for

Pension Payday 26 JULY 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxxxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx

Followed by Full Income and Assets Attachment, Payment Summary and General Information Sheet


Example 3: LESS THAN MAXIMUM RATE, NON-TAXABLE therefore NO ENCLOSED PAYMENT SUMMARY, A MEDICARE LEVY EXEMPTION CERTIFICATE TO BE SENT SEPARATELY, NO TA PAYMENT.

DVA LOGO

Contact:

Telephone: STATE OFFICE

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

General inquiries: 133 254

Non-metropolitan callers: 1800 555 254

Dialling from interstate: 1300 13 1945

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

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 T-PENSION-SP-ISS-AP:

  • Income Free Area - this is the amount of income you can have before your T-PENSION-SP-ISS-AP is reduced below the maximum rate payable;

  • Assets Value Limit - this is the amount of assets you can have (other than your family home) before your T-PEBNSION-SP-ISS-AP is reduced below the maximum rate payable;

  • Deemed Interest Rates - are used to work out the amount of income you receive from any money you have invested in financial assets.  Deeming assumes that any money you have invested in financial assets is earning a particular amount regardless of the actual amount earned; and

  • Deeming Thresholds - these are the amounts of financial assets you can have before the higher deemed interest rates are applied to the assessment of T=PENSION-SP-ISS-AP.

This is to advise you that your T-PENSION-SP-ISS-AP has been T-INC-RED-NIL.  This change will take effect from T-CLNT-EFFECTIVE-DATE.

Payment Information

Please refer to the enclosed Payment Information Attachment to see a breakdown of your payments.

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

13/07/00

XXXXXX DDDDD

CBA 59404040

$XXX.XX

TOTAL

$XXX.XX

Medicare Levy Exemption Certificate

A Medicare Levy Exemption Certificate will be issued to you separately.

Indexation of Deeming Threshold and Deeming Interest Rate Change

From pension payday T-CLNT-EFFECTIVE-DATE, both the deeming threshold amounts and the deeming interest rates will change.

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 the deemed interest rates are applied to calculate the income.

The new deeming threshold for a single person will be T-SINGLE-THRSH-DEEMED-AMT and for a couple it will be T-MARRIED-THRSH-DEEMED-AMT.  This is the amount of financial assets you can have before the higher deemed interest rates are applied to the assessment of T-PENSION-SP-ISS-AP.

The new deemed income rate of T-INC-DEEMING-INT-RATE% will be applied for amounts up to T-SINGLE-THRSH-DEEMED-AMT (T-MARRIED-THRSH-DEEMED-AMT per couple) and T-INC-DEEMING-HIGH-RATE% for amounts over T-SINGLE-THRSH-DEEMED-AMT (T-MARRIED-THRSH-DEEMED-AMT per couple), and used to work out the amount of income recorded for your financial assets.

If your investments are earning more that the T-INC-DEEMING-INT-RATE% or T-INC-DEEMING-HIGH-RATE% deeming rates, this additional income will not affect the rate of your service pension.

Your Obligations

We have explained your obligations to you in previous letters and 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.

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 set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support Staff on 1300 550 452.  For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

Deputy Commissioner


PAYMENT INFORMATION ATTACHMENT

The Department now calculates T-PENSION-SP-ISS-AP payments on a daily basis.  This means that your fortnightly pension payment is now 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.

Listed below are the payment tables showing the different amounts of pension you will receive on the paydays that are affected, with the final payment table showing your ongoing payment.

PAYMENTS TO XXXXX  XXXXXXX for

Pension Payday 12 JULY 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx

PAYMENTS TO XXXXX  XXXXXXX for

Pension Payday 26 JULY 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xx

This is made up of:

- xxxxxxxxx xxxxxxxxxxxxxxxxx.xx

- xxxxxxxxxxx xxxxxxxxxxxx    x.xx

Followed by the Full Income and Assets Attachment, General Information Sheet

C05/2001 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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DATE OF ISSUE:  22 MAY 2001

EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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

New Exchange Rate A$2.7218

The exchange rate used to convert Pounds Sterling to Australian Dollars for income support assessment purposes has changed from one Pound = A$2.8169 to one Pound Sterling equals A$2.7218 (ie A$1 = 0.3674 Pounds).

This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 11 May 2001.

Date of Effect
15 May 2001

Effective from 15 May 2001 the current exchange rate will change.

On pension payday 31 May 2001 (pay period 77) pensioners will receive a full instalment at the new assessed rate.

Date of Processing run

Processing to implement the new exchange rate is scheduled for the evening of Monday 14 May 2001.

Automatic
Superannuation processing

The amount recorded as BRI non-indexed super type 08 or BRI indexed super type 09 will be varied by applying the exchange rate to the amount recorded, to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 31 May 2001 – ie 15 May 2001.

Advice Letters

The advice letters for this exercise will be joint advices where both members of a couple are in receipt of BRI and their pension payment varies.  Age Pensioners will receive separate advices.

The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.

IBM GSA Implications

IBM GSA will be producing the cartridge and will forward it to Security Mailing in Sydney.

Overseas, Special Register and Enclosure Advices

Overseas, Special Register, Enclosure Advice letters (ie cases where a change to treatment entitlement occurs) and reduction to nil cases will be separated by IBM GSA and despatched to the State Office for manual distribution.  This arrangement is the same for daily advice letters.

Mail out of Bulk Advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by Tuesday 22 May 2001.

