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C33/2000 PROPERTY VALUATION EXERCISE - 2000/2001 FINANCIAL YEAR

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DATE OF ISSUE:  14 DECEMBER 2000

PROPERTY VALUATION EXERCISE – 2000/2001 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 26 November 2000.  The data containing information on the automatic review was forwarded to the AVO on 30 November 2000.  Excel spreadsheets for automatic and manual cases have been provided to the State Offices.

Number of cases extracted

The number of Manual cases is approximately half the total number that has been extracted in previous years.  This is the first year that this data has been extracted from AIS 2000.

The AIS queries have been tested and no flaws have been discovered. However, a drop of this magnitude cannot be explained.  Any comments from state offices would be appreciated.

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

State

Auto

Manual

NSW

743

187

VIC

779

104

QLD

618

77

SA

165

37

WA

162

45

TAS

185

21

Total

2652

471

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 asset limit and have property, business, farm or sublet portion of their home.

Note – Bring Em Back pensioners were included in this year's data extraction.

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 (21 November 1999).
  • 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 2000 to April 2001.  The AVO will update the valuation information and forward the updated information to DVA by the end of April 2001.

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 2001.

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 2001 (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 26 November 2000 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 [3].

Contact Officer

The contact officer for this exercise is Lucy Berger (02) 6289 6013, Business Operations and Support Section, Income Support Branch.

JEANETTE RICKETTS

Branch Head

Income Support

     December 2000

C32/2000 Veterans' Children Education Scheme - New eligibility under VEA sub-section 116(1)(e)

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DATE OF ISSUE:  14 DECEMBER 2000

Veterans' Children Education Scheme - New eligibility under VEA sub-section 116(1)(e)

Purpose

The purpose of this Instruction is to provide guidance on determining eligibility under VEA sub-section 116(1)(e).

Background

The 1999-2000 Health Study of Australia's Vietnam veteran community found that the children of Vietnam veterans suffered from a suicide rate that was higher than the Australian community standard.  In the 2000 Budget, the Government announced a range of initiatives in response to this and other findings from the study.

One of these initiatives was the extension of VCES eligibility to Vietnam veterans' children who are diagnosed with a depressive disorder or who are regarded as vulnerable.  There is a correlation between higher educational achievement and a lower suicide rate.  Access to the VCES and the support available through the guidance and counselling it provides will hopefully encourage these children to achieve their full educational potential.

Start date

The effective date of this new eligibility is 1 January 2001.

VCES eligibility - new
category

A new sub-section 116(1)(e) has been added to the Veterans' Entitlements Act 1986.    This sub-section provides that a person who is a member of a class of persons as determined by the Repatriation Commission is an eligible child for the purposes of VCES eligibility.

Determination

The Commission has issued a Determination (Instrument No. 27/2000) which specifies that for the purposes of VEA 116(1)(e), an eligible child is a person:

  1. Who is a child; and
  2. Who is or has been a child of a veteran with Vietnam service; and:
  3. Who either:
  1. Is diagnosed by an appropriately qualified professional as having a depressive disorder, or
  2. In the opinion of an appropriately qualified professional is vulnerable.

Delegation

New delegations are being extended, as nominated by the states, for decisions on eligibility under VEA sub-section 116(1)(e).  The VCES secretaries do not have this delegation.  However they may assist in gathering the necessary information and evidence for the delegate.

Limit of delegation

The delegates for sub-section 116(1)(e) can only determine whether or not an applicant is an eligible child.  Once that has been done, the VCES secretary further assesses the application and exercises their delegations under the VCES.

All VCES requirements must be met

An applicant who has been determined to be an eligible child under VEA sub-section 116(1)(e) will not be eligible to receive VCES benefits unless they meet all the requirements of the Scheme.

For example, a child who has been determined to be an eligible child but is not in full-time education is not eligible for benefits.

Meaning of terms used in the Determination

Child

For the purposes of the Determination, a “child”:

  • is a person who meets the definition of “child” in VEA sub-section 5F(1); and
  • is a person who meets the definition of “child of a veteran or other person” in VEA section 10.

Child – not the natural child of the veteran

Children who are not the natural or adopted children of the veteran are also included.  For example step children, foster children, grandchildren or any other children who are wholly or substantially dependent on the veteran or were so at the time of the veteran's death.

Wholly or substantially dependent

DI C45/97 [5] gives guidance on how to assess relationships between a claimant and a veteran including a child who was wholly or substantially supported by the veteran.  Even though the reference is to a deceased veteran, the principle remains the same.  It states:

“If the child's address is given as the same address where the veteran resides or resided prior to death, the claims assessor can assume with reasonable safety that the child was wholly or substantially dependent upon the veteran for the purposes of the Act.

If the child's address is given as a different address, and there is no evidence on file indicating that the child was wholly or substantially dependent on the veteran, the claims assessor will need to contact the child's guardian or agent to ascertain the nature of the child's relationship with the veteran.  Any information obtained should be recorded in the form of a record of conversation or file note.”

In cases where the veteran is alive, a useful indicator of dependence can be where the veteran or his wife receive (or would receive but for means testing) family payments on behalf of the child.

Former child

In regard to a former child:

  • The child must, at some stage, have met the criteria of 'Child' as described above;
  • There is no specified minimum length of time that the child must have lived with the veteran - it may have been many years or just a few months;
  • The time may have been many years ago or it may have been more recent. 

However:

  • Eligibility will require that at least some of the time spent living with the veteran was after his first Vietnam service; and
  • The time must have been spent living with the veteran.  For example, a stepchild who never actually lived with the veteran cannot be eligible.

Veteran with Vietnam service

A  veteran with Vietnam service :

  • is a “veteran” as defined in paragraph (a) of the definition of veteran in subsection 5C (1) of the VEA; and
  • who has operational service, as described in section 6C, 6E or 6F of the VEA; and
  • whose service was rendered in Vietnam.

Appropriately qualified professional

An appropriately qualified professional is a person who is:

  1. a medical practitioner (general practitioner or specialist – including a psychiatrist); or
  2. a psychologist who has full registration as a psychologist in the state or territory in which they practice; or
  3. a social worker who has completed a 4 year recognised degree and has eligibility for membership of the Australian Association of Social Workers.

Information provided by an appropriately qualified professional

Professional assessment form

A new form D2639 (VCES Eligibility – Professional Assessment) has been developed.  The purpose of this form is to enable the appropriately qualified professional to provide information for use in determining VCES eligibility.

The professional fills out and returns only the bottom tear-off section.  This tear-off section simply states that the applicant does or does not meet the criteria set out by the Commission (that is, suffers from a diagnosed depressive disorder or is considered vulnerable).

Form D2639 is to be mailed/faxed directly to the qualified professional who is to return the tear off section in the same manner.  Under no circumstances is this form to be taken or returned by the applicant.

If there is no 'appropriately qualified professional'

In most cases, the applicant will already be, or have been, under the care of an appropriately qualified professional.  If not, an appointment will have to be arranged for them through the Vietnam Veterans' Counselling Service (VVCS).  The first point of contact is one of the following:

Name

Position

Phone

Wes Kilham

National Director VVCS

(02) 6289 6397

Russell McCashney

National Clinical Director VVCS

(02) 6289 6794

who will advise details of the closest VVCS psychologist.  An appointment is then to be arranged for the applicant.

Privacy

No detail of the condition or of the reason for vulnerability is sought. Under the Privacy Act 1988, only the information needed for a particular purpose may be sought.  The purpose here is for assessing eligibility only.  DVA will not be providing 'treatment' of the condition.  Therefore, apart from knowing that the child meets the eligibility criteria, we do not need any further information.

Authority to seek and release information

Forms D2697 and D2566 (Applications for VCES benefits) have been amended to include an authority for DVA to seek and obtain medical information in connection with their claim.  The page containing this authority is to be photocopied and sent to the appropriately qualified professional together with the Professional Assessment form (D2639).

Other

Costs

There is no provision for reimbursement of costs associated with an application for VCES benefits:

  • it is not expected that the “appropriately qualified professional” will charge for providing the information on the professional assessment; and
  • there will be no charge made by the VVCS psychologist.

However, any cost associated with travelling to an appointment with the VVCS psychologist will have to be borne by the applicant as there is no legislative provision for reimbursement.

Contacts for further information

National office contacts for further information on any aspect of this new VCES eligibility are:

Name

Position

Phone

John Douglas

Director, Policy Eligibility and Research

(02) 6289 6485

Marie Leach

National VCES Coordinator

(02) 6289 6046

Queries from appropriately qualified professionals should to be directed to:

Freecall number 1800 026 185

This number is also listed on the Professional Assessment form.

W R MAXWELL

DIVISION HEAD

COMPENSATION AND SUPPORT

C31/2000 2001 ISSUE OF PENSIONER CONCESSION CARDS (PCCs)

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DATE OF ISSUE:  11 DECEMBER 2000

2001 ISSUE OF PENSIONER CONCESSION CARDS (PCCs)

Purpose of Instruction

To provide information in relation to the manual issuing of PCCs.

Provision of PCC concessions

The PCCs issued by DVA are purely an indicator to each relevant State Government/authority that the cardholder is receiving Income Support from DVA.  It is up to that relevant state authority to determine what concessions are available to these pensioners.  The concessions available may vary from state to state, however most states have reciprocal arrangements for concessions such as travel. In the event of pensioners travelling interstate for a holiday etc, the pensioners should confirm what reciprocal arrangements are in place prior to their departure.    DVA has no responsibility or authority to challenge any state authority that may not offer concessions to visiting pensioners from other states.

Requests for additional PCCs

DVA pensioners are only issued with one PCC for the state in which they permanently reside.  Pensioners may be issued with a PCC for a different state only if the pensioner:

  • has changed his/her permanent residence to that state; or
  • can prove they are in the process of changing their permanent address.

Temporary cards to cater for pensioners on holidays or short-term visits interstate should not be issued.

This issue has been discussed with Department of Family and Community Services and is in-line with their procedures.

Contact officers

Any comments regarding this issue should be directed to:

Robert Krajina                                         David Hollaway

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

JEANETTE RICKETTS

A/G BRANCH HEAD

INCOME SUPPORT BRANCH

     December 2000

C30/2000 VETERANS' CHILDREN EDUCATION SCHEME (VCES) RATES OF EDUCATION ALLOWANCE EFFECTIVE FROM 1 JANUARY 2001

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DATE OF ISSUE:  17 November 2000

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

The purpose of this instruction is to advise the rates of education allowance for VCES in 2001.

Attachment A sets out the increased rates of education allowance.  These rates are effective on and from the first payday in January 2001.

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 Marie Leach, Disability Compensation Branch, National Office on (02) 6289 6046.

W R MAXWELL

Division Head

Compensation and Support

   November 2000

Attachment A

VETERANS' CHILDREN EDUCATION SCHEME

EDUCATION ALLOWANCES EFFECTIVE 1 JANUARY 2001

Primary Students

The annual education allowance for primary students is $174.80

Secondary/Tertiary Students (fortnightly rates)

Students

At Home

$

Living Away from Home  $

Homeless

$

Under 16 years

36.00

191.74

290.10

16 – 17 years

158.80

290.10

290.10

18 years and over

190.90

290.10

290.10

Secondary/Tertiary Double Orphans (fortnightly rates)

Double Orphans

$

Under 16

158.20

16 - 20 years

290.10

21 years and over

352.30

Attachment B

Age/Education Level

Method of Indexation / Increase

Primary students

indexed annually in line with CPI for the twelve months to June 1999  (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 twelve months to June 1999  (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 [8] for origin of and need for “frozen” rates)

C29/2000 EXCHANGE RATE ADJUSTMENTS TO BRITISH DISABILITY PENSIONS (EATS & COMPOSITE) PAID IN AUSTRALIA

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DATE OF ISSUE:  14 November 2000

EXCHANGE RATE ADJUSTMENTS TO BRITISH DISABILITY PENSIONS (EATS & COMPOSITE) PAID IN AUSTRALIA

Replaced by DI No.

[10]C — 15/20 — 1 — 1

Advised by:

Advice has been received from the British Department of Social Security (BDSS) to the effect that the exchange rate to be used for payment of the British component of Disability Pensions (EATS and COMPOSITE) in Australia has been reviewed.

New Exchange Rate

$A2.75.  The previous rate was $A2.57 to one Pound Sterling.

(British pension rates charts are at Attachment)

Rate Effective From

Date of effect 16 November 2000.

Cases Affected

The variation applies to the EATS and Composite cases.

Hong Kong

Hong Kong cases are not affected by the exchange rate adjustment to British Disability Pensions.  Disability Compensation Branch in National Office is still reviewing the procedures that apply to Hong Kong pensions including calculating the Hong Kong exchange rate. Until  a new method is agreed, for further information on this subject please contact Perry Phillips on 02 6289 6483.

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.

Service Pension Cases

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 (which may be affected)

Cases with Service Pension and/or an Australian DP component to be processed via PIPS/PC

Client Data Base (CDB)

For all cases involving EATS, Composite or Service Pension, whether automatic or manual method of assessment, the new rate of British pension must be updated via PIPS/PC.

Punching of transactions from “Action” schedules EATS and Composite Cases

Advices

CR.PS System

The Correspondence Rules and Paragraph Specifications system will generate an advice in cases where a payment variation is made.  Examiners should action cases in the following manner:

Cases

What to do

Continuations

Unless the total payment varies, the PIPS/PC Advices screen should be accessed and production of an automatic advice suppressed.

Variations

Where a variation in total payments results, the PIPS/PC Advice screen should be accessed and the Suppressed Income/Asset List Indicator set.  This will result in production of a variation advice with no income and asset details

Contact Officer

The contact officer for this exercise is Nasreen Haque in Business Operational Support Section Ph (02) 6289 1125.

Jeanette Ricketts

A/G BRANCH HEAD

INCOME SUPPORT

     November 2000

EXCHANGE RATE VARIATION FROM 2.57 TO $A2.75

OTHER RANKS - DISABILITY PENSION-EFFECTIVE 16-Nov-00

OLD

NEW

             CLASS

%

RATE

RATE

P.F.

P.F.

V, IV, III, II, I, WO1

20%

119.25

127.60

30%

178.87

191.40

40%

238.50

255.20

50%

298.12

319.00

60%

357.74

382.80

70%

417.37

446.60

80%

476.99

510.40

90%

536.62

574.20

100%

596.24

638.00

OFFICER - DISABILITY PENSION - EFFECTIVE  16-Nov-00

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%

119.37

127.74

30%

179.01

191.55

40%

238.65

255.37

50%

298.39

319.29

60%

358.03

383.10

70%

417.66

446.92

80%

477.30

510.73

90%

537.04

574.65

100%

596.68

638.47

OFFICERS

SERVICE RETIRED PAY OR SERVICE PENSION - EFFECTIVE 16-Nov-00

EXCHANGE RATE $A2.75

OLD

NEW

RATE

RATE

P.F.

P.F.

20%

119.37

127.74

30%

179.01

191.55

40%

238.65

255.37

50%

298.39

319.29

60%

358.03

383.10

70%

417.66

446.92

80%

477.30

510.73

90%

537.04

574.65

100%

596.68

638.47

SUPPLEMENTARY  ALLOWANCES

OFFICERS and OTHER RANKS - DISABLEMENT

EXCHANGE RATE $A2.75

Effective

16-Nov-00

Effective

16-Nov-00

UNEMPLOYABILITY SUPP.

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

Personal Allowance

368.57

394.39

368.28

394.08

Wife or Adult dependant

207.80

222.35

207.66

222.20

1st eligible child

50.67

54.22

50.63

54.18

2nd & subsequent child

58.36

62.44

58.34

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

112.67

120.56

112.57

120.45

2.Full day attendance - Basic

225.24

241.02

225.13

240.90

- Intermediate

337.92

361.58

337.70

361.35

- Exceptional

450.59

482.15

450.26

481.80

COMFORTS ALLOWANCE

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

Higher Rate

96.70

103.48

96.63

103.40

Lower Rate

48.30

51.68

48.32

51.70

CLOTHING ALLOWANCE

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.A.

P.A.

P.F.

P.F.

Higher Rate

382.93

409.75

14.69

15.72

Lower Rate

382.93

409.75

14.69

15.72

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

73.04

78.16

72.99

78.10

Qualifying  )         > 40 but < 50 yrs

46.33

49.58

46.26

49.50

Date           )         > 50 yrs

23.17

24.79

23.13

24.75

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

39.82

42.61

39.84

42.63

b. > 50% but not > 70%

61.51

65.82

61.42

65.73

c. > 70% but not > 90%

87.44

93.56

87.38

93.50

d. over 90%

122.92

131.53

122.85

131.45

MISCELLANEOUS

EXCHANGE RATE $A2.75

Effective

16-Nov-00

Effective

16-Nov-00

RENT ALLOWANCE (Maximum)

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

170.24

182.16

170.13

182.05

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

51.46

55.06

51.40

55.00

                Age 70 and over

98.77

105.69

98.69

105.60

                Age 80 and over

147.07

157.38

147.00

157.30

DEPENDANTS OF DECEASED MEMBERS

EXCHANGE RATE $A2.75

Effective

16-Nov-00

WIDOWS  ** HIGHER RATE **

OLD RATE

NEW RATE

******M.O.D.  Payment Included  ******

P.F.

P.F.

CLASS V

743.56

795.64

          IV, III,  II,  I,  WO1

745.10

797.29

Lt Comdr,  Capt,  Major,  Sq Ldr

754.49

807.33

Lt,  Lt,  Capt, Fl Lt

752.71

805.43

Sub Lt,  Lt,  Flying Off   Pilot Off

750.94

803.53

Comms Off

748.08

800.48

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.

293.55

314.11

CHILDREN OF WIDOW OR REMARRIED WIDOW

OLD RATE

NEW RATE

P.F.

P.F.

1st ELIGIBLE CHILD

73.83

79.00

2nd and SUBSEQUENT CHILD

81.52

87.23

   TOTAL ORPHANS and MOTHERLESS CHILDREN

OLD RATE

NEW RATE

P.F.

P.F.

TOTAL ORPHANS   1st CHILD

83.30

89.13

2nd and SUBSEQUENT ORPHANS

91.08

97.46

INFIRM & > 18 -

347.18

371.50

C28/2000 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:  24 October 2000

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.

Effective Date 17 October 2000

Effective from 17 October 2000 the current exchange rate will change.  On pension payday 2 November 2000 pensioners will receive a full instalment at the new assessed rate.

New Rate

A$2.6759

The exchange rate will change from one Pound Sterling equals A$2.4863 to one Pound Sterling equals A$2.6759 (ie $A1 = 0.3737 pounds). This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 13 October 2000.

Timetable

The DVA exercise is scheduled for processing on Tuesday evening, 24 October 2000.

Automatic
Superannuation processing

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

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 2 November 2000 – ie 17 October 2000.

Advice Letters

The advice letters for this exercise will be joint advices.  The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.  This includes pensioners who have been reduced to nil and are no longer in payment.  The date of effect shown in the advices will be 17 October 2000.

New Claims and Centrelink Transfers–In with an Existing OTA

Any New Claims or Centrelink Transfers-In with a date of effect between 18 October 2000 and 30 October 2000 where BRI is recorded will have to be identified and a manual adjustment made to the existing One Time Amount (OTA) on the PMF.

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

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

BRI advices for these cases will display a date of effect of 17 October 2000, ignoring the fact that pension may have been granted from a later date.  You will not be able to intercept these advices because they are sent direct to Australia Post by Security Mailing.

IBM GSA Implications

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

Mail out of Bulk Advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by Wednesday 25 October 2000.

British DP case paid Rent Assistance

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

Contact Officer

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

Lucy Berger              Telephone:   (02) 6289 6013

Kevin Chapman         Telephone:   (02) 6289 6749

Jeanette Ricketts
A/g Branch Head
Income Support

     October 2000

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

0.3737

2.6759

C27/2000 SEPTEMBER 2000 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

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DATE OF ISSUE:  18 SEPTEMBER 2000

SEPTEMBER 2000 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

Purpose of Instruction

The purpose of this Departmental Instruction is to provide information about advice letter processing arrangements for the September 2000 global refresh advice letter mailout.

BOB TURNER

A/G BRANCH HEAD

INCOME SUPPORT


Overview

Introduction

This September advice letters will only be sent to pensioners who have Managed Investments and/or Shares in their assessment.  Advice on CPI and MTAWE adjustments will be published in the latest edition of VetAffairs.  There will be no reference to the CPI and MTAWE in the advice letters.

Significant Issues

The September 2000 mailout will incorporate the following events for payday 5 October 2000:

  • 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 for:

  • Less than maximum rate service pensioners (SP), income support supplement (ISS) and age pensioners (AP) with managed investments (MI) and/or shares (SH) in their assessment.
  • Max Rate SP/ISS/AP who move to less than max rate as a result of the reassessment of MI/SH
  • Less than max rate SP/ISS/SP who move to max rate as a result of the reassessment of MI/SH.
  • Treatment changes as a result of the reassessment MI/SH

Income and Asset Listing

Full Income/Asset listings are to be produced for all pensioners receiving a letter in this particular mailout.

No Obligations

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

Telephone Allowance

Telephone Allowance will be paid on payday 21 September, therefore no reference will be made to the payment of telephone allowance in the September advice letters.

General Information Sheet

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

There have been some wording changes made in the GIS to clarify Gold Card Information.

Single & Joint Letters

All service pensioners and income support supplement recipient couples will receive a joint letter, provided the pensioner addresses are identical.  All age pensioners will receive a single letter regardless of couple/single status.

Inserts

There will be no inserts included with this particular mailout.


Production of Advice Letters

Processing

Processing is scheduled to run from Friday 22 September until Tuesday 26 September.

ADP Processing

Detailed information regarding ADP processing will be issued to State System Support Officers in a separate memorandum.  The Systems Support Officers will be issuing a local processing timetable and should be consulted on any matter concerning ADP Processing.

Critical Dates

Processing period within DVA

22-26 September 2000

Dispatch Production Data to SMS

26 September 2000

Commence Printing Advice letters

27 September 2000

End Printing Advice letters

29 October 2000

Lodgement of all Advice Letters with Australia Post

29 October 2000

Client Numbers

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

STATE

NO. OF LETTERS

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 and lodgement of Letters

Security Mailing Services (SMS) Sydney, will print and envelope advice letters commencing 27 — th September with expected final lodgement with Australia Post on Friday 29 — th September 2000.  A representative from National Office will notify details of lodgement for each State as they occur.


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 in with normal daily advice output.  These letters should be checked for accuracy and reconciled against the reports received by each State Office prior to enveloping and mailing.

The IMU programmers have been instructed to send Special Register, Overseas and Enclosure advice letters to the State Offices on Thursday 28 — th September 2000.  We should be notified if these letters do not arrive when expected.

Reprints of selected letters

Any requests for reprints of individual advice letters should be referred to System Support Offices to organise a reprint.

Holding of daily advice letters

Daily payment advice letters produced after the processing run of 22-26 September for pay period 60 (5 October 2000) should be held by the State Offices until confirmation is received that the September SI advices have been dispatched.  This will ensure that pensioner's receive their advice in the correct order.

Manual Cases

To minimise the number of daily letters to be held whilst September SI letters are processed, it is suggested that only manual cases (and essential processing) should be processed for 5 October 2000.  General pensions processing should continue unabated but should be submitted for the subsequent payday.


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.  Any problems noted should also be reported to the National Office contact officer with the nature of the query and details of the client.  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.

Contacts

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

Kristie Wallace

(02) 6289 6019 (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 Offices and Managers Income Support were provided with copies of the proposed paragraph sequencing and mock-ups of advice letters for this run.

The final version of paragraphs and sequencing for this run are at Attachments A and B of this DI.

Attachment A – Paragraph sequencing

Attachment B – Advice Letter Examples

Example 1: Less than max rate, increase as a result of MI/SH reassessment, full income and asset listing.

Example 2: Less than max rate, decrease as a result of MI/SH reassessment, full income and asset listing.

Example 3: Less than max rate, reduction to nil as a result of MI/SH reassessment, full income and asset listing.

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” and “income support supplement” each represent variables (ie. T-PENSION-SP-ISS-AP) which will appear for those clients in receipt of the applicable pension.


ATTACHMENT A

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

Note: Advice letters will only be produced for less than maximum rate clients with Share and/or Managed Investments in their assessment.

Paragraph

To Whom

State specific letterhead

All

Opening paragraph

All

Payment Information

All

Payment Diversion

All

Change to value of Shares and Managed Investments

Increase Cases

Change to value of Shares and Managed Investments

Decrease Cases

Change to value of Shares and Managed Investments

Reduction to Nil Cases

Loss of Fringe Benefits

Reduction to Nil Cases

Treatment

Any cases where a change in treatment eligibility is detected

Your Obligations (reference to previous obs)

All except Reduction to Nil cases

Your Right to Re-Apply

Reduction to Nil Cases

Changes You Have Already Told Us About

All

Your Right of Review

All

Closing Paragraphs and Signature

All

Full Income and Asset Listing

All


ATTACHMENT B

Example 1: < Max rate, Increase as a result of MI/SH reassessment, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS _

STATE OFFICE

Contact: T-CONTACT-OFFICER

Telephone: T-CONTACT-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.

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

5/10/00

XXXXX SSSSS

ANZ 1929393939

$XXX.XX

TOTAL

$XXX.XX

19/10/00

XXXXX SSSSS

ANZ 1929393939

$XXX.XX

XXXXX SSSSS

TOTAL

$XXX.XX

Changes to 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 an increase to the amount of T-PENSION-SP-ISS-AP paid to you.  Details of your investments are listed in this advice.

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 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 any of the above matters, please contact the Department at the address or telephone number shown at the top of this letter.

Yours sincerely,

.si sigql3 depth5 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 SSSSS

For Pension Payday 5 October 2000

TOTAL FORTNIGHTLY PAYMENTXXX.XX

This is made up of:

- xxxxxxxx xxxxxxxx — XXX.XX

- xxxxxxxxxxxxx xxxxxxxxxxx      X.XX

Payments to XXXXX SSSSS

For Pension Payday 19 October 2000

TOTAL FORTNIGHTLY PAYMENTXXX.XX

This is made up of:

- xxxxxxxxx xxxxxxxxxx — XXX.XX

- xxxxxxxxxxxxxx xxxxxxxxxxxx      X.XX


INCOME AND ASSETS USED TO ASSESS YOUR PAYMNET

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

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

The amount that you are paid depends on T-YOUR-COMBINED income and assets but does not include the home in which you live.  The pension is calculated under two separate tests: an income test and an assets test.  The test that pays the lower rate of pension is the one that applies.

You are currently paid under the 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

COMMONWEALTH BANK

3939393939

$XX,XXX.XX

ANZ BANK

102939030

$XX,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

COMMONWEALTH BANK OF AUSTRALIA

1,000

$XX,XXX.XX

TELSTRA 1

600

$   X,XXX.XX

Managed Investments

Description

Units

Asset Amount

MLC LIMITED

5,000

$X,XXX.XX

BT FINANCIAL SERVICES

2,500

$X,XXX.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 note need to advise of any changes to the interest rates for these investments.

Total Financial Assets

FINANCIAL ASSETS VALUE

DEEMED INTEREST RATE

DEEMED INCOME PER FORTNIGHT

$XX,XXX.XX

3.5%

$XX.XX

$XX,XXX.XX

5.5%

$XX.XX

$XXX,XXX.XX

$XXX.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-SINGLE-THRSH-DEEMED-AMT – at T-INC-DEEMING-INT-RATE%

T-SINGLE-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 $XXXXX.XX

Miscellaneous Assets

  • Boat – 1985 SAVAGE with a net market value of $X,XXX.XX
  • Car – 1985 FORD with a net market value of $X,XXX.XX

Direct Income

  • T-DESCRIPT-MISC-EARNINGS - $XX.XX per fortnight


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$394.10 (per fortnight)

Couples Rate (each)$328.90 (per fortnight)

PENSION INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$106.00$1105.25

Couples Rate (combined)$188.00$1846.50

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$133,250$266,500

Couples Rate (combined)$189,500$411,000

Non Home Owner

Singles Rate$228,750$362,000

Couples Rate (combined)$285,000$506,500

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 apply to all service pensioners except blinded service pensioners.

GOLD CARD INFORMATION

GOLD CARD INCOME CUT OFF LIMIT FOR VETERANS UNDER 70

Singles Rate$303.50 (per fortnight)

Couples Rate (combined)$529.50 (per fortnight)

Add $63.10 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$159,750

Couples Rate (combined)$235,250

Non Home Owner

Singles Rate$255,250

Couples Rate (combined)$330,750

Add approximately $5,000 for each dependent child or student up to the age of T-CHILD-AGE.

NOTE:  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.

DEEMING

Rather than calculating the actual income received from your financial assets, they are deemed to earn income at the following rates.

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 Children              1-2 children3 or more children

Singles Rate$86.40$100.80$114.20

Couples Rate (combined)$81.20$100.80$114.20

Rent Limits

No Children1-2 children3 or more children

Singles Rate$75.00$98.60$98.60

Couples Rate (combined)$122.20$146.00$146.00


EXAMPLE 2:  < Max rate, decrease as a result of MI/SH reassessment, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS _

STATE OFFICE

Contact: T-CONTACT-OFFICER

Telephone: T-CONTACT-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) 3223 8585

T-ADVICE-PRINT-DATE

YOUR FILE NUMBER IS T-FILE-NUM

T-ADVICE-SALUTATION,

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

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

5/10/00

KKKKK WWWWW

STG 3022006838

$XXX.XX

TOTAL

$XXX.XX

19/10/00

KKKKKK WWWWW

STG 3022006838

$XXX.XX

TOTAL

$XXX.XX

Change to 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 an overall decrease to the amount of T-PENSION-SP-ISS-AP paid to you.  Details of your investments are listed in this advice.

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 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 any of the above matters, 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 payment may be different for one or two paydays after a reassessment.

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

Payments to KKKKKK WWWWW

For Pension Payday 5 October 2000

TOTAL FORTNIGHTLY PAYMENTxxx.xx

This is made up of:

- xxxxxxxxxxx xxxxxxxxxxxxx.xx

- xxxxxxxxxxxxxxx xxxxxxxxxxxx    x.xx

Payments to KKKKKK WWWWW

For Pension Payday 19 October 2000

TOTAL FORTNIGHTLY PAYMENTxxx.xx

This is made up of:

- xxxxxxxxxx xxxxxxxxxxxxxx.xx

- xxxxxxxxxxxxx xxxxxxxxxxx    x.xx

ATTACHMENTFull Income and Asset Listing

General Information Sheet


Example 3: < Max Rate, Reduction to Nil as a result of MI/SH reassessment, Full Income and Asset Listing

C26/2000 2001 ISSUE OF PENSIONER CONCESSION CARDS (PCCs)

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DATE OF ISSUE:  11 SEPTEMBER 2000

2001 ISSUE OF PENSIONER CONCESSION CARDS (PCCs)

Purpose of Instruction

This Departmental Instruction provides information on

The format and issuing of the 2001 Pensioner Concession Cards (PCCs);

Procedures for applying for replacement travel vouchers;and

Arrangements for the ongoing daily issuing of PCCs;

J RICKETTS

ACTING BRANCH HEAD

INCOME SUPPORT

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, State/Territory and Local Government 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 issue to clients who become eligible – to all recipients for the calendar year.

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

This Event

Is scheduled to occur

Issue of blank stock to State Offices

27 August 2000

Data Extract and Download

9-10 September 2000

Production of PCCs

18 September – 27 October 2000

Lodgement with Australia Post

From 2 October

Concession Information Sheet

A State specific “Concessions Information” sheet will be provided for couples for some States where this information is unable to fit onto the A4 couples carrier because of the number of vouchers these States require.  The States that require the “Concessions Information” sheet are Victoria, Tasmania and Queensland.

Cross Reference Cases

Where there is a cross reference for a person, the 2001 PCC bulk issue will be issued in the payment (ie cross referenced) number.

Partner's on PCCs

The PCC program has been amended this year to include the following in order to follow current DFACs policy regarding the issue of Centrelink PCC's and to simplify the current rules for partner'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 veteran's 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.

This change affects the number of children that can be listed on the PCC.  With the introduction of cross-listing of partners on cards, the number of children that will be listed on a PCC is six (previously seven).  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 2001 state specific fridge magnet calendar will be inserted in each envelope.

Production of PCCs

Card Production

Processing of the bulk issue of approximately 379,000 2001 PCCs will commence on Monday 18 September 2000, following the extract of client data on the weekend of 9-10 September 2000.

The 2001 PCC will be personalised, enveloped and despatched by the mailing house – Security Mailing Services in Sydney.  Lodgement with Australia Post will commence on 2 October and is expected to be completed by Friday 27 October 2000.

Card Numbers

The approximate numbers for each State/Territory for the bulk issue in September 2000 are as follows:

State/Territory

No. of PCCs

New South Wales

123,789

Victoria

86,787

Queensland

79,560

South Australia

36,103

Western Australia

34,663

Tasmania

14,278

NT

625

ACT

3,000

TOTAL

378,805


2001 PCC Stock

For the 2001 bulk PCC issue, there will be 2 different carriers – one for couples (to be used in the bulk issue only) and one for single pensioners.  The pre-printed format of the rear of the card for both singles and couples cards will be:

  • A pale blue plastic card glued (tipped) onto a carrier;
  • Have the validity dates “VALID FROM OCT 2000 TO DEC 2001” pre-printed on the card;
  • Heading, logos and currency date will be deep purple; and
  • Personalised information will be laser printed in black onto the card by the mailing house, Security Mailing Services.

