DATE OF ISSUE: 31 December 1992

INTRODUCTION OF THE REVISED VETERANS' CHILDREN EDUCATION SCHEME (VCES),  1 JANUARY 1993.

INTRODUCTION

As a result of the review of the current Veterans' Children Education Scheme, recommendations for changes to the Scheme were presented to the Repatriation Commission.

2.On 24 November 1992, the Minister for Veterans' Affairs agreed to the proposed changes to the Scheme.  The revised Scheme was tabled in Parliament on 26 November 1992 and the new Scheme will become

effective from 1 January 1993.

3.The purpose of this instruction is to advise of the changes to the VCES.  Unless otherwise specified, these changes will be effective from 1 January 1993.

4.A separate Departmental Instruction is being prepared regarding implementation of the rates of education allowance to be introduced on 1 January 1993.

ELIGIBILITY FOR BENEFITS

Independent Students

5.The "Independence" criteria will no longer exist for those students who have made the "adult" choices of marriage or parenthood.  A separate "Homeless Student" category will be established to cover those students who have been forced to become "independent of the family" due to circumstances beyond their control.

6.The rate of education allowance payable for "Homeless students" will be equivalent to the present age-based "Independent" rates.

7.Future applicants, as well as those students who are currently receiving the Independent rate of allowance under the Scheme, who are married or are in a de facto relationship with a child of that relationship, should be advised of the need to apply for the Independent rate of allowance under AUSTUDY.

Personal Income Testing

8.As the VCES education allowances are considered to be compensation rather than income support, the personal income testing currently applied to VCES allowances will be abolished.

9.Those "60" category payments with miscellaneous code "1156" (which indicates that the student's allowance has been reduced because of income in excess of the current allowable limit) need to be increased to the maximum rate of education allowance, effective from the first payday in January 1993.

Date of Grant of Benefits

10.The date of grant of the education allowance has been changed to ensure that the benefits provided through the Scheme will be used as support during the period of the student's education.

11.Applications received after close of business 31 December 1992 will only be considered for a grant of benefits from:

(a)the date of commencement of the first formal year of primary education; or

(b)the first payday in January of the year in which application is made for an eligible child for the purpose of the Scheme; or

(c)the first payday after the student meets the eligibility criteria for the purpose of the Scheme,whichever is the later, provided the student at that time has not attained the age of 25 years, and subject to clearances with the Departments of Education Employment and Training and Social Security (which prevent dual Commonwealth payments for students aged 16 years and over.)

Extending the Approved Course List

12.The Boards will be given the discretion to recommend to Commission that benefits be granted to a student who may not be undertaking a course approved for the payment of AUSTUDY but where the course is essential to the student's career and no other AUSTUDY approved course is available.

13.Benefits would normally only be considered in the exceptional case where:

.there is no relevant AUSTUDY approved course; or

.the entry quota to an approved course is limited, even though the student is academically qualified for acceptance in that course; or

. a student requires a higher degree as a minimum employment qualification, for example, a Masters degree to practice Psychology.

14.As far as possible the qualifications gained from a non-approved course should be investigated to ensure suitability to the student's future employment field.

15.Only the fortnightly education allowance will be payable, any fees or costs associated with the course will need to be met by the student.

Indexation of Allowances

16.The education allowances for primary students and secondary students, under the age of sixteen and living at home are to be adjusted annually in line with the Consumer Price Index, effective from the first payday in January 1993.

THE VETERANS' CHILDREN EDUCATION BOARDS

17. Effective from 1 January 1994, appointment of members to the Veterans' Children Education Boards will be made according to the nominated person's ability to make a direct contribution to the students' education, in terms of providing guidance or referring students to other support services.

18.The Boards in each State will be constituted of at least five and no more than ten members, one of whom can be the Deputy Commissioner or a representative of the Repatriation Commission.

19.Appointment of members to the Boards will be made on the basis of application and subsequent interview selection process.  The pre-selection interview will be conducted by the Board Chairperson and a person nominated by the Commission.

20. Commission will appoint an interim Board in each State from 1 January 1993 to and including 31 December 1993.  Further instructions regarding appointment of Board members from 1 January 1994 will be issued.

ADMINISTRATIVE CHANGES

Claim for Benefits

21.All applications received after the close of business 31 December 1992 will be processed in accordance with the revised Scheme.

22.Any claim for benefits for an eligible child must be made as a formal claim lodged on an application form approved by the Commission.

23.The current application forms, [Numbers D2566 and D2697(p1) Oct 92], should continue to be used until new application forms are designed and printed.

Payment of the Allowance

24.Payment of the education allowance will be made to the person specified under Part 3 - Education Allowances of the revised Scheme.

Leave of Absence

25.Leave of Absence from full-time study has been extended from two to three years.  A student who has ceased full-time study for more than three years shall be ineligible to apply or re-apply for benefits under the Scheme and should be advised of the need to apply for an allowance under AUSTUDY.

Levels of Education

26.To enable administration of the payment of allowances throughout Australia to be consistent, the Scheme has been amended to refer to "levels of education", rather than particular years of primary or secondary school.

27.In States where Year 7 is the final formal year of Primary education, transitional provisions (VCES 9.1.1) allow for payment of the fortnightly education allowance during 1993.  This provision will cease from 1 January 1994 and potential Year 7 students in the relevant States should be advised accordingly.