British DP case paid Rent Assistance

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

Contact Officer

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

Lucy Berger                Telephone:   (02) 6289 6013

Nasreen Haque           Telephone:   (02) 6289 1125

Kevin Chapman           Telephone:   (02) 6289 6749

(signed)

JEANETTE RICKETTS
Branch Head
Income Support

21 May 2001


POUND STERLING EXCHANGE RATE

Foreign exchange periodExchange rate

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4366

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

12 August 98

0.3663

2.7300

13 August 98

to

9 Sept 98

0.3817

2.6199

10 Sept 98

to

21 October 98

0.3690

2.7100

22 October 98

to

4 Nov 98

0.3505

2.8531

5 Nov 98

to

2 Dec 98

0.3676

2.7203

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

9 August 99

0.4271

2.3414

10 August 99

to

1 Nov 99

0.4105

2.4361

2 Nov 99

to

10 Jan 00

0.3952

2.5304

11 Jan 00

to

6 March 00

0.4069

2.4576

7 March 00

to

1 May 00

0.3927

2.5465

2 May 00

to

29 May 00

0.3807

2.6267

30 May 00

to

10 July 00

0.3907

2.5595

11 July 00

to

16 Oct 00

0.4022

2.4863

17 Oct 00

to

2 April 01

0.3737

2.6759

3 April 01

to

14 May 01

0.3550

2.8169

15 May 01

to

0.3674

2.7218

C04/2001 GENERAL INCREASE TO BRITISH PENSION PAID IN AUSTRALIA

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DATE OF ISSUE:  20 APRIL 2000

GENERAL INCREASE TO BRITISH PENSION PAID IN AUSTRALIA

Advised by:

The British Department of Social Security (BDSS) have advised that British pensions paid in Australia will rise by  3.3%, in line with their Retail Price Index and will come into effect from the payday in the week commencing

9 April 2001.

New Percentage Rate

The National Insurance Benefit will increase by 3.3% in line with their Retail Price Index.

Effective Pay Day

This exercise is a manual process and arrears are to be paid to EATS/Composite cases, so the timetable is at your discretion.  However, the variation should be put into effect on payday  3 May 2001. In service pension rent assistance, age pension cases overpayments should not be raised.

Cases Affected

These changes will affect the EATS/Composite cases and any case where service pension is also in payment.  Age pension (BeB) cases will also be affected.  The new rates should be applied to EATS, Composite, all service pension and age pension cases where British disability pension is in payment.

Rates Charts

A selection of rates converted to $A at both old and new rates are attached.

Manual Examination

There will be no cases processed automatically.  All cases will be listed for manual examination.


Changed Arrangements

Since the introduction of IPS extraction of cases can only be obtained through the AD Hoc Inquires System (AIS). A list of cases has been emailed to all the Income Support Managers and System Support Officers and should provide the information they are after. There have been occasional problems with the AIS results. If for any reason the list provided appears inconsistent with your expectations please contact the Income Support Officers listed below.

Service Pension Cases where British Disability Pension is in Payment

Action schedules of cases requiring manual examination and variation are made up of the following groups.

  • Composite cases (with or without SP)

  • EATS cases (with or without SP)

  • Other overseas pensions (that may be affected)

  • Miscellaneous and joint cases

PIPS/PC

For all cases involving EATS, COMPOSITE or SERVICE PENSION, whether automatic or manual method of assessment, the new rate of pension must be updated via PIPS/PC.

Contact Officers

The Income Support contact officers for this exercise will be:

Lucy Berger      (02) 6289 6013

Nasreen Haque (02) 6289 1125

Kevin Chapman (02) 6289 6749

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT

       April 2001

BRITISH   PENSION

RATES   CHARTS

CURRENT EXCHANGE RATE$A2.75

DISABLED OFFICERS - MALE & FEMALE

pounds yearly

Chart 1 officers

100

6251

90

5626

80

5001

70

4376

60

3751

50

3126

40

2500

30

1875

20

1250

DISABLED OTHER RANKS - MALE & FEMALE

1939 War  Rates

Assessment

pounds /wk

Chart 2 other ranks

100

119.80

90

107.82

80

95.84

70

83.86

60

71.88

50

59.90

40

47.92

30

35.94

20

23.96

Chart 15

SUPPLEMENTARY ALLOWANCES

Officers

Other Ranks

(yearly)

(weekly)

UNEMPLOYABILITY SUPPLEMENT

old rate

new rate

old rate

new rate

Personal allowance

3739

3861

71.65

74.00

Wife or adult dependent

2108

2179

40.40

41.75

1st eligible child

514

506

9.85

9.70

2nd & subsequent child

592

592

11.35

11.35

INVALIDITY ALLOWANCE

old rate

new rate

old rate

new rate

Age qualifying

1. Under 40

741

764

14.20

14.65

Date

2. Over 40,under 50

470

485

9.00

9.30

3. 50 or over

235

243

4.50

4.65

CONSTANT ATTENDANCE ALLOWANCE

old rate

new rate

old rate

new rate

1. Up to half-day attendance

1143

1179

21.90

22.60

2. Full day attendance

     Basic rate

2285

2359

43.80

45.20

     Intermediate

3428

3538

65.70

67.80

     Exceptional

4571

4717

87.60

90.40

COMFORTS ALLOWANCE

old rate

new rate

old rate

new rate

Higher rate

981

1012

18.80

19.40

Lower rate

490

506

9.40

9.70

AGE ALLOWANCE

   When the degree of pensioned

               disablement is

old rate

new rate

old rate

new rate

  a. 40 to 50 per cent

404

417

7.75

8.00

  b. 50 to 70 per cent

624

644

11.95

12.35

  c. 70 to 90 per cent

887

916

17.00

17.55

  d. over 90 per cent

1247

1289

23.90

24.70

WIDOWS PENSION and ALLOWANCES

Charts 8, 9 & 11

OTHER RANKS

Type of Award

Other Ranks

Officers

Class of Award per Week

per year

Widow

WO1

1

2

3

4

5

Higher Rate

90.75

90.75

90.75

90.75

90.75

90.45

Lower Rate

21.75

21.75

27.75

21.75

21.75

21.75

Children of

Widow  1st Child

14.30

746.00

2 nd and sub

15.95

832.00

Total Orphans

1st  Child

16.20

845.00

2 nd and sub

17.85

931.00

infirm 18 +

69.75

3640.00

Age Allowance

Age 65 to 70

10.35

540.00

Age 70 +

19.85

1036.00

Age 80 +

29.55

1542.00

Chart 9 & 11

Other

Officers

M.O.D.