The 2001 PCC stock for single pensioners and daily re-issues/new grants is a pale blue plastic card with heading and logos in deep purple.

Generally, the travel vouchers will be pale blue with black lettering and the expiry date is 31/12/2001 for all 2001 PCCs.

The Victorian Pensioner Free Travel Voucher has been divided into 2 parts (vouchers).  The change does not affect pensioner's entitlements however the new Voucher Exchange Coupon has been printed in blue italics text to make it easier for pensioners to recognise that it is a different voucher.

The State Office contact phone number(s), street location and postal addresses will be included on the carrier.


Carrier Layout

The 2001 carrier layout for single pensioners remains the same as the layout for the 2000 carrier, with the vouchers printed at the bottom of the carrier.  In addition, the Victorian carrier has been revised to include an additional voucher.

The 2001 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).

Prior to commencement of bulk issue production, each State will receive a sample couples PCC unit for reference purposes.

Blind Pensioners – Special PCCs

The word 'BLIND' will be printed in 14 point lettering on the top centre of the 2001 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 Inserts

A State specific 2001 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 (4 vouchers)

Name

Entitlement Number

SA

Couples (8 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.

Where the Reports will be printed

The above reports will be addressed to the State Office PCC contact officers.  You should expect the reports to be printed in your respective State Office printers identified as: NSWBO, VICBO1, QLDPAY, SABO, WABO, and TASBO on Monday 11 September 2000, following the data extraction processing on the weekend of 9-10 September 2000.

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 Department's PCC recipients from the 2001 bulk issue.  The CD-ROM is scheduled 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 2001 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 2000 PCCs will be on Friday, 8 September 2000 for all.

Formatting and any re-alignment of local printers to accommodate the 2001 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, 11 September 2000, all new grant and card replacement transactions will generate a 2001 PCC record on the client data base with an expiry date of 31/12/2001 for all States. The 2000 PCC stock must not be used for daily issues, from and including Monday, 11 September 2000.  However, any new grant or transfer-in between 11 September and 31 December 2000 still requires manually issued 2000-travel voucher/s and 2000 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 2001 DVA PCC processed with vouchers, then lost and regained eligibility during the course of the year; or
  • Are not eligible for vouchers with a PCC from DVA (eg war widow/ers who had already received a TC1 or who were on the list of war widow/ers who received their PCC from Centrelink).
  • 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.

Arrangements for replacement vouchers in South Australia

As in previous years Great Southern Railways 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.


Arrangements for replacement vouchers in Victoria

As in previous years 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.

Enhancement to PIPS Reprint Facility

The PP.RH screen has been updated to selectively reprint vouchers only, the PCC or PCC and vouchers.  Where appropriate, edits have been added to this screen that block the user from reprinting vouchers outside their respective amnesty period or in the case of NSW/ACT where vouchers are no longer an option.

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.

Note that Blind pensioners are not identified prior to generating the daily PCC re-issues and new grants – blind pensioners are identified after PCC's are issued and are identified by the word 'BLIND' which prints on their cards – everyday PCC stock should be used for blind pensioners.

New PCC Stock

Stocks of 2001 PCCs will be despatched to the State Offices from the mailing house on 28 August 2000.

The fridge magnet calendar should also be included with new cards produced in the State Offices as part of the ongoing processing.  Stocks will be supplied to the State Offices for this purpose during late September 2000.


Other Issues

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 2001

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.  System changes were made in 1998 to allow vouchers to be issued.

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 2000 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 — Great Southern Railways continue to give the DVA South Australian State Office authority to issue replacement vouchers on their behalf indefinitely.  System changes were made in 1998 to allow the vouchers to be issued.


WA(08) 9326 2222 – Westrail Switch

For a period up until the 31 — st January 2001, Westrail have given authority to our WA State Office to issue replacement vouchers on their behalf.  System changes will enable WA State Office to issue these vouchers until the 31 — st January 2001 without the system automatically voiding the vouchers.

After this date people can phone Westrail on (08) 9326 2222 – they will then be put through to the Refunds Officer who will advise of the necessary arrangements when applying for replacement vouchers.  Westrail will not accept personal applications.  Westrail check that the vouchers have not been presented before replacing them.

Note:  Westrail charge $8.00 for replacement vouchers.

C25/2000 Simplified International Payments

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DATE OF ISSUE:  1 SEPTEMBER 2000

Simplified International Payments

Purpose

The purpose of this instruction is to provide legislative and policy information and procedural guidelines.  This information is provided with regards to the Social Security and Veterans' Entitlements Legislation Amendment (Miscellaneous Matters) Act 2000, which changes the eligibility for certain allowances under the Veterans' Entitlements Act 1986 (VEA) while a pensioner is overseas.

Authorised by

Jeanette Ricketts

Acting Branch Head

Income Support

8 September, 2000

Legislation and Policy

Introduction and Background

Introduction

The Social Security and Veterans' Entitlements Legislation Amendment (Miscellaneous Matters) Act 2000 introduces changes to the eligibility criteria for Remote Area Allowance (RAA), Rent Assistance (RA), Pharmaceutical Allowance (PA) and Telephone Allowance (TA) when a pensioner leaves Australia from 20 September 2000.

Current Rules

Currently, the different allowances are affected by overseas travel in different ways, as shown in the following table.

Allowance

Effect of Going Overseas

RAA

Cancelled immediately on leaving Australia.

RA

Cancelled immediately on leaving Australia.

PA

Continues, unless the pensioner is going overseas for more than 12 months, then it is cancelled on January 1st of the year after departure from Australia.

TA

Continues whilst a pensioner is an Australian resident.

As RA, PA and TA are not affected by temporary travel within Australia, and RAA remains payable for 8 weeks, current legislation creates an anomaly in the way holiday travel within and outside Australia affects allowances.

Aim of Change

The aims of the legislation amendments are to:

Simplify the rules of portability applied to RAA, RA, PA and TA;

Apply similar rules to those travelling overseas and inside Australia; and

Ensure alignment with Centrelink, as per income support's policy.

New Portability Legislation

VEA references

Following is a list of the sections that were amended to effect the new portability rules.  Click on the appropriate heading below to see a copy of the Social Security and Veterans' Entitlements Legislation Amendment (Miscellaneous Matters) Act 2000 or Explanatory Memorandum.

Act

Explanatory Memorandum

Subject

VEA Sections

Pharmaceutical Allowance

58K(1) Note 2, 118A, SCH6-D2

Remote Area Allowance

5R(12) , SCH6-G3

Rent Assistance

5N(2), 58K(1) Note 1, SCH6-C3(e)

Telephone Allowance

118Q(3A), 118Q(3B)

Temporarily

5Q(1), 5Q(3) & 5Q(4)

Commencement date

The new rules apply to all pensioners who leave Australia from 20 September 2000 onwards. Those who depart from Australia prior to 20 September 2000 will be assessed under the old rules regardless of when DVA was notified.

New Rules

The table below outlines how eligibility for RAA, RA, PA and TA are affected by overseas travel under the amended legislation

Allowance

Overseas Temporarily

Overseas, other than temporary

RAA

Eligible for 8 weeks from departure from the remote area.

Eligible for 8 weeks from departure from the remote area unless leaving Australia in that time, where eligibility is lost immediately after departure from Australia.

RA, PA and TA

Eligible for 26 weeks after departure from Australia.

Eligibility lost immediately after leaving Australia.

Note: The new rules are applicable to these allowances whether paid as an income support allowance or as part of a 'DP Only' assessment.

Determination of temporarily overseas

It is essential to determine whether a person is overseas temporarily or otherwise before a decision can be made as to when or if allowances need to be varied.

Subsection 5Q(3) states:

In determining whether a person has left Australia temporarily or otherwise, regard is to be had to the following:

  1. the purpose for which the person left Australia;
  2. the intended duration of the persons absence from Australia;
  3. the frequency of the occasions on which the person has left Australia.

These factors will have to be considered in each case and a decision made by a DVA officer as to whether a pensioner is travelling temporarily or not.

For example, a person who lives outside Australia for extended periods and regularly returns to Australia for short periods may be considered permanently overseas.

A Notification of Overseas Travel Form has been developed in order to collect the information required to make this decision.

What is the Remote Area?

SCH6-G1(c) refers to RAA eligibility being reliant on being 'physically present in the remote area'. A recent legal opinion advises that any remote area is part of the remote area. That is, some one travelling from Fitzroy Crossing to Darwin is still considered to be in the remote area even though they are not in the remote area they reside in. Therefore, the 8 weeks will not start until departure from all remote areas of Australia.

Return resets the 8/26-week clock

Regardless of the length of stay in Australia, a return from overseas resets the allowance portability period. That is, the 8-week (for RAA) and 26-week (for RA, TA and PA) continuation period must be exceeded during one period of temporary absence from Australia for allowances to cease.

For example, a pensioner receiving RAA travels overseas for 6 weeks, returns home for half a week, and then returns overseas for another 5 weeks. The RAA would not cease at any stage, as no single period of absence from Australia was greater than 8 weeks, despite the entire period of absence from Australia being 11 weeks.

Effective Dates

Introduction

Although eligible from a certain date, allowances can be paid over different periods.

When RAA, RA and PA are paid in conjunction with an income support pension they form part of that pension's assessment, and are similarly paid on a daily basis.

If PA is being paid in conjunction with a compensation and income support pension (e.g. WWP and ISS, or DP and SP), the PA is being paid as part of the income support pension and is subject to daily entitlement rules.

However, PA can also be paid under 'DP only' assessments. In these cases the PA is payable fortnightly. That is, the pensioner is entitled to a full fortnight's payment if eligible on the pension payday.

TA, whether paid as an income support allowance, or otherwise, is payable quarterly and full payment is made if the pensioner is eligible on the telephone allowance payday.

Temporary absence from Australia

The effective dates that apply to the cancellation and reinstatement of allowances where a pensioner leaves Australia temporarily on or after 20 September 2000 are set out below.

Allowance

Cancel with effect from

Reinstate with effect from

RAA

The day following 8 weeks (57 — th day) from the date the pensioner leaves the remote area.

The date of return to the remote area, or date of notification, whichever is later.

RA

The day following 26 weeks (183 — rd day) from the date the pensioner leaves Australia.

The date of return to Australia, or date of notification, whichever is later.

PA (paid as an IS allowance)

The day following 26 weeks (183 — rd day) from the date the pensioner leaves Australia.

The date of return to Australia, or date of notification, whichever is later.

PA (paid as a non-IS allowance)

The pension payday following 26 weeks from the date the pensioner leaves Australia.

The pension payday following the date of return to Australia, or date of notification, whichever is later.

TA

The telephone allowance payday following 26 weeks from the date the pensioner leaves Australia.

The telephone allowance payday following the date of return to Australia, or date of notification, whichever is later.

Note: Even if notification of return is received within 14 days of the event, reinstatement date is the date of notification if later than date of return.

Absence other than temporary

The effective dates that apply to the cancellation and reinstatement of allowances due to overseas travel other than temporary from 20 September 2000 are set out below.

Allowance

Cancel with effect from

Reinstate with effect from

RAA

The day following 8 weeks (57 — th day) from the date the pensioner leaves the remote area or day after leaving Australia, whichever is earlier.

The date of return to the remote area, or date of notification, whichever is later.

RA

The day after leaving Australia.

The date of return to Australia, or date of notification, whichever is later.

PA (paid as an IS allowance)

The day after leaving Australia.

The date of return to Australia, or date of notification, whichever is later.

PA (paid as a non-IS allowance)

The pension payday after leaving Australia.

The pension payday after the date of return to Australia, or date of notification, whichever is later.

TA

The telephone allowance payday after leaving Australia.

The telephone allowance payday after the date of return to Australia, or date of notification, whichever is later.

Note: Even if notification of return is received within 14 days of the event, reinstatement date is the date of notification if later than date of return.

Eligibility

Payment of allowances can only be continued, or reinstated if all other eligibility criteria for the allowances are met.

Social Security Pensioners

Introduction

Besides the changes to Veterans' Affairs allowances, the Social Security and Veterans' Entitlements Legislation Amendment (Miscellaneous Matters) Act 2000 contained changes affecting Social Security age and wife pensioners being paid by DVA.

Overview of changes

The amendments to the Social Security Act 1991 (SSA) affected:

Portability of allowances, same as VEA allowances;

Portability of pensions may be proportional after 26 weeks, dependant on the working life rule (WLR); and

Comparable foreign payment (CFP) requirements extended to non-agreement countries.

The WLR and CFP legislation are only applied to age and wife pensioners who have resided overseas for a significant period of time during their working life (i.e. ages 16 to 65). As all of the age and wife pensioners that DVA process are in respect of Australian Disability Pensioners and their partners we expect these amendments to have little impact on this group.

The SSA guide is to be consulted for details on how overseas travel affects Social Security pensioners.

Link to the portability section of the SSA guide [15]

Link to section of the SSA guide relating to CFP [16]

Be aware that at the time this instruction was being written the guide was still being updated for the new rules, but will be finished shortly.

Overview of changes (continued)

Click on the following items to display documents from Centrelink, which clarify the changes.

Portability

              Age Pension Questions & Answers

              Centrelink Policy Guide

              Long-term pension portability

              Savings for people overseas immediately before 20/9/2000

              Proportional rate

              Abolition of Departure Certificate

              Former resident provisions

              Deletion of 6-month overseas reviews

CFP

Comparable Foreign Payments

Amnesty on Foreign Pension Income

If you require help in calculating the WLR for a pensioner contact Centrelink International Services on 131673.

Departure Certificates

Departure Certificates will not be required for departures on or after 20 September 2000. However, pensioners receiving Social Security age or wife pensions are still obliged to notify of overseas travel.

Procedural Information

Overview

Introduction

When allowances are altered due to a temporary absence from Australia the entire process to complete a case could span over a long period of time. However, the overall process only consists of 8 steps that need to be followed.

Overall Process

Following is an overview of the overall process involved when a pensioner goes overseas.

Step

Who

Action

1

Pensioner

Advises DVA of travel details

2

DVA Officer

Forwards a copy of the notification to Health and/or Registry for their action.

3

DVA Officer

Updates VIEW comments with details of travel and contact address - if an overseas address.

4

DVA Officer

Determines if departure is temporary.

If temporary, go to step 5.

Otherwise, got to step 8.

5

DVA Officer

Sends standard letter to pensioner advising absence is determined to be temporary and the effects on allowances and obligations.

6

DVA Officer

Sets review/s in VIEW as required.

7

VIEW

Generates review report and registers a DIA when review becomes due.

8

DVA Officer

Varies allowance/s in PIPS/PC and sends auto-advice.

9

DVA Officer

Decides if further action is required regarding variation of allowances due to overseas travel.

If yes, repeat steps 6 onwards as required.

If no, go to step 10.

10

DVA Officer

Considers if transfer of payment and file to Tasmania State Office is required

Change to original notification

If a pensioner contacts the Department with a change to their initial advice, or further information, the same process can be followed with reviews being amended or deleted as required.

Procedures on Notification

Introduction

There are certain procedures that must be followed upon receipt of advice from the pensioner. Depending on the type and length of travel these actions may finalise the case or set it up for action at a later date.

Notification of Overseas Travel form

This is a new form to be completed either by pensioners themselves or by DVA staff when contact is made about overseas travel.

The form collects the data required to:

Continue payment of allowances whilst overseas

Cancel allowances

Reinstate allowances; and

Contact the pensioner or a representative while overseas.

Available in: DVA Facts, Forms, Review Circumstances – Form No D478

Advices

If the overseas travel is temporary, there will usually be no PIPS/PC action required at the time of notification. Therefore it will be necessary to send the pensioner a standard letter advising the absence has been determined to be temporary. Draft standard letters have been forwarded to the State Offices for their approval, and will be available in IS Standard Letters, Misc in October.

If the absence from Australia is determined to be other than temporary allowances can be varied on PIPS/PC immediately. An automatic advice will generate upon completion of that action. The processing officer is to include a paragraph in the free text to advise the pensioner of the decision that travel is permanent.

Transfer to Tasmania State Office

It is necessary to transfer the file and payment of any pensioner that has left Australia, other than temporarily, to the Tasmanian State Office as per current interstate transfer procedures.

Publicity

Introduction

Due to the relatively low impact of this initiative on DVA pensioners, publicity has been limited to articles in the Age Pension News. However, Fact Sheets and the electronic version of You & Your Pension have been amended to reflect the changes for future reference.

Fact Sheets

The following Fact Sheets have been amended to reflect the new rules, and will be available from 20 September 2000:

IS12: Social Security Age Pension Allowances

IS13: Telephone allowance

IS14: Income Support Allowances

IS48: Children

IS49: Children – Social Security Age Pension

IS74: Renting & Rent Assistance

IS75: Renting and Rent Assistance – Social Security Age Pensioners

IS77: Travelling overseas

IS137: The things you need to tell us about.

You & Your Pension

Although pensioners' obligations have not been changed by this legislation, pages 17, 18, 34 and 35 of You & Your Pension refer to loss of allowances due to any overseas travel. The electronic version on the DVA web-site has been updated to reflect the changes.

System Information

VIEW Review enhancements

Introduction

Enhancements have been made to the VIEW Review system. These are due for implementation early September 2000.

Background

The review feature has been available in VIEW for some time under the 'Client Activity' tab. However, statistical information obtained from the Review folder indicates that it is not being effectively utilised.

The development solution approved for the 1999/00 budget initiative, Simplified International Payments (SIP), which allows the continued payment of income support allowances for a temporary period, required enhancements to the VIEW Review folder.

As part of SIP implementation, approval was given to use this opportunity to enhance the review types and reports.

The changes

The procedure for setting a review remains unchanged, and the reporting function simpler.  A summary of the changes are as follows:

Comment field extended and mandatory

New review types included to be more descriptive

CMS cases registered for particular review types

Status of complete or incomplete available for each review

Reports automatically generated on a fortnightly basis

Reports to show more detailed information

Comments field

The comment field when setting a review has been expanded to contain up to 999 characters, and is now a mandatory field.

As the review system relies on the reports that issue as the basis for enabling processing, the more extensive the comments attached to the review the easier it is for an individual to process the case at a later date. For example, information such as date of departure, pensioners travelling and reason for the review should be included when setting an 'Overseas Temporary' review.

New review types

To enable the review type to be easily identified, the existing 'Income Support' type has been changed to 'Income Support Other', Overseas Pension  to Overseas Pension (Tas) and the following types have been added:

Foreign Pension Review
For reassessment of any foreign pension received in a currency not contained in the exchange rate database in PIPS.

Income Support Business
For the reassessment of a pensioner's interest in a business.

Income Support Earnings
For the reassessment of pensioner earnings.

Income Support Other DIA
For any other income support review that will require a PIPS case to be completed to finalise the matter.

Income Support Other
For any other income support review that does not require a PIPS case to be created.

Income Support Trust/Cmpy
For the reassessment of a pensioner's interest in a trust or company.

Overseas Pension (Tas)
A review type used by Tasmania State Office to indicate an annual re-assessment of pension is required on a pensioner overseas permanently.

Overseas Temporary
For cases where pensioners travel overseas temporarily and their allowance/s need to be ceased and/or re-granted after a period of time.

Automatic registration

All of the new review types (except Income Support Other), the Overseas Pension (Tas), and Bereavement reviews will have a Departmental Initiated Action (DIA) registered on the Case Management System the first time they are reported upon in the automatic fortnightly report. This will allow for the PIPS/PC action that is necessary to fully complete the reassessment of the pension.

These cases will be appropriately attributed to indicate which type of review case they are, and registered with a receipt date the same as the date of the review.

A DIA is registered for each review that is registered against a file number. Where a review applies to more than one person in an assessment the review should only be recorded against one pensioner and the comments field utilised to provide details of who the review applies to.

Completed status

Once a review has been completed the review no longer needs to be reported on in the fortnightly reports.  Therefore, a review status functionality has been incorporated into the enhanced VIEW Review folder.  With the old review system it was necessary to manually delete the review once the review action was completed to prevent it from be reported again.  The new functionality of giving a review a status of complete or incomplete negates the need for deletion.

Where a DIA is automatically recorded, the system will update the status of the review case to complete.  This indicates the review reporting side of the case has been completed.  It will not be necessary to manually change the status of these reviews.  However, the complete status should be updated by the officer to read 'yes' once a review that does not have a case automatically registered is finalised.  Otherwise, the review will remain incomplete and will continue to appear on automatic reports each fortnight.

As all records remain on the database, unless deleted, all reviews whether complete or not can be reported on in ad-hoc reports, if required.

The function to delete a review is still available as per current procedures.

Deceased pensioners

Cases where the pensioner is deceased will still be reported on, but will have a '#' symbol before the pensioner's name to indicate they are deceased.

Due to complications that may arise with other systems, a DIA will not automatically be registered, regardless of the review type. As no DIA is registered the review will be recorded as incomplete.

It must be decided if the review, and any future reviews, need to be actioned for another pensioner on that file number. If so, the reviews against the deceased pensioner will need to be deleted, and set against the surviving pensioner.

Once the reported review is finalised – that is, a DIA registered, or the appropriate review action taken – it will need to be updated as completed.

Reports

There will be two types of reports that can be generated via the VIEW Review folder:

An automatic fortnightly report

Ad-hoc reports

Reports will contain the following information:

Client Name

Client Number

Review Type

Date of Review

Date CMS created (if applicable)

Comments

Complete status

User Logon ID

Fortnightly reports

Fortnightly reports will print automatically on the first Friday of each pay period for all incomplete reviews due by the end of the following pay period.

For example, incomplete reviews falling due prior to and including 2/10/2000 will be included in the report to print on 8/09/2000.

Only one master copy will be printed per state.  The report will be printed to the State Office's central mainframe printer as per existing printing procedures for CMS reports in your state.

The fortnightly review report will be sorted in alphabetical order by client surname, then by review type.

Ad-hoc reports

A review report can be requested at any time, for any period, by anyone with access to request reports in VIEW.  In the past, these reports printed to a mainframe printer but now there is the option to print to any LAN printer installed onto your computer.  The printers will appear in a drop-box for selection.

Ad-hoc reports can be requested to include the following criteria:

Review Type – all review types or one selected from the drop-box; and/or

Review Status – completed reviews only, incomplete only, or all reviews by selecting yes, no, or blank from the drop-box; and/or

Reviewer – reports on the reviews set by an individual by entering the person's logon id.

These fields default to report on all review types of all status for all officers.

The sort criterion allows the requesting officer to sort the report into the order best suited for their needs.

Completed case will be differentiated in ad-hoc reports by being italicised. Cases where the pensioner is deceased will still be reported on, but will have a '#' symbol before the pensioner's name to indicate they are deceased.

Note:The ad-hoc reporting process cannot trigger the automatic registration of a DIA and change of complete status.

PIPS/PC

Introduction

To vary an allowance due to overseas travel it will be necessary to complete a PIPS/PC case. For those cases triggered by a VIEW review a DIA with overseas attribute will already have been registered automatically.

Modification to PIPS/PC

Only one minor modification has been made to PIPS/PC. Whenever the overseas indicator in the Adult Details or Child Details screens has changed the Residential Situation screen becomes a mandatory field. The correct residential situation and the 'RA Not Payable' field are to be recorded correctly for each individual's circumstances upon departure and return.

Canceling Allowances

Pensioner details need to be updated for each person in the assessment who has lost eligibility to allowances due to being outside Australia, including children.

If canceling one member of a couple's allowance we must consider if the other member's allowances need to be increased to the single rate.

A pensioner cannot get the extra child RAA if not receiving RAA in their own right. PIPS/PC calculates this accordingly.

Allowance

Screen update

RAA

Adult/Child details – RAA eligibility indicator removed

RA

Adult/Child details – overseas indicator set to yes

Residential Situation – RA not payable overseas

PA

Adult/Child details – overseas indicator set to yes – cancel PA immediately

TA

Adult/Child details – overseas indicator set to yes

Although the pensioner is physically overseas, the overseas indicator cannot be set to yes prior to cancellation of RA and/or TA as payment is dependent on the overseas indicator.

Reinstating allowances

As with the cancellation of allowances, each pensioner's details need to be updated separately to reinstate payments correctly.

It will also be necessary to ensure each member of a couple is being paid the correct rate of payment once returned.

Allowance

Screen update

RAA

Adult/Child details – RAA eligibility indicator set

RA

Adult/Child details – overseas indicator set to no

Residential Situation – update appropriately

PA

Adult/Child details – overseas indicator set to no

TA

Adult/Child details – overseas indicator set to no

RAA eligibility indicator

Clicking on the box next to Remote Area Allowance sets or removes the RAA indicator. The example below does not have RAA eligibility.

Overseas indicator

Selecting one of the 'yes' choices in the Overseas drop-box will set the overseas indicator, and 'no' removes it. The two extra choices not mentioned above have been deliberately left on the system for the cases where pensioners leave Australia prior to 20 September 2000.

Residential Situation

The 'RA Not Payable' field will default to 'Client Overseas' once the overseas indicator has been set. It is only possible to select 'Client Overseas' if the overseas indicator is set.

If a pensioner is overseas temporarily, with no primary residence in Australia, the overseas indicator will have to be set upon departure to stop RA. TA and RAA will also cease, as they can no longer be a telephone subscriber or have a residence situated in a remote area as required in the VEA.

Advices

When sending an auto-advice to members of couples where only one member of the couple has gone overseas, separate advices must be selected. If joint advices are selected the computer calculates the total change to the joint payments and cannot recognise the increase and reduction in allowances for each member of the couple.

Age Pension Questions & Answers

The following Questions & Answers relate to age pensioners and are provided to help answer any queries which might arise.

1. Will I be able to continue getting my Pharmaceutical Allowance as part of my age pension while I'm overseas?

Yes, unless you will be leaving Australia permanently.  From 20/9/2000, for people who are going overseas only temporarily (i.e. who are  intending to return), Pharmaceutical Allowance can continue for up to the first 26 weeks after leaving Australia.  If you leave permanently, your Pharmaceutical Allowance will cease as soon as you depart Australia.

2. What about my Rent Assistance and Telephone Allowance — will they still be paid?

Yes, from 20/9/2000, these allowances can continue to be paid for up to 26 weeks after leaving Australia, provided you are going only temporarily.  However, you still need to be qualified for the payment, that is, you are still paying private (non-Government) rent on your Australian home, or are still a telephone subscriber for a service in Australia.  If you leave permanently, your Rent Assistance and Telephone Allowance will cease as soon as you depart Australia.

3. I live in a remote area and receive Remote Area Allowance.  Can I continue to get this if I go overseas?

Yes, from 20/9/2000, this allowance can continue for short absences (even overseas absences) away from the remote area, provided you are going to return to the remote area.  Remote Area Allowance can only continue for the first eight weeks of any absence from the remote area.  If you leave the remote area permanently, your Remote Area Allowance will cease immediately.

4. You say that my age pension rate might be reduced if I stay overseas for more than 26 weeks.  Can you explain how this works?

From 20/9/2000, age pensioners who stay overseas for more than 26 weeks will have their normal pension rate reduced if they have spent less than 25 years in Australia between age 16 and age pension age.  The rate will be a proportion of the normal rate they would have otherwise received, depending on how many years' residence they have between those ages (up to a maximum of 25 years).  The “normal rate” is the rate they usually receive, either full-rate or part-rate, depending on their income and assets.

Here are some examples of how this works:

  •       an age pensioner who has lived all her life in Australia would have well in excess of 25 years' residence between 16 and age pension age, so after she has been overseas for 26 weeks, she will still receive her normal rate, i.e.. 25/25ths of her pension rate.
  •       an age pensioner who lived in Australia for 10 years from age 30 to age 40 would receive 10/25ths of his normal pension rate once he had been overseas for more than 26 weeks;
  •       a person who first arrived in Australia after age pension age would have no residence between 16 and age pension age.  If this person is receiving age pension and leaves Australia for more than 26 weeks, the pension rate would reduce to 0/25ths, i.e. no pension at all would be payable.

Note that there are special rules for people going to New Zealand, or who are paid under an International Social Security Agreement.

5. My partner is on a different payment.  How will that payment be affected by the changes?

This depends on the payment.  From 20/9/2000, most payments will be payable for the first 26 weeks of an absence from Australia.

  •       Age pension, some Disability Support pension (where the person is severely disabled) and some Wife and Widow B pensions (e.g. where the person has lived in Australia for 10 years or more) will be payable for indefinite periods of absence.
  •       All other income support payments (e.g. Carer Payment, Partner Allowance, Mature Age Allowance) can continue for only the first 26 weeks of an absence.  In most cases, these payments can only be made for temporary absences.  If the person is going permanently, payment will cease on departure.
  •       Mobility Allowance and Carer Allowance will also be payable for the first 26 weeks of a temporary absence.
  •       Newstart, Sickness Allowance, Youth Allowance and Special Benefit can only be paid overseas if the absence is for certain reasons (e.g. in a family crisis or for humanitarian reasons).  The maximum period is 26 weeks, but the absence allowed would usually be less, depending on the reason for the absence.

Note that there are special rules for people going to New Zealand, or for people who are paid under an International Social Security Agreement.  In a small number of cases, there may also be restrictions on some payments if people have only recently returned to Australia

6. I also receive payment for children.  How will that be affected by the changes?

Family payments are changing under the Families Assistance legislation from 1 July 2000.  The full rate of Family Tax Benefit will be payable for the first 26 weeks of a temporary absence, and after that will reduce to the minimum rate.  All Family Tax Benefit will cease after 3 years' absence.  If a person leaves permanently, Family Tax Benefit will cease immediately.

7. Can I continue to get my age pension if I go overseas permanently?

Yes.  Age pension can be paid for permanent absences.  You should note that add-ons such as Pharmaceutical Allowance and Rent Assistance cannot be paid for permanent absences.  Also, your rate will reduce after 26 weeks' absence if you lived in Australia for less than 25 years between 16 and age pension age.

However, age pension is not payable for permanent absences to New Zealand, or for permanent absences to any other country if the pension is paid under either the United Kingdom or New Zealand Social Security Agreements.

8. What happens if I go to New Zealand?

Age pension is only payable for the first 26 weeks of a temporary absence to New Zealand, and not at all for permanent absences.  If going permanently or for more than 12 months, you can claim a New Zealand pension.

9. What happens if my pension is paid under a Social Security Agreement?

If your Australian pension is paid under a Social Security Agreement between Australia and another country, then whether your pension can be paid overseas, and for how long and at what rate, is determined by the terms of that Agreement.  For example:

  •       Australian pensions paid under the Agreement with the United Kingdom are payable overseas for the first 12 months of a temporary absence only.  The rate of payment will be the same as it was in Australia, although after 26 weeks, any add-ons such as Pharmaceutical Allowance will stop.  If you depart permanently, your pension will be cancelled immediately.
  •       Australian age pensions paid under the Agreement with New Zealand are payable for the first 26 weeks of a temporary absence only.  The rate of payment will be the same as it was in Australia. If you depart permanently, your pension will be cancelled immediately.
  •       If your Australian pension is paid under another Agreement and you are thinking of going overseas, you should ring Centrelink International Services on 13 1673 to find out how your payment will be affected.

10. I only recently returned to Australia and claimed my age pension.  Are there any special rules which apply to me?

Yes.  There are special rules for Australian residents who left the country permanently, who later return to Australia to live and who then claim an age pension.  If you are granted age pension before 20/9/2000, no payment can be made for any absence overseas that starts within one year of the date of return for permanent resettlement in Australia.  If you are granted age pension on or after 20/9/2000, no payment can be made for any absence overseas that starts within two years of the date of return for permanent resettlement in Australia.  After you have been here for two years since your recent return, normal rules will apply.

11. Last time I went overseas I had to get a Departure Certificate.  Do I still need this?

No. However, you still need to tell us about your departure.  We will also send you a letter giving you all the information about your Centrelink payment you will need while overseas.

12. I'm planning to go overseas in the future. When should I tell Centrelink?

You need to tell Centrelink about 6 weeks before you go.  This is so you can find out how your payment will be affected.  You may decide to change your plans if your payment will reduce or cancel.

However, if you have to leave in a hurry (for example, in an emergency), phone us and tell us — even if you have to phone from the airport!  We will usually only need to ask you a few simple questions.

13. How do I get more information?

When you phone us to tell us about your plans to leave Australia, we will tell you all you need to know, including:

  •      whether your payment rate will be affected, and when;
  •      how you will receive payment while you are overseas; and
  •      how to contact us if you need to while you are overseas.

14. Do I need to come in for an interview and fill in a lot of forms?

No. You can just phone us on 132300 and we will usually only need to ask you a few simple questions.

15. What happens if I go before 20/9/2000?

If you are going before 20/9/2000, phone us and we will tell you how your payment rate will be affected, and when.  If you are still overseas on 20/9/2000, you will continue to be paid as we previously advised you.  The pre-20/9/2000 rules will continue to apply to you even if you return to Australia for a short period (less than 26 weeks).  However, if you return to Australia for more than 26 weeks and then later go overseas again, you will be assessed under the new rules.