28.In cases where an allowance was granted to a student under the previous Soldiers' or Veterans' Children Education Schemes, transitional provisions (VCES 9.2.1) allow for payment to continue as appropriate.

Cancellation of an Allowance

29.In order for an education allowance to be cancelled prior to a student completing a course of full-time education, it will be necessary for the case to be referred by a Board to the Commission.  The submission must outline the investigations which have been made and the reasons for the recommendation to cancel the student's allowance.

Additional Benefits

30.Provision will remain in the revised Scheme for the Board to consider funding for Special Financial Assistance and Additional Tuition.  The maximum amounts for these additional benefits will remain the same as in 1992.

31.Special Financial Assistance will continue to be granted in cases where it is considered that exceptional circumstances have affected or will affect a student's progress.  The updated "Guide to Supplementary Benefits, Part 6" will provide examples of instances in which Special (Financial) Assistance has been previously provided.

32.Funding for Additional Tuition may be considered in cases where an education authority establishes a discrepancy between the student's intellectual potential and the student's actual academic achievement.

33.The value of the tuition to the student's education must be considered, and where continued tuition has been requested, the Board should assess the effectiveness of previous tuition.

Delegations

34.The list of Delegations, which authorises various Departmental Officers to determine cases on behalf of the Repatriation Commission, has been updated and will be issued through the State Program Manager, Benefits in each State.

THE SCHEME'S ROLE

Improved Client Communication

35.The survey of client groups, which was conducted as one part of the VCES review process, highlighted the fact that the VCES client groups, particularly those in country areas, do not seem to be aware of what the Scheme can offer in the way of benefits and advice, and what services the Boards can offer in terms of assisting students to achieve their potential in education.

36. The new Scheme will need to be promoted to the present VCES client group and those organisations associated with beneficiaries.  In addition, wherever possible, a claim for benefits should be followed up with a telephone call or face to face interview to outline the benefits provided by the Scheme.

Guidance and Counselling

37.Guidance and counselling are unique and significant features of the VCES.

38."Guidance" refers to the advice offered to students regarding their educational progress, planning of their studies and other education related matters.

39."Counselling" refers to the advice provided by a qualified professional, which may be related to either education or personal matters affecting that student.

40.Providing educational guidance is seen as a function of the Education Boards, acting either individually or in small groups.

41.However, unless the Board member has specific qualifications to provide counselling, the student should be referred or encouraged to seek appropriate professional counselling.

42.From the surveys conducted with parents, students and teachers it became apparent that there is a requirement for the Scheme to act as a facilitator between VCES clients and the specialised services which already exist in the community.

43.It will be necessary for the Secretary and Boards to establish networks and "directories" of specialised assistance in the education fields and community areas in order to secure the most appropriate support services for VCES students.

PROPOSED CHANGE

Extending the eligibility criteria

44.The Review examined the need for an extension of eligibility criteria and recommended that guidance and counselling support benefits be provided through the Scheme for children of veterans with a diminished ability to provide "normal" levels of parental support.

45.Although the Commission has accepted this recommendation, it will be necessary to amend the Veterans' Entitlement Act to provide the legislative authority to extend the current VCES eligibility criteria.  As this will take some time, the implementation date for this proposal is expected to be 1 January 1994.

Further Enquiries

46.Any enquiries regarding the revised VCES or the implementation of the procedures outlined above should be directed to Meleta James, Compensation and Review, on 06­289 6457.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS PROGRAM

23 December 1992

DATE OF ISSUE: 31 December 1992

VETERANS' CHILDREN EDUCATION SCHEME INCREASED RATES OF EDUCATION ALLOWANCES FROM JANUARY 1993.

INTRODUCTION

The purpose of this instruction is to advise of changes to the rates of education allowances paid through the Veterans' Children Education Scheme.

2.   The rates, which will be effective from the first payday in January 1993, are set out at ATTACHMENT A.

3.   The rates for secondary students, under 16 years and living away from home have been linked to the maximum rates payable under the Assistance to Isolated Children (AIC) scheme.

4.   The rates of VCES education allowance for all students aged 16 years and over have been aligned with the maximum rates of allowances paid through AUSTUDY.

5.   The education allowances for primary students and secondary students, under the age of sixteen and living at home are to be adjusted annually in line with the Consumer Price Index, effective from the first payday in January 1993.

Independent Students

6.The "Independence" criteria will no longer exist for those students who have made the "adult" choices of marriage or parenthood.  A separate "Homeless Student" category will be established to cover those students who have been forced to become "independent of the family" due to circumstances beyond their control.

7.The rate of education allowance payable for "Homeless students" will be equivalent to the present age-based "Independent" rates.

Personal Income Testing

8.As the VCES education allowances are considered to be compensation rather than income support, the personal income testing currently applied to VCES allowances will be abolished.

9.Those "60" category payments with miscellaneous code "1156" (which indicates that the student's allowance has been reduced because of income in excess of the current allowable limit) need to be increased to the maximum rate of education allowance, effective from the first payday in January 1993.