P.W.

P.A.

Special Awards for Widow

whose husband's service

New

58.95

3076.01

ended on or before 31/3/73

WIDOWS CHILDREN, MOTHERLESS & FATHERLESS CHILDREN

Chart 13

Motherless & Fatherless Children

Total Orphan (weekly rate)

child

infirm

allow

under15

15orover

18orover

officers

rate for 1st

14.35

16.20

16.20

67.50

R.N.;R.M.

Child

14.30

16.20

16.20

69.75

officers

rate for 2nd &

15.85

17.70

17.70

67.50

R.N.;R.M.

Subsequent child

15.95

17.85

17.85

69.75

other officer

rate for 1st

14.35

16.20

16.20

67.50

ranks

Child

14.30

16.20

16.20

69.75

other officer

rate for 2nd &

15.85

17.70

17.70

67.50

ranks

Subsequent child

15.95

17.85

17.85

69.75

Chart 9 & 11

MISCELLANEOUS

OTHER

RANKS

OFFICER

RENT ALLOWANCE (MAX)

old

33.10

1727.00

new

34.20

1785.00

WIDOWS' PENSIONS - OFFICERSChart 10

BOTH WARS

ROYAL NAVY

ROYAL

ARMY

R.A.F.

HIGH

MARINE

RATE

Old Rate

New Rate

Major

Sq Ldr

4676

4830

Capt.

Fl Lt

4658

4812

Lieut.

FO

4640

4793

Comm Off

4611

4763

Chart 15

CLOTHING ALLOWANCE

OFFICERS & OTHER RANKS

(yearly)

old rate

new rate

Higher rate

149

154

Lower rate

149

154

CURRENT EXCHANGE RATE

$A2.75

OTHER RANKS - DISABILITY PENSION-EFFECTIVE

17-Apr-01

OLD

NEW

             CLASS

%

RATE

RATE

P.F.

P.F.

V, IV, III, II, I, WO1

20%

127.60

131.78

30%

191.40

197.67

40%

255.20

263.56

50%

319.00

329.45

60%

382.80

395.34

70%

446.60

461.23

80%

510.40

527.12

90%

574.20

593.01

100%

638.00

658.90

OFFICER - DISABILITY PENSION - EFFECTIVE

17-Apr-01

Exchange Rate $A

2.75

RANK

1 Midshipman or Comm Off Navy

  2 Lt. Army

    3 Capt. Army

OLD

NEW

      4 Major Army

RATE

RATE

         5 Lt. Col Army

%

P.F.

P.F.

20%

127.74

131.85

30%

191.55

197.77

40%

255.37

263.70

50%

319.29

329.73

60%

383.10

395.65

70%

446.92

461.58

80%

510.73

527.50

90%

574.65

593.43

100%

638.47

659.35

OFFICERS

SERVICE RETIRED PAY OR SERVICE PENSION - EFFECTIVE

17-Apr-01

   EXCHANGE RATE

$A2.75

OLD

NEW

RATE

RATE

P.F.

P.F.

20%

127.74

131.85

30%

191.55

197.77

40%

255.37

263.70

50%

319.29

329.73

60%

383.10

395.65

70%

446.92

461.58

80%

510.73

527.50

90%

574.65

593.43

100%

638.47

659.35

SUPPLEMENTARY  ALLOWANCES

OFFICERS and OTHER RANKS - DISABLEMENT

EXCHANGE RATE

$A2.75

Effective

17-Apr-01

Effective

17-Apr-01

UNEMPLOYABILITY SUPP.

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

Personal Allowance

394.39

407.26

394.08

407.00

Wife or Adult dependant

222.35

229.84

222.20

229.63

1st eligible child

54.22

53.37

54.18

53.35

2nd & subsequent child

62.44

62.44

62.43

62.43

CONSTANT ATTENDANT

OFFICERS

OTHER RANKS

ALLOWANCE

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

1.Up to half-day attendance

120.56

124.36

120.45

124.30

2.Full day attendance - Basic

241.02

248.83

240.90

248.60

- Intermediate

361.58

373.19

361.35

372.90

- Exceptional

482.15

497.55

481.80

497.20

COMFORTS ALLOWANCE

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

Higher Rate

103.48

106.75

103.40

106.70

Lower Rate

51.68

53.37

51.70

53.35

CLOTHING ALLOWANCE

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.A.

P.A.

P.F.

P.F.

Higher Rate

409.75

423.50

15.72

16.24

Lower Rate

409.75

423.50

15.72

16.24

INVALIDITY ALLOWANCE

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

Age on       )         < 40 yrs

78.16

80.59

78.10

80.58

Qualifying  )         > 40 but < 50 yrs

49.58

51.16

49.50

51.15

Date           )         > 50 yrs

24.79

25.63

24.75

25.58

AGE ALLOWANCE

OFFICERS

OTHER RANKS

When the degree of pensioned

OLD RATE

NEW RATE

OLD RATE

NEW RATE

disablement is :

P.F.

P.F.

P.F.

P.F.

a. 40% to 50% - inclusive

42.61

43.98

42.63

44.00

b. > 50% but not > 70%

65.82

67.93

65.73

67.93

c. > 70% but not > 90%

93.56

96.62

93.50

96.53

d. over 90%

131.53

135.96

131.45

135.85

   MISCELLANEOUS

   EXCHANGE RATE

$A2.75

Effective

17-Apr-01

Effective

17-Apr-01

RENT ALLOWANCE (Maximum)

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

182.16

188.28

182.05

188.10

AGE ALLOWANCE

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

Widows - Age 65 but under 70

55.06

56.96

55.00

56.93

                Age 70 and over

105.69

109.28

105.60

109.18

                Age 80 and over

157.38

162.65

157.30

162.53

DEPENDANTS OF DECEASED MEMBERS

   EXCHANGE RATE

$A2.75

Effective

17-Apr-01

WIDOWS  ** HIGHER RATE **

OLD RATE

NEW RATE

******M.O.D.  Payment Included  ******

P.F.