16. I only receive a Senior's Health Card.  Will this be affected by the changes?

No.  Senior's Health Card will continue to be issued only to people who are in Australia.

17. I receive a Service Pension from the Department of Veterans' Affairs.  Will I be affected by these changes?

People who are receiving a Service Pension from the Department of Veterans' Affairs will be able to receive add-on payments such as Pharmaceutical Allowance for the first 26 weeks of a temporary absence. You should contact your usual office of the Department of Veterans' Affairs for more information if you are thinking of going overseas.

18. I receive a Centrelink age pension through the Department of Veterans' Affairs.  How will I be affected by these changes?

If your Centrelink (Social Security) age pension is paid through the Department of Veterans' affairs, it will be treated as a normal Centrelink pension and the changes will apply to you the same way they apply to all age pensioners.

Centrelink Policy Guide

Income Support Payments:

PAYMENT TYPE

NOW PORTABLE

PROPOSED PERIOD fr 20/9/00

RATE CALCULATION PROVISIONS

From 20/9/2000

*

[1]Age Pension [17]

†

[2] **[3] [18]

Indefinite.

Indefinite.

Proportional after 26 weeks if autonomous, regardless of date of grant or residence in Australia on 8.5.85.  Proportional portability to be calculated on own working life residence in all cases. If Agreement provisions apply, proportionality is applied from date of departure or date transferred to Agreement.

*†Wife Pension

For 12 months (unless agreement provisions apply).  Entitled persons

[4] [19] have indefinite portability.

Indefinite if an entitled person. Otherwise portability limited to 26 weeks (unless Agreement provisions apply).

Proportional after 26 weeks if autonomous.  Proportionality is based on the wife's own working life residence.  If Agreement provisions apply, rate is proportional from date of departure, or date transferred to Agreement.

Add-ons and Mobility Allowance: (Proportional portability is not applicable)

PAYMENT TYPE

NOW PORTABLE

PROPOSED PERIOD From 20/9/2000

Rent Assistance

Not portable except for limited portability in conjunction with more-than-minimum family payment.

Portable for up to 26 weeks of

[5]temporary absence, when the primary benefit remains payable and rent is still paid for the Australian domicile. [20]

Portable if primary benefit is paid under UK/NZ Agreements, not portable under any other Agreement

Pharmaceutical Allowance

Not portable

Portable for up to 26 weeks of a *temporary absence where the primary benefit remains payable.

Portable if primary benefit is paid under UK/NZ Agreements, not portable under any other Agreement.

Remote Area Allowance

Not portable

In principle portable for up to 26 weeks of a temporary absence, however, a person cannot continue to be qualified if the absence from the remote area is longer than 8 weeks.  Portable if primary benefit is paid under UK/NZ Agreements, not portable under any other Agreement

Telephone Allowance

Not portable

Portable for up to 26 weeks of a temporary absence, where primary benefit remains payable and telephone rental is paid in Australia. Portable if primary benefit is paid under UK/NZ Agreements, not portable under any other Agreement.

OTHER REFINEMENTS TO THE PORTABILITY LEGISLATION

PROPOSED CHANGE

REASON

Remove the savings provision which exempts pensions granted on/before 1 July 1986 from the application of the proportional portability provisions.

Current arrangements are inequitable and difficult to administer.  The removal of this provision will allow an even and comprehensive application of the proportionality provisions.

Remove the saving provisions which exempt some who were Australian residents on 8 May 1985 (depending on country of destination) from the application of the proportional portability provisions.

Current arrangements are inequitable and difficult to administer.  They also discriminate against people going to agreement countries. The removal of this provision will allow an even and comprehensive application of the proportionality provisions.

Remove the savings provisions allowing disability support pensioners granted before 12 November 1991 unlimited portability regardless of the severity of their medical condition.

This provision is inconsistent with current disability policy for the non-severely disabled.

Standardise the working life residence rules so that the factor used to calculate the portable rate after 26 weeks will be confined to the individual pensioner's working life residence (for autonomous cases only - not for people paid proportional Agreement rates).

Certain pensioners can currently take advantage of their partners' working life residence to qualify for higher proportional pension rates.  This results in Australia accepting a disproportionate responsibility for people with little connection to our residence-based system.  Current arrangements are complicated, inequitable and difficult to administer.  The removal of this provision will allow an even and comprehensive application of the proportionality provisions.

Restrict long-term portability for former residents to absences occurring after 2 years have elapsed since the date of their last return to Australia and remove the discretion for “unforeseen circumstances” which allows export within the period of restriction.

There are instances of former residents returning to Australia simply to secure a portable pension.  This undermines the application of the law to Australian residents, as defined, and allows former residents to secure entitlements which should be available under agreements only.   Currently, the period of restriction is 1 year only - the extension to 2 years is expected to act as sufficient deterrent.

Repeal the departure certificate legislation (note that customers will still be required to notify departure/intending departure).

Departure certificates were introduced in February 1989.  They are unpopular with staff and customers alike.  In 1995, the penalty clauses were substantially moderated.  Savings from the initiative are now minimal and do not justify the administration.

Insert a provision for the extension of the portability period (by high-level determination in Area Offices and CIS) when return to Australia is delayed by extreme, unforeseen circumstances..

To provide the facility to meet special situations (which will be very specifically defined in policy guidelines) without resorting to the Act of Grace provisions.

Repeal the special need and specified foreign country provisions in the Act.

The provisions are not used.

Insert savings provisions for age, DSP, wife and widow B customers who are already overseas on 20/9/2000. They will continue to have their current portability conditions (including indefinite or specific period of payment allowed, proportionality-free period, effect of short return to Australia renewing these periods, use of partner WLR) applied until/unless they return to Australia for 26 weeks or more.

Customers who departed before the new rules are implemented have already had portability and proportionality decisions made under the old rules.  They should not be affected by the new rules until they have returned to Australia.  The 26-week return provision is to ensure that short temporary returns do not affect the 'saved' status.

Portability Requirements

Long-term pension portability

Requirement ID: PS001Version:1.0Date of Last Update: 8/12/1999

Priority: HighImportance: Mandatory Contact: Denise Moser, x222747

Requirement Title: Long-term pension portability: apply new portability rules for pensions which are portable indefinitely (age pension, DSP for the severely disabled, wife and widow B pensions for 'entitled persons').

Description:

Rules:

For rules for customers who are already overseas on 20/9/2000, see PS011.

From 20/9/2000, the following autonomous payments will be portable indefinitely (other than for departures to NZ, and provided the person is not affected by 'former resident' provisions - see PS015):

  •      Age pension (as now)
  •      DSP for severely disabled pensioners only (removing the granted-pre-12/11/91 provision)
  •      Wife and widow B pensioners who are 'entitled persons' (these categories are the same as now).

Note that DSPs must be severely disabled on departure in order to attract indefinite portability (this is the same as at present).  A person who is not severely disabled on departure but who later becomes severely disabled does not then have indefinite portability; they remain portable only for their original 26 weeks.  Further, if a severely-disabled person with indefinite portability is later medically reviewed and found to be no longer severely disabled, portability is then restricted to the next 26 weeks and the record must be cancelled 26 weeks after the person ceased to be severely disabled.  This reflects existing rules, but with the time period reduced to 26 weeks.

For temporary departures, the rate paid for the first 26 weeks after departure will include add-ons (PhA, RA, RAA

[6] and TAL) if qualified, after which these add-ons must be cancelled if the customer is still overseas  (see PS021).  RA and TAL must cease earlier if qualification ceases (i.e. no longer paying qualifying rent or subscribing to a telephone service). For permanent departures, only the base rate is paid, and add-ons must be cancelled from the date of departure. [21]

For both temporary and permanent departures, the rate paid from 26 weeks after the date of departure will be the proportional rate using the person's own WLR (see PS012).  The only exceptions to proportional rate are for DSP and widow B where the qualifying event occurred while the person was an Australian resident.  Note that if a person has zero WLR (e.g. arrived after age-pension age) then the proportional rate will be nil.  Customers must be advised of the rate reduction or cancellation.

It will no longer be necessary to review cases 6 months after departure (see PS018).

Where a customer returns to Australia, the rate must cease to be proportional (if it was so) from the date of return, whether that return is for Australian residence or not (i.e. regardless of what is recoded as Country of Residence).  Customers who return to Australia must be paid PhA, and RA if qualified (i.e. paying private rent on their principal home in Australia), and be issued concession cards only if their Country of Residence is Australia (or is changed to Australia, i.e. they again become a resident, if they were previously resident elsewhere).  They must be paid RAA only if resident in a remote area.  They must be paid  TAL (if qualified, i.e. a “subscriber” to an Australian telephone service) while physically in Australia.   If a customer is physically in Australia but is not a resident (i.e. Country of Residence is not Australia) then PhA, RA and RAA cannot be paid, and cards should not be issued.

Any subsequent departure will again be assessed under the above rules.  Note that this means that any return, no matter how short, resets the portability 'clock' to zero, i.e. the person will again have 26 weeks before proportional rate applies, and if the departure is temporary (i.e. the person is still an Australian resident) then add-ons will be payable for a further 26 weeks.  However, Australian resident status would be in question if the pattern of travel suggests the person is actually residing overseas (e.g. a pattern of long absences with continual short returns).  Although this has no effect on the main pension payment (as these do not require continuing residence for qualification), it would mean that add-ons were not payable and cards could not be issued, either inside Australia or within the first 26 weeks of each absence.

For customers paid under Agreements, the rules will not change, except that customers paid the “in-Australia” direct-deduction rate under UK or NZ and who are departing temporarily will be paid add-ons (where qualified)  during the first 26 weeks of the absence.  (Note that pensions paid under UK and NZ Agreements are only portable for temporary absences, and should be cancelled immediately if departure is permanent — this is the same as at present.)

For both autonomous and Agreement customers departing to NZ, there will be no change to the rules, except that customers who are departing temporarily will be paid add-ons  during the first 26 weeks of the absence, where the main pension remains payable.  (Note that these pensions are not portable at all to NZ if departure is permanent — this is the same as at present.)

Savings for people overseas immediately before 20/9/2000

Requirement ID: PS011Version:1.0Date of Last Update: 8/12/1999

Priority: HighImportance: Mandatory Contact: Denise Moser, x222747

Requirement Title: Maintain most old rules for certain pension customers who were overseas immediately before 20/9/2000 and who do not return to Australia for at least 26 weeks. Maintain most old rules for other customers until return.

Description:

Rules:

Age, DSP, wife, widow B and BvA: Autonomous age, DSP, wife, widow B and BvA customers who are overseas immediately before 20/9/2000 may have portability advantages under the existing rules, when compared with the new rules.  Such advantages include:

  • having 12 months after departure before cancellation or proportionalisation occurs;
  • long-term portability for non-severely-disabled DSP cases who were granted before 12/11/1991 (i.e. were granted under the Invalid Pension rules);
  • certain cases being exempt from proportional rate; and
  • using the partner's WLR if proportional.

They will be “saved” and continue to use all these old rules unless and until they return to Australia for at least 26 weeks.

They will, however:

  • have the new rules about abolition of Departure Certificates applied (see PS013);
  • be subject to the proportional rate limiter ceiling (see PS012) although they will continue to use the partner's WLR if appropriate;
  • continue to be paid a rate without add-ons;
  • be able to use the discretion to extend portability if only portable for a limited period (see PS016); and
  • no longer need 6-monthly overseas reviews (see PS018).

Cases will need to have an identifying code to indicate that they are a “saved overseas immediately before 20/9/2000” case.  While the code is present, the customer must have all the existing pre-20/9/2000 rules applied (except that they will no longer need a departure certificate for a new departure after 20/9/2000, will no longer need a review 6 months after departure, and will be able to use the discretionary extension provisions).  This includes cases where the customer has returned to Australia, but has left again within 26 weeks.  This means, for example, that a customer who is “saved overseas immediately before 20/9/2000” can return to Australia for less than 26 weeks and on re-departure, his/her pension will not cancel, or rate proportionalise, (whichever is appropriate) until 12 months after the last-occurring departure from Australia.  It does not matter how many times the customer returns to Australia then returns overseas; the savings provision will continue provided each return is less than 26 weeks.

If the customer returns to Australia, the “saved overseas immediately before 20/9/2000” indicator must be deleted 26 weeks after the date of return, if the customer is still in Australia.  This will mean the new rules are applied if the person later departs Australia.

Customers who return to Australia must be paid PhA, RA if qualified, and be issued concession cards only if their Country of Residence is Australia, i.e. they have not ceased to be  an Australian resident while overseas (or if their Country of Residence is changed to Australia, if they were previously resident elsewhere — though this would be very unlikely).  They must be paid RAA only if resident in a remote area.  They must be paid  TAL (if qualified, i.e. “subscriber”) while physically in Australia. If a customer is physically in Australia but is not a resident of Australia, then cards cannot be issued and PhA, RA and RAA cannot be paid.  The rate must cease to be proportional (if it was so) from the date of return.

If they re-depart while still “saved overseas immediately before 20/9/2000” (i.e. within 26 weeks) they will not  receive PhA, RA, RAA and TAL (where qualified) even  if that subsequent departure is temporary (see PS021).  All existing pre-20/9/2000 rules apply to period of portability and rate (note that the rate limiter will have applied from 1/8/2000) .  However, in common with all other pension departures, “saved” cases will no longer require Departure Certificates (or six-months overseas reviews) and will be able to have a limited period of portability extended under the discretionary provisions.

None of the existing pre-20/9/2000 proportional portability “savings” can be allowed to be recorded if the “saved overseas on 20/9/2000” indicator is not present.

The above savings may apply to autonomous customers who are in New Zealand on 20/9/2000, either because they are within the allowed temporary period in NZ or because they are  one of the rare cases paid for permanent absence in NZ, because NZ has rejected their claim.

The above savings do not apply to Agreement customers, paid under any Agreement, because their portability provisions are governed by the Agreement.

Note that ex-SPP PPS long-term overseas customers (saved under previous rules) remain saved under their own provisions (see PS005).  This savings provision must not be allowed on any new PPS cases (i.e. ones which depart on/after 20/9/2000), unless the Country of Residence before 20/9/2000 was not Australia.

All other payments: Other customers who were overseas immediately prior to 20/9/2000 remain on their existing conditions until return to Australia.  This means they continue on their existing allowed absence period (e.g. 3 months for NMA) and do not have add-ons incorporated into the payment from 20/9/2000.  Once they return, any subsequent absence will be assessed under the new rules.  No indicator should be necessary; it should only be necessary to maintain current rate provisions and reviews for cancellation on the date required by the previous rules.  These cases will, however, be able to have a discretionary extension applied.

Proportional rate

Requirement ID: PS012Version:1.0Date of Last Update: 8/12/1999

Priority: HighImportance: Mandatory Contact: Denise Moser, x222747

Requirement Title: Calculate the correct rate for proportional pensions, taking into account rules for working-life residence.

Description:

Rules:

See PS001 for which cases are exempt from this proportional rate, also noting that BvA cases are exempt - see PS003.  Many “saved overseas before 20/9/2000” cases are also exempt from proportional rate under existing rules (see PS011).  If exempt from proportionalisation, use the normal rate calculation, noting that any listed foreign pension (or half the combined foreign pension in partnered cases) from an Agreement country is not proportionalised in the calculation, even if it is proportionalised in the partner's calculation because that partner's rate is proportional.

The rate limiter ceiling is being implemented from 1/8/2000 for both autonomous and Agreement proportional cases.  It is included here for completeness, along with all existing rules, and rules (such as the 40% taper) which will be implemented before 20/9/2000.

This requirement describes the proportional rate to be paid to most indefinitely  portable autonomous pension customers from 26 weeks after departure, if they are not “saved overseas before 20/9/2000” cases.   The proportion used is based on the customer's own WLR, including the proportion applied to appropriate Agreement country foreign pensions before the income test is done, and the rate paid is limited so it is no higher than the rate the person would receive if they had 300 months' WLR.

It also describes the rate to be paid to autonomous “saved overseas before 20/9/2000” cases. They will have already changed on 1/8/2000 to incorporate the Rate Limiter ceiling, and they do not require further change on 20/9/2000, except to include the correct proportionalisation of foreign pension in the calculation where one person is proportional and the other is either not proportional, or has a different WLR (e.g. proportional age and wife pension couple).  They:

  • continue to use the previous rules relating to partner's WLR;
  • continue to be saved from proportionalisation under the old rules where appropriate (see PS011); and
  • are only paid the proportional rate described in this Requirement from 12 months after departure.

Note that this rate calculation must be done separately and individually for each member of a couple.  This is because the affecting income amount will be different where each has a different WLR (or one is not proportional) and there is a listed Agreement country foreign pension present.

  1. Determine the appropriate WLR (in months): if “saved overseas before 20/9/2000” indicator is present, use the WLR determined under existing rules.  Otherwise, use the person's own WLR.
  2. Determine the WLR factor by dividing the result of step 1 by 300.
  3. For blind age or DSP pensioners, direct-deduct periodic compensation (if applicable) from the appropriate maximum rate, then multiply the result by the person's WLR factor. This is the person's proportional rate.
  4. For all other cases, where partnered, add all basic amounts of (and existing non-exempt components of Netherlands or Italian) foreign pensions of types Age, Invalid, Survivor's or Widow's from Italy [7], Canada, Spain, Malta, Ireland, Portugal, Austria, Cyprus or [8]Denmark, and Age pension only from Netherlands, where such a pension or pensions is/are received by either party.  Halve the result.  If not partnered, add all foreign pensions (as listed) received by the person. [22]
  5. Multiply the result of step 4 by the WLR factor (from step 2).
  6. If partnered, combine all other assessable income and halve.  If not partnered, add all other assessable income.
  7. Add the results of step 5 and step 6.
  8. Subtract the applicable (partnered or single, and amounts if any for dependants) allowable income amount from the result of step 7.
  9. Multiply the result of step 8 by 4/10ths (40% taper).
  10. Direct-deduct periodic compensation (if applicable) from the appropriate maximum rate , then subtract the result of step 9.
  11. Multiply the result of step 10 by the WLR factor (from step 2).
  12. Perform steps 4 through 11 using a WLR factor of 1 (300/300ths).
  13. Take the lower of the results of steps 11 and 12.
  14. Perform the usual assets test on the applicable maximum rate, also direct-deducting any periodic compensation (if applicable).
  15. Proportionalise the result of step 14 by the WLR factor (from step 2).
  16. Take the lower of the results of steps 13 and 15: this is the person's proportional rate.

Note: No “overseas child payment” is payable to autonomous customers from 1/7/2000, under FAO changes.

Note 2: A similar “rate limiter ceiling” will apply to all Agreement proportional rates from 1/8/2000, and already applies to Italian Agreement cases.

Note 3: The Italian Agreement does not currently allow proportionalisation of its foreign pensions for autonomous or non-pensioner partners, but will do so under the Revised Italian Agreement from 1/8/2000.

Note 4: There may be additional incidental rate calculation rules (such as war widow's ceiling) to be applied.  If so, they should follow current rules.

Abolition of Departure Certificates

Requirement ID: PS013Version:1.0Date of Last Update: 8/12/1999

Priority: HighImportance: Mandatory Contact: Denise Moser, x222747

Requirement Title: Remove the requirement for Departure Certificates for age, DSP, wife, widow B and BvA pensions.

Description:

Rules:

Currently age, DSP, wife, widow B and bereavement allowance customers must be given a Departure Certificate when they notify of an intention to leave Australia.  The certificate acknowledges that the person has notified the departure, and acknowledges that they are still qualified for pension.  The “certificate” is in fact just a paragraph in the letter issued to customers who advise of departure.

Currently, if the customer is not recorded as having a Departure Certificate and the departure is detected through data-matching with DIMA departure records, the customer's pension is suspended and a review is sent to check on continuing entitlement.  If a reply is received, the case is checked to see if it was in fact portable and is still payable, and if so, restored with arrears depending on when the review was returned.  If no reply is received, the case is eventually cancelled.

From 20/9/2000, pension customers departing Australia will no longer be required to be given a Departure Certificate.  However, they will still be required to notify of their intention to depart Australia.  They will still require the same interview to determine whether their pension can be paid overseas, and if so, for how long and at what rate.  People who fail to notify departure will still be detected, although the data-match will be against records where no departure has been coded, rather than against those not recorded as having a Departure Certificate.  Matched cases will still be suspended and reviewed , with arrears depending on standard legislative rules, i.e. full arrears if it is determined that the pension was payable throughout the period.  Customers who do not reply to the review will have their pensions cancelled, with standard rights of appeal.

'Former resident' provisions

Requirement ID: PS015Version:1.0Date of Last Update: 8/12/1999

Priority: HighImportance: Mandatory Contact: Denise Moser, x222747

Requirement Title: Apply new portability rules for 'former residents'.

Description:

Rules:

Currently, autonomous customers who were Australian residents, ceased to be resident then again became residents and claimed pension (age, DSP, BvA), will have their pensions cancelled if they leave Australia (for any country, including NZ) within 12 months of the most recent return for residence, unless there are unforeseen circumstances.

For autonomous customers granted from 20/9/2000, this period will be extended to two years, and the discretion for 'unforeseen circumstances' will be removed.

Customers actually paid under Agreements are not affected by 'former resident' provisions.

This means that where a person was granted autonomous age pension, DSP or BvA before 20/9/2000 but within the last 12 months from the date of departure, and the most recent Australian residence period started within the last 12 months from the date of departure, the pension must be cancelled from date of departure, unless there were unforeseen circumstances.  Certain customers (see table) may be able to reclaim pension if going to Agreement countries (not UK or NZ), and such cases should be referred to CIS.  Processing for 'former residents' is currently manual, and it is envisaged that it will remain so for cases granted before 20/9/2000.

Where an autonomous customer was granted Age pension, DSP or BvA on or after 20/9/2000 but within the last 2 years from the date of departure, and the most recent Australian residence period started within the last 2 years from the date of departure, the pension must be cancelled from date of departure.  There is no discretion for unforeseen circumstances.  Certain customers (see table) may be able to reclaim pension if going to Agreement countries (not UK or NZ), and such cases should be referred to CIS.

Customers going to the following countries and who will be cancelled by 'former resident' provisions may be able to re-claim under Agreements, provided they are in the right category (note that all countries cover age pension, and there are no special requirements for age pension).  Note that the rate is proportional immediately the person is transferred to the Agreement, and that proportional rate cannot include add-ons.

Country

Age pension

DSP

BvA category

Italy

Yes

Severely disabled

widow or widower (male or female)

Canada

Yes

all

widow or widower (male or female)

Spain

Yes

all

female widows only

Malta

Yes

all

female widows only

Netherlands

Yes

No

No

Ireland

Yes

all

widow or widower  (male or female)

Portugal

Yes

all

female widows only

Austria

Yes

all

widow or widower  (male or female)

Cyprus

Yes

Severely disabled

widow or widower  (male or female)

Denmark

Yes

Severely disabled

No

Note that there are some further refinements of the meaning of 'widow' within Agreements, but these cannot be determined from the system and would be determined manually after the case is referred to CIS.

Deletion of 6-month overseas reviews

Requirement ID: PS018Version:1.0Date of Last Update: 8/12/1999

Priority: HighImportance: Mandatory Contact: Denise Moser, x222747

Requirement Title: Remove the requirement to review continuing cases 6 months after departure.

Description:

Rules:

Currently, all customers who are still current 6 months after departure (i.e. pensioners) are reviewed by sending a Six-Monthly Entitlement Review form.  If the form is not returned, cases are suspended then cancelled.

It is proposed to delete this processing entirely:

  • The customer's rate will change, or payment will cancel, at 26 weeks after departure, so it is no longer an appropriate time to review.
  • Customers could be misled and confused into thinking their rate change or cancellation is a result of the review.
  • Moving the review to an earlier time would be unnecessarily intrusive on the customer's privacy, as the customer has only recently been reviewed at the pre-departure interview.
  • Similarly, moving the review to a later time would be intrusive as other reviews (e.g. for vacation of home property) are conducted at 12 months after departure.
  • The existing reviews are unproductive and ineffective, leading to only 4% and 3% downward variations in the last two years.
  • More appropriate and specific reviews relating to the departure (e.g. for foreign pension receipt or for property changes) are conducted.
  • Any staff reliance on the reviews to check whether the customer has returned (an inefficient method of review, in any case) will be more than compensated for by proposed new reviews for return after stated intended return date.

From 20/9/2000, the reviews should cease to be issued, and the form discontinued. This should include removal of existing reviews on cases already overseas on 20/9/2000.

Portability of add-ons

Requirement ID: PS021Version:1.0Date of Last Update: 8/12/1999

Priority: HighImportance: Mandatory Contact: Denise Moser, x222747

Requirement Title: Apply new portability rules for PhA, RA, RAA and TAL  paid in conjunction with a payment.

Description:

Rules:

Currently, the add-ons PhA, RA, RAA and TAL are paid only (and always) when the customer's address shows that they are in Australia.  Add-ons are cancelled when the address shows the customer is overseas.

From 20/9/2000, these add-ons can be paid for the first 26 weeks of temporary absences (to any country including NZ), while the autonomous customer remains qualified for the add-on and qualified for (and payable) the main payment.

  • PhA qualifications require a person to be an Australian resident, so it must be cancelled for permanent departures, otherwise it remains payable, providing the main payment is payable, for the first 26 weeks after departure and is then cancelled (unless a discretionary extension applies).
  • RAA is only payable while located in the remote area, or for temporary absences from that remote area for up to 8 weeks.  It is thus only ever payable for a maximum of 8 weeks after departure, and must be cancelled from then (not payable for discretionary extension period as would already have been cancelled at 8 weeks).
  • RA does not technically require a person to be an Australian resident.  However, a person departing permanently would cease to reside in the “principal home” (which the new rules specify must be in Australia) as required for RA qualification, so all permanent departures cease to qualify for RA.  RA must thus be cancelled for permanent departures.  For temporary departures, RA should be cancelled after 26 weeks (unless a discretionary extension applies at the end of the 26 weeks), or when qualification otherwise ceases (e.g. rent no longer paid), whichever comes first.
  • TAL does not require a person to be an Australian resident to remain qualified, but is specified in the rules as only portable for temporary absences..  TAL must thus be cancelled for permanent departures.  For temporary departures, TAL should be cancelled after 26 weeks (unless a discretionary extension applies at the end of the 26 weeks), or when qualification otherwise ceases (e.g. no longer a subscriber), whichever comes first.

If a customer who is still an Australian resident returns to Australia, PhA should be restored immediately if they have already been cancelled (note the requirement elsewhere for records to be automatically updated to “returned” when the Expected Date of Return occurs, if 26 weeks or less after departure, which would remove any reviews to cancel add-ons).  Qualification for RA, RAA and TAL should be checked, and if qualified (paying rent etc.), these add-ons must be restored.

If customers return to Australia following a permanent absence (this can only apply to age, DSP, wife, widow B pension or BvA customers),  PhA, RA and RAA can only be paid if the customer has again become an Australian resident (i.e. the Country of Residence is changed to Australia) and is otherwise qualified (i.e. paying appropriate rent on Australian “principal home” or resident in the remote area).    However,  TAL can be paid as soon as the person is physically in Australia, provided the person is an Australian telephone subscriber (this would be unlikely, but possible, if the person has not become an Australian resident).

At present, concession card processing does not require that a person be an Australian resident (because this is not currently recorded).  However, once Life Residence is recorded, card issue should be prevented if Country of Residence is not Australia.

Customers who are "saved overseas immediately before 20/9/2000" cases can be paid add-ons while back in Australia, provided they are still Australian residents (which would be unusual).  However, on re-departure (which must have been within 26 weeks of arrival if they have retained their "saved" status), they are not to be paid add-ons.  This is because the "savings" means they are assessed under the previous rules.  (See PS011)

Add-ons must be paid, following the same rules as above, to Agreement customers paid the domestic direct-deduction rate while temporarily outside Australia, under the UK or NZ Agreements.   Note that UK and NZ Agreement customers cannot be paid at all for permanent departures (i.e. customer must be temporarily absent), so add-ons will always be payable for the first 26 weeks of the absence.

Add-ons must not be paid under any other Agreements if the customer is absent from Australia (whether that absence is temporary or permanent).  They can be paid (and cards issued) when/if such customers return to Australia only if the person is, or again becomes, an Australian resident.

If a discretionary extension applies (see PS016), add-ons other than RAA can continue for the period of the discretionary extension, provided the person remains qualified (rent still paid, still a telephone subscriber).  RAA should have already ceased at 8 weeks so cannot be extended.

1999 BUDGET INITIATIVE

COMPARABLE FOREIGN PAYMENT

REQUIREMENTS WILL BE EXTENDED TO

NON-AGREEMENT COUNTRIES FROM 20/9/2000

Comparable Foreign Payments

Basic Questions And Answers At 20/3/00

Note: information which follows is subject to both the approval

of Parliament and decisions involving policy discretion.

Associated documents are to be found at

http ://centrenet/homepage/aso/tasmania/cis/policy/projects.htm:

Complex Comparable Foreign Payment Questions And Answers

Amnesty On Foreign Pension Income Questions And Answers

Contact is:Mark Hey

International Services Hobart

Telephone x222815

COMPARABLE FOREIGN PAYMENTS (CFP)

Basic Questions And Answers At 20/3/00

1.Why claim foreign pension?

At the present time over $670 million in foreign age pensions is received in Australia  from Agreement countries each year. This amount will continue to increase as new  grants are processed and it is expected an additional $45 million will be received each  year.  These additional funds will further reduce welfare outlays in this country by at  least $7 million per annum.

Expanding CFP to non-Agreement countries should bring an additional $60 million of foreign pensions into the country which it is expected will further reduce welfare outlays by at least $10 million.

2.What are CFP provisions?

The CFP provisions state a customer who may have an entitlement to a foreign pension must take reasonable action to obtain the payment at the highest available rate from the overseas country.

CFP provisions presently only apply to foreign pension entitlement from Agreement countries, but from 20/9/00 will extend to non-Agreement countries as well.

CFP Provisions are covered by the Social Security Administration Act. (Refer to Section 66)

3.What are Agreement and non-Agreement countries?

Agreement countries are those countries that have signed an agreement with Australia in relation to social security matters. Under the agreement customers living in one country can claim a pension from the other country. They can also use residence from               either country to qualify for payments.

Australia has agreements with Austria, Canada, Cyprus, Ireland, Italy, Malta, the Netherlands, New Zealand, Portugal, Spain and the United Kingdom, and will begin an agreement with Denmark from 20/9/00.

A non-Agreement country is one that Australia does not have an agreement with, although negotiations have commenced with some, such as Chile and Germany.

4.What is meant by extending the CFP provisions?

At present, the CFP provisions only apply to customers receiving specified Australian payments who may have an entitlement to a pension from an Agreement country.

Legislative changes will extend CFP to include customers who have an entitlement to a pension from a non-Agreement country.  This means that customers will be required to take reasonable action to obtain a pension from any country not just agreement countries.

5.When will the extended CFP provisions start?

Extended CFP provisions will start from 20/9/00.

From that date, customers claiming any CFP affected Australian payment type will be asked where they have lived and worked during their life, and their response will be entered on their computer record - on a new Country Of Residence (CRES) screen.

Potential eligibility to a foreign retirement pension from each overseas country of residence will be investigated through the registration and screening processes in the Foreign Pensions System (FPS) in a similar way as occurs for Agreement countries.

6.Which customers are affected by the extended CFP provisions?

Only customers and their partners of Australian Age Pension age are affected by the extended CFP provisions for non-Agreement countries.

Customers who claim or receive any of the following Australian payments are affected by the extended CFP provisions:

age pensionwife pension

disability support pensioncarer payment

widow B pensionspecial needs pension

parenting payment singleparenting payment partnered

widow allowancebereavement allowance

Also under the new provisions, if one member of a couple is claiming one of the  above listed payments and they are under age pension age, but their partner is over age pension age, the partner must take action even though they are not claiming a payment in Australia.

The extended CFP provisions only require the customer to take action to claim a retirement pension from overseas, but enquiries may be received from some  customers who may wish to claim other payments.

.7.What happens if the customer fails to take CFP action?

Customers that are issued with a written notice advising them to claim a foreign pension, but fail to take the appropriate action without an acceptable reason, can have their claim for Australian payment rejected, or if in receipt of payment,  cancelled or suspended. (Refer to Section 82 of the Social Security Administration Act 1999.)

8.Are there reasons for not applying CFP?

Yes, there are reasons when the extended CFP provisions need not be applied.

Some examples are as follows

insufficient contributions;

the person left the foreign country at a young age;

the customer is elderly and over 80;

the person is a refugee;

the person is infirm, ill, or living in a nursing home;

the person would only receive a small non-affecting foreign pension; or

the person fears persecution.

Some non-Agreement countries will not accept a pension claim from a person living in Australia.  Therefore customers from these countries will also not be expected to pursue a claim.

Other countries will accept a claim for foreign pension, but will not allow payment to be taken out of that country.  Again in these cases the provisions will not apply.

If a country will only permit pension payments to be made to an account within that country, but the customer can transfer funds to Australia, then the CFP rules apply.