10.  Any enquiries regarding the increased rates should be directed to Meleta James, Compensation and Review,  on 06- 289 6457.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS PROGRAM

23 December 1993

ATTACHMENT A

Fortnightly rates of education allowance payable effective from 1 January 1993.  (VCES _ 4.8.1)

AGE GROUPAT HOMELIVING AWAYHOMELESS

FROM HOMESTUDENTS

Secondary Students

Under 16 years $29.00$129.80$214.30

Secondary/Tertiary

16 - 17 years$129.80$214.30$214.30

18 yrs and over$156.10$237.00$237.00

Double Orphans

Under 16 years$129.80

16  - 20 years$237.00

21 yrs and over$287.90

Primary Students

An annual lump sum of $143.00 will be made in respect of primary level education students.

DATE OF ISSUE: 24 December 1992

NON-COMPLIANCE WITH A REQUEST FOR A TAX FILE NUMBER

Purpose

The purpose of this Departmental Instruction is to advise of the action that should be taken if a person does not comply with a request to supply a tax file number (TFN).

2.Income Support has received confirmation that an income payment, as specified in section 128A, can be cancelled where a pensioner does not comply within specified time limits.  If either a veteran or spouse does not supply their TFN both payments should be suspended/cancelled.

Procedures

Refusals

3.After receiving a request letter, a pensioner may refuse to provide their TFN.  The TFN team will record on the TFN Collection Network that the pension is to be suspended and then forward the case to the relevant Branch Office (through the TFN Contact Officer) instructing them to suspend pension.

4.On receipt of the case the Branch must immediately suspend the pension and advise the pensioner.  The advice must also inform the pensioner  that if they provide their TFN or a completed Application/Enquiry form within 14 days, their pension will be resumed from the date it was suspended.  Once 14 days have elapsed cancellation action should commence.

5.Where a pension has been cancelled an advice letter must be sent to the pensioner and the TFN team notified so the TFN action can be finalised.

Whereabouts Unknown (return to sender/unclaimed)

6.The TFN Team will also forward to Branch Offices details of pensioners whose whereabouts are unknown.  For these cases, usual Branch Office procedures are to be followed before the pension is suspended.  If a pensioner in receipt of service pension only, has not contacted the Department within 6 weeks of suspension, their pension should be cancelled.  If a pensioner in receipt of disability pension or war widow/ers pension only has not contacted the Department within 3 months of suspension, their pension should be cancelled.

7.If the Branch Office obtains the pensioner's correct address, the TFN Team must be notified as they will forward a second request.

8.When the Branch Office suspends or cancels a payment the TFN Team must be notified so they can update or finalise the case.

No Response

9.After receiving a request letter, the pensioner may not comply within the required 28 days.  The TFN team will send a second request letter to these pensioners giving them a further 14 days to comply.  The second request letter also explains that if they do not comply within the required time, their pension will be suspended.

10.The TFN team will notify Branch Offices to suspend pension payments of those pensioners who have not responded to the second request.  If a pensioner in receipt of service pension has not contacted the Department within 6 weeks of suspension, their pension should be cancelled and an advice letter sent.  If a person in receipt of disability pension or war widow/ers pension only has not contacted the Department within 3 months, their pension should be cancelled and an advice letter sent.

11.If the Branch Office obtains the pensioner's correct address, the TFN Team must be notified as they will forward a further request.

12.When the Branch Office suspends or cancels a payment the TFN Team must be notified so they can update or finalise the case.

Suspension or Cancellation of Pharmaceutical Allowance (PA)

13.When suspending or cancelling a payment because the pensioner has not complied with the request for their TFN, consideration must be given to whether PA should be suspended or cancelled.

14.Where a pensioner is not eligible to receive benefits under the Repatriation Pharmaceutical Benefits Scheme (RPBS) ie. they do not have an accepted disability, PA should also be suspended or cancelled. Therefore, pensioners whose service pension and/or war widows pension payments have been suspended/cancelled should also have their PA suspended or cancelled.

Example:

a)Service Pension only (married couple)

If either or both the service pensioner and spouse do not supply their TFNs then service pension and PA is suspended/cancelled for both.

b)Service Pension and Disability Pension (married couple)

If either or both the service pensioner and spouse do not supply their TFNs then service and disability pensions should be suspended.  PA should continue.

Where there is no response (within 6 weeks) to the suspension, service and disability pension should be cancelled for both the veteran and spouse.  PA paid to the spouse should be cancelled from the current reduction date and the veteran's PA increased to $5.20 from the same date.

c)Disability Pension only

Both the veteran and spouse are receiving disability pension

If either or both the disability pensioner and spouse do not supply their TFNs then disability pension should be suspended for both.  PA should continue.

Where there is no response (within 3 months) to the suspension, disability pension should be cancelled for both the veteran and spouse.  PA paid to the spouse should be cancelled from the current reduction date and the veterans' PA increased to $5.20 from the same date.

Veteran only receiving Disability pension (married or single)

If the disability pensioner does not supply their TFN then disability pension should be suspended.  PA should continue.

Where there is no response (within 3 months) to the suspension, disability pension should be cancelled and the PA continued.

d)War Widow/ers Pension

If a person does not supply their TFN then war widow/ers pension and PA should be suspended.

Where there is no response (within 3 months) to the suspension, pension and PA should be cancelled.

Effective Dates

Cancellation

15.Payment should be cancelled from the date of suspension.

Resumption

16.Cases that have been suspended are to be resumed from the date of suspension.

17.Where a TFN or Application/Enquiry form has been supplied within a reasonable time after cancellation, eg. within two paydays and the pensioner provides a valid reason for not complying, payment can resume from the day of cancellation.  A service pensioner will be required to either state that income and asset details are unchanged or complete an SP3A (this will be at the discretion of the delegate).