P.F.

CLASS V

795.64

821.94

IV, III,  II,  I,  WO1

797.29

823.59

Lt Comdr,  Capt,  Major,  Sq Ldr

807.33

833.93

Lt,  Lt,  Capt, Fl Lt

805.43

832.03

Sub Lt,  Lt,  Flying Off   Pilot Off

803.53

830.02

Comms Off

800.48

826.86

WIDOWS  ** M.O.D. PAYMENT **

OLD RATE

NEW RATE

Special award for Widows whose husbands completed service

P.F.

P.F.

on or before 31 March 1973.

314.11

324.46

CHILDREN OF WIDOW OR REMARRIED WIDOW

OLD RATE

NEW RATE

P.F.

P.F.

1st ELIGIBLE CHILD

79.00

78.69

2nd and SUBSEQUENT CHILD

87.23

87.76

   TOTAL ORPHANS and MOTHERLESS CHILDREN

OLD RATE

NEW RATE

P.F.

P.F.

TOTAL ORPHANS   1st CHILD

89.13

89.13

2nd and SUBSEQUENT ORPHANS

97.46

98.20

INFIRM & > 18 -

371.50

383.95

C03/2001 INDEXATION OF BRITISH RETIREMENT INCOME (BRI)

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DATE OF ISSUE:  20 APRIL 2001

INDEXATION OF BRITISH RETIREMENT INCOME (BRI)

INTRODUCTION

1.The British Government has announced that the National Insurance benefit will rise in April 2001 by 3.3% in line with their Retail Price Index.  The pensions effected are listed below and should be recorded on PIPS/PC as superannuation income (Indexed BRI):

  • service pensioners in receipt of British Department of Social Security pension who live in any country other than Australia, Canada, South Africa or New Zealand;

  • service pensioners in receipt of a British Indexed pension i.e. public service, navy, teachers etc., regardless of the country of residence.

EFFECTIVE DATES

Indexation

  1. The date of effect for the 3.3% variation is 17 April 200 to be available on payday 3 May 2001.

The amount, in Pounds Sterling, of income recorded as British Retirement Income Indexed BRI will be multiplied by applying a conversion factor, to find the new rate of superannuation.  The conversion factor is calculated as follows:

The variation percentage

-----------------------------     +  1  =  Conversion factor

     100

The pension amount will then be reassessed accordingly.

The conversion factor for this indexation is 1.033.

AUTOMATIC SUPERANNUATION PROCESSING TIMETABLE

4.This exercise is scheduled for processing on Thursday evening 19 April 2001.

MANUAL CASES AND MS CASES

5.When cases are in frozen status they will be lifted for subsequent manual processing by state office staff.

IBM GSA IMPLICATIONS

6.IBM GSA will be printing the advices and despatching them to the State Offices for manual distribution.  Special Register cases will not have an advice produced, these cases will be listed on the exception report.  A full advice will be generated for any fringe benefit/change of treatment cases.

ADVICE LETTERS

7.An advice will be generated for those cases where a 'variation' in pension payment occurs as a result of the indexation exercise.  A standard one page, 2 sided, advice containing the indexation information and payment information line advising pensioners of their fortnightly payment will be produced.  Where a joint advice is generated both the veteran and partner will each have a payment information line.

8.Before the advices are despatched from your State, a sample check should be carried out to ensure they contain the correct State Office address, signature block, payment information and the pensioner is a recipient of Indexed BRI.

PENSIONERS VISITING OVERSEAS COUNTRIES

9.If a service pensioner in receipt of a British DSS pension is holidaying outside Australia, in any country other than Canada, South Africa or New Zealand, they are eligible for the increase.  The increase will only be paid if the British DSS is aware of the pensioners whereabouts.  On their return to Australia these pensioners should be sent an income review to reassess their pension payment.

10.Service pensioners in receipt of a British Indexed pension will have their British pension increased regardless of the country of residence.  These cases should all be recorded as British Indexed pension.  All such pensions should be reassessed with an effective date of 3 May 2001.

CONTACT OFFICER

11.The Income Support contact officers for this exercise will be:

Lucy BergerTelephone:  (02) 6289 6013(Business Operations &

Support)

Nasreen Haque              Telephone:  (02) 6289 1125               (Business Operation &

Support)

Kevin ChapmanTelephone:  (02) 6289 6749(Systems Delivery)

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT

     April 2001

C02/2001 EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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DATE OF ISSUE:  27 MARCH 2001

EXCHANGE RATE VARIATION OF POUNDS STERLING - EFFECT ON INCOME SUPPORT PENSIONERS IN RECEIPT OF BRITISH RETIREMENT INCOME (BRI)

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

New Exchange Rate A$2.8169

The exchange rate used to convert Pounds Sterling to Australian Dollars for income support assessment purposes has changed from one Pound = A$2.6759 to one Pound Sterling equals A$2.8169 (ie A$1 = 0.3550 Pounds).

This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 16 March 2001.

Date of Effect
3 April 2001

Effective from 3 April 2001 the current exchange rate will change.

On pension payday 19 April 2001 (pay period 74) pensioners will receive a full instalment at the new assessed rate.

Date of Processing run

Processing to implement the new exchange rate is scheduled for the evening of Monday 2 April 2001.

Automatic
Superannuation processing

The amount recorded as BRI non-indexed super type 08 or BRI indexed super type 09 will be varied by applying the exchange rate to the amount recorded, to find the new rate of superannuation.  The pension amount will then be reassessed accordingly.