When a customer asks to have CFP action waived, the CSO should fully investigate the case, explain the advantages to the customer of additional pension income from overseas and only then make the decision to proceed or not.

9.What types of foreign pensions are Comparable Foreign Payments?

With the extended CFP provisions for non-Agreement countries, it is only required that retirement or age pensions be pursued.

10.What information will be available to staff about foreign pensions?

Research into the pensions paid by all overseas countries is being tabulated into an online facility accessible through the International Services Centrenet home page.

Details of the qualifications for pensions, how payment is made, whether a claim will be accepted from someone living in Australia, and where the customer needs to go to obtain foreign claim papers are all included.

Staff will be assisted by the screening process within the Foreign Pensions System which will be enhanced to include the business rules for all non-Agreement countries.

11.How can a claim be lodged for a pension from a non-Agreement country?

Claims for non-Agreement country pensions commence with registration in the Foreign Pensions System.  Claims from customers who do not receive an Australian payment are also registered in this system.  Registration involves completing the Foreign Claim Details (FCD) screen which from 20/9/00 will need the same data entered as applies now with Agreement countries.

After registration, inbuilt screening rules will be applied and the user will be taken to the Foreign Claim Assessment Results (FCAR) screen where the system will default a foreign claim status - there will be a new status called Request Issued (RQI).

Once the activity is finalised, a BLA letter will be sent to the customer including a "request for foreign claim papers" proforma to complete and return to Centrelink International Services (CIS).  Staff there will update the status to Request Sent Overseas (RSO) and post the “request for foreign claim papers" to the overseas country.

It will be the responsibility of the overseas country and the customer to have the claim completed, and for the customer to notify CIS of the outcome of the claim.

12.Will existing customers be affected by the extended CFP provisions?

All existing customers of age pension age who receive a specified type of Australian payment at 20/9/00 are affected by the extended CFP provisions.

65,000 existing customers born in non-Agreement countries will be sent a letter in late September 2000, advising them of the extended CFP provisions and their obligation to claim a foreign pension. All customers included in the mail out will be obliged to respond.  A special task force is being set-up in CIS to handle the replies.

If an existing customer from a non-Agreement country is not in the mail out, but is identified as having potential entitlement to a foreign retirement pension, a CFP notice may be issued and the person will become subject to the extended provisions.

13.Who will action foreign claim reviews?

All action and enquiries associated with the special mail out to the 65,000 customers will be handled by the task force at CIS.

Registration of most foreign claims for Agreement and non-Agreement countries will continue to take place in Customer Service Centres and Call Centres as part of the Admission Procedures associated with claiming a specified Australian payment.

From 20/9/00 all foreign claim reviews will be referred electronically to CIS for action. Reviews for Package Issued (PKI) and Future Entitlement (FUT), which               presently go to the Customer Service Centre for action, will be redirected to CIS.

1999 BUDGET INITIATIVE

COMPARABLE FOREIGN PAYMENT

REQUIREMENTS WILL BE EXTENDED TO

NON-AGREEMENT COUNTRIES FROM 20/9/2000

Amnesty on Foreign Pension Income

Questions And Answers At 20/3/00

Note: information in this document is subject to both the approval of Parliament and

decisions involving policy discretion, and is only to be viewed by Centrelink staff.

Associated documents are to be found at centrenet/homepage/aso/tasmania/cis/policy/projects.htm:

Basic Comparable Foreign Payment Questions And Answers

Complex Comparable Foreign Payment Questions And Answers

Contact is:Mark Hey

International Services Hobart

Telephone x222815

AMNESTY ON FOREIGN PENSION INCOME

Questions And Answers At 20/3/00

1.What is an amnesty?

An amnesty is a period of time during which a customer can voluntarily declare undisclosed or under declared foreign pension income and be immune from either overpayment or prosecution action.

2.Why have an amnesty?

The are several reasons why we should have an amnesty at this time.

Firstly, because we know some customers receive undisclosed foreign pension  pension income. If these customers can be enticed to reveal this income, valuable future welfare savings under the income test can be achieved. Also some customers can inadvertently fail to declare income, and giving them the chance to do so without penalty is less stressful, particularly for those who are aged.

The second reason is that from past experience, we know that negotiations with some countries in relation to new agreements, have not succeeded because the overseas country did not want to respond to direct questions about pensions paid to individual ex-citizens now in Australia and being paid by Centrelink.

Because an amnesty allows customers to declare income without penalty, it alleviates the need to ask pertinent questions of the overseas countries, which may result in more profitable talks.

An amnesty is designed to help both the organisation and the customer and is particularly relevant with the extension of the CFP rules to non-Agreement countries.

3.When will the amnesty be available?

The amnesty will apply for a fixed period of four months from 20/9/00 to 19/1/01 inclusive. In order to gain the amnesty, customers must voluntarily declare specified foreign pension income within the stipulated period.

Provided that the declaration is received by Centrelink within the 4 month period, the decision to grant the amnesty can be made after the amnesty period ends.

4.Who will be able to receive the amnesty?

Customers who receive any Australian payment type will be eligible for the amnesty.

For partnered couples, if one party declares foreign pension income and is granted the  amnesty, then the partner will also be automatically covered by the amnesty.

If a customer is in receipt of more than one Australian payment any declaration of foreign pension income under the amnesty will apply to all payments received.

5.What types of income are covered by the amnesty?

Only foreign pension income received but not advised, or previously declared but now received at a higher rate is covered by the amnesty.  This applies whether the income is received from an Agreement or non-Agreement country. (The amnesty is restricted to foreign pension income because it is part of a broader initiative to extend the CFP provisions to all non-Agreement countries.)

Foreign pension income includes all overseas income support payments such as age pension, invalidity pension, widow pension, survivor pension and restitution payment.

It also includes other forms of foreign income such as service pension, annuities and superannuation as in other countries these are in the nature of an income security or age pension payment in that the customer has contributed financially and the scheme is administered by Government regulation.

Income received by way of earnings, investment interest, dividends from shares and returns from real estate and the like will definitely not be covered by the amnesty.

It is important that customers are fully aware that only foreign pension income is covered by the amnesty, so that if they declare other income that is excluded they are aware of the consequences of their declaration.

6.When can the amnesty be advertised?

Advertising of the amnesty will commence after the Minister makes her press statement on or about 20/9/00.  The reason for this is to avoid customers prematurely declaring income they believe would be covered by the amnesty, when in fact they could end up with not only an overpayment, but also prosecution action because the amnesty has not commenced.

Information about the amnesty will also be sent to customers already overseas.  The  intention at this stage is to send them a CFP letter plus an insert with their cheque payments which will arrive with customers after the start of the amnesty period.

Although the advertising will not commence untill after the Minister's statement, some people will already know about the amnesty from press releases issued at the time of the 1999 budget.  Therefore if anyone contacts Centrelink for additional information staff should ensure the person is aware of the dates of the amnesty and the type of income covered.

7.What procedures will apply with the amnesty?

Customers who declare receipt of foreign pension income can have the amnesty applied without the need for a formal application.

All amnesty cases should be processed in the same way using a script being written for this purpose.  The script will document the events on the customer record, produce an OLA letter for issue to the customer as a receipt and add foreign pension income details to the assessment.

All customers will be notified in writing that the amnesty has been applied and that any overpayment or prosecution action has been waived.

8.Which Centrelink staff will process the amnesty?

The majority of the amnesty processing will be associated with customers included in the CFP mail out.  This work will be handled by CIS where a hotline will operate to answer customer queries. CIS will also assist Call Centres and Customer Service Centres by answering amnesty calls transferred to the hotline from other parts of               Centrelink.

The actual processing of foreign pension income advised under the amnesty will be actioned by staff in the Call Centres and Customer Service Centres who receive the original advice from the customer.  The reason for this, is that customers have a such a wide range of avenues to advise Centrelink of any foreign pension income received eg review forms, telephone calls and office visits, it would not be practical to centralise the processing of the amnesty.

9.Will Agreement country embargo recovery continue during the amnesty period?

During the amnesty period it is intended that normal Agreement country embargo recovery procedures continue.  (This work is actioned by CIS.)

There will, however, be an exception to this, where the customer declares the grant of an Agreement pension before the overseas country advises CIS.  If this situation should arise, the person will be eligible for the amnesty and the embargo recovery action will not take place.

10.What if a customer declares foreign pension and other income simultaneously?

If a customer declares foreign pension and other income at the same time, the amnesty must be applied to each type of income individually and only granted to the foreign pension income.  This is because other types of income are ineligible to be amnestied and               therefore normal overpayment and prosecution rules apply.

11.Will the amnesty be advised in the letter to be sent to CFP mail out customers?

Information about the amnesty will be included in a letter sent in late September 2000 to the 65,000 customers selected for the CFP mail out. It is expected that about 4,000 of these customers will immediately disclose previously undeclared foreign pension income.

(NB all processing of amnesty work associated with responses from these customers  to be handled by a special task force in CIS.)

12.What role do past false income declarations by customers play in the amnesty?

In the previous amnesty in 1989/90, customers who had made false declarations about their overseas income were ineligible for the amnesty, but with the amnesty from 20/9/00, previous false declarations are totally irrelevant.

Customers who chose not to declare foreign pension income in the 1989/90 amnesty are still covered by the provisions of the new amnesty.

13.What happens if undeclared foreign pension income is notified on a review form?

Ongoing review processing will continue during the amnesty period. Any foreign pension income declared on a review form, even those reviews generated by Centrelink, must have the amnesty provisions applied, if the form is returned within the amnesty period.

14.What happens if undeclared foreign pension income is uncovered by a staff enquiry?

If Centrelink investigation staff uncover undisclosed foreign pension income, then the amnesty will not be applied.  This is because the customer must have voluntarily disclosed the income to be eligible for the amnesty.

If staff person suspects a customer receives foreign pension income and they ask the customer who then agrees they receive the income, then the amnesty does not apply as voluntary declaration is not seen to have taken place.

15.Will it be necessary to calculate amnesty overpayments?

No, it will not be necessary for staff to calculate or estimate any overpayments in relation to foreign pension income declared under the amnesty.

16.What monitoring of the amnesty is proposed?

During and after the amnesty period, the amount of activity will be monitored using SAS based programming which will access information recorded by the amnesty script.

The information obtained will be the name of country paying the foreign pension income, type and amount of income declared plus the effect on the Australian payment.

Area project coordinators will be provided with the data obtained from this process.

17.What advice about the amnesty will be provided to overseas customers?

Overseas customers will have an insert about the amnesty placed with their overseas cheques to be issued for payday 28/9/00.  This is because these customers are less likely to have access to publicity in relation to the amnesty and are more likely to be receiving foreign pension than domestic customers.

In addition, included in the 65,000 customers selected for the CFP mail out letter, there will be approximately 10,000 overseas cases.

18.Will previously undeclared assets be covered by the amnesty?

No - undeclared or under declared assets are not covered by the amnesty.

19.What is the position with legislation in relation to the amnesty?

An amnesty provision is included in the Social Security And Veterans Entitlements Legislation Amendment (Miscellaneous Matters) Bill 2000 introduced in Parliament in early March 2000.

Debate is expected in early April 2000.

Click here [23] to view a copy of the Bill

20.How should amnestied foreign pension income be handled in arrears calculations?

If arrears need to be calculated for a period prior to when the customer advised they were receiving foreign pension income, you would expect that the income would be included in the calculations.

However in these cases, even though Centrelink now knows that the customer was receiving foreign pension for a past period, the provisions of the amnesty prevent the foreign income from being included in arrears calculations for any period prior to               when the foreign pension was declared.

This means foreign pension income that has been amnestied can only be included in any arrears calculations from the time it was declared and placed in the assessment.

The same will also apply to ongoing overpayment calculations.  Amnestied foreign pension income can only be included in the assessment from the time the income was advised by the customer, even though the customer has received this income for quite some time.

21.Will the social security amnesty extend to taxation?

No, the amnesty is a social security amnesty and covers only overpayments of the Australian social security rate.

However, the Australian Tax Office (ATO) will support the CFP initiative.  To help taxpayers voluntarily comply with the law, ATO is prepared to waive tax shortfall penalties which ordinarily apply to income that was not previously declared.

There is also a general interest charge which, effectively, is designed to cover the time value of money due to tax being paid late.  This interest charge will apply to foreign pensions declared under the amnesty, but taxpayers will be able to apply for remission of the interest charge in accordance with normal ATO rulings and practices.

Where people report foreign pensions under the social security amnesty, ATO would only expect the income to be declared for the year ended 30 June 1999 and the year ending on 30 June 2000.

22.Where will the delegation lie to decide the amnesty?

An answer to this question is yet to be provided by FaCs, but we expect that the Customer Service Officer who services the customer, should be able to finalise any amnesty cases.

23.What can be said to people who disagree with the concept of an amnesty?

If you are talking to a customer who disagrees with the amnesty, the following points may address their concerns:

Because some customers have inadvertently failed to declare their foreign pension income the amnesty now gives them an opportunity to do so without penalty.

The income declared under the amnesty will reduce some Australian payment rates, which means ongoing savings in Government welfare outlays.

Some of the customers who have undeclared foreign pension income are elderly and the prospects of full recovery of overpaid monies will be very limited.

As part of a wider income security reform, the amnesty is an important aspect of negotiating with overseas countries in relation to new social security  greements.  These agreements make it easier for people to claim foreign  pensions, increase the level of foreign exchange into Australia, reduce total Government welfare outlays, and stimulate economic activity in Australia.

24.Will a penalty apply under the failure to notify rules?

We expect that if a customer declares foreign pension income and has the amnesty granted, it is unlikely that an administrative breach or penalty will be applied, but as yet this has not been confirmed by FaCS.

25.Will a debt need to be calculated to apply waiver provisions under the amnesty?

FaCS are still documenting the precise nature of the amnesty and as yet the waiver process is still to be decided.  However, any amount overpaid as a consequence of foreign pension income being declared, will not need to be calculated nor estimated.

26.What happens with youth allowance if the parent is granted the amnesty?

FaCs have yet to advise what will happen with cases where a parent declares foreign pension income and is granted the amnesty, and then the same income is used for the assessment of Youth Allowance for their dependent child.

27.How does the amnesty affect the Seniors Health Card?

FaCS are still examining the implications for customers in receipt of Seniors Health Cards.  However, it is expected that the likely outcome will be, that customers whose income is above the limit will not be entitled to the card as per existing procedures.

28.Can a decision to waive overpayment recovery under the amnesty be changed?

Once the amnesty is granted in relation to foreign pension income and the decision made not to recover any overpaid amount, the decision cannot be changed under any circumstances, even it is later found that the information had previously been advised and not actioned by the office.

29.What date of effect should be recorded?

The date of effect to be used on the system, must be one that will not cause debt recovery action to commence, once the amnesty is granted in respect of an item of foreign pension income.

30.Who has to declare the foreign pension income?

Foreign pension income must be declared by the person actually receiving the income, or a bone fide nominee. In partnered cases, the party receiving the income must make the voluntary declaration, and not their spouse.

[1]Age Pension (go back) [24]
[2] **[3] (go back) [25]
  1. A wife pensioner is an entitled person if she was an Australian resident for at least 10 years or the partner of a man involved in the so called Greek conspiracy allegations.
[4] (go back) [26]
[5]temporary absence, when the primary benefit remains payable and rent is still paid for the Australian domicile. (go back) [27]
[6] and TAL) if qualified, after which these add-ons must be cancelled if the customer is still overseas  (see PS021).  RA and TAL must cease earlier if qualification ceases (i.e. no longer paying qualifying rent or subscribing to a telephone service). For permanent departures, only the base rate is paid, and add-ons must be cancelled from the date of departure. (go back) [28]
[7], Canada, Spain, Malta, Ireland, Portugal, Austria, Cyprus or [8]Denmark, and Age pension only from Netherlands, where such a pension or pensions is/are received by either party.  Halve the result.  If not partnered, add all foreign pensions (as listed) received by the person. (go back) [29]

C24/2000 EXCHANGE RATE ADJUSTMENTS TO BRITISH DISABILITY PENSIONS (EATS & COMPOSITE) PAID IN AUSTRALIA

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DATE OF ISSUE:  24 AUGUST 2000

EXCHANGE RATE ADJUSTMENTS TO BRITISH DISABILITY PENSIONS (EATS & COMPOSITE) PAID IN AUSTRALIA

Advised by:

Advice has been received from the British Department of Social Security (BDSS) to the effect that the exchange rate to be used for payment of the British component of Disability Pensions (EATS and COMPOSITE) in Australia has been reviewed.

New Exchange Rate

$A2.57.  The previous rate was $A2.55 to one Pound Sterling.

(British pension rates charts are at Attachment)

Rate Effective From

Date of effect 24 August 2000.

Cases Affected

The variation applies to the EATS and Composite cases.

Hong Kong

Hong Kong cases are not affected by the exchange rate adjustment to British Disability Pensions.  Disability Compensation Branch in National Office is still reviewing the procedures that apply to Hong Kong pensions including calculating the Hong Kong exchange rate a new method is agreed, for further information on this subject please contact Perry Phillips on 02 6289 6483.

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 Managers and System Support Officers.

Service Pension Cases

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 (which may be affected)

Cases with Service Pension and/or an Australian DP component to be processed via PIPS/PC

Client Data Base (CDB)

For all cases involving EATS, Composite or Service Pension, whether automatic or manual method of assessment, the new rate of British pension must be updated via PIPS/PC.

SPOC

When single officer processing is in operation any reference to the delegate should be read as the single officer.

Punching of transactions from “Action” schedules EATS and Composite Cases

Advices

CR.PS System

The Correspondence Rules and Paragraph Specifications system will generate an advice in cases where a payment variation is made.  Examiners should action cases in the following manner:

Cases

What to do

Continuations

Unless the total payment varies, the PIPS/PC Advices screen should be accessed and production of an automatic advice suppressed.

Variations

Where a variation in total payments results, the PIPS/PC Advice screen should be accessed and the Suppressed Income/Asset List Indicator set.  This will result in production of a variation advice with no income and asset details

Contact Officer

Processing will be performed by the Business Operational Support section. The contact officer for this exercise is Nasreen Haque (02) 6289 1125.

Jeanette Ricketts

A/G BRANCH HEAD

INCOME SUPPORT

C23/2000 ISSUE OF 2000/01 COMMONWEALTH SENIORS HEALTH CARD (CSHC)

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DATE OF ISSUE:  14 AUGUST 2000

ISSUE OF 2000/01 COMMONWEALTH SENIORS HEALTH CARD (CSHC)

PURPOSE

To provide information about the bulk issue of the 2000/01 Commonwealth Seniors Health Card (CSHC).

HISTORY & CONCESSIONS PROVIDED

The CSHC was introduced on 1 July 1994 and has since been issued in bulk each financial year.  CSHC 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 for the CSHC changed on 1 January 1999 from assessing ordinary income to taxable income.

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; and
  • be 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 is currently:

  • 60 years of age (or greater) for a male veteran, and 56.5 years of age (or greater) for a female veteran; and
  • 65 years of age (or greater) for the male partner of a veteran, and 61.5 years of age (or greater) for the female partner of a veteran.
THE CSHC INCOME TEST

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

  • single - $41,000
  • partnered - $68,676
  • illness separated - $75,230
  • plus an additional amount per year for each dependant child - $639.60.

PRODUCTION, TIMING AND LOCATION

Processing of the bulk issue of approximately 5,310 CSHC cards will take place on 21/8/2000, following the extract of client data on 14/8/2000. CSHC recipients should receive their cards in the first week of 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.

State

No. - Bulk issue

Blank supply

for daily issue

NSW

2111

400

VIC

1332

400

QLD

889

300

WA

435

200

SA

425

150

TAS

118

150

TOTAL

5310

1600

FORMAT OF CARDS/ CARRIER

The card has changed from last year.  The card will now be consistent with other IS cards and is the same make-up as the TC1 & PCC.  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 2001.

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 Tuesday 15 August.  The new templates have the expiry date of 30 September 2001. This means States will only need to issue one card for any new grants after 14 August 2000.  ie the card will show: “Valid from: 15 August 2000 to 30 September 2001.

The blank stock for the daily issue of CSHCs will be forwarded by SMS to the State Office's nominated officers as listed below immediately after the bulk issue.

STATE

QUANTITY

CONTACT

PHONE

FAX

NSW

400

Sue Cooney

(02) 9213 7874

(02) 9212 7885

VIC

400

David Price

(03) 9284 6379

(03) 9284 6797

QLD

300

Gaynor Corlis

(07) 3223 8842

(07) 3223 8533

WA

200

Clyton Aitkon

(08) 9366 8417

(08) 9366 8239

SA

150

Maria Lewandowski

(08) 8290 0439

(08) 8290 0412

TAS

150

Judith Makedos

(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

A/G BRANCH HEAD

INCOME SUPPORT BRANCH

     August 2000

C22/2000 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:  18 JULY 2000

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.

Effective Date 7 March 2000

Effective from 11 July 2000 the current exchange rate will change.  On pension payday 27 July 2000 pensioners will receive a full instalment at the new assessed rate.

New Rate

A$2.5595

The exchange rate will change from one Pound Sterling equals A$2.5595 to one Pound Sterling equals A$2.4863 (ie $A1 = 0.4022 pounds). This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 23 June 2000.

Timetable

The DVA exercise is scheduled for processing on Tuesday evening, 11 July 2000.

Automatic
Superannuation processing

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

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 27 July 2000 – ie 11 July 2000.

Advice Letters

The advice letters for this exercise will be joint advices.  The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.  This includes pensioners who have been reduced to nil and are no longer in payment.  The date of effect shown in the advices will be 11 July 2000.

New Claims and Centrelink Transfers–In with an Existing OTA

Any New Claims or Centrelink Transfers-In with a date of effect between 12 July 2000 and 24 July 2000 where BRI is recorded will have to be identified and a manual adjustment made to the existing One Time Amount (OTA) on the PMF.

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

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

BRI advices for these cases will display a date of effect of 11 July 2000, ignoring the fact that pension may have been granted from a later date.  You will not be able to intercept these advices because they are sent direct to Australia Post by Security Mailing.

IBM GSA Implications

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

Mail out of Bulk Advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by Wednesday 19 July 2000.

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

R J Hay
Branch Head
IncomeE Support

     July 2000

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

0.4022

2.4863

C21/2000 ASSESSMENT OF CONVENTIONAL LIFE INSURANCE POLICIES: Clarification of Policy & Legislation

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DATE OF ISSUE:  12 JULY 2000

ASSESSMENT OF CONVENTIONAL LIFE INSURANCE POLICIES: Clarification of Policy & Legislation

Purpose

The purpose of this departmental instruction is to provide policy information and procedural guidelines relating to the income assessment of conventional life insurance policies.

Background

Conventional life insurance policies include a commitment by the life office to carry a significant insurance risk by paying a specified minimum benefit to the customer in the event of a particular incident.  An example is a whole of life policy.  Such policies differ from policies that do not feature a significant risk, which are classified as managed investments.

During the course of the CLIK project it became evident that there was a discrepancy between the Department of Family and Community Services (FaCS) and the Department of Veterans' Affairs (DVA) policy in relation to the assessment of conventional life insurance policies.  While DVA did not assess bonuses as income either during the term of the policy or on maturity, FaCS assessed bonuses as income for 12 months upon maturity.

Investigation revealed that the FaCS policy changed on 21 July 1997.  The FaCS policy clarification occurred because discounting such amounts was inconsistent with the intention of the Social Security Act 1991 (SSA).  FaCS also recognised that ignoring such bonuses was inequitable compared with the treatment of other products.

Bonus

A bonus is any amount the policy beneficiary is entitled to receive above the cost of the policy purchase price including any premiums paid.  Bonuses are all profits made on life insurance products.

Withdrawal

Withdrawal includes both surrender and maturity.  Profit is assessable as soon as the beneficiary has legal entitlement to access it.  All income is assessed at this time, irrespective of any amounts, profit or principle, left in the policy after this date.

Legislation

When a conventional life insurance policy is withdrawn, FaCS assess the capital gain received under section 1073 of the SSA.  The Veterans' Entitlements Act 1986 equivalent to this section is 46A  Certain amounts taken to be received over 12 months:

If a person receives, whether before or after the commencement of this section, an amount that:

  1. is not income within the meaning of Division 3 or 4 of this Part; and
  2. is not:
  1. income in the form of periodic payments; or
  2. ordinary income from remunerative work undertaken by the   person; or
  3. an exempt lump sum;

the person is, for the purposes of this Act, taken to receive one fifty-second of that amount as ordinary income of the person during each week in the 12 months commencing on the day on which the person becomes entitled to receive that amount.

This section is also applied in situations such as life insurance policy deeming, gifting, trading and borrowing.  Questions relating to these issues can be located on the FaCS site: www.fahcsia.gov.au/internet/facsinternet.nsf/b919d... [34]$FILE/life_insurance_qa.pdf

New DVA Policy

The FaCS policy relating to conventional life insurance policies is regarded as legally correct.  To ensure consistency and equity DVA policy will be aligned to the FaCS policy.  Bonuses received and withdrawals made will in future be assessed under section 46A.  The 12 months will start on the day on which the person made the withdrawal or became entitled to the bonus.  This includes situations where the person received the withdrawal/bonus within a 12 month period before claiming income support pension.

Example:  A veteran becomes eligible to receive a bonus on 1 January 2000 and claims an income support pension on 1 October 2000.  The eligible amount will be counted as income for a period of 12 months starting 1 January 2000.  For the purposes of the pension assessment the bonus amount will only be held from 1 October 2000 through to 1 January 2001 – a period of 3 months.

Policy guidelines in CLIK will be amended to reflect the revised policy.

Effective date of new policy

The change to DVA policy will take effect from the date of this instruction.  All future cases arising will be assessed in accordance with this instruction.  It should be noted that where a bonus or withdrawal has previously been assessed under the old policy, the new policy will not be applied retrospectively.

Calculating profit

Profit is classified as the total amount received upon the surrender or maturity of the policy, minus the original purchase price and any premiums paid.

Example:  A veteran purchased a policy for $10,000 then made premium payments to the value of $5,000 over the life of the policy.  So the total amount paid for the policy is $15,000.  On 12 September 2000 the veteran becomes eligible to receive $20,000.  $20,000 - $15,000 = $5,000.  This $5,000 is regarded as profit and is therefore counted as income for a 12 month period starting from the date of eligibility, which is in this case, 12 September 2000.

Recording amounts as profit

Profit is not to be calculated using the spreadsheet for Superannuation Managed Investments.  The calculation to find the amount to be recorded is detailed above.  This profit is to be recorded under 'other income' in PIPS for a period of 12 months.  A review then needs to be established, as outlined below.

Setting a review

A review date should be set in the Veterans' Information Enquiry Window (VIEW) triggering an automatic reminder for a specified period.  This is accessed through the 'Client Activity' tab.  Select 'Review'.  Set a date for review that corresponds with the expiry of the twelve month period.

Note: VIEW review is being expanded to enhance the review process.  At this stage the expansion is expected to occur on 17 July 2000.

Administering a review

When a reminder for review comes up after the twelve month period the officer responsible for the case must go into PIPS and remove the amount from the 'other income' screen.  Failure to do this would result in a veteran receiving less than their full entitlement under the Act.

Contact Officer

Please refer any questions with respect to this instruction to Daniel Caldwell on (02) 6289 6403.

RJ HAY

BRANCH HEAD

INCOME SUPPORT

12 JULY 2000

C20/2000 VETERANS' CHILDREN EDUCATION SCHEME (VCES) - Changes in the maximum amounts of Rent Assistance Effective from 1 July 2000

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DATE OF ISSUE:  23 JUNE 2000

VETERANS' CHILDREN EDUCATION SCHEME (VCES) - Changes in the maximum amounts of Rent Assistance Effective from 1 July 2000

The purpose of this DI is to advise of amendments to DI C15/2000 [36] issued 31 May 2000.

DI C15/2000 [36] advised of increases in the maximum amount of rent assistance payable from 1 July 2000.  However, the Government has subsequently announced additional rent assistance to low income earners and the amounts that were previously advised are now obsolete.

The attached document details the new maximum rent assistance amounts payable.   Please note that the rent threshold amounts remain unchanged.

The contact officer for enquiries on this matter is Marie Leach, Disability Compensation Branch, National Office on (02) 6289 6046.

W R MAXWELL

BH DISABILITY COMPENSATION

       June 2000

Veterans' Children Education Scheme

Rent assistance

From 1 July 2000 to 19 September 2000 the fortnightly limits for rent assistance are:

Category

Rent threshold (pf)

$

Maximum RA (pf)

$

single student

73.80

85.00

sharer

73.80

56.70

member of a couple where the partner does not receive a rent increased benefit (from any source)

120.20

79.80

member of a couple where the partner does receive a rent increased benefit (from any source)

120.20

39.90

C19/2000 JUNE 2000 GROUP CERTIFICATE AND ADVICE LETTER MAILOUT

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DATE OF ISSUE:  21 JUNE 2000

JUNE 2000 GROUP CERTIFICATE AND ADVICE LETTER MAILOUT

Purpose of Instruction

This Departmental Instruction is to provide information about processing arrangements for the June 2000 Group Certificate, Medicare Levy Exemption Certificate and Advice Letter Mailout.

R J HAY

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.  Some of these letters will include Group Certificates for the end of the financial year.  Medicare Levy Exemption Certificates will also be issued at this time.

Significant issues

The June 2000 mailout will incorporate the following events for pay day 13 July 2000.

  • Increase in pension rates, limits and thresholds of at least 4% in line with the Government's compensation measures under The New Tax system;
  • Production of letters to reduced rate and maximum rate service, age pension and income support supplement recipients;
  • Production and issue of end of financial year Group Certificates;
  • Production and issue of Medicare Levy Exemption Certificates.

Production of Advice Letters

Processing

Processing is scheduled to run from 23 June until 28 June 2000.

ADP Processing

Detailed information regarding ADP processing will be issued to State System Support Officers in a separate memorandum.  The Systems Support Officers will be issuing a local processing timetable and should be consulted on any matter concerning ADP processing.

Critical Dates

Processing Weekend within DVA

23-29 June 2000

Commence Dispatch Production Data to SMS

28/29 June 2000

Commence Printing Advice Letters

28/29 June 2000

End Printing Advice Letters

11 July 2000

All letters lodged with Australia Post

11 July 2000

Letter Production

Security Mailing Services, Kingsgrove, Sydney will print advice letters, add inserts and envelope them.  Production of letters is expected to occur over period 26 June – 11 July 2000.

Lodgement of Letters

Letters will be progressively lodged with Australia Post once a complete State's letters have been enveloped.  All letters should be posted by 11 July 2000.

Number of Pensioner Households Affected

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

Type

NSW

VIC

QLD

SA

WA

TAS

AUST

SP

61,536

41,948

40,022

19,137

18,339

8,239

189,221

ISS

27,076

19,069

14,911

6,633

5,093

2,703

75,485

AP

3,107

2,204

1,566

740

698

125

8,440

DP*

27,279

19,172

13,092

5,596

5,765

2,010

72,914

TOTAL

118,998

82,393

69,591

32,106

29,895

13,077

346,060

*  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.  Copies of the amended advice letters for this run are reproduced at Attachments A, B and C to this DI.

Group Certificates

Group Certificates will be issued to all pensioners whose pensions are taxable.  Group Certificates without tax deductions will be part of the advice letter sent from the mailing house.  Group Certificates for pensioners who have had tax deductions during the year, will be sent to the State Offices for checking prior to mailing.

Reduced Rate basic letter format

All reduced rate service pension, age pension and income support supplement recipients will receive:

  • A payment box
  • Financial Obligations (including their prescribed rate) in their advice letter.

Maximum Rate basic letter format

All maximum rate service pension, age pension and income support supplement recipients will receive:

  • A payment box;
  • Financial obligations (including their prescribed rate) in their advice letter.

No Income and Asset Listing

The Income and Asset listing for all pensioners is to be suppressed for this mailout.

No Obligations

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

Telephone Allowance

Letters will inform pensioners entitled to a telephone allowance payment about their quarterly payment.

Medicare Levy Exemption Certificates (MLEC)

Medicare Levy Exemption Certificates will be issued.  This will consist of a box in the Group Certificate stating the period of exemption if applicable or a separate certificate for Gold Card beneficiaries who are not in receipt of a taxable income support pension.

NON TAXABLE pensioners

Those pensioners whose pensions are not taxable (e.g. service pension on the grounds of permanent incapacity and under 65 years of age) will receive an advice letter only.  A Medicare Levy Exemption Certificate (MLEC) will be issued separately.

General Information Sheet (GIS)

Each letter will contain a General Information Sheet (GIS).  This will act as the consistent last page for gatemarking purposes at the mailing house.

Page Numbering of Advice Letters

Please note that the page numbering of the advice letters resulted in some confusion for pensioners in last year's mailout as the Group Certificates were not page numbered but were sequenced in the middle of the advice letter.  This will be the case again in 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 it appears as the last page of the advice letter.

Inserts

Australian Taxation Office (ATO)

A brochure produced in conjunction with the Australian Taxation Office (ATO), Centrelink and DVA will be included with all advice letters issued in this exercise.  The brochure is a revision of the ATO insert issued with the 1999 June mailout.  It is hoped that the brochure will significantly reduce the number of queries the State Offices receive about taxation matters.  The brochure is titled “Do you need to lodge a tax return?”  This brochure will be included with all Group Certificates and Medicare Levy Exemption Certificates.  State offices have been provided with samples of the brochures.