18.If more than two paydays have elapsed, the date of effect will be the next payday after the TFN is supplied.

Arrears

19.If a pensioner requests arrears to be paid they must provide a valid reason why they could not comply with the request for their TFN within the specified time frame.  This will also be at the delegate's discretion.

Attribution

20.When cancelling a pension because the person fails to supply a TFN, please ensure that the following attribution is used:

DIA Classification Type — 870

Attribute Number — 330 - TFN Collection.

21.If you have any queries regarding this DI please contact Traci O'Shannassy on (06)  2896437.

PETER HAWKER

NATIONAL PROGRAM

DIRECTOR (BENEFITS)

DATE OF ISSUE: 22 DECEMBER 1992

SELF ASSESSED LIFESTYLE RATINGS - ATTRIBUTE CHANGES.

The purpose of this instruction is to advise Branches of changes to the CMS attributes and recording procedures regarding self assessed Lifestyle Ratings.

2.There is no provision on the current attributes in place for self assessed Lifestyle Ratings to record those self assessments that are not accepted by the delegate.

3.A facility is to be provided on the CMS to record those self assessed Lifestyle Ratings that are not accepted by the delegate. This attribute becomes effective from 1 January 1993.

4.Separate attributes are to be recorded from the above date for those self assessed Lifestyle Ratings which are either accepted or not accepted by the delegate.

5.This means that the recording of the attribute for all self assessed Lifestyle Ratings cannot take place until the decision stage, and thus is to be recorded by the delegate.

6.An initial rejection of a veteran's self assessment that is later clarified or modified by the veteran and used, is to be recorded as accepted.

7.When a self assessment is rejected by the delegate and the veteran is unable to provide sufficient information to support a self assessed rating, and is then asked to complete a questionnaire, it is to be recorded as not accepted.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

18 December 1992

DATE OF ISSUE: 18 December 1992

REVISED FORM D2663 - (CLAIM FOR PENSION BY A WIDOW, WIDOWEROR OTHER DEPENDANT OF A DECEASED VETERAN)

The purpose of this instruction is to advise Branches on the introduction of the revised Form D2663 and the associated processing procedures.

2. The new Form D2663 (Claim for Pension by a Widow, Widower or other Dependant of a Deceased Veteran) is to be introduced on 1 January 1993.

3. Attached for information is a copy of the new Form D2663.

ABSENCE OF A DEATH CERTIFICATE.

4. A claim is valid if it has been signed by the claimant, or an authorised third party on behalf of the claimant. If a death certificate is absent, the claim should still be processed normally.

CMS ATTRIBUTE

5. An attribute is in place on the CMS to record whether a death certificate has been provided with the claim. Although the attribute does not become mandatory until the EATERS stage, it should be recorded as early as possible after receipt of the claim.

AUTOMATIC GRANT OF BENEFITS TO THE SPOUSE OF A DECEASED POW

6. The revised Form D2663 contains a section where a widow or widower of a deceased veteran who was a POW can claim for pension. The automatic grant of pension to this class of claimant becomes effective 1 January 1993.

7. Arrears of pension for a widow of a POW can be paid from three months prior to the date of receipt, or 1 January 1993, or the day after the veterans death, whichever is the later.

8. As a cause of death is not an issue in this type of claim, there is no requirement for a death certificate. A POW attribute is on the CMS to record such claims.

ISSUE

9. Requests for issues of the current Form D2663 should not be actioned. Stocks of the new form will be in Branch Offices by the end of December 1992.

10. National and state offices of all major ex-service organisations, including all organisations that deal with war widows, will be contacted and asked to destroy any stocks they may have of the old form D2663 and to ensure that any new claims are lodged on the revised form. They will be told to contact the Branch Offices for stocks of the new form.

Contact Officer: Jeff Kelly  (06) 2896569.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

ATTACHMENT TO THIS INSTRUCTION

(Note:  This attachment has been rekeyed to enable it to be included on the General)

Commonwealth Department of

Veterans' Affairs

CLAIM FOR PENSION BY A

WIDOW, WIDOWER OR

OTHER DEPENDANT OF A

DECEASED VETERAN

A claim may be made by:

.a widow - a woman who was legally married to, or was a partner of, a deceased veteran immediately before his death;

·a widower - a man who was legally married to, or was a partner of, a deceased veteran immediately before her death;

. another dependant - in certain circumstances, a child who was dependent on a deceased veteran immediately before his or her death;

. another person on behalf of the widow, widower or other dependant.

Claims for children aged less than 18 years must be made by the child's parent or

guardian, or by another person authorised by the parent or guardian.

D2663 (p1) Nov 92

The information sought on this form is required to assess your eligibility for a benefit under the Veterans' Entitlements Act 1986.   The Act requires that a claim be made on this form, approved by the Repatriation Commission.

The Act provides that the Secretary may obtain information requested for the purposes of the legislation.

Information contained in the form may be provided to another Agency or body. These Agencies or bodies

.the Department of Social Security and the Australian Taxation Office for the purposes of matching information;

.the Health Insurance Commission for treatment account payments;

·the various State or Local Government authorities to verify your eligibility for rebates or concessions relating to rates, electricity, transport, motor vehicles and ambulance;

·doctors and/or hospitals to provide treatment.