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 19 April 2001 – ie 3 April 2001.

Advice Letters

The advice letters for this exercise will be joint advices where both members of a couple are in receipt of BRI and their pension payment varies.  Age Pensioners will receive separate advices.

The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.

IBM GSA Implications

IBM GSA will be producing the cartridge and will forward it to Security Mailing in Sydney.

Overseas, Special Register and Enclosure Advices

Overseas, Special Register and Enclosure Advice letters (ie cases where a change to treatment entitlement occurs) and reduction to nil cases will be separated by IBM GSA and despatched to the State Office for manual distribution.  This arrangement is the same for daily advice letters.

Mail out of Bulk Advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by Tuesday 10 April 2001.

British DP case paid Rent Assistance

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

Contact Officer

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

Lucy Berger                Telephone:   (02) 6289 6013

Nasreen Haque           Telephone:   (02) 6289 1125

Kevin Chapman           Telephone:   (02) 6289 6749

JEANETTE RICKETTS
Branch Head
Income Support

     March 2001

POUND STERLING EXCHANGE RATE

Foreign exchange periodExchange rate

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4366

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

12 August 98

0.3663

2.7300

13 August 98

to

9 Sept 98

0.3817

2.6199

10 Sept 98

to

21 October 98

0.3690

2.7100

22 October 98

to

4 Nov 98

0.3505

2.8531

5 Nov 98

to

2 Dec 98

0.3676

2.7203

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

9 August 99

0.4271

2.3414

10 August 99

to

1 Nov 99

0.4105

2.4361

2 Nov 99

to

10 Jan 00

0.3952

2.5304

11 Jan 00

to

6 March 00

0.4069

2.4576

7 March 00

to

1 May 00

0.3927

2.5465

2 May 00

to

29 May 00

0.3807

2.6267

30 May 00

to

10 July 00

0.3907

2.5595

11 July 00

to

16 Oct 00

0.4022

2.4863

17 Oct 00

to

2 April 01

0.3737

2.6759

3 April 01

to

0.3550

2.8169

C01/2001 MARCH 2001 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

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DATE OF ISSUE:  16 MARCH 2001

MARCH 2001 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

Purpose of Instruction

This Departmental Instruction is to provide information about processing arrangements for the March 2001 global refresh advice letter mailout.

JEANETTE RICKETTS

BRANCH HEAD

INCOME SUPPORT

Overview

Introduction

In March we do not send advice letters to all pensioners whose pensions are adjusted because of the CPI increase that applies for 20 March 2001.  Advice on these increases is contained in the latest edition of VetAffairs (distribution commences on 26 March 2001 - 6 April 2001).  However, letters will be sent to pensioners affected by the events set out in the following paragraph.

Significant Issues

The March 2001 Quarterly mailout will incorporate the following events for payday 5 April 2001 (WEF 20 March 2001):

  • The asset value of managed investment and share data will be reassessed
  • Treatment changes as a result of the reassessment.

Letter Content

Advice Letter Target Audience

A letter will be produced only for those clients who have Managed Investments (MIs) and/or Shares (SHs) in their assessment and who meet the following:

  • All less than maximum rate service pensioners (SP), income support supplement recipients (ISS) and age pensioners (AP)
  • Max rate SP/ISS/AP who move to less than max rate as a result of the reassessment
  • Less than max rate SP/ISS/AP who move to max rate as a result of the reassessment
  • Reduction to nil cases as a result of the reassessment
  • Treatment changes as a result of the reassessment

Adjustment arrangements  explanation paragraph - 'Payment Adjustment'

A 'new' paragraph has been included in the advices for the March 2001 processing run.  This paragraph is to explain the adjustment arrangements in place to cater for the advance paid in July 2000 and the balance to be paid in March 2001.

Continuation Cases

Cases where the 'old rate' resulting from the Statutory Increase processing and the 'new rate' resulting from MI/SH refresh end up being the same amount after the reassessment will not have an advice produced.

Obligations suppressed

Obligations are to be suppressed for all letters produced.  Reference will be made to previous obligations issued to clients.  The reference to obligations in particular, the reference from 21 days to 14 days, did raise some comments from State Office Staff who felt that there should be no obligations paragraph in this mailout, while another comment was to have the obligations paragraph bolded.  It was decided to retain the reference to obligations for this mailout and further discuss the options available at the next Pensioner Initiated Review (PIR) Reduction Working Group.

$1 Minimum Variation Rules

The $1min rules will be applied to all less than max rate SP and ISS variation cases ie., an increase or reduction must be equal to or greater than a $1 amount to receive an advice.

$1min rules do not apply to Age Pensioners.

Arrears

The Disability Pension (DP) increase is effective from 20 March 2001 for payday 22 March 2001.  DP clients will receive a full payment at the new rate on payday 5 April 2001.  DP arrears for payday 22 March 2001 will be paid on or about 28 March 2001.

Treatment Problems

As is the procedure for quarterly processing all Special Register, Overseas and Enclosure (treatment) advice letters will be printed by IBM in Melbourne and sent via courier to each State Office.  We always request that these be checked for accuracy, and reconciled against the reports received by each State Office.

There is a known problem with 'treatment entitlement' which will require you to check all enclosure advices.  You will need to check the client's treatment entitlement to ensure they have received the correct treatment card information in their advice.

General Information Sheet

Each letter will contain a General Information Sheet (GIS).  This will act as the consistent last page for gatemarking purposes at the mailing house.  The GIS provides details of new rates and threshold information.

Single & Joint Letters

All Service Pensioners and Income Support Supplement recipient couples will receive a joint letter, provided the pensioner addresses are identical.

Age Pensioner couples will receive separate letters.

Production of Advice Letters

Processing

Processing is scheduled to run from Thursday evening 22 March until Monday evening 26 March 2001.