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.  All other States overseas letters will be printed at Hermes Precisa and forwarded to the State Offices in with normal daily advice output, for checking and mailing.  All Special Register letters will be printed at Hermes Precisa and forwarded to State Offices in with normal daily output for checking and mailing.  States will be provided with the following insert to be included in letters to these pensioners:

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

Handling of Daily Advices

Cases processed in advance for 13 July 2000 should have the daily advice despatched prior to the June advice letter being sent.

Daily payment advices processed after the processing run on 24-25 June 2000 for pay period 54 (13 July 2000), should be held by the State Offices until confirmation is received for the Advices Project Officer in National Office to release such advices.  This will ensure that pensioners who have pension variations processed for payday 13 July 2000 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 13 July 2000.

Enclosure Letters

It is possible that some States will receive some enclosure advice letters.  Enclosure advice letters will also include any advice letters that include a PCC change as problems have been encountered with the conversion card data since the Date of Effect implementation.  These cases should be checked for errors prior to the advice letter being posted.  The letters will be printed at Hermes Precisa and forwarded to the State Offices in the normal manner.  The insert “Do you Need to Lodge a Tax Return” will also need to be included with these letters.

Tax Deduction Cases

The Group Certificates for pensioners who have had tax deductions will be sent to the System Support Officers in each State 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.

Reprints of Group Certificates

System Support Officers have been provided with a Group Certificate template in Word format for any reprints.

Reprints of MLEC

System Support Officers have been provided with a Medicare Levy Exemption Certificate template in Word format for any reprints.

National Office Contacts

Feedback from State Offices

Any concerns regarding letters produced as part of this run should be directly to the National Office contact officer, Kristie Wallace.  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 two National Office contact for this mailout.  Any queries regarding advice wording, data cartridges, mail house printing and letter lodgement should be referred to either:

Kristie Wallace

(02) 6289 6019 (Phone)

(02) 6289 6589 (Fax)

OR

Pat Webb

(02) 6289 6444 (Phone)

(02) 6289 6589 (Fax)

ATTACHMENT A

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

PARAGRAPH

TO WHOM

State specific letterhead

All

Opening paragraph

All

Pension increases

All

Payment Diversion

All

Medicare Levy Exemption Certificate

Non Taxable

Group Certificates

Taxable and Tax deduction cases

Group Certificate issued separately

Tax deduction cases

Group Certificate issued with letter

Taxable

Contact Tax for further information

Taxable and Tax deduction cases

Medicare Levy Exemption Information

Taxable and Tax deduction cases

Telephone Allowance

All eligible for TA payment

Financial Obligations

All

What test currently paid under

All

Obligations

All

Changes You Have Already Told Us About

All

Right of Review

All

Closing

All

Signature Block (State specific)

All

Payment Information Attachment

All

Group Certificates

Taxable

General Information Sheet

All

ATTACHMENT B

SAMPLE LETTERS

JUNE PARAGRAPH CONTENT

Example 1:  Married Assmt, Reduced Rate, TA Payment.

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: T-CONTACT-OFFICER STATE OFFICE

Telephone: T-CONTACT-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 increases

From 1 July this year, the payments you receive from DVA will be increased by at least 4 per cent.  The Government is paying this increase as part of the compensation measures under The New Tax System.  The increase will be paid on the first payday after 1 July.  The start date for this increase falls inside a pension fortnight so your full increase will not be received until the second pay day after 1 July.

This is to advise you that your T-PENSION-SP-ISS-AP has been increased.  This change will take effect from 1 July 2000.

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  Ddddddd

CBA 4930303030

$XXX.XX

Sccccccc Dddddd

CBA 3930303030

$XXX.XX

TOTAL

$XXX.XX

27/7/00

Xxxxxx Ddddddd

CBA 4930303030

$XXX.XX

Sccccccc Dddddd

CBA 3930303030

$XXX.XX

TOTAL

$XXX.XX

Group Certificates

As it is the end of the 1999/00 financial year Group Certificates are being issued.  You will need this information if you are required to lodge a tax return.

Group Certificate for T-CLIENT-NAME is enclosed with this letter.

Group Certificate for T-PTNR-NAME is enclosed with this letter.

You should contact your local Taxation Office 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 Group Certificate.

Telephone Allowance

Your quarterly telephone allowance will be paid on T-DATE-OF-PAYMENT, together with your pension payment.  The current telephone allowance rates are:

Singles Rate - $16.00

Couples Rate (each) - $8.00

World War I Veterans - $42.50

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.

You are currently paid under the T-INCOME-ASSET-TEST test.

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 changes 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 variation.  A request for review must be in writing and set out your reasons for seeking this review.

If you have any questions about any of the above matters, 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 XXXXXX XXXXXXXand

XXXXX XXXXXX for Pension Payday 13 JULY 2000

TOTAL FORTNIGHTLY PAYMENTXXX.XXXXX.XX

This is made up of:

- Xxxxxxxxx Xxxxxxxxxx — XXX.XX — XXX.XX

- Xxxxxxxx  Xxxxxxxxx     X.XX     X.XX

PAYMENTS TO XXXXXX XXXXXXXand

XXXXX XXXXXX for Pension Payday 27 JULY 2000

TOTAL FORTNIGHTLY PAYMENTXXX.XXXXX.XX

This is made up of:

- Xxxxxxxxx Xxxxxxxxxx — XXX.XX — XXX.XX

- Xxxxxxxx  Xxxxxxxxx     X.XX     X.XX

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.

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$386.90 (per fortnight)

Couples Rate (each)$322.90 (per fortnight)

INCOME LIMIT (per fortnight)

Before Service Pension ReducesCut Off*

Singles Rate$106.00$1087.25

Couples Rate (Combined)$188.00$1816.50

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

ASSETS LIMIT

Before Service Pension ReducesCut Off*

Home Owner

Singles Rate$133,250$264,250

Couples Rate (combined)$189,500$407,000

Non Home Owner

Singles Rate$228,750$359,750

Couples Rate (combined)$285,000$502,500

These limits 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.

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 following Gold Card income and asset cut off limits do not apply to you as your Gold Card is not affected by your income or assets.

INCOME CUT OFF LIMIT FOR GOLD CARD (per fortnight)

Singles Rate$300.25

Couples Rate (Combined)$524.00

Add $53.20 per fortnight for each dependent child or student to the age of T-CHILD-AGE.

ASSETS CUT OFF LIMIT FOR GOLD CARD (per fortnight)

Homeowner

Singles Rate$159,250

Couples Rate (Combined)$234,500

Non Homeowner

Singles Rate$254,750

Couples Rate (Combined)$330,000

Add approximately $5,000 for each dependent child or student up to the age of T-CHILD-AGE.

NOTE: 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 above the gold card income and asset limits.

DEEMING

Rather than calculating the actual income received from your financial assets, they are deemed to earn income at the following rates.

Singles

Low Rate – 3.5% interest up to the threshold of $30,800

High Rate – 5.5% interest for the remaining balance

Couples

Low Rate – 3.5% interest up to the threshold of $51,200

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$82.60$96.60$109.20

Couples Rate (combined)$77.60$96.60$109.20

Rent Limits (per fortnight)

No children1-2 children3 or more children

Singles Rate$73.80$97.00$97.00

Couples Rate (combined)$120.20$143.60$143.60

EXAMPLE 2: Max Rate, Sgle Assment, Taxable – Tax deductions made, TA payment.

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: T-CONTACT-OFFICER STATE OFFICE

Telephone: T-CONTACT-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 increases

From 1 July this year, the payments you receive from DVA will be increased by at least 4 per cent.  The Government is paying this increase as part of the compensation measures under The New Tax System.  The increase will be paid on the first payday after 1 July.  The start date for this increase falls inside a pension fortnight so your full increase will not be received until the second pay day after 1 July.

This is to advise you that your T-PENSION-SP-ISS-AP has been increased.  This change will take effect from 1 July 2000.

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

13/7/00

SKDKDK KDKDK

CBA 02929292992

$XXX.XX

TOTAL

$XXX.XX

27/7/00

SKDKDK KDKDK

CBA 02929292992

$XXX.XX

TOTAL

$XXX.XX

Group Certificates

As it is the end of the 1999/00 financial year Group Certificates are being issued.  You will need this information if you are required to lodge a tax return.

Group Certificate for T-CLIENT-NAME will be mailed separately.

You should contact your local Taxation Office 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 Group Certificate.

Telephone Allowance

Your quarterly telephone allowance will be paid on T-DATE-OF-PAYMENT, together with your pension payment.  The current telephone allowance rates are:

Singles Rate - $16.00

Couples Rate (each) - $8.00

World War I Veterans - $42.50

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.

You are currently paid under the T-INCOME-ASSET-TEST test.

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 is 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 the next three months.  Such a request for review must be in writing, and must set out you reasons for seeking this review.

If you have any questions about any of the above matters, please contact the Department at the address or telephone number shown at the top of this letter.

Your 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 XXXXXX

for Pension Payday 13 JULY 2000

TOTAL FORTNIGHTLY PAYMENTXXX.XXXXX.XX

This is made up of:

- Xxxxxxxxx Xxxxxxxxxx — XXX.XX — XXX.XX

- Xxxxxxxx  Xxxxxxxxx     X.XX     X.XX

PAYMENTS TO XXXXXX

for Pension Payday 27 JULY 2000

TOTAL FORTNIGHTLY PAYMENTXXX.XXXXX.XX

This is made up of:

- Xxxxxxxxx Xxxxxxxxxx — XXX.XX — XXX.XX

- Xxxxxxxx  Xxxxxxxxx     X.XX     X.XX

ATTACHMENT

General Information Sheet

EXAMPLE 3: Married Assment, Reduced Rate, Non Taxable.

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: T-CONTACT-OFFICER STATE OFFICE

Telephone: T-CONTACT-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 increases

From 1 July this year, the payments you receive from DVA will be increased by at least 4 per cent.  The Government is paying this increase as part of the compensation measures under The New Tax System.  The increase will be paid on the first payday after 1 July.  The start date for this increase falls inside a pension fortnight so your full increase will not be received until the second pay day after 1 July.

This is to advise you that your T-PENSION-SP-ISS-AP has been increased.  This change will take effect from 1 July 2000.

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

XXXXXXX OOOOOOO

CBA 3930202020

$XXX.XX

XEEEEEEE OOOOOOO

CBA 3930404504

$XXX.XX

TOTAL

$XXX.XX

27/7/00

XXXXXXX OOOOOOO

CBA 3930202020

$XXX.XX

XEEEEEEE OOOOOOO

CBA 3930404504

$XXX.XX

TOTAL

$XXX.XX

Medicare Levy Exemption Certificate

A Medicare Levy Exemption Certificate will be issued to you separately.

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.

You are currently paid under the T-INCOME-ASSET-TEST test.

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 Review Officer at this office.  If you do decide to apply, 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 any of the above matters, 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 XXXXXX and

XXXXX for Pension Payday 13 JULY 2000

TOTAL FORTNIGHTLY PAYMENT — XXX.XX — XXX.XX

This is made up of:

- Xxxxxxxxx Xxxxxxxxxx — XXX.XX — XXX.XX

- Xxxxxxxx  Xxxxxxxxx     X.XX     X.XX

PAYMENTS TO XXXXXX and

XXXXX for Pension Payday 27 JULY 2000

TOTAL FORTNIGHTLY PAYMENT — XXX.XX — XXX.XX

This is made up of:

- Xxxxxxxxx Xxxxxxxxxx — XXX.XX — XXX.XX

- Xxxxxxxx  Xxxxxxxxx     X.XX     X.XX

ATTACHMENT

General Information Sheet

C18/2000 GRANT OF WAR WIDOW/ER'S PENSION & INCOME SUPPORT SUPPLEMENT: STREAMLINED PROCEDURES

  • Log in [38] to post comments

DATE OF ISSUE:  14 JUNE 2000

GRANT OF WAR WIDOW/ER'S PENSION & INCOME SUPPORT SUPPLEMENT: STREAMLINED PROCEDURES

Purpose

The purpose of this instruction is to advise of streamlined procedures between Department of Veterans' Affairs and Centrelink when granting War Widow/ers' pension (WWP) and income support supplement (ISS) to a social security pensioner or allowee.

Background

Since March 1995, Veterans' Affairs has had the legislation in place to pay income support pension to eligible war widow/ers.

At this time multiple exclusion clauses were included in the Social Security Act 1991 (SSA) that precluded the payment of a social security pension to a person eligible for an ISS.  Multiple exclusion clauses already existed in the case of benefits and allowances on grant of WWP.

Effective from 1 October 1998, Centrelink added a system halt on social security payments once notification of WWP grant was received.  Whilst this action was legislatively incorrect in the case of social security pensions the system change has remained in place.

So that there is no shortfall in income support paid to war widow/ers, Centrelink and Veterans' Affairs have worked together to streamline and fast track the clearance procedures.

Changes

The changes to procedures include:

  • A new Claim for Pension by a Widow, Widower or other Dependent of a Deceased Veteran Form D2663 to formalise the claim for Income Support Supplement.
  • Streamlined clearance procedures.  Reducing the clearance process from a 2 stage to 1 stage process in all cases.
  • Enhancement of Centrelink clearance forms.

Claim form for Pension

WWP and ISS claim forms have been revised to reflect the changes to the clearance process.  A new combined WWP & ISS claim form has been developed.  The ISS component of the form is a 2-page attachment that no longer requests income and asset information.  This is because if the claimant is already in payment with Centrelink, DVA has permission to retrieve income and asset information from Centrelink.  These forms are currently available in all state offices (since 12/99).

Please note:  For war widows who are not in receipt of social security or DVA income support payments form D0529 should continue to be use.  This form continues to be available in electronic form

Streamlined Clearance procedures

Income support policy section consulted with Department of Family & Community Services, Centrelink and DVA state offices with the aim of improving the WWP/ISS clearance process.  As a result of this consultation a new WWP/ISS clearance procedure has been developed.  The new procedure addresses the concerns and simplifies the claim process for widow/ers.  The new procedure is at attachment A

Key Component of Procedures

The key aspect of the streamlined process is that Centrelink can provide the current income and assets details held in a war widow/er's assessment, as part of the initial clearance process.

It should be noted that the details provided are intended for interim ISS assessment only.  It will be necessary to collect up to date income and assets and other relevant details via the normal review process.

Clearance form enhancements

Clearance forms have also been amended as part of the streamlining process.  Centrelink have raised the issue of simplification of the clearance form a number of times and this exercise provided the opportunity to make the required amendments.

To assist Centrelink in processing the clearance the following additions have been requested:

  • include full name;
  • maiden or other names known by;
  • Centrelink Reference Number and date of birth in all cases; and
  • a check box to be added to remind Centrelink to ensure income/asset details are attached in the case of war widow/ers.  These details will be used to fast track grant of ISS.  Suggested wording next to the check box is:              -Income & asset details attached?  Y/N

-WWP & ISS only

For those states that have not yet made the enhancements to the form, the 'clearance tracking system' can be updated with the revised clearance form.  States not using the tracking system will need to replace the current form with the revised one.  A copy of an updated clearance form is at attachment B for the use of those offices as an example of Centrelink's requirements.

Procedures upon grant of WWP

Automatic Grant

Grant upon old application form

Grant upon new WWP/ISS combined application form

Client in receipt of an income support pension (IS) from DVA – date of grant (DoG) of IS before DoG of WWP

  • Grant ISS based on details on screen
  • No clearance required
  • No further action required
  • Grant ISS based on details on screen
  • No clearance required
  • No further action required
  • Grant ISS based on details on screen
  • No clearance required
  • No further action required

Client in receipt of an IS from DVA – DoG of IS after DoG of WWP

  • Grant ISS based on details on screen
  • Send clearance to Centrelink
  • No further action required
  • Grant ISS based on details on screen
  • Send clearance to Centrelink
  • No further action required
  • Grant ISS based on details on screen
  • Send clearance to Centrelink
  • No further action required

Client not in receipt of an IS from DVA

  • Send clearance to Centrelink
  • Send ISS form with WWP payment grant auto-advice
  • Send clearance to Centrelink
  • Send ISS form with WWP payment grant auto-advice
  • Refer file to Income Support section for processing of the ISS claim

Client not in receipt of an IS from either department

  • Send clearance to Centrelink
  • Send ISS form with WWP payment grant auto-advice
  • Send clearance to Centrelink
  • Send ISS form with WWP payment grant auto-advice
  • No clearance required
  • Send ISS form with WWP payment grant auto-advice

Procedures upon grant of ISS

Automatic WWP grant

WWP granted on old application form

WWP granted on new WWP/ISS combined application form

Client not in receipt of an IS from DVA at grant of WWP

  • ISS claim form received
  • Grant ISS based on form as per effective date rules
  • ISS claim form received
  • Grant ISS based on form as per effective date rules
  • Grant ISS based on information from Centrelink as per effective date rules
  • If required, an income and asset statement can be sent to the war widow/er on grant of ISS or the end of the bereavement period, whichever is the later

Client not in receipt of an IS from either department

  • ISS claim form received
  • Grant ISS based on form as per current effective date rules
  • ISS claim form received
  • Grant ISS based on form as per current effective date rules
  • ISS claim form received
  • Grant ISS based on form as per current effective date rules

Contact officer

The contact officer for this issue is Ren?e Arkinstall at National office on 02/62896428.

R J Hay

BRANCH HEAD

INCOME SUPPORT

14 June 2000

Relevant Legislative references

Veterans' Entitlements Act 1986

45A  Eligibility for income support supplement (age, dependent child, incapacity for work)

  1. A person who has made a claim for income support supplement but whose claim has not yet been determined is eligible for income support supplement if:
  1. the person is a war widow or war widower; and
  2. the person:
  1. has reached the qualifying age (see subsection (2)); or
  2. has a dependent child; or
  3. is, in the opinion of the Commission, permanently incapacitated for work (see subsection (3)); or
  4. is partnered (partner getting pension).

Note:For partnered (partner getting pension) see paragraph 5E(5)(d).

45D  Restrictions on dual pensions

  1. Income support supplement is not payable to a person if the person is receiving:
  1. an age service pension; or
  2. an invalidity service pension; or
  3. a social security benefit.

45I  Need for a proper claim

Subject to section 45N, a person is not entitled to be granted income support supplement unless the person has made a proper claim for that supplement.

Social Security Act 1991

151.(3) A wife pension is not payable to a person who:

  1. is an armed services widow [39] or an armed services widower [40]; and
  2. is receiving a pension under Part II or IV of the Veterans' Entitlements Act [41] at a rate determined under or by reference to subsection 30(1) of that Act; and
  3. is receiving income support supplement [42] under Part IIIA of that Act or would be eligible for income support supplement under that Part if he or she made a claim under section 45I of that Act.

Attachment A

WAR WIDOW/ERS CLEARANCE PROCEDURES

Step 1

Automatic grant of WWP

  • If person is not receiving DVA income support pension hold arrears pending Centrelink clearance.  Send immediately to income support for action; or
  • If DVA income support in payment transfer on to ISS (unless vet with QS eligible for SP).  Process as per existing rules.

DVA Compensation

Step 2

Where WWP not automatically granted ISS:

  • From revised WWP/ISS claim form, ascertain possible grounds for ISS (age, invalidity, dependant child/ren, or pensioner partner) eligibility.
  • Contact Centrelink by phone to ascertain if person is receiving an income support payment, type and rate of payment*.
  • Send income and assets statement to war widow/er if identified as a Social Security pensioner.

DVA Income Support

Step 3

Agree on date of effect of ISS & cancellation of social security backdated to date of grant of WWP.

  • Ensure that the date provides sufficient time for the clearance to be processed.
  • Fax clearance to Centrelink Officer.

DVA & Centrelink

Step 5

Cancel social security payment from an agreed date in the future but backdate to payday following grant of WWP.

Centrelink

Step 6

Fax adjustment details to DVA.

Provide current total of income and assets held in assessment of Centrelink payment and income/asset totals held in assessment back to date of cancellation of social security pension.

Centrelink

Step 7

If arrears of WWP sufficient to cover excess social security payment make adjustment and release arrears.

If insufficient continue to hold arrears until ISS granted.

DVA Income Support

Step 8

Grant ISS as per effective date rules.

If not already done (see step 6) recover excess social security payment and release all outstanding arrears.

DVA Income Support

Step 9

On receipt of ISS form or Income and Assets Statement update income and assets and other relevant information.

NB this may have already been lodged and therefore used for grant of ISS.

DVA Income Support

*If DSP for example, this should be adequate evidence for Invalidity ISS purposes as from 1/1/2000 DSP and Invalidity ISS have the same eligibility requirements under the new Invalidity Service Pension rules.


Attachment B

DEPARTMENT OF VETERANS' AFFAIRS

REQUEST FOR CENTRELINK  CLEARANCE

To be retained by Centrelink

Centrelink Regional Office

DVA Reference No

Centrelink Fax No

DVA Consec No

Centrelink Reference No

DVA Fax No(02) 9213 7803

PART A: (Completed by DVA)

1. APPLICANT'S DETAILS

Surname — Given Name(s)Date of Birth

Name of Client

Name of Partner

Maiden Name/AKA

Address

2. The client and/or partner will be or has/ve been granted/increased

type of benefit

with effect from

Client  :

?SP

? ISS

? AP

? DP

?WWP

Rate p/f

$

$

$

$

$

Partner:

?SP

? ISS

? AP

? DP

?WWP

Rate p/f

$

$

$

$

$

KEY:SP = service pension; ISS = income support supplement; AP = age pension; DP = disability pension;
WWP = war widow/er pension.

3. Complete if granted benefit has varied in rate throughout the period

Type

Old % rate (for DP)

New % rate (for DP)

Old $ rate

New $ rate

Date of effect

4. Complete if client or partner has been granted WWP

fromto

Date of death

Bereavement Period

Please Note: WWP is treated as income for Social Security pensions such as age, disability support, wife and carer until 20 March 1995. From 20 March 1995 the TOTAL amount of Social Security pension is cancelled. Other benefits such as sole parent pension, job search allowance, new start allowance, sickness allowance and or special benefit are not payable from date of grant of WWP. If a Bereavement Payment has been made by Centrelink then the adjustment amount should only be calculated from the end of the Bereavement Period.

NOTE: Department of Veterans' Affairs is obliged to release arrears as soon as possible.  It would be of assistance if you could fax your response to our office within 14 days.

..............................................................................

for Deputy Commissioner

DVA Contact Officer:

NSW State Office

Phone Number:

Date:19-Jun-00

Fax Number:


CENTRELINK

CLEARANCE

To be forwarded to Department of Veterans' Affairs

Centrelink Regional Office

DVA Ref No

Centrelink Reference No

DVA Con No

Centrelink Fax No

DVA Fax No(02) 9213 7803

Warning: The attached information is strictly confidential.  If you receive this fax and you are not the intended recipient, please contact the sender by telephone.  This information is covered by Section 1312B of the Social Security Act 1991 and is protected information.  If you further disclose, record, or otherwise use this information, you will be committing a criminal offence and are liable to criminal prosecution, attracting a penalty of 2 years jail, a fine of $12,000, or both.

The authority to seek this information is contained in Section 128 of the Veterans' Entitlements Act 1986.

PART B: (Completed by Centrelink)

CENTRELINK ADJUSTMENT

Surname — Given Name(s)Centrelink Reference No

Name of Client

Name of Partner

?Pension or benefit from Centrelink will be cancelled/varied on the date indicated

?Please recover the amount shown below

?No Centrelink record found

1.Client

Cancelled/varied

Rate p/f

Adjustment period

Adjustment amount

from    ...../....../.....

$

...../....../.....  to   ...../....../.....

$

2.Partner

Cancelled/varied

Rate p/f

Adjustment period

Adjustment amount

from    ...../....../.....

$

...../....../.....  to   ...../....../.....

$

If Clearance is for a grant of War Widow/ers pension (WWP) please attach

Centrelink's current income and asset details, if applicable.

Have Income and Asset details been attached?                            Yes/No (please indicate)

..............................................................................Date:  ..../....../......

Delegate of the Secretary

Centrelink Contact Officer: ...........................................Phone number: ........................................

Regional Office: ...............................................Fax number: ............................................

Please ensure all clearances are signed as we are unable to release any arrears based on an unsigned clearance, necessitating the return of the form for completion.

PART C: (Completed by DVA)

Centrelink Regional Office: ................................................

Adjustment amount of $.............for ...................................was recovered on ..../.../...

Adjustment amount of $.............for ...................................was recovered on ..../.../...

...........................................................................

for Deputy CommissionerContact Officer:

Date:..../....../......Phone Number:

C17/2000 INDEXATION OF BRITISH RETIREMENT INCOME (BRI)

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DATE OF ISSUE:  13 JUNE 2000

INDEXATION OF BRITISH RETIREMENT INCOME (BRI)

INTRODUCTION

1.The British Government has announced that the National Insurance benefit will rise in April 2000 by 1.1% 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 1.1% variation is 13 June 2000 to be available on payday 29 June 2000.

  1. 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 1.011.

AUTOMATIC SUPERANNUATION PROCESSING TIMETABLE

4.This exercise is scheduled for processing on Tuesday evening 13 June 2000.

MANUAL CASES AND MS CASES

5.Cases with actions in SB or PY status will not be processed.  These cases will be listed on the manual case listing for follow up action and CMS/PIPS cases will be created automatically for State Office action.

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 29 June 2000.

CONTACT OFFICER

11.The Income Support contact officers for this exercise will be:

Kevin Chapman — Telephone:  (06) 289 6749 (Systems)

Nasreen Haque — Telephone:  (06) 289 1125 (Business Operational Support)

RJ HAY

BRANCH HEAD

INCOME SUPPORT

     June 2000

C16/2000 FUNERAL BENEFIT - INCREASED BENEFIT EFFECTIVE FROM 1 JULY 2000

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DATE OF ISSUE:  8 JUNE 2000

FUNERAL BENEFIT - INCREASED BENEFIT EFFECTIVE FROM 1 JULY 2000

Purpose

The purpose of this instruction is to advise the new maximum amount of funeral benefit payable from 1 July 2000.

Background

The funeral benefit has been increased in line with the Government's compensation measures in relation to the introduction of the goods and services tax.  The authority for this increase is contained in A New Tax System (Compensation Measures Legislation Amendment) Act 1999 Schedule 2, Part 1, Sections 9 to 11.

New amount

The maximum amount of funeral benefit has been increased to $572.

Effective date

The increased maximum amount will apply to all decisions to grant a funeral benefit made on or after 1 July 2000 regardless of the date of death or date of funeral.

This is in keeping with advice from Legal Service Group (see DI B50/95 [45]) that "there is no authority under the Veterans' Entitlements Act to restrict the amount of funeral benefit payable to the maximum amount prescribed and in force at the time of death in those cases where the veteran's death is not accepted until a number of years after death and the maximum rate of funeral benefit payable under the Act is increased in the interim.....in such cases, the Veterans' Entitlements Act does not preclude the payment of funeral benefit at the rate in force under the Act at the time the application is determined."

GST

The funeral benefit is a contribution to the obligatory costs of the funeral.  This includes GST.  Where there is an entitlement to a payment of funeral expenses from another source (eg a funeral benefit fund) GST on the obligatory costs must be included in the calculation of the residual amount of funeral benefit payable.

New Form

The funeral benefit form D307 is being amended to include the increased funeral benefit amount and reference to the GST.  These updated forms will be available shortly.

Contact

For any enquires on this subject please contact Marie Leach, Disability Compensation Branch, National Office on (02) 6289 6046.

W R MAXWELL

BH DISABILITY COMPENSATION

C15/2000 VETERANS' CHILDREN EDUCATION SCHEME (VCES) - RATE INCREASES EFFECTIVE FROM 1 JULY 2000

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DATE OF ISSUE:  31 MAY 2000

VETERANS' CHILDREN EDUCATION SCHEME (VCES) - RATE INCREASES EFFECTIVE FROM 1 JULY 2000

The purpose of this instruction is to advise increased rates of education allowance and maximum rent assistance payable for VCES.

Attachment A sets out the increased rates of education allowance and increased annual limits for additional tuition and special financial assistance.  These rates are effective on and from the first payday after 1 July 2000.  They have been increased in line with the 4% increase in pensions and allowances to coincide with the introduction of the Goods and Services Tax.

Primary education allowances are payable annually on the first payday in January, or where the child becomes eligible during the year, the annual allowance is paid in full in respect of any initial part year.  Any primary education allowance which is paid on or after 1 July 2000 is to be paid in full at the new annual rate.  There are no pro-rata payments.

The maximum amount  payable for rent assistance has also been increased and is effective from the first payday after 1 July 2000.  The increased limits are shown at Attachment B.  Please note that only the maximum amount payable has changed and that the rent thresholds remain unchanged.

The contact officer for enquiries on these rates is Marie Leach, Disability Compensation Branch, National Office on (02) 6289 6046.

PETER REECE

Division Head

Compensation and Support

       May 2000

Attachment  A

VETERANS' CHILDREN EDUCATION SCHEME

EDUCATION ALLOWANCES EFFECTIVE 1 JulY 2000

Primary Students

The annual education allowance for primary students is $169.40

Secondary/Tertiary Students (fortnightly rates)

StudStudents

At Home

$

Living Away from Home  $

Homeless

$

Under 16 years

34.90

176.03

281.10

16 – 17 years

153.90

281.10

281.10

18 years and over

185.00

281.10

281.10

Secondary/Tertiary Double Orphans (fortnightly rates)

Double Orphans

$

Under 16

153.30

16 - 20 years

281.10

21 years and over

341.40

Additional Tuition – annual limit

Primary student$1,040

Secondary student$1,300

Tertiary student$1,560

Special Financial Assistance – annual limit

All students$1,560

Attachment B

Veterans' Children Education Scheme

Rent Assistance

From 1 July 2000 fortnightly thresholds and maximum amount payable for rent assistance will be:

Category

Rent threshold (pf)

$

Maximum RA (pf)

$

single student

73.80

82.60

Sharer

73.80

55.10

member of a couple where the partner does not receive a rent increased benefit (from any source)

120.20

77.60

member of a couple where the partner does receive a rent increased benefit (from any source)

120.20

38.80

C14/2000 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:  1 JUNE 2000

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.

Effective Date 7 March 2000

Effective from 30  May 2000 the current exchange rate will change.  On pension payday 15 June 2000 pensioners will receive a full instalment at the new assessed rate.

New Rate

A$2.5595

The exchange rate will change from one Pound Sterling equals A$2.6267 to one Pound Sterling equals A$2.5595 (ie $A1 = 0.3907 pounds). This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 26 May 2000.

Timetable

The DVA exercise is scheduled for processing on Tuesday evening, 30 May 2000.

Automatic
Superannuation processing

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

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 15 June 2000 – ie 30 May 2000.

Advice Letters

The advice letters for this exercise will be joint advices.  The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.  This includes pensioners who have been reduced to nil and are no longer in payment.  The date of effect shown in the advices will be 30 May 2000.

New Claims and Centrelink Transfers–In with an Existing OTA

Any New Claims or Centrelink Transfers-In with a date of effect between 31 May 2000 and 12 June 2000 where BRI is recorded will have to be identified and a manual adjustment made to the existing One Time Amount (OTA) on the PMF.

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

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

BRI advices for these cases will display a date of effect of 30 May 2000, ignoring the fact that pension may have been granted from a later date.  You will not be able to intercept these advices because they are sent direct to Australia Post by Security Mailing.

Regulation 45A Procedures

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

IBM GSA Implications

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

Mail out of Bulk Advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by Thursday 8 June 2000.

British DP case paid Rent Assistance

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

Contact Officer

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

Lucy Berger              Telephone:   (02) 6289 6013

Kevin Chapman         Telephone:   (02) 6289 6749

R J HAY
BRANCH HEAD
INCOME SUPPORT

     June 2000

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

0.3907

2.5595

C13/2000 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:  5 MAY 2000

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.

Effective Date 7 March 2000

Effective from 2  May 2000 the current exchange rate will change.  On pension payday 18 May 2000 pensioners will receive a full instalment at the new assessed rate.

New Rate

A$2.5465

The exchange rate will change from one Pound Sterling equals A$2.5465 to one Pound Sterling equals A$2.6267 (ie $A1 = 0.3807 pounds). This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 28 April 2000.

Timetable

The DVA exercise is scheduled for processing on Friday evening, 5 May 2000.

Automatic
Superannuation processing

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

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 18 May 2000 – ie 2 May 2000.

Advice Letters

The advice letters for this exercise will be joint advices.  The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.  This includes pensioners who have been reduced to nil and are no longer in payment.  The date of effect shown in the advices will be 2 May 2000.

New Claims and Centrelink Transfers–In with an Existing OTA

Any New Claims or Centrelink Transfers-In with a date of effect between 3 May 2000 and 15 May 2000 where BRI is recorded will have to be identified and a manual adjustment made to the existing One Time Amount (OTA) on the PMF.

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

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

BRI advices for these cases will display a date of effect of 24 April 2000, ignoring the fact that pension may have been granted from a later date.  You will not be able to intercept these advices because they are sent direct to Australia Post by Security Mailing.