Once you apply for a pension as a widow, widower, or other dependant of a deceased veteran, the Department may make any enquires necessary to establish eligibility.

There are penalties for making false statements.

If any of the details you give in this form change, you must tell the Department within 14 days.

If you need more information please ring the Department of Veterans' Affairs:

.Metropolitan residents

Sydney 213 7777Adelaide213 2611

Melbourne 284 6000Perth125 8222

Brisbane 223 8333Hobart  21 6666

.Country residents - free call

Nth NSW (Brisbane Office)008 777 634

NSW all other country locations008 257 251

Northern Territory (incl. Darwin)008 888 121

Tasmania008 00 l211

Nth Qld (incl. Townsville)008 019 304

Australian Capital Territory008 046 088

all other country locations008 113 304

The addresses of the Department of Veterans' Affairs offices are:

Branch Offices:Regional Offices:

Sydney AdelaideCanberraDarwin

Centennial Plaza Tower B Blackburn House — Ground Floor l0 Moore Street — Shop 8 Cascom Centre

280 Elizabeth Street — 199 Grenfell Street — Cnr Moore & Rudd Streets — 15 Scaturchio Street

GPO Box 3994 — GPO Box 1652 — GPO Box 802 — PO Box 42496

Sydney NSW 2001 — Adelaide SA 5001 — Canberra City ACT 2601 — Casuarina NT 0810

Phone (06) 267141 1 — Phone (089) 27 0044

MelbournePerthNewcastleTownsville

300 Latrobe Street — Hyatt Centre — The GIO Building — Commonwealth

Government Centre

GPO Box 87A — 20 Terrace Road — 400 Hunter Street — Cnr Walker and Stanley

Streets

Melbourne Vic 3001 — GPO Box F352 — GPO Box 617 — PO Box 2050

Penh WA 6001 — Newcastle NSW 2300 — Townsville Qld 4810

Phone (049) 26 2733 — Phone (077) 223333

Brisbane — Hobart — Wollongong — Ballarat

133 Mary Street — 21 Kirksway Place — Commonwealth Offices — 12 Dawson Street South

GPO Box 651 — Cnr Gladstone Street — Burelli Street — Ballarat Vic 3350

Brisbane Qld 4001 — GPO Box 481E — PO Box 755 — Phone (053) 31 3844

Hobart Tas 7001 — Wollongong East NSW 2520

Phone (042) 26 0190

D2663(p2) Nov 92

____________________________________________________________________________

Claim for pension by a widow or widower of a deceased veteran

____________________________________________________________________________

You may wish to seek help with this form from a family member, a friend, or an ex-service organisation welfare officer. You may choose to have such a person act on your behalf in matters relating to this claim. If so, that person must complete the Authority at the end of this form.

____________________________________________________________________________

Please write in BLOCK LETTERS

____________________________________________________________________________

Deceased veteran's personal details

1. Veterans' Affairs _________________

File No. (if known)

2.Surname__________________________________

3.Given names___________________________________

4.Date of birth____/____/____

5.Date of death____/____/____

6.Place of death___________________________________

7.Cause of death___________________________________

Important Please attach a copy of the Death Certificate.

8.Was a Post Mortem held? No Yes Not sure

9.Service number(s)Service No.Branch (e.g. Army)

and Branch of service______________________________

Service No.Branch (e.g. Army)

______________________________

____________________________________________________________________________

Claimant's details

10.Surname__________________________

11.Given names__________________________

12.Address____________________________________

__________________ — Postcode _________

13.Date of birth____/____/____

14.Telephone numbers: Home(____)__________

Work(____)__________

15.Your relationship to the

veteran at the time of ______________________

death

Please attach a copy of your marriage certificate or evidence of your

Importantrelationship with the deceased veteran, unless you have previously supplied this material to the Department.

16.Have you married since No Yes Date of marriage

the veteran died.____/____/____

____________________________________________________________________________

Continued overleaf

D2663 (p3) Nov 92

Dependant children's details (under 5 years of age)

17.Give details of dependant children under 25 years of age

Is full-time

              Full name(s)(s)Date of — Present addresseducation

birthundertaken?

____________________________________________________________

________________   __/__/__   ______________________   No__Yes__

________________   __/__/__   ______________________   No__Yes__

________________   __/__/__   ______________________   No__Yes__

________________   __/__/__   ______________________   No__Yes__

________________   __/__/__   ______________________   No__Yes__

If insufficient space, please attach a separate sheet giving the required details.

____________________________________________________________________________

Important Please attach a Certified extract of birth certificate showing names of both parents or adoption order in respect of each child named in this claim. If the deceased veteran was not the father or mother, attach evidence that the children were wholly or substantially dependent on the veteran immediately before the veteran's death.

____________________________________________________________________________

Prisoners of War

Important This applies to Widows or Widowers of deceased Veterans

who were prisoners of war.

18.Was the deceased veteran aNo              Go to Question 19

prisoner of war?

Yes Give details of detention and then                             go straight to Question 25

___________________________________________________________

Place of detention — Period of detention

___________________________________________________________

From   /  /To   /  /

___________________________________________________________

____________________________________________________________________________

Veteran's medical details

19.Name of the veteran's ____________________________________

local doctor

20.Telephone number(___)__________

21.Address____________________________________

____________________Postcode_________

D2663 (p4) Nov 92

Veteran's medical details (continued)

22.Give the names of doctors and/or hospitals who provided treatment for any disease or injury that was related to the veteran's death.