Critical Dates

Processing Weekend within DVA (includes 'advices' processing)

Thursday (pm), 22 — nd March 2001 - Monday (pm), 26 — th March 2001

Dispatch Production Data to SMS

Tuesday, 27 — th March 2001

Commence Printing Advice Letters

Wednesday, 28 — th March 2001

End Printing Advice Letters

Thursday, 29 — th March 2001

Lodgement of Advice Letters with Australia Post

Friday, 30 — th March 2001

Client Numbers

The following is a summary of client numbers in each State.  The numbers are approximates only:

STATE

NO. OF LETTERS

(Approx Only)

New South Wales

6,071

Victoria

4,730

Queensland

3,618

Western Australia

1,678

South Australia

1,758

Tasmania

550

TOTAL

18,405

Printing of Letters

Security Mailing Services (SMS) Sydney, will print and envelop advice letters in the week from Tuesday 27 March thru to Friday 30 March 2001.

Lodgement of Letters

All letters will be lodged with Australia Post on Friday 30 March 2001.  A representative from National Office will notify details of lodgement for each State as they occur.

The State Office Contacts for this exercise will be given progress reports and advised of any changes to this timetable.

Issues Requiring State Office Action

Special Register, Overseas & Enclosures

Special Register, Overseas and Enclosure advice letters will be printed by IBM in Melbourne and sent via courier to each State Office.  These should be checked for accuracy, and reconciled against the reports received by each State Office.  This arrangement is the same as for daily advice letters.

Each State Office will receive a report detailing the advice letters produced in each of these categories.  We will advise SSOs in each State when to expect delivery of these letters, and it is essential that Systems Delivery is notified if they do not arrive.  It is also necessary to advise Carol Walsh, Systems Delivery on (02) 6289 6729 if the delivered letters do not exactly match the reports.

Please note the reference to the section on 'Treatment Problems' mentioned earlier in this Departmental Instruction.  We request that all enclosure advices be checked for accuracy.

Reprints of selected letters

Any requests for reprints of individual Quarterly Advice letters should be referred to System Support Offices to organise a reprint.

'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 IBM in Melbourne and will be delivered to each State Office.  Advice of when you should expect to receive your forced held advices will be given prior to their delivery.  These advices will need to be checked to ensure the information in them is correct prior to posting.

Holding of daily advice letters

Daily payment advice letters produced after the processing run of 22 -26 March 2001 may be sent to clients who do not have MIs and/or SHs in their assessment and therefore have not been updated as part of the Global Refresh.

However, payment advice letters produced for clients who have MIs and/or SHs in their assessment must be withheld pending notification that the quarterly letters have been dispatched.  This will ensure that pensioner's receive their advice letters in chronological order.

Cases with arrears will continue to have their arrears paid to them 2 working days after processing.

$FORT run - 19 March 2001

$FORT has been scheduled to run on Monday night 19 March 2001.  Advices from this run should be sent straight away.

National Office Contacts

Feedback from State Offices

Any concerns regarding letters produced as part of this run should be directed to the National Office Contact Officer, Pat Webb.  At the end of this process we will be collating all State feedback to analyse issues raised and develop solutions to address any concerns raised.  Any problems noted should be reported to the National Office Contact Officer with the nature of the query and the file number of the client.  Please ensure that problems are reported as early as possible.

Contacts

There will be one National Office contact for this mailout.  Any queries regarding advice wording, data cartridges, mail house printing and letters lodgement should be referred to:

Pat Webb

(02) 6289 6444 (Phone)

(02) 6289 6553 (Fax)

Systems issues should be directed to:

Carol Walsh on (02) 6289 6729

Letter Mockups

Letters

Prior to the issue of this Departmental Instruction, System Support Officers and Manager's Income Support were provided with copies of the proposed paragraph sequencing and mock-ups of advice letters for this run.

A number of recommendations were received and have been taken into consideration for the final version of paragraphs and sequencing.  An email has been forwarded to the March SI State Contact Officers advising of the changes in respect of all comments received.

Copies of the amended advice letters for this run are at Attachments A, B and C of this DI.

Attachment A – Paragraph sequencing

Attachment B – Advice Letter Examples

Example 1: Less than Maximum Rate, Married, Increase, MI/SH in Assessment, Full Income & Asset Listing

Example 2: Increase to Maximum Rate, MI/SH in Assessment, Full Income & Asset Listing

Example 3: Decrease as a result MI/SH reassessment, Full Income & Asset Listing

Example 4: Age Pension increase, Disability Pension in payment, MI/SH in Assessment, Full Income & Asset Listing

Example 5: Reduction to Nil as a result of MI/SH reassessment, Full Income & Asset Listing.

Attachment C – Example General Information Sheet

Letter Variables

Please note, in the following samples:

  • Letterhead, DC name and signature block will change according to State;
  • The words “service pension”, “age pension”, “income support supplement” each represent variables which will appear for those clients in receipt of the applicable pension.
  • State specific 'closing' paragraphs with the preferred contact telephone number for Income Support related issues have been introduced for this mailout.


ATTACHMENT A

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

Note: Advices will only be produced for clients with Shares and/or Managed Investments in their assessment.

Paragraph

To Whom

State specific letterhead

All

Opening

All

Reduction to Nil para

Reduction to Nil cases

Payment Adjustment (explaining adjustment arrangements)

All (not Reduction to Nil cases)

Payment Details and payment box

All

Payment Diversion Table

All

Arrears

Cases with DP in their assessment.

“You have been increased to the maximum rate of pension”

All increase to max rate cases

Change to value of shares and managed investments/payment adjustment explanation

Reduction to Nil cases.