Regulation 45A Procedures

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

IBM GSA Implications

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

Mail out of Bulk Advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by Friday 12 May 2000.

British DP case paid Rent Assistance

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

Contact Officer

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

Lucy Berger              Telephone:   (02) 6289 6013

Kevin Chapman         Telephone:   (02) 6289 6749

R J HAY
BRANCH HEAD
INCOME SUPPORT

     May 2000

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

0.3807

2.6267

C12/2000 RESEARCHERS FOR HISTORICAL AND FACTUAL INFORMATION

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DATE OF ISSUE:  3 MARCH 2000

RESEARCHERS FOR HISTORICAL AND FACTUAL INFORMATION

Background

There are times when the knowledge of the Claims Assessor in Disability Compensation or the Single Point of Contact Officer in Income Support dealing with eligibility for service pension and the support offered in the Consolidated Library of Information and Knowledge (CLIK) in the Compensation Claims Processing System (CCPS) or the Eligibility Module (ELMNET [50]) is limited. When there is insufficient information for a decision to be made on certain events that form part of a claim and in cases where there is doubt on issues of fact it is appropriate that expert opinion be sought from another source. That source can be a historical researcher.

When should reports be requested

However, it is not appropriate to seek a report in every case or in every class of cases. For example it would be improper to seek a research report just because the claim was for PTSD or because the claim was from a particular branch of the Defence Forces. Not every veteran or every description of events on service needs to be the subject of a report by a researcher. If the claim relates to a matter of qualifying service for an individual who served in the Northern Territory then requests for a report on all those who served in the Northern Territory may be unnecessary. If the information being sought was provided by an earlier report , in another case, then a further report on the general question is not needed.

Research Contracts

In every case there must be a contract for the research organisation or the individual researcher. A copy of the standard service agreement for historical researchers is attached. State Offices should inform National Office of any historical researcher using the previous contract so that the new standard service agreement can be signed.

Researcher not listed

If the State Office wishes to use a researcher not already listed a contract can be quickly arranged. National Office will maintain a list of historians who currently have contracts with the Department. This list, attached, will be updated from time to time. National Office will also have copies of CVs for each researcher. CVs can be supplied on request.

Qualifying service matters

The issue of researcher's reports arises mainly in the context of disability pension claims. Nevertheless, delegates making decisions on qualifying service matters should pay heed to the general advice and must also ensure that a contract exists with the researcher where those services are utilised.

Selection of a researcher

The responsibility for selecting a researcher lies with the State Office decision-maker responsible for the investigation. The contract calls this person a Liaison Officer. Before commissioning some research the Liaison Officer should be familiar with the standard service agreement. In every instance the Liaison Officer should contact the researcher to confirm the researcher is available to undertake the project within the time required.

Instructions to the researcher

The instructions to a researcher should contain a list of questions to be addressed. Questions can be of a general nature. 'What were the duties of a driver?' Or they can be specific requests for information on incidents the veteran may have referred to in his claim. The researcher should address the questions asked by the Liaison Officer, not the contention put forth by the veteran. The decision-maker is the person to address the veteran's contention.

Proper consideration of the Privacy Act 1988

In supplying a summary of the events described by the veteran the Liaison Officer must take care to be accurate. These events can be quoted from the claim form or from letters from the veteran or previous material concerning the events in question. The Liaison Officer must provide only that part of any clinical history relating to the claimed stressor, trauma, event or occurrence taken by a doctor, psychiatrist or other medical professional. In all cases there must be a proper consideration of the Privacy Act 1988 and the Privacy Principles when preparing a request for a report. Under NO Circumstances is the researcher to be provided with a medical or psychiatric report. Nor should the researcher be informed that events described by the veteran were extracted from a medical or psychiatric report.

Information the researcher needs in order to provide a report

The letter requesting a report must provide a general statement that the report is required for the purpose of determining a claim under the Veterans' Entitlements Act 1986. You must mention the existing contract with the Department of Veterans' Affairs. You should provide a copy of the claimant's/applicant's service details or copies of service documents. For Army service, a copy of Part A of the B103 should be supplied if available since it contains a description of the veteran which helps the researcher identify the veteran if talking to former members of his unit.

Claimant's
sub unit/section

As well as a copy of the service details it would be very helpful to the researcher if details of the claimant's/applicant's sub unit/section and the name of the sub-unit/section commander could be supplied by the Liaison Officer. Such information should be requested from the claimant/applicant or the claimant's/applicant's representative. It is appropriate to advise the claimant/applicant or the claimant's/applicant's representative that a researcher is being commissioned to obtain evidence to support the claimant's/applicant's contention

Information the researcher does not need

The researcher does not need to know the nature of the claim, the purpose of the claim, the diagnosis being investigated or the name or profession of any medical services provider or any medical or claims history. Be careful not to forward copies of any medical reports, or other material, to any researchers that identify the nature of the claim. In disability claim matters the name of the psychiatrist, or indeed whether the history provided is even a clinical history provided to a psychiatrist, must not be revealed to the researchers. These reports often contain personal information on veterans that has no bearing on what the researcher is being asked to research and report on. Privacy Principle 10 requires that only the information necessary for the contracted person to provide the service should be sent.

What the report should contain

The report should be factual and non-judgemental. The researcher should report the evidence based on the materials researched and may comment on whether an event did or did not occur or whether there may be a possibility of such an event not being recorded. The researcher can report all contacts made with other persons as part of the research and the substance of the discussions as they relate to the questions posed.

What the report should not contain

It is not part of any researcher's task to comment on what does or does not constitute an illness, a factor in the Statement of Principles or a term such as “stressor”. That task is reserved solely for the Diagnostic Criteria, the definitions contained within Statements of Principles and the decision-maker. The researcher must not comment on the veteran in any personal or derogatory way. It is not the task of the researcher to make assertions on the veracity of the veteran, the value of his service, the reasons for his actions or the reasons for his claim. Although the researcher may infer what the claim is about it is inappropriate to speculate in the report as to the nature of the claim.

Acceptance of the report

The Liaison Officer should read the report as soon as possible after it is received. Before accepting a report, the Liaison Officer should ensure that the report addresses the questions posed and that the report contains nothing that is irrelevant or offensive to the claimant/applicant. Only the actual report by the researcher should be put on the veteran's file.

Invoices, preliminary reports and correspondence

Invoices, preliminary reports and correspondence with the researcher should never appear on the veteran's file. They are filed specifically for that researcher or on a general file for all researchers. State Offices may be required to report on total costs or numbers of reports sought.

What the decision-maker must do

A decision-maker may refer to the comments of the researcher, the historical record and any evidence provided by the researcher to determine whether the events that a claimant relies upon to satisfy the definition of a “stressor” did or did not occur. However, in respect of the opinion of any researcher, a decision-maker must not simply adopt the researcher's opinion on whether the events did or did not occur without a proper examination of the basis for that opinion. This process is described in the “Decision-making Guidelines” issued by the Repatriation Commission.

Am I obliged to follow this Departmental Instruction?

Yes.

The Department and the Repatriation Commission are subject to the laws of the Commonwealth and that includes the Privacy Act 1988. As a delegate of the Secretary or the Repatriation Commission you are also subject to those laws..

Am I obliged to follow this Departmental Instruction?

(cont)

This instruction must be carefully adhered to on every occasion. If this advice is not followed a Claims Investigator or anyone else seeking a report from a researcher may breach of the Privacy Act 1988. In such circumstances that give rise to the suggestion that there may have been a breach of this Instruction or the Privacy Act 1988 the officer concerned may be called on to explain their actions.

There is no room for careless actions to undermine this process. There is no acceptable critical error rate

Managers – Compensation, Income Support, Review and Advocacy

Please ensure this message reaches all of the Claims Investigators, Single Point of Contact Officers, Review Officers and Advocates. It applies to those seeking qualifying service details as well.

Reporting to the Commission, the Minister or the Parliament

Each State must be able to report on all researchers used, their cost and the number of reports sought. This is so that possible questions raised by the Repatriation Commission, the Minister or by any Parliamentary Committee can be answered.

Each State will need to be able to report on breaches of this Instruction. This also requires a report on the handling of the matter and the steps taken to prevent further problems from an individual officer or of Departmental Staff.

well.

W R MAXWELL

BRANCH HEAD

DISABILITY COMPENSATION

6 April 2000

C11/2000 GENERAL INCREASE TO BRITISH PENSIONS PAID IN AUSTRALIA

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DATE OF ISSUE:  31 MARCH 2000

GENERAL INCREASE TO  BRITISH PENSIONS PAID IN AUSTRALIA

1.The British Department of Social Security (BDSS) has advised that the British pensions paid in Australia will rise by 1.1%, in line with their Retail Price Index, and will come into effect from the payday in the week commencing 10 April 2000.

2.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.

EFFECTIVE DATES

3.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 20 April 2000.  In service pension rent assistance, age pension cases overpayments should not be raised.

RATES CHARTS

  1. A selection of rates converted to $A at both old and new rates are attached.

MANUAL CASES

5.The manual cases will be divided into those that are to be processed either through the Pension Payment System or through PIPS/PC.

6.The cases requiring manual examination will be identified by AL02 listings and the program $PPBBSPR which will list all service pension cases where British disability pension is in payment.  Action schedules (in the following groups) of cases requiring manual examination and variation by examiners will be produced on 3 April 2000.

Group ContentsReference Number

  • Composite Cases

(with or without SP)100

  • EATS Cases

(with or without SP)200

  • Other Overseas pensions

(that may be affected)300

  • Miscellaneous and joint cases — 900

Group 300 is to be processed via the PMF update transactions.  Groups 100 and 200 are to be processed via PIPS/PC.

7.The program ($PPBBSPR) will report on all those service pensioners who have British DP maintained in their assessment.  This report is to be actioned by amending the British DP amount recorded in each assessment.  Those cases are also to be processed through PIPS/PC.

MISCELLANEOUS AND JOINT CODES

  1. Any case listed in group 900 will require action to remove the joint payment and/or miscellaneous pension code, in addition to the British pension adjustment.

CONTROL CARDS AND COMPUTER RUNS

9.The parameter cards for the computer runs are at Attachment A.  Would you please check the parameter cards to ensure that they are correct before processing commences.  Any changes should be reported to Kevin Chapman on (02) 6289 6749 to ensure that the appropriate amendments are made.  The computer processing will be performed by the Mainframe Support Unit (MSU).  A listing of all relevant cases will be forwarded to Benefits System Support Officers.

DATA ENTRY OF TRANSACTIONS FROM AL02 ACTION SCHEDULES EATS AND COMPOSITE CASES

PAY PERIOD CODES

10.The pay period number 48 (effective date 20 April 2000) should be entered.  The day within the pay period field may be left blank.

KEYFAST BATCH DESCRIPTION

11.The manual transactions for EATS/Composite cases should be entered using Keyfast batch description $PENSIO in normal daily production by cut-off for the next available payday.  Arrears may need to be manually calculated and entered as a one time amount.

CASES WITH SERVICE PENSION AND OR AN AUSTRALIAN

DP COMPONENT TO BE PROCESSED VIA PIPS/PC  (Groups 100, 200)

  1. For all cases involving EATS, COMPOSITE or SERVICE PENSION, whether automatic or manual method of assessment, the new rate of British pension must be updated on the CDB via PIPS/PC.  Due to the change in the British rate, these cases will be MS.

ADVICES

13.There will only be two circumstances where an advice is required and that will be in a limited number of cases.  The circumstances are when the British component is greater than the Australian and in cases where the increased British DP reduces the amount of Rent Assistance payable (ie. in both situations, a payment variation is effected).  All reduced rate age pension cases will also be affected.

14.For variation cases requiring PIPS/PC action, a reason for variation should be entered on the Advices screen, and an advice indicator of 'Y' coded on action schedules.  For non-PIPS/PC actions, a variation advice indicator of 'A' should be coded on action schedules.

CONTACT OFFICER

15.The contact officer for this exercise is Lucy Berger on telephone: (02) 6289 6013.

RJ HAY

BRANCH HEAD

INCOME SUPPORT

    March 2000

ATTACHMENT A

CURRENT EXCHANGE RATE:$A2.55

OTHER RANKS - DISABILITY PENSION-EFFECTIVE 10 APRIL 2000

OLD

NEW

             CLASS

%

RATE

RATE

P.F.

P.F.

V, IV, III, II, I, WO1

20%

116.99

118.32

30%

175.49

177.48

40%

233.99

236.64

50%

292.49

295.80

60%

350.98

354.96

70%

409.48

414.12

80%

467.98

473.28

90%

526.47

532.44

100%

584.97

591.60

OFFICER - DISABILITY PENSION - EFFECTIVE 10 APRIL 2000

Exchange Rate $A2.55

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%

117.08

118.45

30%

175.66

177.62

40%

234.15

236.79

50%

292.74

296.07

60%

351.23

355.24

70%

409.82

414.41

80%

468.31

473.59

90%

526.89

532.86

100%

585.38

592.03

OFFICERS

SERVICE RETIRED PAY OR SERVICE PENSION - EFFECTIVE 10 APRIL 2000

EXCHANGE RATE$A2.55

OLD

NEW

RATE

RATE

P.F.

P.F.

20%

117.08

118.45

30%

175.66

177.62

40%

234.15

236.79

50%

292.74

296.07

60%

351.23

355.24

70%

409.82

414.41

80%

468.31

473.59

90%

526.89

532.86

100%

585.38

592.03

SUPPLEMENTARY  ALLOWANCES

OFFICERS and OTHER RANKS - DISABLEMENT

EXCHANGE RATE$A2.55

Effective 10 April 2000

Effective 10 April 2000

UNEMPLOYABILITY SUPP.

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

Personal Allowance

361.60

365.70

361.34

365.42

Wife or Adult dependant

203.93

206.18

203.75

206.04

1st eligible child

50.57

50.27

50.49

50.24

2nd & subsequent child

57.90

57.90

57.89

57.89

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

110.52

111.79

110.42

111.69

2.Full day attendance - Basic

220.95

223.49

220.83

223.38

- Intermediate

331.47

335.29

331.25

335.07

- Exceptional

442.00

447.08

441.66

446.76

COMFORTS ALLOWANCE

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

Higher Rate

94.97

95.95

94.86

95.88

Lower Rate

47.44

47.93

47.43

47.94

CLOTHING ALLOWANCE

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.A.

P.A.

P.F.

P.F.

Higher Rate

374.85

379.95

14.38

14.57

Lower Rate

374.85

379.95

14.38

14.57

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

71.69

72.48

71.66

72.42

Qualifying  )       > 40 but < 50 yrs

45.38

45.97

45.39

45.90

Date           )         > 50 yrs

22.69

22.98

22.70

22.95

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

39.03

39.51

39.02

39.53

b. > 50% but not > 70%

60.25

61.03

60.18

60.95

c. > 70% but not > 90%

85.78

86.76

85.68

86.70

d. over 90%

120.40

121.97

120.36

121.89

MISCELLANEOUS

EXCHANGE RATE$A2.55

Effective 10 April 2000

Effective 10 April 2000

RENT ALLOWANCE (Maximum)

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

167.15

168.91

167.03

168.81

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

50.57

51.06

50.49

51.00

Age 70 and over

96.93

98.00

96.90

97.92

Age 80 and over

144.46

145.93

144.33

145.86

DEPENDANTS OF DECEASED MEMBERS

EXCHANGE RATE $A2.55

Effective 10 April 2000

WIDOWS  ** HIGHER RATE **

OLD RATE

NEW RATE

******M.O.D.  Payment Included  ******

P.F.

P.F.

CLASS V

729.80

737.77

IV, III,  II,  I,  WO1

731.33

739.30

Lt Comdr,  Capt,  Major,  Sq Ldr

740.50

748.61

Lt,  Lt,  Capt, Fl Lt

738.74

746.85

Sub Lt,  Lt,  Flying Off   Pilot Off

737.08

745.09

Comms Off

734.24

742.25

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.

288.14

291.26

CHILDREN OF WIDOW OR REMARRIED WIDOW

OLD RATE

NEW RATE

P.F.

P.F.

1st ELIGIBLE CHILD

73.26

73.26

2nd and SUBSEQUENT CHILD

80.59

80.89

TOTAL ORPHANS and MOTHERLESS CHILDREN

OLD RATE

NEW RATE

P.F.

P.F.

TOTAL ORPHANS   1st CHILD

82.65

82.65

2nd and SUBSEQUENT ORPHANS

90.08

90.37

INFIRM & > 18 -

340.67

344.48

C10/2000 THE NEW SOCIAL SECURITY LAW

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DATE OF ISSUE:  28 MARCH 2000

THE NEW SOCIAL SECURITY LAW

Purpose

The purpose of this instruction is to provide legislation and policy information following amendments to the Social Security Act 1991.

This amends some of the instructions in Departmental Instructions C32/97 [53] and C11/98 [54] (relating to the payment of age and wife pension) and C19/99 [55] (relating to Date of Effect as it relates to age and wife pensioners).

Authorised by:

R J HAY

Branch Head

Income Support

PART 1  INTRODUCTION & BACKGROUND

Introduction

From 20 March 2000, with the passage of the:

  • Social Security (Administration) Act 1999
  • Social Security (International Agreements) Act 1999; and
  • Social Security (Administration and International Agreements) (Consequential Amendments) Act 1999

some of the provisions relating to the administration of the payment of age and wife pensions have been transferred from the Social Security Act 1991 to the new Social Security (Administration) Act 1999.  At the same time some of them have been amended.  These changes will affect the payment of age and wife pensions by DVA.

More information:  refer respectively:

http://scaleplus.law.gov.au/html/comact/10/6101/to... [56]

http://scaleplus.law.gov.au/html/comact/10/6101/to... [56]

http://scaleplus.law.gov.au/html/comact/10/6085/to... [57]

and

http://scaleplus.law.gov.au/html/comact/10/6102/top.htm [58]

Aim of the change

The aim of these changes is to simplify the machinery provisions of the Social Security Act 1991.

The social security Law

A new concept of the "social security law" is being introduced to refer to the Social Security Act 1991, the Social Security (Administration) Act 1999 and the Social Security (International) Agreements Act 1999.

What is the impact on DVA?

Because this Department pays age and wife pension to some disability pensioners and their partners, any changes effected by the social security law will impact on this Department's operations.

Abbreviations

In this Departmental Instruction:

SSA refers to the Social Security Act 1991;

SSAA refers to the Social Security (Administration) Act 1999;

SS(IA)A refers to the Social Security (International Agreements) Act 1999; and

SSPAL (formerly known as OPAL) refers to the online policy and legislation system used by the Department of Family and Community Services.

PART 2  OVERVIEW SUMMARY

Commencement

The two new Acts and the amendments to the Social Security Act 1991 which are contained in the Social Security (Administration and International Agreements) (Consequential Amendments) Act 1999, commence on 20 March 2000.

Content of this DI

This Departmental Instruction contains information only on those changes that are likely to impact on day to day processing in State Offices.

More information: refer SSPAL for more information on any topic.

Changes at a Glance

The following is a summary of the affected provisions that are more commonly used.

Provision

New rule

Old rule

DI reference

Start Date

Claims can be backdated to the date of an informal contact, but new time limits apply.  Called a deemed claim.

The 'incorrect claim' provisions have been used to backdate a claim to the date of contact.  Under these provisions backdating occurred if the proper claim was lodged within 3 months of the contact.

4.1

Partners can have same start day as long as they claim within 14 days of each other.

No equivalent

4.2

A person claiming within 4 weeks of death of partner can have start day backdated to day their partner died.

No equivalent

4.2

A person who becomes incapacitated for work can have start day backdated to the day of their incapacity.

No equivalent

4.2

A person who claimed and qualified for disaster relief payment and then claims age pension within 14 days, can have their start day backdated to the day they qualified for the payment.

No equivalent

4.2

Notices

Notices requiring the provision of information or statements can be issued to age pension claimants and to those who were previously in receipt of age pension.

No equivalent

4.3

A person receiving a compensation payment is required to notify the Department within 7 days.

A person receiving a compensation payment was required to notify the Department within 14 days.

4.3

Hardship advance

These payments are now available to claimants in financial hardship.  The amount payable is not to exceed 14 days of pension.

The payments were only available to those leaving gaol or psychiatric confinement and the amount payable was not to exceed 7 days of pension.

4.7

PART 3  SCOPE OF THE SOCIAL SECURITY (ADMINISTRATION) ACT 1999

What the Social Security (Administration) Act 1999 covers

The SSAA is primarily a condensation of the existing technical rules.  The rules included in the new Act relate to:

  • claims
  • start days (replacing provisional commencement days)
  • payment into bank accounts
  • payment by instalment
  • protection of social security payments
  • information gathering
  • comparable foreign payments
  • provision of Tax File Numbers
  • rate increase, reduction, cancellation or suspension determinations
  • changes to payment by computer
  • date of effect of determinations
  • review of decisions
  •     offences

What the SSAA does not cover.

The following matters are not covered in the SSAA and are still contained in the SSA:

  • qualification for pensions or benefits
  • the concept of payability
  • rates of pension or benefits
  • overpayments
  • debt recovery
  • portability.

PART 4  CHANGES EFFECTED BY THE SOCIAL SECURITY (ADMINISTRATION) ACT 1999

4.1  Deemed Claims

A deemed claim?

Provided certain conditions are met, the date of a contact about a claim for pension can be taken as the date the claim is made.

How can a contact be a deemed claim?

If a person (or a person on their behalf) contacts the Department in relation to a claim and within 14 days, or within 13 weeks if there is a medical condition, of that contact the person lodges a claim, they are taken to have made the claim on the day of contact if:

  • the contact has been acknowledged in writing; and
  • the person is, on the day of contact, qualified for age pension.

More information: refer Chapter 8.1.1.60 of SSPAL [59]

Recording of informal contact

Work practices must provide for the subsequent claim to be linked to the contact, so that the claim can be backdated to the date of contact.  Current State Office practice for dealing with informal claims may already accommodate this.

If a claim has not been lodged within 2 weeks of the initial contact, but there has been further contact, a further acknowledgment should be sent out.

Standard Letter System

A new letter has been developed to go to the person wanting to claim an age pension.

Available on:  IS Standard Letters, New Claims

4.2  Start Date

Start Day

The term 'start day' replaces the term 'provisional commencement day' and basically has the same meaning.  There are, however, a few differences as described below.

More information: refer SSP — A — L 8.3 [60]

Under the SSAA

Under the SSA

Application by partner

Under clause 8 of Schedule 2, if a person applies for a pension within 14 days of their partner applying, and both pensions are granted, the person's start day is the earliest day on which they are qualified starting from their partner's start day.

Note: To enable partners to take advantage of this provision, it is important that this information is provided at the time the first member of the couple contacts the Department or makes a claim.

No equivalent

Claim after death of partner

If a person claims a social security payment within 4 weeks of the death of their partner, their start day is the first day they are qualified on or after the day their partner died (Clause 12 of Schedule 2).

No equivalent

Deemed claims

See 4.1 above

The practice has been to apply the initial incorrect claim provisions in section 46(2).  This provides that, if a person initially applies for the wrong pension but within 3 months applies for age pension, the commencement day is the day of the initial claim.

Claim for age pension following claim for disaster relief payment

If a person who is qualified for a disaster relief payment claims that payment and then within 14 days claims age pension, their start day is the day they became qualified for the relief payment.  SSP — A — L 3.7.3.10 [61] refers.

No equivalent

Incapacitated claimants lodging claim for age pension

Clause 11 of Schedule 2 contains special provisions for a person's start day to be earlier than claim lodgement date where a person has become incapacitated for work.

No equivalent

4.3  Provision of Information

Provision of Information

Changes have been made in respect to the provision of information.  Those affecting day to day processing of age pension cases are described hereunder.

More information: refer [62]SSPAL 8.1.3.10 [63]

Notices requiring the provision of information

Sections 68 and 69 of the SSA provide for the Secretary to give a person to whom a pension is being paid a notice requiring the person to inform the Department of change of circumstances or to give a statement about a matter that might affect the payment of pension.  Sections 67, 68 and 69 of the SSAA contain similar provisions, but they relate not only to a person who is receiving a pension, but also to:

a person who has made a claim; and

a person who is not receiving a pension but to whom a social security payment has at any time been paid.

More information: refer [62]SSPAL Chapter 8.1.3.10 [63]

Time limits for the provision of information

Under sections 68 and 69 of the SSA, the time within which information was to be provided was, with certain specified exceptions, 14 days after the event or the day the person becomes aware of the event.  However under the SSAA, different time limits apply as follows:

Reason

No of days

SSA Section

in relation to the receipt of a compensation payment

7

72(3)(a)

in relation to the provision of any other information

14

72(3)(b)

in relation to the giving of a statement

14

72(3)(d))

where the event is the death of a pensioner

28

72(6)

Compensation payments and the notification period

Age and wife pensioners are to be advised of the change to the notification provisions in relation to compensation payments as an on-going process.

New claimants will be notified in their automatic grant advice letter.  Existing recipients who are on less than maximum rate will receive the changed notification provisions as part of the June SI mailout.  Maximum rate pensioners will not receive the changed notification provisions until June 2003.

Therefore, it is important that the 7 day notification period should not be enforced in relation to a specific person if the most recent obligation notification that was sent out to them states that they have 14 days in which to notify of such payments.

Meeting time limits

If a notice has been sent out to a person requiring the provision of information within a specified time, or if a person has a certain period within which to take an action, an additional 7 days are to be factored in to allow for postage delays.  For example:

  • if a person's circumstances change, they will have 14 days from the date of the event + 7 days in which to notify the Department; or

  • if a person receives notification of a decision and wishes to appeal in time to have arrears backdated to the date of the initial decision, the date by which they should notify the Department will be calculated as follows: date of notice + 13 weeks + 7 days.

If a person is living overseas or in a remote area, an additional 7 days should be added.

4.4  Review Provisions

Review Provisions

The following amendments have been made to the review provisions.

SSAA section

Provisions under the SSAA

Provisions under the SSA

131

Allows a person who has applied for review to withdraw the application.  The application is taken never to have been made.

No equivalent

142(2)

Where a decision has been made by the Secretary himself, the person can apply to the SSAT.

No equivalent

165

Where the National Convener of the SSAT asks the Secretary to provide information that is relevant to a review, the Department has a maximum of 14 days in which to supply it.

In such a case the Secretary was required to comply, if at all practicable, within 7 days after receiving the request.

166

Where the National Convener asks the Secretary to exercise his powers to obtain information, the Department has 7 days in which to comply.

The Secretary was required to take all reasonable steps to comply with the request and, if at all practicable, do so within 7 days of the request.

4.5  Date of Effect

Date of Effect of Determinations

The following is an outline of changes made to provisions relating to the date of effect of determinations.

More information:  refer 8.1.2.20 of SSP — A — L [64]

3 months becomes 13 weeks

There were a number of provisions in the SSA under which the date of effect of a decision depended on whether the person applied for review of the decision within 3 months or later than 3 months after being notified of the decision.  3 months has now become 13 weeks in those provisions.

Date of effect following provision of a statement by pensioner

There is a new provision relating to the making of a determination to increase or resume payment of a pension following the person giving the Department a statement about a matter in accordance with section 68.

In such a case the determination takes effect on the day on which the matter arose (section 112 refers).  This differs from the date of effect when a person has notified the Department of the occurrence of an event or change of circumstances.

Review by Secretary without appeal

There is a new provision in 126(2)(a) that provides that the Secretary may review a decision whether or not anyone has applied for review of the decision.

4.6  Nomination of Bank Account

Bank Account details Not Nominated

There are changed provisions dealing with an applicant for age pension where bank account details are not disclosed on the claim form.

Under the new provisions, if the bank details are not provided in the period specified following the issue of a notice under section 55, age pension is not payable.

More information:  refer [65]SSPAL 8.4.1.10 [66]

4.7  Hardship Advance

Hardship advance payment to those claiming a pension

A hardship advance payment is an amount of a pensioner's first instalment of pension, or of the first instalment immediately following resumption of payment.

The intention is to assist people in severe financial hardship.  Section 51 extends the availability of such payments to those claiming a pension.  Previously these advances were only available to those leaving gaol or psychiatric confinement.

More information:  refer [67]8.4.2.20 of SSPAL [68]

PART 5  ONGOING CLAIMS AND TRANSFERS

Transfers from Centrelink to DVA

In respect of the cancellation of payments by Centrelink and the commencement of DVA payments, see Departmental Instruction C19/99 [55] "Date of Effect".  The half instalment provisions have been removed from the social security law.  They are no longer necessary, because of the change in calculation of pensions to a daily entitlement.

PART 6  COMMONWEALTH SENIORS HEALTH CARD

Commonwealth Seniors Health Card (CSHC)

Provision of the CSHC (referred to in the SSAA as a "concession card") to ex-age pensioners previously receiving their pension through DVA is affected by the commencement of the SSAA.

Note:  DVA handles CSHC only for age pensioners who lose payability of age pension through DVA.

Impact of changes on CSHC

Some of the changes which will impact on the administration of the seniors health card are:

  • the new deemed claims provisions outlined in 4.1;
  • the new information gathering provisions in sections 67 to 69 of the SSAA (see 4).

PART 7  AMENDMENTS TO FORMS, ADVICES,
& STANDARD LETTERS

Forms to be provided by Centrelink

The following two forms are being amended and Centrelink will continue to provide stocks:

Claim for Pension (SA 002)

Pension Re-Claim (SA 002A)

Advices

Minor changes to automatic advice paragraphs relating to obligations and reviews are required and will take effect following implementation of the DOE system changes.  This is expected to be in late April 2000.

Standard Letters

Amendments to existing standard letters

Contents of all letters on the Standard Letter system have been reviewed and updated to reflect:

changed references resulting from the SSAA and

the period 3 months becoming 13 weeks.

New standard letter

A new standard letter has been developed to allow the contact date to be the deemed claim date.

Available on:  IS Standard Letters, New Clm

PART 8  SAVINGS AND TRANSITIONAL PROVISIONS

Savings and Transitional Provisions

The following savings and transitional provisions will apply from 20 March 2000:

SSAA Section

Provisions

246

Where a determination under the SSA granting a claim or directing the making of a payment is in force immediately before 20 March 2000, it has effect as if it were a determination under the SSAA.

247

An instrument in force immediately before 20 March under a provision of the SSA, which has been amended or repealed, has effect as if it were an instrument under the SSAA.

248

If a person's claim is lodged but not determined before 20 March 2000, it is to be treated as if it is a claim under the SSAA.

249

Pensions are paid in relation to instalment periods.  Should a person's instalment period span both the pre and post 20 March period, the SSAA will apply to that period as if it had been in force throughout the whole instalment period.

250

If a person applies for a payment after the death of another person before 20 March and the application has not been determined by that date, the SSAA applies in all respects to the application.

251

Provisions in the SSAA which give the Secretary power to request a person to give information or produce a document apply to information about matters that arose before 20 March 2000 and to documents that were created or relate to matters that arose before that date.

252(1)

If a person applies for a review of a decision made under the SSA before 20 March 2000, but the application is not determined before that date, the provisions of the SSAA apply to the application.

252(2)

The date of effect of the decision made as a result of the application may be earlier than 20 March.

252(3)

If the date of effect is earlier than 20 March, the decision has effect for the period up to 19 March 2000, as if it were a decision made under the SSA.

253 and 254

The same applies to an application made to the SSAT or the AAT that has not been determined before 20 March 2000.

255

In the case of applications for any of these three types of review, anything done under the SSA before 20 March has effect as if it were done under the SSAA.

256

A debt due under the SSA before 20 March 2000 and not paid on that date is taken to be a debt due under the SSAA.

PART 9  THE SOCIAL SECURITY (INTERNATIONAL AGREEMENTS) ACT 1999

International agreement provisions

Legislative references in DI C32/97 [53] to the international agreements provisions in the SSAA are no longer applicable.  The provisions referred to are now in the Social Security (International Agreements) Act 1999 as follows:

Topic

SS(IA)A ref

SSA ref

Definition of scheduled international social security agreements

section 5 by reference to the agreements in the Schedules to the Act

subsection 1208(4), Part 4.1

Effect on portability

section 11

section 1209, Part 4.1

Effect on claim for pension

section 6

sections 51 and 1208, Parts 2.2 and 4.1

Rate of pension under agreement

Part 3

section 1210 and point 1210-A1, Part 4.1

C09/2000 MARCH 2000 GLOBAL REFRESH OF MANAGED INVESTMENTS (MI) AND SHARES (SH) MAILOUT

  • Log in [69] to post comments

DATE OF ISSUE:  14 MARCH 2000

MARCH 2000 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 2000 global refresh advice letter mailout.

R J HAY

BRANCH HEAD

INCOME SUPPORT

Overview

Introduction

This March we will not be sending advice letters to pensioners whose pensions are adjusted because of the CPI increase that applies for payday 23 March 2000.  Advice on these increases will be contained in the latest edition of VetAffairs.  However, letters will be sent to pensioners affected by the events set out in the following paragraph.

Significant Issues

The March 2000 Quarterly mailout will incorporate the following events for payday 6 April 2000:

  • The asset value of managed investment and share data will be reassessed
  • Deeming Rate change
  • Treatment changes as a result of the reassessment.