_____________________________________________________________________

Treatment type

Condition treated(e.g. GP/Specialist/Date of — Name

(diagnosis if known)in-patient)treatmentof doctor/hospital etc

_____________________________________________________________________

_____________________________________________/___/____________________

_____________________________________________/___/____________________

_____________________________________________/___/____________________

_____________________________________________/___/____________________

_____________________________________________/___/____________________

_____________________________________________/___/____________________

_____________________________________________/___/____________________

_____________________________________________/___/____________________

_____________________________________________/___/____________________

_____________________________________________/___/____________________

If insufficient space, please attach a separate sheet giving the required details.

____________________________________________________________________________

Veteran's service history

23.Provide details of the veteran's service. (If the deceased veteran has claimed a disability or service pension from this Department you do not need to complete this question. Go straight to question?l 24 below.)

Period served

Place and country of service(show approx dates)Nature of duties

________________________________/__/__ to __/__/________________________

________________________________/__/__ to __/__/________________________

________________________________/__/__ to __/__/________________________

________________________________/__/__ to __/__/________________________

________________________________/__/__ to __/__/________________________

If insufficient space, please attach a separate sheet giving the required details.

24.How did the veteran's service cause, or contribute to his or her death?

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

If insufficient space, please attach a separate sheet giving the required details.

____________________________________________________________________________

Continued overleaf--

D2663 (p5) Nov

Compensation

25.Have damages/compensation been

claimed in respect of the veteran's death?No Yes Give details below

Name and address of compensation source — Date of — Reference no.

claim

___________________________________________________________________

__________________________________________/___/_____________________

If insufficient space, please attach a separate sheet giving the required details.

____________________________________________________________________________

Other benefits or pensions

26.Have any of the dependants named in this

claim received or claimed any payments

from the Department of Social Security or

any other source? (Family Allowances are

not required but other Social Security

benefits, damages or compensation

claims, education,or youth allowances,

etc. must be included .)No — Yes — Give details below

___________________________________________________________________

Name of person — Name of Source — Type of — Date of — Reference no.

paidpaymentclaim

___________________________________________________________________

___________________________________________________/___/____________

___________________________________________________/___/____________

___________________________________________________/___/____________

___________________________________________________________________

If insufficient space, please attach a separate sheet giving the required details.

____________________________________________________________________________

Pension payment details

27.Do you currently receive a pension Yes Go straight to Declaration

from the Department of No Complete details below

Veterans' Affairs?

If a pension is granted, it will be paid fortnightly into an account at a bank, credit union or building society.

28.Name of bank, credit__________________________

union or building society

29Branch___________________________

30.Address____________________________________

_______________________Postcode______

31Account in the name of ____________________________

32.Account number______________________

____________________________________________________________________________

D2663 (p6) Nov 92

Declaration

.I declare that the details I have given in this claim are complete and correct.

.I am aware that there are penalties for making false statements.

.I authorise the Repatriation Commission and the Department of Veterans' Affairs to obtain medical or other information needed to process, determine or review this claim.

.I consent to the release of medical, clinical or other information to the department by any medical practitioner, hospital, clinic, insurance company, the Department of Social Security or other organisation, in relation to this claim or its review.

.I consent to the release of medical, clinical or other information to the person or organisation named in the Authority below, who is acting on my behalf in relation to this claim or its review.

CLAIMANT'S SIGNATURE*

_______________________________

Date   _____/____/____

* If the widow, widower or other dependant is unable to sign this form:

.sign the form on behalf of the widow, widower or other dependant;  and

.complete the authority below for you to act on behalf of the widow, widower, or other dependant.

____________________________________________________________________________

Authority to act on behalf of a widow, widower or other dependant

The widow, widower or other dependant may elect to have a friend or relative, or an ex-service organisation (or its representative) act on her or his behalf in relation to this claim.  If so, this authority must be completed by that person.

I declare that I am authorise by ____________________________________

to act on her/his behalf in matters relating to this claim.

Your full name — __________________________________________

Address — __________________________________________

__________________________ Postcode ________

Telephone numbers — Home (___)___________

Work (___)___________

Your relationship to the

widow, widower, or — ___________________________________________

other dependant

SIGNATURE

______________________________________

Date  ____/____/____

____________________________________________________________________________

D2663 (p7) Nov 92

DATE OF ISSUE: 17 December 1992

BUDGET #92 INITIATIVE: TO INCREASE REMOTE AREA ALLOWANCE WEF 7 JANUARY 1993

The purpose of this Departmental Instruction (DI) is to provide background information concerning the Budget 1992 initiative to increase the basic rate of remote area allowance (RAA) with effect from 7 January 1993.

2.This DI should be read in conjunction with DI B53/92 [8], dated 27/11/92, which outlines the overall Advice/ADP processing strategy for all changes occurring on 7 January 1993.

BACKGROUND

3.Generally, RAA is paid to a service pensioner whose usual place of residence is situated in a remote area of Australia and who is physically present within that remote area.  However where a service pensioner receiving RAA is temporarily absent from the remote area (but still within Australia) the pensioner will be taken to be physically present in the remote area for the first 8 weeks of temporary absence.

