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.

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

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.

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.

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.

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.

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.

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.

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).

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.

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

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

Double Orphans

$

Under 16

158.20

16 - 20 years

290.10

21 years and over

352.30

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)

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)

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.

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.

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

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

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

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

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

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

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

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

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.

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

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.

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.

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.

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

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.

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

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

Description

Account Number

Asset Amount

COMMONWEALTH BANK

3939393939

$XX,XXX.XX

ANZ BANK

102939030

$XX,XXX.XX

Description

No. of Shares

Asset Amount

COMMONWEALTH BANK OF AUSTRALIA

1,000

$XX,XXX.XX

TELSTRA 1

600

$   X,XXX.XX

Description

Units

Asset Amount

MLC LIMITED

5,000

$X,XXX.XX

BT FINANCIAL SERVICES

2,500

$X,XXX.XX

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

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

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;

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

PAYMENT TYPE

NOW PORTABLE

PROPOSED PERIOD fr 20/9/00

RATE CALCULATION PROVISIONS

From 20/9/2000

*

†

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

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.

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

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.

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.

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

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.