Letter Content

Advice Letter Target Audience

A letter will be produced for:

  • 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

Income & Asset Listing

Full Income/Asset listings are to be produced only for clients who have either shares and/or managed investments listed in their assessment.

No Obligations

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

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 Pensioners will receive a single letter.

Production of Advice Letters

Processing

Processing is scheduled to run from Friday evening 17 March until Sunday evening 19 March 2000.

ADP Processing

Detailed information regarding ADP Processing will be issued to State System Support Officers in a separate memorandum.  The Systems Support Offices will be issuing a local processing timetable and should be consulted on any matter concerning ADP Processing.

Critical Dates

Processing Weekend within DVA

17-19 March 2000

Dispatch Production Data to SMS

19 March 2000

Commence Printing Advice Letters

21 March 2000

End Printing Advice Letters

24 March 2000

Lodgement of Advice Letters commences

24 March 2000

Please Note: Monday 20 March 2000 is a Public Holiday in Canberra

Client Numbers

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

STATE

NO. OF LETTERS

New South Wales

23,789

Victoria

17,678

Queensland

15,633

Western Australia

8,075

South Australia

6,919

Tasmania

3,139

TOTAL

75,233

Printing of Letters

Security Mailing Services (SMS) Sydney, will print and envelop advice letters in the week from Tuesday 21 March to Friday 24 March 2000.

Lodgement of Letters

All letters will be lodged with Australia Post on Friday 24 March 2000.  A representative from National Office will notify details of lodgement for each State as they occur.

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 6289 6729 if the delivered letters do not exactly match the reports.

Reprints of selected letters

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

Holding of daily advice letters

Daily payment advice letters produced after the processing run of 18-19 March 2000 for pay period 47 (6 April 2000) should be held by State Offices until notification is received that quarterly letters have been dispatched.  This will ensure that pensioner's receive their advice letters in chronological order.

$FORT run 20/3/2000

$FORT has been scheduled to run on Monday night 20 March.  To ensure that pensioners receive their Quarterly advice before the $FORT advice would States please ensure that the $FORT advice letters are held until confirmation from the mailout coordinator is received that the Quarterly advice letters have been mailed.

Manual Cases

To minimise the number of daily letters to be held whilst quarterly letters are processed, it is suggested that only manual cases (and essential processing) should be processed for pay day 6 April 2000.  General pensions processing should continue unabated but should be submitted for the subsequent pay day.

National Office Contacts

Feedback from State Offices

Any concerns regarding letters produced as part of this run should be directed to the NO contact officer, Kristie Wallace.  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:

Kristie Wallace

(02) 6289 6019 (Phone)

(02) 6289 6589 (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 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.  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: Less than Maximum Rate, Married, No MI/SHs

Example 4: Age Pension increase, 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.

ATTACHMENT A

PARAGRAPH SEQUENCING AND TARGET AUDIENCE

Note: Advice letterss will only be produced for less than maximum rate clients with Shares and/or Managed Investments in their assessment.

Paragraph

To Whom

State specific letterhead

All

Opening

All

Payment details and payment box

All

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

All increase to max rate cases

What is Deemed Income?

Cases without MI/SHs in assessment

Deemed Interest Rate Change – Financial Assets

All

Total Financial Assets Table

Cases without MI/SHs in assessment

Change to value of shares and managed investments

Paragraph for Increase case with MI/SHs in assessment

Change to value of shares and managed investments

Paragraph for Decrease cases with MI/SHs in assessment

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

Changes You Have Already Told Us About

All

Your Right of Review

All

Closing paragraph and Signature

All

Full Income/Assets Listing

Cases with MI/SHs in the assessment

General Information Sheet

All

ATTACHMENT B

EXAMPLE 1: Less than Max Rate, Married, Increase, MI/SH in assessment.

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: T-CONTACT-OFFICER STATE OFFICE

Telephone: T-CONTACT-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

Payment Details

The fortnightly rate of pension you will receive from T-CLNT-ONGOING-PAY-DATE is shown below.

PAYMENTS TO XXXXXX and XXXXX

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx   xxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx    x.xx   x.xx

Change to 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 an increase to the amount of T-PENSION-SP-ISS-AP paid to you.  Details of your investments are listed in this advice letter.

Deemed Interest Rate Change – Financial Assets

With effect from T-CLNT-EFFECTIVE-DATE, a deemed income rate of 3.5% for amounts up to $30,800 ($51,200 per couple) and 5.5% for amounts over $30,800 ($51,200 per couple), will be used to work out the income recorded for your financial assets.

This has resulted in a change to the income amounts used to work out your 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, 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 any of the above matters, 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

EXAMPLE FULL INCOME AND ASSET LISTING

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 an assets test.  The test that pays the lower rate of pension is he 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

XXXXXXXXXXXX

XXXXXXXX

$       XX.XX

@@@@@@@@@@@@

XXXXXXXXXXX

$X,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

XXXXXXXXXXXX

X,XXX

$XX,XXX.XX

QQQQQQQQQQQQQQQQ

      XX

$   X,XXX.XX

Managed Investments

Description

Units

Asset Amount

ZZZZZZZZZZZZZZZZ

XX

$   X.XX

SSSSSSSSSSSSSSSS

XX

$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%

$XX.XX

$       XXX.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.

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

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: T-CONTACT-OFFICER STATE OFFICE

Telephone: T-CONTACT-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.

Payment Details

The fortnightly rate of pension you will receive from T-CLNT-ONGOING-PAY-DATE is shown below.

PAYMENTS TO XXXXXX and XXXXX

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx   xxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx    x.xx   x.xx

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

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 an increased to the amount of T-PENSION-SP-ISS-AP paid to you.  Details of your investments are listed in this advice.

Deemed Interest Rate Change – Financial Assets

With effect from T-CLNT-EFFFECTIVE-DATE, a deemed income rate of 3.5% for amounts up to $30,800 ($51,200 per couple) and 5.5% for amounts over $30,800 ($51,200 per couple), will be used to work out the income recorded for your financial assets.

This has resulted in a change to the income amounts used to work out your 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 decide to apply, you must do so within the next three months.  Such a request for review must be in writing, and set out your reasons for seeking this review.

If you have any questions about any of the above matters, 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:  Less than Maximum Rate, Single, No MI/SH.

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: T-CONTACT-OFFICER STATE OFFICE

Telephone: T-CONTACT-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.

Payment Details

The fortnightly rate of pension you will receive from T-CLNT-ONGOING-PAY-DATE is shown below.

PAYMENTS TO XXXXXX

TOTAL FORTNIGHTLY PAYMENTxxx.xx

This is made up of:

- xxxxxxxxx   xxxxxxxxxxxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx   x.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.

Deemed Interest Rate Change – Financial Assets

With effect from T-CLNT-EFFECTIVE-DATE, a deemed income rate of 3.5% for amounts up to $30,800 ($51,200 per couple) and 5.5% for amounts over $30,800 ($51,200 per couple), will be used to work out the income recorded for your financial assets.

This has resulted in a change to the income amounts used to work out your rate of T-PENSION-SP-ISS-AP.

Total Financial Assets

FINANCIAL ASSETS VALUE

DEEMED INTEREST RATE

DEEMED INCOME PER FORTNIGHT

$XX,XXX.XX

3.5%

$XX.XX

$       XXX.XX

5.5%

$X.XX

$XX,XXX,XX

$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 decide to apply, 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 any of the above matters, 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

General Information Sheet

EXAMPLE 4:  Age Pension Increase, MI/SH in assessment, Full Income and Asset Listing

T-ADVICE-RETURN-ADDRESS

Commonwealth Department of

Veterans' Affairs

Contact: T-CONTACT-OFFICER STATE OFFICE

Telephone: T-CONTACT-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.

Payment Details

The fortnightly rate of pension you will receive from T-CLNT-ONGOING-PAY-DATE is shown below.

PAYMENTS TO XXXXXX and XXXXX

TOTAL FORTNIGHTLY PAYMENTxxx.xxxxx.xx

This is made up of:

- xxxxxxxxx   xxxxxxxxxxxx.xxxxx.xx

- xxxxxxxxxxxxxx xxxxxxxxxxxxx    x.xx   x.xx

Change to 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 and increase to the amount of T-PENSION-SP-ISS-AP paid to you.  Details of your investments are listed in this advice letter.

Deemed Interest Rate Change – Financial Assets

With effect from T-CLNT-EFFECTIVE-DATE, a deemed income rate of 3.5% for amounts up to $30,800 ($51,200 per couple) and 5.5% for amounts over $30,800 ($51,200 per couple), will be used to work out income recorded for your financial assets.

This has resulted in a change to the income amounts used to work out your 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).

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 a decision, you may apply to have it reviewed by the Original Decision Maker.  If you decide to apply you must do so within three months of being advised of this decision.  You may either telephone or write to this office.

If you have any questions about any of the above matters, 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 as a result of MI/SH reassessment, Full Income and Asset Listing

C08/2000 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:  3 MARCH 2000

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.

Effective Date 7 March 2000

Effective from 7 March 2000 the current exchange rate will change.  On pension payday 23 March 2000 pensioners will receive a full instalment at the new assessed rate.

New Rate

A$2.5465

The exchange rate will change from one Pound Sterling equals A$2.4576 to one Pound Sterling equals A$2.5465 (ie $A1 = 0.3927 pounds). This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 3 March 2000.

Timetable

The DVA exercise is scheduled for processing on Monday evening, 13 March 2000.

Automatic
Superannuation processing

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

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 23 March 2000 – ie 7 March 2000.

Advice Letters

The advice letters for this exercise will be joint advices.  The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.  This includes pensioners who have been reduced to nil and are no longer in payment.  The date of effect shown in the advices will be 7 March 2000.

New Claims and Centrelink Transfers–In with an Existing OTA

Any New Claims or Centrelink Transfers-In with a date of effect between 8 March 2000 and 20 March 2000 where BRI is recorded will have to be identified and a manual adjustment made to the existing One Time Amount (OTA) on the PMF.

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

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

BRI advices for these cases will display a date of effect of 27 February 2000, ignoring the fact that pension may have been granted from a later date.  You will not be able to intercept these advices because they are sent direct to Australia Post by Security Mailing.

Regulation 45A Procedures

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

IBM GSA Implications

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

Mail out of Bulk Advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by Friday 17 March 2000.

British DP case paid Rent Assistance

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

Contact Officer

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

Lucy Berger              Telephone:   (02) 6289 6013

Kevin Chapman         Telephone:   (02) 6289 6749

R J HAY
BRANCH HEAD
INCOME SUPPORT

     March 2000


POUND STERLING EXCHANGE RATE

Foreign exchange periodExchange rate

?

$

16 March 95

to

26 April 95

0.4770

2.0964

27 April 95

to

13 Sept. 95

0.4576

2.1853

14 Sept 95

to

11 Oct. 95

0.4774

2.0947

12 Oct. 95

to

10 April 96

0.4899

2.0412

11 April 96

to

8 May 96

0.5050

1.9802

9 May 96

to

4 Dec 96

0.5191

1.9264

5 Dec 96

to

12 Feb 97

0.4873

2.0521

13 Feb 97

to

9 April 97

0.4685

2.1345

10 April 97

to

21 May 97

0.4941

2.0239

22 May 97

to

30 July 97

0.4812

2.0781

31 July 97

to

3 Dec 97

0.4542

2.2017

4 Dec 97

to

28 Jan 98

0.4235

2.3613

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4366

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

12 August 98

0.3663

2.7300

13 August 98

to

9 Sept 98

0.3817

2.6199

10 Sept 98

to

21 October 98

0.3690

2.7100

22 October 98

to

4 Nov 98

0.3505

2.8531

5 Nov 98

to

2 Dec 98

0.3676

2.7203

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

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

0.3927

2.5465

C07/2000 Changes to the Pensioner Education supplement

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DATE OF ISSUE:  7 MARCH 2000

Changes to the Pensioner Education supplement

Purpose

The purpose of this Departmental Instruction is to provide information about changes to the Pensioner Education Supplement and its effect upon DVA pensioners.

Authorised by

R J HAY

BRANCH HEAD

INCOME SUPPORT


Changes to the DF&CS Pensioner Education Supplement affecting DVA pensioners

What is Pensioner Education Supplement

Pensioner Education Supplement (PES) is a payment that provides help with ongoing costs of study for recipients of some Centrelink and DVA income support payments.

PES legislation is contained in the Social Security Act 1991 and is paid through Centrelink.

Changes to PES from 1/3/00

The Further 1998 Budget Measures Legislation Amendment (Social Security) Act 1999 introduced a change to the PES legislation from 1 March 2000.

The change means that if a person receives PES to do part-time study and the study load is less than 50 per cent, the rate of PES will be $30 per fortnight.

However, invalidity service pensioners are exempt from this change and continue to be eligible for payment at the rate of $60 per fortnight.

PES Eligibility for DVA pensioners

A DVA pensioner may qualify for PES if they are studying and receiving either:

  • invalidity service pension (ISP);
  • partner service pension – if the partner receives ISP; and
  • widow/ers under Parts II or IV of the Veterans' Entitlements Act 1986 – if they have a dependent child.

Claiming PES

DVA pensioners wishing to claim PES should be advised to claim through their nearest Centrelink Office.

More information on PES

More information:

http://www.fahcsia.gov.au/guides_acts/ssg/ssguide-3/ssguide-3.8/ssguide-3.8.3/ssguide-3.8.3.10.html [72]

C06/2000 AMENDMENT TO DEPARTMENTAL INSTRUCTION (DI) "CALCULATION OF INCOME - C24/99"

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DATE OF ISSUE:  21 FEBRUARY 2000

AMENDMENT TO DEPARTMENTAL INSTRUCTION (DI) "CALCULATION OF INCOME - C24/99"

Introduction

The purpose of this instruction is to amend DI No. C24/99 [74] Calculation of Income.

Correction

The paragraph titled "Example" under Contract Workers, incorrectly states that .."Income support pension is re-assessed from 9/9/99".

This should be amended to read..."Income support is re-assessed from 24/9/99"...- that is, the day after the end of the notification period, as described in the previous paragraph.

Contact officer

Any queries on this matter should be directed to Freda Widawski on telephone (02) 92137487.

BOB HAY

Branch Head

Income Support

C05/2000 INVALIDITY SERVICE PENSION and INVALIDITY INCOME SUPPORT SUPPLEMENT

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DATE OF ISSUE:  1 JANUARY 2000

INVALIDITY SERVICE PENSION and INVALIDITY INCOME SUPPORT SUPPLEMENT

Purpose

The purpose of this Departmental Instruction is to provide legislation and policy information and procedural guidelines.  This information is provided with regards to the 1999/2000 Budget Initiative that changes the permanent incapacity for work eligibility criteria for:

  • Invalidity Service Pension (ISP); and
  • Invalidity Income Support Supplement (I-ISS).

Authorised by

R J HAY

BRANCH HEAD

INCOME SUPPORT

PART 1LEGISLATION and POLICY

1.1 Introduction & Background

Introduction

From 1 January 2000, the 1999/2000 Budget introduced changes to the eligibility criteria for the assessment of permanent incapacity for work for:

  • Invalidity Service Pension (ISP); and
  • Invalidity Income Support Supplement (I-ISS).

Old rules

Prior to 1 January 2000, a person was considered to be permanently incapacitated for work if:

  • the degree of permanent incapacity was 85% or more; or
  • the person was permanently blind in both eyes.

Subjectivity

The 85% component of the criteria is subjective and open to broad interpretation.  This makes it difficult for both the treating doctor and the decision-maker to arrive at an objective assessment of permanent incapacity for work.

Aim of change

The aim of the initiative is to make the assessment of eligibility for permanent incapacity for work more objective.  This will be achieved by aligning the assessment of permanent incapacity for:

  • ISP, with the Special Rate of Disability Pension (i.e Totally and Permanently Incapacitated- T&PI); and
  • I-ISS, with the Disability Support Pension (DSP) paid by Centrelink.

Summary of new rules

1.2 New permanent incapacity criteria for ISP

Commencement date

Changes to the permanent incapacity for work eligibility criteria for ISP commence on 1 January 2000.

ISP rules

For ISP purposes, a person is permanently incapacitated for work if:

  • the person is permanently blind in both eyes; or
  • the person is a veteran to whom section 24 of the VEA applies (special rate pension); or
  • the person has an impairment that, if deemed to be an injury or disease for the Guide to the Assessment of Rates of Veterans' Pensions, would rate 40 or more in Table 18.1 of that Guide; and
  • solely because of the incapacity, the person is permanently unable to work for periods adding up to more than 8 hours per week; and
  • the Repatriation Commission regards the incapacity as permanent.

Who is affected

The new criteria will apply to claims lodged from 1 January 2000.

Note: existing recipients will not have their eligibility re-assessed under the new rules.  Similarly, formal claims for ISP lodged prior to 1 January 2000, will be determined under the old rules, as will section 57 reviews lodged after 1 January 2000 where the original determination was made under the old rules.

1.3 New permanent incapacity criteria for I-ISS

Commencement date

Changes to the permanent incapacity for work eligibility criteria for I-ISS commence on 1 January 2000.

I-ISS rules

For I-ISS purposes, a person is permanently incapacitated for work if:

  • the person is permanently blind in both eyes; or
  • the person has a physical, intellectual or psychiatric impairment that results in 20 points or more under the Impairment Tables in Schedule 1B of the Social Security Act 1991; and
  • the Commission is satisfied that solely because of the impairment, the person cannot work for the following 2 years.

Work definition

For I-ISS purposes, work means work that:

  • is undertaken for at least 30 hours a week at award wages or above; and
  • exists in Australia even if not, for a particular person, in the locally accessible labour market.

Who is affected

The new criteria will apply to claims lodged from 1 January 2000.

Note:  existing recipients will not have their eligibility re-assessed under the new rules.  Similarly, formal claims for I-ISS lodged prior to 1 January 2000, will be determined under the old rules, as will section 57 reviews lodged after 1 January 2000 where the original determination was made under the old rules.

Changes to legislation & policy

1.4 Veterans' Entitlements Act 1986

Changes to VEA

ISP and I-ISS related changes to the Veterans' Entitlements Act 1986 (VEA), were effected in the Veterans' Affairs Legislation Amendment Act, No. 171, 1999.  The Act received Royal Assent on 10 December 1999.

More information: http://scaleplus.law.gov.au/html/comact/10/6083/top.htm [76]

ISP changes

Changes to the VEA in relation to ISP include:

  • Repeal of permanent incapacity for work criteria in subsection 37(2).
  • New section 37AA provides for Commission to specify the new criteria in a written determination (i.e. disallowable instrument).
  • New section 37AAA provides for continued eligibility for ISP for 7 years, if the person ceases to be permanently incapacitated for work while participating in the Veterans' Vocational Rehabilitation Scheme.

More information: refer 'Disallowable Instruments' section.

I-ISS changes

Changes to the VEA in relation to I-ISS include:

  • Repeal of permanent incapacity for work criteria in subsection 45A(3).
  • New section 45AA provides for Commission to specify the new criteria in a written determination (i.e. disallowable instrument).

More information: refer 'Disallowable Instruments' section.

Fringe Benefits changes

Changes to the VEA in relation to Fringe Benefits (i.e. Pensioner Concession Card) mean that if a person is receiving ISP, and they cease to be eligible because they are working more than 8 hours per week, they remain eligible for fringe benefits.

More information: refer 'Disallowable Instruments' section.

1.5 Disallowable Instruments

Summary

There are 3 Disallowable Instruments that set out the circumstances in which a person:

  1. is permanently incapacitated for work in order to be eligible for ISP;
  2. is permanently incapacitated for work in order to be eligible for I-ISS;
  3. continues to be eligible for fringe benefits.

ISP

The [77] Veterans' Entitlements (Invalidity Service Pension – Permanent Incapacity for Work) Determination 1999 sets out the circumstances in which a person is permanently incapacitated for work in order to be eligible for ISP.  The circumstances are outlined at Section 1.2, 'New Permanent Incapacity Criteria for ISP'.

I-ISS

The [77] Veterans' Entitlements (Income Support Supplement – Permanent Incapacity for Work) Determination 1999 sets out the circumstances in which a person is permanently incapacitated for work in order to be eligible for I-ISS.  The circumstances are outlined at Section 1.3, 'New Permanent Incapacity Criteria for I-ISS'.

Fringe benefits

The Veterans' Entitlements (Continued Fringe Benefits) Determination 1999 [77] sets out the circumstances in which an ISP recipient continues to be eligible for fringe benefits.  Where the ISP recipient starts working for more than 8 hours per week, eligibility for fringe benefits is continued for:

  • 12 months; or
  • until the person stops working for more than 8 hours per week,

whichever occurs first.

Online viewing

The 3 disallowable instruments will be available on CLIK.

1.6 Regulations

Summary

The Veterans' Affairs Legislation (Permanent Incapacity – Transitional) Regulations 199, no. 358 set out the rules relating to determining claims and applications for review, lodged prior to 1 January 2000.  The Regulations also provide for 'grandfathering' of existing ISP and I-ISS recipients.

More information: http://scaleplus.law.gov.au/html/numrul/17/8561/top.htm [78]

Grandfathering

The Regulations provide for a person receiving ISP or I-ISS prior to               1 January 2000, to remain eligible under the old rules (i.e. grandfathering).  Note: if eligibility is lost on or after 1 January 2000, any reapplication for a determination on the permanent incapacity for work would be assessed under the new rules.  If payability is lost, but not eligibility, any reapplication for a determination on the permanent incapacity for work would be assessed under the old rules.

Claims

The Regulations provide for a formal claim made prior to 1 January 2000 to be determined in accordance with the old rules, even if determined on or after 1 January 2000.

Note: Where an informal claim is lodged prior to 1 January 2000 but the formal claim is lodged on or after 1 January 2000 the claim is determined under the new rules.  In this scenario, payment may be backdated to the date of the informal claim, of course providing the formal claim is made within 3 months of the informal claim.

Reviews (appeals)

If a primary determination is made under the old rules, and a request for review:

  1. of the primary decision is received; or
  2. is made to the AAT; or
  3. is made to a higher court,

the Regulations allow for the review decision or the decision of the court to be made under the old rules.

1.7 Commission Policy

Summary

The Repatriation Commission has provided policy directives on the following, for ISP purposes:

  • definition of work;
  • definition of manifest;
  • medical assessment protocol.

Definition of work

A definition of 'work' was sought from Commission.  The model used by Disability Compensation in relation to Special Rate (T&PI) was adopted (section 28 VEA and Commission Guidelines CM 5011 of 10 June 1999 refer).  A summary of the salient points is below.

For ISP purposes, work means work that:

  • a person with the veteran's skills, qualifications and experience might reasonably undertake, possibly with retraining; and
  • is actually undertaken and is not uncommon in the Australian work force; and
  • is of a kind for which award wages are, or could reasonably be expected to be, paid.

Work in this context is not necessarily limited to:

  • the particular type of job that the veteran has previously undertaken; or
  • work readily available to the veteran at this time or in the veteran's local area.

Note: factors to consider in determining ability to work for invalidity ISS can be found on at the following link:

www.facs.gov.au/guide/ssguide/36270.htm [79]

Definition of manifest

A definition of 'manifest' was sought from Commission.  This definition was sought in order to minimise the number of veterans being sent to medical examinations if it is clearly not necessary.  Commission approved the following definition:

Manifest means that the veteran clearly and obviously meets the invalidity service pension eligibility criteria according to paragraph 37(1)(c) of the VEA, based on the presenting medical evidence available to the Department and that no additional medical assessment or work capacity test is required for the decision-maker to form an opinion regarding 'permanently incapacitated'.

Medical assessment protocol

To provide decision makers with the discretion to use an independent medical service provider if it is required in order to make a decision, Commission approved the following Medical Assessment Protocol:

  1. As part of the new claim application, the veteran's treating doctor provides an initial diagnosis.
  2. As a matter of course, the veteran undergoes a medical assessment to ascertain GARP impairment points and/or whether they pass or fail the work test.
  3. Independent medical assessment may be required if:
  • the veteran is in receipt of Newstart (recipients have to declare that they are fit and able to work, and willing to look for work, therefore this may suggest that they are capable of working 8 hours per week);
  • the veteran is still employed, with a retirement date in the future (e.g. voluntary redundancy cases);
  • the veteran has travelled some distance to visit a doctor (this might suggest that the veteran is seeking a more favourable medical assessment);
  • the Disability Pension model for diagnosing Psychiatric conditions is not satisfied.  'Diagnostic Guidelines for Psychiatric Assessment and Reports' and the 'Second Opinion Protocol for Psychiatric Cases' provide guidelines on the provision of psychiatric reports that are of a suitable standard for DVA purposes.  These documents can be accessed via: Start\Departmental\Applications\CCPS\CCPS Research Library. ? [80]
  • the new claim application raises other medical questions.

PART 2PROCEDURAL INFORMATION

2.1 ISP claim process

Summary of process

The ISP claim process from inquiry to permanent incapacity for work determination can be broken into the following steps

  1. Receive inquiry
  1. Calculate impairment points
  1. Send & receive new claim kit
  1. Determine work test result
  1. Register the case
  1. Finalise case
  1. Diagnose
  1. Make decision
  1. Send & receive GARP and work test forms
  1. Advise veteran

More detail

Each step is discussed in the following table

Step

Action

1

Inquiry is received and D0501 Preliminary Details form is completed (according to State practice)

2

Send:

  • Covering letter
  • D0503 Claim for Service Pension by a veteran or mariner
  • D0569 Invalidity Details form
  • Reply paid envelope (according to State practice)

Receive completed:

  • D0503
  • D0569

3

Register veteran on MAGPIES

Register claim on MAGPIES

Note: if TPI, Blind, Manifest or Able to work, claim can be fast tracked to finalisation and decision- go to Step 8.

4

Enter treating doctor diagnosis on MAGPIES by using International Classification of Diseases

Note: if calculating points for a psychiatric condition, diagnosis made by a non-specialist, must be confirmed by a psychiatrist.

5

Send Doctor:

  • Covering letter
  • Schedule of fees
  • GARP medical assessment forms
  • D0570 Work test questionnaire

Note: in some cases it may only be necessary to send the D0570.  For example, where there are already 40 impairment points on file.

Send Veteran:

  • Covering letter (veteran to make appointment with doctor)
  • D0803 Claim for travelling expenses (according to State practice)

Receive completed:

  • GARP medical assessment forms
  • D0570 Work test questionnaire

6

Calculate GARP impairment points using MAGPIES

7

Determine Work test result and record decision on MAGPIES

8

Finalise the case using MAGPIES

9

Make decision to accept or reject claim.

Record decision for file on D0572 PI Determination Sheet.

10

Advise veteran in writing of decision

More info

Click on these hyperlinks for more information relating to these procedures.

2.3 Forms- ISP

2.5 Standard Letters- ISP

3.2 MAGPIES Cheat Sheet

2.2 I-ISS procedures

Summary of process

The I-ISS claim process from inquiry to determination can be broken into the following steps

  1. Receive inquiry
  1. Determine eligibility/make decision
  1. Send & receive new claim kit
  1. Finalise case
  1. Register the case on CMS
  1. Advise claimant

More detail

Each step is discussed in the following table

Step

Action

1

Inquiry is received and D0501 Preliminary Details form is completed (according to State practice)

2

Send claimant:

  • Covering letter including paragraph advising claimant to make an appointment with approved Centrelink medical assessment service provider
  • D0529 Claim for Income Support Supplement by a War Widow or Widower
  • D0571 Medical and Work Details form
  • Reply paid envelope (according to State practice)
  • Attachment containing list of Centrelink approved medical assessment service providers

Send doctor:

  • Covering letter
  • Schedule of fees

Receive completed:

  • D0529
  • D0571

3

ISS claim registered on CMS and PIPS PC

4

Make decision to accept or reject claim- includes PI aspect based on the information provided in the D0571 Medical and Work Details form as completed by the Centrelink approved doctor

5

Finalise the case on PIPS PC

6

Advise claimant in writing of decision

More info

Click on these hyperlinks for more information relating to these procedures.

2.4 Forms- I-ISS

2.6 Standard Letters- I-ISS

2.3 Forms- ISP

Summary

A number of forms were either created or modified for ISP.  They include:

  • Preliminary Details form (D0501)
  • Claim for Service Pension by a veteran or mariner (D0503)
  • Invalidity Details (D0569)
  • GARP medical assessment forms
  • Work test questionnaire (D0570)
  • Schedule of fees
  • Combined Impairment Assessment report
  • PI determination sheet (D0572)

D0501

The service pension Preliminary Details form D0501 has been modified to allow Special Rate (T&PI) and Blind cases to be easily identified.  This will allow these cases to be fast tracked to finalisation and decision.

Available on: Online Forms.  Hyperlink to Online Forms: http://internet-mirror/factsheets/default.htm [81]

D0503

The Claim for Service Pension by a veteran or mariner D0503 has been modified to allow Special Rate (T&PI) and Blind cases to be easily identified.  This will allow these cases to be fast tracked to finalisation and decision.

Available on: Online Forms

D0569

The old Invalidity Details D512 has been replaced with a new Invalidity Details form D0569.  The new form provides space for a diagnosis from the treating doctor.

Available on: Online Forms

GARP forms

MAGPIES will generate the GARP medical assessment forms for the treating doctor to complete.  The answers on these forms will be entered into MAGPIES to arrive at an impairment point calculation.

Available on: MAGPIES

Note: the GARP forms should be stamped with the 'return to Income Support' stamp available in each State.  This will ensure the forms are returned to Income Support.

D0570

The Work Test Questionnaire D570 is a new form that is completed by the treating doctor, at the same time as the GARP forms.

Available on: Online Forms

Schedule of fees

A schedule of fees has been developed to advise the doctor how much they will be paid for their service (consultation and report).  The schedule of fees should be sent to the doctor with the GARP and Work Test forms.

Available on: MS Word- word document emailed to all contacts

CIA

The Combined Impairment Assessment (CIA) report is generated by MAGPIES and provides information about the GARP assessment.  The following table shows when to put the CIA on file and when to send it to the veteran.

Available on: MAGPIES

IF claim is...

THEN...

granted

place copy of CIA on file.

rejected

place copy of CIA on file; and

send copy of CIA to veteran, with rejection letter.

Note: if the claim is rejected only due to failure of the work test (i.e. 40 or more GARP impairment points were obtained), the CIA report would not be sent to the veteran.

D0572

A Permanent Incapacity Determination sheet has been developed to record the details of the permanent incapacity for work decision.

Available on:  Online Forms

2.4 Forms- I-ISS

Summary

A number of forms were either created or modified for I-ISS.  They include:

  • Preliminary Details form (D0501)
  • D0529 Claim for ISS by a war widow or widower
  • D0571 Medical and Work Details
  • Schedule of Fees

D0501

Refer to 2.3 Forms- ISP.

D0529

The Claim for Income Support Supplement by a War Widow or Widower D0529 has been modified to identify claimants who are blind, so they can be fast tracked to finalisation and decision.

Available on: Online Forms

D0571

The Medical and Work Details form D0571 has been developed to obtain a medical assessment and work ability details from the Centrelink approved medical assessment service provider.  The Centrelink approved doctor will also provide the impairment point rating on this form.

Available on: Online forms

Schedule of fees

A schedule of fees has been developed to advise the Centrelink doctor how much they will be paid for their service and/or reports.  The schedule of fees should be sent with the Medical and Work Details form.

Available on: MS Word- word document emailed to all contacts

2.5 Standard Letters- ISP

Summary

A number of standard letters were created.  They include:

  • Cover letter for Doctor (informal claim)
  • Cover letter for Doctor (formal claim)
  • Cover letter for Veteran
  • New Claim Reject- Not PI

Doctor cover letter (informal)

A covering letter has been developed to go to the treating doctor with the GARP forms, Work Test questionnaire and schedule of fees.  This letter is sent if the veteran is sent to a medical assessment on the strength of an informal claim for ISP.

Available on: IS Standard Letters, Clinical

Doctor cover letter (formal)

A covering letter has been developed to go to the treating doctor with the GARP forms, Work Test questionnaire and schedule of fees.  This letter is sent when the veteran is sent to a medical assessment after lodging a formal claim for ISP.

Available on: IS Standard Letters, Clinical

Veteran cover letter

A covering letter has been developed to go to the veteran after lodging a claim.  The letter advises the veteran to make an appointment with their treating doctor to undergo medical assessment for the purposes of determining permanent incapacity for work.

Available on: IS Standard Letters, Clinical

New claim reject

A new letter has been developed for claims that are rejected.  This letter allows the decision-maker to choose rejection reasons from a list of options.  The CIA report would be sent with this letter if a CIA report has been produced.

Available on: IS Standard Letters, New Clm

2.6 Standard Letters- I-ISS

Summary

New standard letters were created.  They include:

  • ISS New Claim Reject
  • ISS covering letter, claim already lodged
  • ISS covering letter, claim not lodged
  • ISS letter to Doctor

New claim reject

A new letter has been developed for claims that are rejected.  This letter allows the decision maker to choose rejection reasons from a list of options.

Available on: IS Standard Letters, New Clm

Cover letter claim already lodged

If a claim form has already been lodged, this covering letter is used to advise the claimant to make an appointment with a Centrelink medical assessment service provider.