4.The allowance was first introduced in 1984 to help offset the higher than normal costs incurred whilst living in remote areas of Australia.

5.A "remote area" is an area described in paragraph 1 or 2 of Part 1 of Schedule 2 to the Income Tax Assessment Act 1936, and the territories of Cocos (Keeling) and Christmas Islands.  Please refer to the General Orders Service Pension for a detailed list of areas regarded as "remote areas".

CHANGE

6.As part of the 1992 Budget, the Government announced that RAA would be increased with effect from 1 January 1993.  For DVA clients, payment of the increase will occur from

7 January 1993, being the first DVA pension pay-day following the effective date of the decision.

AIM

7.The increase in RAA is in accordance with a simultaneous increase in the base levels of taxation zone rebates which have not been increased since 1 November 1984.  The increase is aimed at restoring the rebates and allowances to their 1984 "real" value.

8.It should be noted that although the rate of  RAA has not varied since 1984 there have been some factors which have compensated clients residing in remote areas to some degree, including improvements to transport and communications as well as dependent child rebates.  Therefore the increases to RAA alone do not reflect an actual return to their 1984 real value.

NEW RATES OF RAA

9.With effect from 7 January 1993 the new rates of RAA are as follows:

(i)$17.50 per fortnight to:

.an unmarried service pensioner;

.a widow/er service pensioner;

.a married service pensioner who is separated other than because of ill-health or infirmity;

.a married service pensioner who is separated due to ill-health;

.a married service pensioner whose spouse is not eligible for remote area allowance under the Social Security Act or similar allowance under the Tuberculosis Act 1948.

(ii)$15.00 per fortnight to any other service pensioner i.e. a pensioner who               is regarded as a member of a couple.

10.It should be noted that there will be no increase to the dependent child allowance which will remain at $7.00 per fortnight for each child.

11.It is also important to note that the increase in RAA is "one off" in nature and is therefore not subject to annual or twice yearly indexation.  Any future increases, as in the present case, need to be considered in the Budget Context.

TARGET POPULATION

12.There are approximately 1200 service pension clients in receipt of RAA.

PROCEDURES

13.As mentioned in paragraph 2, the processing strategy, including advices for this "one off" increase are set out in DI B53/92 [8].

ENQUIRIES

14.Contact Officers for this project are Peta Stevenson, Project Manager, on telephone no. (06) 289-6408 and Oona O'Beirne, Project Officer, on telephone no. (02) 213-7771.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

DATE OF ISSUE: 07 December 1992

MANAGED INVESTMENTS - SAMPLE RESPONSES FOR ENQUIRES ON HOW THE CURRENT ANNUAL RATE OF RETURN IS CALCULATED FOR ACCRUING RETURN INVESTMENTS

PURPOSE

1.The purpose of this instruction is to provide sample written responses for use by Branch Office staff when replying to enquiries on how the `current annual rate of return' is calculated for `Accruing Return Investments'.

2.This instruction is intended to supplement Departmental Instruction B45/92 [10] of 16 October 1992.

FORMAT OF SAMPLES

3.Two different sample formats have been provided as follows;

a)Sample 1 at Attachment A is in the form of a word processing letter that requires client specific details to be entered.

b)Sample 2 at Attachment B is in the form of a handout to satisfy telephone or counter enquiries, or can be used as an attachment to a personally tailored letter.

BRANCH OFFICE ENQUIRIES

4.The information now available in Departmental Instruction B45/92 [10] and in this supplementary instruction should be used as a basis to answer telephone and/or written enquiries on this issue.

5.These sample responses are to be used only in response to specific enquiries on `Accruing Return Investments' and the calculation of the `current annual rate of return'.

6.If a pensioner has a more complex enquiry that also involves

Market-Linked Investments or investments that are assessed on realisation, then a personally tailored letter specifically addressing all of the issues raised by the pensioner should be sent.

7.If you have any enquiries in relation to these issues, please contact your local investment Policy Officer.

MURRAY HARRISON

A/g NATIONAL PROGRAM DIRECTOR

BENEFITS

2 December 1992

SAMPLE 1:ATTACHMENT A

Reference     {VET or SPS REFERENCE}

Contact          {CONTACT NAME}

Telephone     {CONTACT PHONE}

(DATE.........................)

{VET or SPS FIRST NAME} {VET or SPS INITIAL} {VET or SPS SURNAME}

{VET or SPS STREET}

{VET or SPS CITY}   {VET or SPS STATE}   {VET or SPS POSTCODE}

Dear Mr/Mrs {VET or SPS SURNAME},

Thank you for your letter, of  {DATE OF RECEIPT}, about the rate of return on your Accruing Return Investment in the {INVESTMENT NAME}.

The way the rate of return is worked out for managed investments can cause confusion.  Hopefully the following explanation will clarify how the rate of return is calculated for service pension purposes.

Both the Department of Veterans' Affairs and Social Security assess the return on your investment by working out the current annual rate of return based on the performance of the investment product over the last 12 months.

The calculation of the rate of return takes into account two factors:

(1)any rise or fall in the value of the investment over the last 12 months

added to

(2)income distributions (if any) received or reinvested during the same period. These distributions may be in the form of cash, bonuses or bonus units.

It appears that the rate of return that you have quoted may not relate to the way both Veterans' Affairs and Social Security work out the rate used in your service pension assessment.