Fringe Benefits

Reduction to Nil cases

Your Right to Re-Apply

Reduction to Nil cases

Treatment On/Off

Any cases where a change in treatment eligibility is detected

Your Obligations (reference to previous)

All (not Reduction to Nil cases)

Changes You Have Already Told Us About

All

Your Right of Review

All

State specific closing paragraph and Signature

All

Full Income/Assets Listing

All

General Information Sheet

All


ATTACHMENT B

EXAMPLE 1: Less than Max Rate, Married, Increase, MI/SH in assessment, Full Income and Asset Listing.

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs

Pension Adjustment

The maximum rate of pension has been increased by 2% with effect from 20 March 2001.  This 2% increase is in addition to a 2% advance paid to you in July 2000.  The combined effect delivers the full 4% March CPI adjustment.

Additionally in March and September of each year the asset values of your listed shares and/or unit based managed investments are reassessed.  The new rate of pension and the adjusted value of these investments have been used to work out your T-PENSION-SP-ISS-AP payment.


Payment Information

Please refer to the following table to see the breakdown of your payment.

Payments to XXXXXX and XXXXX for Pension Payday 5 APRIL 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx   xxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx    x.xx   x.xx

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

T-PAYDIVER-DATE

T-PAYDIV-PAYEE

T-PAYDIV-PAYDEST

T-PAYDIV-AMOUNT

Your Obligations

We have explained your obligations to you in previous letters and these obligations still apply.

Note that the notification period for changes to circumstances that may affect your pension has changed from 21 days to within 14 days (28 days if you are living overseas or receiving remote area allowance).

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.

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 for a review, you must do so within the next three months.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support staff on 07 3233 8599 (Metropolitan Residents only). For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Full Income and Asset Listing

ATTACHMENT

General Information Sheet


EXAMPLE 2:  Increase to Maximum Rate, MI/SH in assessment, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact:  STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Pension Adjustment

The maximum rate of pension has been increased by 2% with effect from 20 March 2001.  This 2% increase is in addition to a 2% advance paid to you in July 2000.  The combined effect delivers the full 4% March CPI adjustment.

Additionally in March and September of each year the asset values of your listed shares and/or unit based managed investments are reassessed.  The new rate of pension and the adjusted value of these investments have been used to work out your T-PENSION-SP-ISS-AP payment.


Payment Information

Please refer to the following table to see the breakdown of your payment.

Payments to XXXXXX and XXXXX for Pension Payday 5 APRIL 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx   xxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx    x.xx   x.xx

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

T-PAYDIVER-DATE

T-PAYDIV-PAYEE

T-PAYDIV-PAYDEST

T-PAYDIV-AMOUNT

You have been increased to the maximum rate of T-PENSION-SP-ISS-AP

Your Obligations

We have explained your obligations to you in previous letters and these obligations still apply.

Note that the notification period for changes to circumstances that may affect your pension has changed from 21 days to within 14 days (28 days if you are living overseas or receiving remote area allowance).

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.

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 for a review, you must do so within the next three months.  Such a request for review must be in writing, and must set out your reasons for seeking this review.


If you have any questions about matters concerning Income Support issues you should contact our Income Support staff on 07 3233 8599 (Metropolitan Residents only). For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Full Income and Asset Listing

ATTACHMENT

General Information Sheet


EXAMPLE 3:  Decrease as a result of reassessment of MI/SH, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Pension Adjustment

The maximum rate of pension has been increased by 2% with effect from 20 March 2001.  This 2% increase is in addition to a 2% advance paid to you in July 2000.  The combined effect delivers the full 4% March CPI adjustment.

Additionally in March and September of each year the asset values of your listed shares and/or unit based managed investments are reassessed.  The new rate of pension and the adjusted value of these investments have been used to work out your T-PENSION-SP-ISS-AP payment.

Payment Information

Please refer to the following table to see the breakdown of your payment.


Payments to XXXXXX and XXXXX for Pension Payday 5 APRIL 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx   xxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx    x.xx   x.xx

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

T-PAYDIVER-DATE

T-PAYDIV-PAYEE

T-PAYDIV-PAYDEST

T-PAYDIV-AMOUNT

Your Obligations

We have explained your obligations to you in previous letters and these obligations still apply.

Note that the notification period for changes to circumstances that may affect your pension has changed from 21 days to within 14 days (28 days if you are living overseas or receiving remote area allowance).

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.

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 for a review, you must do so within the next three months.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support staff on 07 3233 8599 (Metropolitan Residents only). For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Full Income and Asset Listing

ATTACHMENT

General Information Sheet


EXAMPLE 4:  Age Pension Increase, Disability Pension in payment, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact:  STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Pension Adjustment

The maximum rate of pension has been increased by 2% with effect from 20 March 2001.  This 2% increase is in addition to a 2% advance paid to you in July 2000.  The combined effect delivers the full 4% March CPI adjustment.

Additionally in March and September of each year the asset values of your listed shares and/or unit based managed investments are reassessed.  The new rate of pension and the adjusted value of these investments have been used to work out your T-PENSION-SP-ISS-AP payment.

Payment Information

Please refer to the following table to see the breakdown of your payment.


Payments to XXXXX for Pension Payday 5 APRIL 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xx

This is made up of:

- xxxxxxxxx   xxxxxxxxxxxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx    x.xx

The following table shows where your pension payments are going.

Date

Name

Payment Destination

Amount Deposited

T-PAYDIVER-DATE

T-PAYDIV-PAYEE

T-PAYDIV-PAYDEST

T-PAYDIV-AMOUNT

Payment of Arrears

Arrears will be paid to the following destination(s).  Please allow 2 working days for the arrears to be available.

Date

Name

Payment Destination

Amount

26/03/01

XX XXXXXX

CBA 123456

$XX.XX

Your Obligations

We have explained your obligations to you in previous letters and these obligations still apply.

Note that the notification period for changes to circumstances that may affect your pension has changed from 21 days to within 14 days (28 days if you are living overseas or receiving remote area allowance).

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.