Available on: IS Standard Letters, Clinical

Cover letter claim not lodged

The new claim kit contains a covering letter that advises the claimant to make an appointment with a Centrelink medical assessment service provider when they are ready to lodge their new claim.

Available on: IS Standard Letters, Clinical

Letter to Doctor

This letter is sent to the doctor with the Schedule of Fees that tells the Doctor how much they will paid for completing the D0571, Medical and Work Details form.

Available on: IS Standard Letters, Clinical

2.7 Advices and You and Your Pension- ISP & I-ISS

Changes to auto advice

An existing automatic advice is generated for new grants of ISP and I-ISS.  Changes to the grant and obligation paragraphs of the letter will take effect for cases eligible under the new rules after the 'Y2K freeze' is lifted and DOE system changes are implemented.  This is expected to be in late April 2000.

Veterans eligible under the old rules will receive the old paragraphs as applicable.

Y&YP insert

The You and Your Pension booklet is sent with all new grant advices, as formal advice of obligations.  A one page insert has been developed for inclusion with the booklet.  The insert amends the ISP and I-ISS obligations in the booklet.  The new insert should be included with hard copies of the booklet until such time as the booklet is reprinted.

Note: the ISP and I-ISS obligations in the electronic DVA web-site version of Y&YP have been updated.

PART 3SYSTEM INFORMATION

3.1 MAGPIES

New system

A permanent incapacity computer system for ISP has been developed with 3 main functions:

  1. generate GARP medical assessment forms;
  2. calculate GARP impairment points; and
  3. record permanent incapacity for work decisions (i.e. eligibility).

MAGPIES

The name of the new system is MAGPIES.  MAGPIES stands for Medical Assessment GARP Permanent Incapacity Eligibility System.

Stand-alone

MAGPIES is a stand-alone computer system.  This means it does not 'talk to' or update any other DVA computer systems.

Access

MAGPIES is accessed through the Start menu and is found under:

  • Departmental\Applications\MAGPIES- Production; or
  • Departmental\Applications\MAGPIES- Training.

The production version is the 'live' version for processing cases.  The training version is intended for training and practising on etc.

Flight Guide

The MAGPIES Flight Guide is the system manual for MAGPIES.  It is on the DVA intranet and is found at the following link:

http://sharepoint/programsandprojects/systemguides/magpiesflightguide/Pages/MAGPIES%20Flight%20Guide.aspx [82]

I-ISS

MAGPIES is not used to calculate impairment points for I-ISS cases.  The Centrelink Medical Assessment Service Provider will provide impairment points for I-ISS cases on the D0 — 5 — 71 form.

3.2 MAGPIES Cheat Sheet

Cheat sheet

A short, practical guide to using MAGPIES is included here.  It is intended as a familiarisation tool for new users.  It is not likely to be needed long term.

Fast Track Cases

Step

Action

Enter veteran personal details

File/New File

Register claim

File/New Case

Select fast track option

Assessment Options (double click)

Finalise Case

Case/Finalise

Other Cases

Step

Action

Enter veteran personal details

File/New File

Register claim

File/New Case

Diagnose

Subject of Claim (double click), Add, Diagnose

Select GARP forms

Impairment Form Categories (double click), Impairment Forms (right click), Classify Forms, select body system

Generate GARP forms

Impairment Form Categories (select), click on red book, Case Print Queue (right click), Print Correspondence, Unaddressed Attachments (select), Print

Select body system to calculate points under

Assessment Sections (double click), Assessment Procedures (right click), Classify Assessment, select body system

Calculate points

Assessment Options (double click), None of the Above (select option), Calculate impairment points using GARP V (select option); Calculate impairment pts (GARPV) (double click), Select blue text line, Assess, answer questions as required

Generate CIA report

Assessment Options (double click), Calculate impairment pts (GARPV) (double click), Report, Combined Impairment Report (select), Report

Enter Work Test result

Assessment Options (double click), Work Test (double click), answer questions

Finalise case

Case/Finalise Case

C04/2000 EXCHANGE RATE ADJUSTMENTS TO BRITISH DISABILITY PENSIONS (EATS & COMPOSITE) PAID IN AUSTRALIA

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DATE OF ISSUE:  3 FEBRUARY 2000

EXCHANGE RATE ADJUSTMENTS TO BRITISH DISABILITY PENSIONS (EATS & COMPOSITE) PAID IN AUSTRALIA

Advised by:

Advice has been received from the British Department of Social Security (BDSS) to the effect that the exchange rate to be used for payment of the British component of Disability Pensions (EATS and COMPOSITE) in Australia has been reviewed.

New Exchange Rate

$A2.55.  The previous rate was $A2.74 to one Pound Sterling.

(British pension rates charts are at Attachment B)

Rate Effective From

24 February 2000.

Cases Affected

The variation applies to the EATS and Composite cases.

Hong Kong

Hong Kong cases are not affected by the exchange rate adjustment to British Disability Pensions.  Disability Compensation Branch in National Office is still reviewing the procedures that apply to Hong Kong pensions including calculating the Hong Kong exchange rate.  Until a new method is agreed, please continue as per Peta Stevenson's instructions until further notice.

For further information on this subject please contact Peta Stevenson on (02) 6289 6176.

Manual Examination

There will be no cases processed automatically.  All cases will be listed for manual examination.

Service Pension Cases

Action schedules of cases requiring manual examination and variation by examiners can be obtained by contacting Carol Walsh on (02) 6289 6729.  They will be made up of the following groups:

Group Content

Group Reference

Composite cases

(with or without SP)

100

EATS cases

(with or without SP)

200

Other overseas pensions

(which may be affected)

300

Group 300 is to be processed via the PMF update transactions.

Groups 100 and 200 are to be processed via PIPS/PC.

Punching of transactions from “Action” schedules EATS and Composite Cases

Pay Period Codes

Pay Period No. 44 (effective date 24 February 2000) should be entered.  The day within the pay period field may be left blank.

Keyfast Batch Description

The manual transactions for EATS and Composite cases should be punched using keyfast batch description $PENSIO by cut off for payday No. 44,

24 February 2000.

Control Cards

Control card formats for computer runs are at Attachment A.

Cases with Service Pension and/or an Australian DP component to be processed via PIPS/PC (Groups 100, 200)

SPOC

When single officer processing is in operation any reference to the delegate should be read as the single officer.

Client Data Base (CDB)

For all cases involving EATS, Composite or Service Pension, whether automatic or manual method of assessment, the new rate of British pension must be updated via PIPS/PC.  Due to the change in the British rate, these cases will be “MS” and determined by the delegate or through manual authority on PIPS/PC only.


D408/ Schedules

It will not be necessary to prepare a D408, or equivalent in these cases.  The schedule that is produced for dual SP/EATS/COMP cases, to record changes to the PMF, may be used as an authority provided each record on that schedule is endorsed with the consecutive number automatically produced by PIPS/PC and it is signed by the delegate determining the case prior to transmission to Payment Administration.  All such cases can be identified from the manual schedules (ie. group 100, 200) and the new British rates should be deducted from the examiners entries on those schedules.

NOTE:  ALL entries on these schedules must be in Australian Dollars.

Advices

CR.PS System

The Correspondence Rules and Paragraph Specifications system will generate an advice in cases where a payment variation is made.  Examiners should action cases in the following manner:

Cases

What to do

Continuations

Unless the total payment varies, the PIPS/PC Advices screen should be accessed and production of an automatic advice suppressed.  The advice Indicator on the Action Schedule should be set to “Z”.

Variations

Where a variation in total payments results, the PIPS/PC Advice screen should be accessed and the Suppressed Income/Asset List Indicator set to “Y”.  This will result in production of a variation advice with no income and asset details.  The Advice Indicator on the Action Schedule should be set to “Y”.

Computer Processing

Computer processing will be performed by the Systems Delivery Unit in the Business Operational Support section.  For a list of all relevant cases please contact Carol Walsh on (02) 6289 6729.

Contact Officer

The contact officer for this exercise is Lucy Berger (02) 6289 6013.

R J HAY

BRANCH HEAD

INCOME SUPPORT


ATTACHMENT A

MEMBER AL02

Z1200 ALL3023802380

Z1100 ALL3223802380

Z2200 ALL3323802380

Z2100 ALL0040014003

Z2200 ALL0050015004

Z2300 ALL0057005700


ATTACHMENT B

BRITISH PENSION RATES CHARTS

EXCHANGE RATE VARIATION FROM 2.43 TO $A2.74

OTHER RANKS — DISABILITY PENSION — EFFECTIVE — 19-Nov-98

OLD

NEW

CLASS

%

RATE

RATE

V, IV, III, II, I, WO1

P.F.

P.F.

20%

125.71

116.99

30%

188.57

175.49

40%

251.42

233.99

50%

314.28

292.49

60%

377.13

350.98

70%

439.99

409.48

80%

502.84

467.98

90%

565.70

526.47

100%

628.56

584.97

OFFICER — DISABILITY PENSION — EFFECTIVE — 19-Nov-98

Exchange Rate $A2.74

RANK

1Midshipman or Comm Off Navy

2Lt. Army

3Capt. Army

OLD

NEW

4Major Army

RATE

RATE

5Lt. Col Army

%

P.F.

P.F.

20%

125.80

117.08

30%

188.75

175.66

40%

251.60

234.15

50%

314.55

292.74

60%

377.40

351.23

70%

440.35

409.82

80%

503.20

468.31

90%

566.15

526.89

100%

629.00

585.38


OFFICERS — SERVICE RETIRED PAYOR SERVICE PENSION

EFFECTIVE 19-Nov-98

EXCHANGE RATE $A2.74

OLD

NEW

RATE

RATE

P.F.

P.F.

20%

125.80

117.08

30%

188.75

175.66

40%

251.60

234.15

50%

314.55

292.74

60%

377.40

351.23

70%

440.35

409.82

80%

503.20

468.31

90%

566.15

526.89

100%

629.00

585.38

SUPPLEMENTARY  ALLOWANCES

OFFICERS and OTHER RANKS - DISABLEMENT

EXCHANGE RATE $A2.74

Effective 19-Nov-98

Effective 19-Nov-98

UNEMPLOYABILITY SUPP.

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

Personal Allowance

388.54

361.60

388.26

361.34

Wife or Adult dependant

219.12

203.93

218.93

203.75

1st eligible child

54.33

50.57

54.25

50.49

2nd & subsequent child

62.22

57.90

62.20

57.89

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

118.76

110.52

118.64

110.42

2.Full day attendance -Basic

237.41

220.95

237.28

220.83

-Intermediate

356.17

331.47

355.93

331.25

-Exceptional

474.93

442.00

474.57

441.66

COMFORTS ALLOWANCE

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

Higher Rate

102.05

94.97

101.93

94.86

Lower Rate

50.97

47.44

50.96

47.43

CLOTHING ALLOWANCE

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.A.

P.A.

P.F.

P.F.

Higher Rate

402.78

374.85

15.45

14.38

Lower Rate

402.78

374.85

15.45

14.38

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

77.04

71.69

76.99

71.66

Qualifying)> 40 but < 50 yrs

48.76

45.38

48.77

45.39

Date)> 50 yrs

24.38

22.69

24.39

22.70

AGE ALLOWANCE

OFFICERS

OTHER RANKS

When the degree of pensioned disablement is:

OLD RATE

P.F.

NEW RATE

P.F.

OLD RATE

P.F.

NEW RATE

P.F.

a.40% to 50% - inclusive

41.93

39.03

41.92

39.02

b.> 50% but not > 70%

64.74

60.25

64.66

60.18

c.> 70% but not > 90%

92.17

85.78

92.06

85.68

d.over 90%

129.37

120.40

129.33

120.36

MISCELLANEOUS

EXCHANGE RATE $A2.74

Effective 19-Nov-98

Effective 19-Nov-98

RENT ALLOWANCE (Maximum)

OFFICERS

OTHER RANKS

OLD RATE

NEW RATE

OLD RATE

NEW RATE

P.F.

P.F.

P.F.

P.F.

179.61

167.15

179.47

167.03

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

54.33

50.57

54.25

50.49

Age 70 and over

104.15

96.93

104.12

96.90

Age 80 and over

155.23

144.46

155.08

144.33


DEPENDANTS OF DECEASED MEMBERS

EXCHANGE RATE $A2.74

Effective

19-Nov-98

WIDOWS **HIGHER RATES**

OLD RATE

NEW RATE

******M.O.D.  Payment Included  ******

P.F.

P.F.

CLASS V

784.18

729.80

IV, III, II, I WO1

785.82

731.33

Lt Comdr,  Capt,  Major,  Sq Ldr

795.68

740.50

Lt,  Lt,  Capt, Fl Lt

793.79

738.74

Sub Lt,  Lt,  Flying Off   Pilot Off

792.00

737.08

Comms Off

788.95

734.24

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.

309.61

288.14

CHILDREN OF WIDOW OR REMARRIED WIDOW

OLD RATE

NEW RATE

P.F.

P.F.

1st ELIGIBLE CHILD

78.72

73.26

2nd and SUBSEQUENT CHILD

86.60

80.59

TOTAL ORPHANS and MOTHERLESS CHILDREN

OLD RATE

NEW RATE

P.F.

P.F.

TOTAL ORPHANS   1st CHILD

88.81

82.65

2nd and SUBSEQUENT ORPHANS

96.79

90.08

INFIRM & > 18 -

366.05

340.67

C03/2000 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:  17 JANUARY 2000

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.

Effective Date 11 January 2000

Effective from 11 January 2000 the current exchange rate will change.  On pension payday 27 January 2000 pensioners will receive a full instalment at the new assessed rate.

New Rate

A$2.4576

The exchange rate will change from one Pound Sterling equals A$2.5304 to one Pound Sterling equals A$2.4576 (ie $A1 = 0.4069 pounds). This rate reflects the average of the “on demand airmail buying rate” for the two weeks to 7 January 2000.

Timetable

The DVA exercise is scheduled for processing on Tuesday evening, 11 January 2000.

Continued on next page

Automatic
Superannuation processing

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

Manual cases and MS cases

Cases with actions in frozen status will not be processed.  These cases will be listed on the manual listing for follow up action, and CMS/PIPS cases will be created automatically for State Office action.  Any cases processed through PIPS/PC should be reassessed from the beginning of the pension period for pension payday 27 January 2000 – ie 11 January 2000.

Advice Letters

The advice letters for this exercise will be joint advices.  The letter will advise the new exchange rate, the amount of income and a payment box.  An advice will only be produced for cases where a variation in payment results.  This includes pensioners who have been reduced to nil and are no longer in payment.  The date of effect shown in the advices will be 11 January 2000.

New Claims and Centrelink Transfers–In with an Existing OTA

Any New Claims or Centrelink Transfers-In with a date of effect between 12 January 2000 and 24 January 2000 where BRI is recorded will have to be identified and a manual adjustment made to the existing One Time Amount (OTA) on the PMF.

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

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

BRI advices for these cases will display a date of effect of 2 January 2000, ignoring the fact that pension may have been granted from a later date.  You will not be able to intercept these advices because they are sent direct to Australia Post by Security Mailing.

Continued on next page


Regulation 45A Procedures

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

IBM GSA Implications

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

Mail out of Bulk Advices

Security Mailing will print and prepare the advices for lodgement with Australia Post by Wednesday 19 January 2000.

British DP case paid Rent Assistance

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

Contact Officer

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

Lucy Berger              Telephone:   (02) 6289 6013

Kevin Chapman         Telephone:   (02) 6289 6749

R J HAY
BRANCH HEAD
INCOME SUPPORT

     January 2000


POUND STERLING EXCHANGE RATE

Foreign exchange periodExchange rate

?

$

16 March 95

to

26 April 95

0.4770

2.0964

27 April 95

to

13 Sept. 95

0.4576

2.1853

14 Sept 95

to

11 Oct. 95

0.4774

2.0947

12 Oct. 95

to

10 April 96

0.4899

2.0412

11 April 96

to

8 May 96

0.5050

1.9802

9 May 96

to

4 Dec 96

0.5191

1.9264

5 Dec 96

to

12 Feb 97

0.4873

2.0521

13 Feb 97

to

9 April 97

0.4685

2.1345

10 April 97

to

21 May 97

0.4941

2.0239

22 May 97

to

30 July 97

0.4812

2.0781

31 July 97

to

3 Dec 97

0.4542

2.2017

4 Dec 97

to

28 Jan 98

0.4235

2.3613

29 Jan 98

to

25 Feb 98

0.3972

2.5176

26 Feb 98

to

6 May 98

0.4125

2.4366

7 May 98

to

15 July 98

0.3997

2.5019

16 July 98

to

12 August 98

0.3663

2.7300

13 August 98

to

9 Sept 98

0.3817

2.6199

10 Sept 98

to

21 October 98

0.3690

2.7100

22 October 98

to

4 Nov 98

0.3505

2.8531

5 Nov 98

to

2 Dec 98

0.3676

2.7203

3 Dec 98

to

27 January 99

0.3834

2.6082

28 January 99

to

10 Feb 99

0.3719

2.6889

11 Feb 99

to

19 May 99

0.3905

2.5608

20 May 99

to

28 July 99

0.4079

2.4516

New Date of Effect Rules

13 July 99

to

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

0.4069

2.4576

C02/2000 VETERANS' ENTITLEMENTS ACT AGED CARE REFORMS: CONTAINED IN THE AGED CARE AMENDMENT (OMNIBUS) ACT 1999

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DATE OF ISSUE:  24 JANUARY 2000

VETERANS' ENTITLEMENTS ACT AGED CARE REFORMS:  CONTAINED IN THE AGED CARE AMENDMENT (OMNIBUS) ACT 1999

INTRODUCTION

Introduction

This departmental instruction (DI) provides legislative, policy and procedural information relating to amendments to the Veterans' Entitlements Act 1986 (VEA) that affect certain residents of approved nursing homes.

Legislation

The legislative amendments to the SSA and VEA are contained in Schedule 2 (SSA), 3 and 4 (VEA) of the Aged Care (Omnibus) Act 1999 - No 132 1999. The act received Royal Assent on 21 October 1999.  The following hyperlink provides internet access to the Act:

http://scaleplus.law.gov.au/html/comact/10/6044/to... [86]

Background

Under the provisions of the Aged Care Act 1997, that commenced on 1 October 1997, persons entering Commonwealth Government funded residential care could be required to pay an accommodation bond to the nursing home or hostel they were entering.

The introduction of accommodation bonds generated significant adverse publicity for the Government – particularly in relation to the introduction of such bonds for nursing home residents.  On 5 November 1997, the Government replaced the accommodation bonds payable by nursing home residents with a new payment known as an accommodation charge.  This change commenced 6 November 1997.

Generally, the accommodation charge is paid as a periodic payment with aged care fees.  It should be noted that hostel residents continue to be required to pay an accommodation bond, that is, there were no changes to the accommodation payment rules in respect of hostels.

  • In association with the introduction of accommodation charge, a number of other measures were introduced to assist residents in paying the charge (C13/98 [87] refers in detail).

Summary of changes

The majority of the VEA income and assets test changes contained in Schedule 3 of the Aged Care Amendment (Omnibus) Act 1999 have been in operation since 6 November 1997 and 1 March 1998 respectively (see attachment A for a summary).  Departmental Instructions C13/98 [87] of 3 March 1998 and C45/98 [88] of 30 October 1998 provide policy and procedural details of these changes.

In addition to existing policies already being administered however, the new Act also introduces additional changes announced as part of the May 1999 Budget.

One of the additional changes introduces a new term, “charge exempt resident”.  New section 44-8B, 'Meaning of charge exempt resident', of the Aged Care Act 1997, provides a retrospective exemption from payment of the accommodation charge for people who entered a nursing home prior to 1 October 1997 and who subsequently move to another nursing home on or after 1 October 1997.

The flow-on impact of this change is that amounts of accommodation charge paid by this group will be refunded and are exempt from the income and assets tests applicable to income support pensions, benefits and allowances.

NEW POLICY-REFUND ACCOMMODATION CHARGE

Unintended Consequence

Following the introduction of the accommodation charge, Department of Health and Aged Care (DHAC) became aware of an unintended consequence.  With the introduction of the Aged Care Act 1997 it was the intended that all pre 1 October 1997 existing residents would not be adversely affected.

It later became evident however, that the legislation did not protect pre 1 October 1997 nursing home residents who move to a different nursing home from being required to pay the accommodation charge to the new residential care provider.

Budget  changes

To rectify the situation a new charge exemption for affected residents was introduced in the May 1999 Budget.  Flow-on changes to income support pension rules were also introduced to ensure that any retrospective reassessment of accommodation charge and resident status would not adversely affect the rate of income support pension payable.

The income support pension-related changes include:

  • Exemption of refunded accommodation charge under the pension income and assets tests, for those residents who occupied an approved nursing home bed in a nursing home on 30 September 1997 and who subsequently moved to another nursing home and started paying an accommodation charge.

  • Income test exemption of any amounts that could subsequently be derived from these amounts if the capital amount is invested.  The above threshold deeming rate is to be applied when determining exempt income.

  • Where the person was receiving rent from the former home, an exemption applies to the asset value of the family home and the rental income received for the period up to and including 21 October 1999, that is the date of proclamation of the Aged Care (Omnibus) Act 1999.  To date no DVA cases have been identified that are affected by this rule.

Charge exempt resident

A charge exempt resident is defined at section 44-8B of the Aged Care Act.  A person can be described as charge exempt if:

“(a) at any time on 30 September 1997, the person occupied an approved nursing home bed in a nursing home approved under section 40AA of the National Health Act 1953; and

(b) the person is receiving residential care, having entered an aged care service at any time after 30 September 1997; and

(c) apart from this section, the person would have been eligible to pay an accommodation charge for the entry.”

Note 2 of 44-8B states that, “a charge exempt resident cannot be required to pay an accommodation charge”.

Refunded accommodation charges

An accommodation charge is generally paid as a periodic payment that an aged care facility (in most cases a nursing home) can ask certain residents to pay to cover the cost of their accommodation.  This payment is separate to the residential care fees and is payable for a maximum of 5 years.

The amendments resulting from the May 1999 Budget introduced the term charge exempt resident.  Any person who was a nursing home resident at the end of 30 September 1997 is not required to pay an accommodation charge and is categorised as a charge exempt resident.  In the case of those who moved to a different nursing home, the accommodation charge paid in the new residence will be refunded and no further charges will be required from 21 October 1999.

The refunded amount is to be regarded as an exempt lump sum for income and assets test purposes.  The relevant new VEA legislative references are:

  • Subsection 5H(12)-income exemption of certain lump;
  • Clause 14 of Part 2A of Schedule 5, Person's ordinary income reduced using financial assets rules; and
  • Clause 15 of Part 2A of Schedule 5, Value of a person's assets reduced.

It should be noted that in cases where the nursing home resident has a partner, the exemptions may affect the pensions paid to both partners (New clause 13, Part 2A of Schedule 5 of the VEA refers).  This means that when the aged care resident passes away, an excluded income/assets amount may continue to apply to the partner's pension.

The exemptions will apply whether the person has retained the funds or not (New clauses 17C and 17D, Part 2A of Schedule 5 of the VEA refers).  That is, it is assumed that they would be part of a person's financial assets and therefore deemed if the exemptions did not apply.  A deduction equivalent to the amount refunded is to be deducted from the persons total assets and the total income will be reduced by an amount equivalent to the deemed interest that is derived on the lump sum.  The above threshold deeming rate, currently 4.5% will be applied.  This means cases will require ongoing review as the deemed interest rates change.

Rental Income exemption

Where a person is reclassified as a charge exempt nursing home resident and they have been renting out their home in order to pay the accommodation charge, there will be no retrospective reassessment of rental income received.

Similarly there will be no retrospective assets test assessment of the family home.

From 21 October 1999 however, the special rent exemptions will cease to apply.  To date no cases have come to light.

In the event that a case comes to light the rental income will need to be included.  Generally the 2/3rds rule will apply.  The person's former home will need to be assessed under the 2 year assets test exemption applicable to aged care residents.  In other words whether the former home will be assets tested or not will be dependent on the length of time that the person has been an aged care resident.

VEA DELEGATIONS

Delegations

The Repatriation Commission approved the VEA Instruments of Delegation relating to this initiative on 26 October 1999.

On 7 December 1999, the Secretary to the Department of Family and Community Services approved the instruments of delegation for DVA employees who are required to administer age/wife pension cases.

Signed copies of the Instruments of Delegations were forwarded to the state aged care contacts on 21 December 1999.

5H(12) Delegation

Please note that a separate instrument of delegation was prepared in respect of new subsection 5H(12).

This subsection provides the income test exemption of certain lump sums including refunded accommodation charges to charge exempt residents.

5H(12) states that:

An amount received by a person is an exempt lump sum if:

  1. it is not a periodic amount (within the meaning of subsection 5K(1A)); and
  2. it is not income from remunerative work undertaken by the person; and
  3. it is an amount, or one of a class of amounts, that the Commission determines to be an exempt lump sum.

This section aligns the VEA with the subsection 8(11) of the SSA.

The delegation to determine that certain lump sums will be exempt income, is restricted to Branch Head (Income Support).  The Instrument of Delegations was signed on 22 December 1999.

Apart from refunded accommodation charges there are a range of other lump sums that will be determined to be exempt.  A separate Departmental Instruction specific to subsection 5H(12) will be issued shortly.

PROCEDURAL INFORMATION

Target Population

The Department of Health and Community Services (DHACS) have identified 440 aged care or former aged care residents who are DVA income support recipients or self-funded retirees.

DHACS have advised that:

66% or 290 are on maximum rate of pension.  As the refund will have no impact on pension or aged care assessment for these cases they will not require review, unless pension is reduced at a later date.  This leaves approximately 150 cases nationally that may require review.

Refund details

The maximum refund is estimated to be $9,492 with the average refund being around $4,200.

DHAC refund
strategy

Where a person is still a nursing home resident the refund will be paid by the facility.

If the person is no longer in the facility or deceased, the DHAC will arrange the refund.

DHACS expect that all charge exempt residents will receive the refund within 6 months.

For those no longer in an aged care facility the refunds will commence from February 2000 with an end date of October 2000.

DVA review

Once a person has received their refund they (or their representative) should advise DVA/Centrelink.  This will trigger the following action:

  • If the person is a maximum rate pensioner and the information provided is not going to affect the pension rate no action is necessary.

  • If the person is a reduced rate pensioner obtain the current income and assets details.

  • Ensure that the person is not receiving exempted rental income and the 5yr exemption on the family home.  This can be checked on view in the pension assessment Tab/ Residential Folder under 'rent assistance not payable reason.'  Please note that no cases in this group have come to light.  If a case is identified, notify Oona O'Beirne of Income Support Policy section immediately.  The exemptions on rental income etc. will have to be reassessed [9] [89] as income and the exemption on the family home will be reduced to the general two years duration.

  • Confirm via the DHAC schedule of refund cases (provided to state aged care contacts) that the person is on the list and the amount of refund recorded.  The amount listed on the DHAC schedule is the amount that will be exempted from the income and assets tests.

  • Review the case using the manual rate procedures mentioned below.

  • Advise the state aged care contact who will list the name and reference number of the case for subsequent review action at the time of statutory increases, deeming rate changes etc..

Systems impact

There are no system changes associated with this initiative.  The exemption action will be via the manual rates screen.

Manual Exemption Procedure

Set out below are the steps to apply when exempting the refunded amount:

Steps

Action

1

Update the person's pension assessment as per current income and assets details.

2

Determine the amount to be exempted under the assets test from the DHACs schedule of affected cases.

3

Determine the reduction to be applied to the person's income.  This will be the amount to be exempted under the assets test multiplied by the above threshold deeming rate (currently 4.5%).

4

Deduct the income and asset exemption amounts from the person's total income and assets.  For couples, apply 50% of the deductions to each member.

5

Go to the Manual Rates screen and select “Miscellaneous (manual assessment) Type”.  Record the income and assets assessable balances.  Give a reason for the manual rate assessment in Text:  For example, 'Refunded accommodation charge exemption applies'.

Aged Care Contacts

Should you have any queries regarding the policy or legislation please contact Oona O'Beirne on (02) 9213 7771.

A copy of the State instruments of delegation and listing of residents who will receive the refund were provided to these officers.  For review purposes the state contacts will also maintain a list of those who have an income and assets test exemption that is affecting their pension.

Set our below are the State contacts for Aged Care:

NSW

Roger Avery & Michael Gore

SA

Diane Blandford & Frazer Day

VIC

Des Kelly & Dave Saunders

TAS

Phil Beattie & Chris Craven

QLD

Jill Irish

WA

Kim Gooding and Sandy Vidot

RJ Hay

Branch Head

Income Support

ATTACHMENT A:

Changes to Aged Care rules detailed in Departmental Instruction C13/98

Summary of changes

The changes that announced since 1 October 1997 up to but not including the May 1999 Budget changes, and the dates from which the changes take effect are summarised as follows:

  • Existing hostel residents at 1 October 1997 protected from increase in basic daily resident contribution associated with the alignment of nursing home and hostel daily fees from 1 October.  This change has no income support impact.

  • When calculating a person's assets for the purposes of determining the accommodation bond or charge they must pay, the former home will not be counted where a carer has lived in it for two years (previously five years).  Effective from 1 October 1997.  This change has no income support impact.

  • Accommodation charge replaces accommodation bond for new entrants to nursing homes (other than extra service facilities).  Effective from 6 November 1997.

  • Exemption of former home under pensions income and assets test (and hence for fees purposes) extended from 2 to 5 years where pensioner pays an accommodation charge and rents former home.  Effective from 6 November 1997.

  • Rental from former home exempted from pensions income tests (and hence for fees purposes) where a pensioner pays an accommodation charge and rents former home.  Effective from 6 November 1997.

  • Certain exemptions introduced under the pensions income and assets test, for residents of nursing homes who paid an accommodation bond between 1 October 1997 and 5 November 1997 (both inclusive) and then commuted to an accommodation charge.  Effective from 6 November 1997.

  • Income testing of aged care fees deferred to 1 March 1998.

Unless the person failed to notify of the excluded income previously or the case involved fraud there will be no retrospective reassessment of the rent as income.

[9] (go back) [90]

Source URL (modified on 13/10/2014 - 10:46am): https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/2000

Links
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[3] https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/1996/c541996-property-valuation-exercise
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[5] https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/1997/c451997-proof-identity-and-relationship-veteran-compensation-claims
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[41] https://clik.dva.gov.au/ssapart2.htm#ssa-Section23(1)-&#039;Veterans&#039;EntitlementsAct&#039;
[42] https://clik.dva.gov.au/ssapart2.htm#ssa-Section23(1)-&#039;incomesupportsupplement&#039;
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[54] https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/1998/c111998-amendments-departmental-instruction-c3297-199697-budget-initiative-dva-pay-dss-age-pension-disability-pensioners
[55] https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/1999/c191999-date-effect
[56] http://scaleplus.law.gov.au/html/comact/10/6101/top.htm
[57] http://scaleplus.law.gov.au/html/comact/10/6085/top.htm
[58] http://scaleplus.law.gov.au/html/comact/10/6102/top.htm
[59] http://www.facs.gov.au/guide/ssguide/81160.htm
[60] http://www.facs.gov.au/guide/toc/83startd.htm
[61] http://www.facs.gov.au/guide/ssguide/37310.htm
[62] http://www.facsia.gov.au/guides_acts/ssg/ssguide-8/ssguide-8.1/ssguide-8.1.3/ssguide-8.1.3.10.html
[63] http://www.facs.gov.au/guide/ssguide/81310.htm
[64] http://www.facs.gov.au/guide/ssguide/81220.htm
[65] http://www.facsia.gov.au/guides_acts/ssg/ssguide-8/ssguide-8.4/ssguide-8.4.1/ssguide-8.4.1.10.html
[66] http://www.facs.gov.au/guide/ssguide/84110.htm
[67] http://www.facsia.gov.au/guides_acts/ssg/ssguide-8/ssguide-8.4/ssguide-8.4.2/ssguide-8.4.2.20.html
[68] http://www.facs.gov.au/guide/ssguide/84220.htm
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[74] https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/1999/c241999-calculation-income
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[76] http://scaleplus.law.gov.au/html/comact/10/6083/top.htm
[77] https://clik.dva.gov.au/legislation-library
[78] http://scaleplus.law.gov.au/html/numrul/17/8561/top.htm
[79] http://www.facs.gov.au/guide/ssguide/36270.htm
[80] https://clik.dva.gov.au/reports-studies-research-papers-library
[81] http://internet-mirror/factsheets/default.htm
[82] http://sharepoint/programsandprojects/systemguides/magpiesflightguide/Pages/MAGPIES%20Flight%20Guide.aspx
[83] https://clik.dva.gov.au/user/login?destination=node/21846%23comment-form
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[86] http://scaleplus.law.gov.au/html/comact/10/6044/top.htm
[87] https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/1998/c131998-aged-care-reforms-commencement-income-testing-and-policy-changes-1-october-1997
[88] https://clik.dva.gov.au/compensation-and-support-reference-library/departmental-instructions/1998/c451998-amending-departmental-instruction-re-aged-care-reforms
[89] https://clik.dva.gov.au/book/export/html/24590#tgt-csref_c00_ftn9
[90] https://clik.dva.gov.au/book/export/html/24590#ref-csref_c00_ftn9