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 for a review, you must do so within the next three months.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support staff on 07 3233 8599 (Metropolitan Residents only). For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Full Income and Asset Listing

ATTACHMENT

General Information Sheet

EXAMPLE 5:  Reduction to Nil, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact:  STATE OFFICE

Telephone:

AMP Place

10 Eagle Street

Brisbane Qld 4000

Postal Address:

GPO Box 651 Brisbane Qld 4001

Telephone:

Metropolitan Residents: (07) 32238333

Country Residents: 1800 113304

Interstate Residents: 1800 777634

Facsimile: (07) 32238585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUMBER

T-ADVICE-SALUTATION,

I am writing to you about your T-PENSION-SP-ISS-AP payment from Veterans' Affairs.

Your T-PENSION-SP-ISS-AP has been reduced to nil because your income and/or assets exceed the limits that allow for payment of the pension.

Payment Information

Please refer to the following table to see the breakdown of your payment.

PAYMENTS TO XXXXXX and XXXXX for Pension Payday 5 APRIL 2001

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx   xxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx    x.xx   x.xx


Change to the value of shares and managed investments

The asset value of your listed shares and/or unit based managed investments has been reassessed.  The adjusted value of these investments has been used to work out your T-PENSION-SP-ISS-AP payment and has resulted in your T-PENSION-SP-ISS-AP being reduced to nil.  Details of your investments are listed in this advice.

The maximum rate of pension has been increased by 2% with effect from 20 March 2001.  This 2% increase is in addition to a 2% advance paid to you in July 2000.  The combined effect delivers the full 4% March CPI adjustment.

Fringe Benefits

As you are no longer eligible for a T-PENSION-SP-ISS-AP you no longer qualify for fringe benefits from this Department.  Please destroy your existing Pensioner Concession Card.

Your Right to Re-Apply

You may re-apply to have your T-PENSION-SP-ISS-AP restored at any time if your income and/or assets fall below the limits that would allow for payment of the pension.

Changes You Have Already Told Us About

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.

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 for a review, you must do so within the next three months.  Such a request for review must be in writing, and must set out your reasons for seeking this review.

If you have any questions about matters concerning Income Support issues you should contact our Income Support staff on 07 3233 8599 (Metropolitan Residents only). For any other enquiries please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth 5 absolute

Gary Collins

ATTACHMENT

Full Income and Asset Listing

ATTACHMENT

General Information Sheet


ATTACHMENT C

This is an example only of the General Information Sheet (GIS) for Service Pensioners that will be used in the March mailout.  There is a separate GIS for both Income Support Supplement recipients and Age Pensioners.  PLEASE NOTE: the rates reflected in this document do not necessarily represent the 'new' rates - the amended rates were not available at the time of preparing this document.

GENERAL INFORMATION ON SERVICE PENSION RATES AND LIMITS

(Information current as at T-ADVICE-PRINT-DATE )

MAXIMUM RATES OF SERVICE PENSION (excludes pharmaceutical allowance)

Singles Rate$402.00 (per fortnight)

Couples Rate (each)$335.50 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$106.00$1,125.50

Couples Rate (combined)$188.00$1,880.00

These limits may increase for each dependent child or student up to the age of T-CHILD-AGE, or if rent assistance is payable.

PENSION ASSETS LIMIT

Before Service Pension ReducesCut Off*

Home Owner

Singles Rate$133,250$269,250

Couples Rate (combined)$189,500$415,500

Non Home Owner

Singles Rate$228,750$364,750

Couples Rate (combined)$285,000$511,000

These limits may increase for each dependent child or student up to the age of T-CHILD-AGE, or if rent assistance is payable.

NOTE: *Income and assets cut off limits apply to all service pensioners except blinded service pensioners.

GOLD CARD INFORMATION

GOLD CARD INCOME CUT OFF LIMIT FOR VETERANS UNDER70 YEARS

Singles Rate$311.50 (per fortnight)

Couples Rate (combined)$543.00 (per fortnight)

Add $67.10 per fortnight for each dependent child or student to the age of T-CHILD-AGE.

GOLD CARD ASSETS CUT OFF LIMIT FOR VETERANS UNDER 70

Home Owner

Singles Rate$160,750

Couples Rate (combined)$237,000

Non Home Owner

Singles Rate$256,250

Couples Rate (combined)$332,500

Add approximately $5,750 for each dependent child or student up to the age of T-CHILD-AGE.

NOTE 1: These income and asset limits apply to the Gold Card only.  Different income and asset limits apply to the pension.  These limits can be found at the top of the page.

NOTE 2: If you are a World War 2 veteran or mariner aged 70 years or over, who served in Australia's Defence Forces or Australia's Merchant Navy between 3 September 1939 and 29 October 1945, and have qualifying service from that conflict, the above Gold Card income and asset cut off limits do not apply to you as your Gold Card is not affected by your income and assets.

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:

Singles

Low Rate:- 3.5% interest up to the threshold of $31,600

High Rate:- 5.5% interest for the remaining balance

Couples

Low Rate:- 3.5% interest up to the threshold of $52,600

High Rate:- 5.5% interest for the remaining balance

ILLNESS SEPARATED COUPLES

Couples separated due to ill health are paid at 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.  The amount of rent assistance you receive 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.

When calculating the amount of rent assistance payable to a service pension recipient, any disability pension received by that person or their partner, is counted as income and may reduce the rate of rent assistance payable.

Maximum Amount of Rent Assistance Payable (per fortnight)

No children1-2 children3 or more

children

Singles Rate$88.00$102.80$116.60

Couples Rate

(combined)$82.80$102.80$116.60

Rent Limits (per fortnight)

No children1-2 children3 or more

children

Singles Rate$78.00$102.60$102.60

Couples Rate

(combined)$127.00$151.80$151.80


Source URL (modified on 13/10/2014 - 10:46am): https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/2001

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