I have enclosed the formulae used for you information.

Many companies quote rates of return which are not based on the performance of the investment over the last 12 months.  The rates of return quoted may be based solely on income distributions or the latest declared rate based on only part of the year such as on a daily, weekly or quarterly basis.

Previously some rates applied by this Department were assessed using the latest declared rate of return method.  However,  the Department is now in the process of standardising  the method of calculating the current annual rate of return based on the performance of the investment product over the previous

12 months.

If you still believe that the rate of return used by this Department is wrong you should contact the relevant investment company and ask for confirmation of the "current annual rate of return"  over the last 12 months.  Please note that written information would be preferable.  It may help if you give the company a copy of the attached formulae when making your request.  This will ensure that the figure supplied will relate to the Department's method of working out the return.

If upon reply the rate used by the Department appears to be wrong, please let us know and we will investigate further.

It may be of interest to know that the rates of return on your managed investments will be automatically updated once every six months to reflect the latest rates supplied by the investment companies concerned.

If you notice you may be eligible in the interim 6 months period for an increase in pension due to a drop in the current annual rate of return, you can write or phone to ask for the latest rates held by the Department.  If necessary we will review your pension. If you have any queries about this letter please let me know on the above phone number.

Yours sincerely

{SIGNATORY}

for DEPUTY  COMMISSIONER

ACCRUING RETURN INVESTMENTS

CURRENT ANNUAL RATE OF RETURN

Formulae used in determining the current annual rate of return on Accruing Return Investments for pension purposes:-

METHOD A

Unit Based Investments

change in unit price (if any)      +    income distributions & bonus units

over the previous 12 months          (if any) over the previous 12 months     x  100

divided by the unit price 12 months ago

Cash Based Investments

change in value (if any)      +    income distributions & bonuses

over the previous 12 months          (if any) over the previous 12 months    x  100

divided by the value 12 months ago

METHOD B

Cash based investments that declare an annual rate of return only once each year in arrears.

The exception to the above formulae are investments which are cash based  and declare a rate of return once each year.  In this instance the declared rate, not the interim rate, will be accepted by the Department and updated once a year.  This rate will only be updated when the figure has been officially declared.

SAMPLE 2:ATTACHMENT B

ACCRUING RETURN INVESTMENTS

CURRENT ANNUAL RATE OF RETURN

Both Veterans' Affairs and Social Security assess the return on Accruing Return Investments based upon application of the "current annual rate of return"  principle.  This involves calculating the current annual rate of return based on the performance of the investment product over the immediately preceding

12 months.

The calculation of the assessed rate of return takes into account two factors:

(1) any rise or fall in the investment value over the last 12 months added to

(2) income distributions (if any) received or reinvested during the same  period.  These distributions may be in the form of cash, bonuses or bonus units.

Many companies quote rates of return which are not based upon the performance of the investment over the last 12 months.  The rates of return quoted may be based solely on income distributions or the latest declared rate based on only part of the year such as on a daily, weekly or quarterly basis.

Previously some rates applied by this Department were assessed using the latest declared rate of return method.  However,  the Department is now in the process of standardising  the method of calculating the current annual rate of return based on the performance of the investment product over the previous

12 months.

The formulae used in assessing the current annual rate of return are attached.

If a pensioner notices that the rate of return used by this Department is wrong, they can contact the relevant investment company and request confirmation of the "current annual rate of return" over the last 12 months.  Please note that it would be preferable for information to be provided in writing.  It may be of benefit for the pensioner to supply the company concerned with a copy of the attached formulae when making such a request.  This would ensure that the figure supplied will relate to the Department's method of calculating the return.

If upon reply the figure used by the Department appears to be incorrect,  the pensioner can contact this Department and the current annual rate of return will be investigated.

It may be of interest to know that the rates of return held in the pension assessment will be automatically updated once every six months to reflect the latest rates supplied by the investment companies concerned.

If a pensioner notices they may be eligible in the interim 6 month period for an increase due to a drop in the current annual rate of return,  they can write or phone to check on the latest rates held by the Department.  A request for a review could then be processed to update the assessment to reflect the most current annual rate of return.

If pensioners have any queries regarding the contents of this advice they can contact the Department for clarification.

Formulae used in determining the current annual rate of return on Accruing Return Investments for pension purposes:-

METHOD A

Unit Based Investments

change in unit price (if any)      +    income distributions & bonus units

over the previous 12 months          (if any) over the previous 12 months     x  100

divided by the unit price 12 months ago

Cash Based Investments

change in value (if any)      +    income distributions & bonuses

over the previous 12 months          (if any) over the previous 12 months     x 100

divided by the value 12 months ago

METHOD B

Cash based investments that declare an annual rate of return only once each year in arrears.

The exception to the above formulae are investments which are cash based  and declare a rate of return once each year.  In this instance the declared rate, not the interim rate, will be accepted by the Department and updated once a year.  This rate will only be updated when the figure has been officially declared.

DATE OF ISSUE: 04 DECEMBER 1992

ASSET TEST FOR SERVICE PENSION WIDOWS, WIDOWERS AND NON- ILLNESS SEPARATED SPOUSES

INTRODUCTION

The purpose of this instruction is to advise on the relevant Asset Value Limit (AVL) to be applied to widows, widowers and non-illness separated spouses..

BACKGROUND

Under the VEA the AVL for this group is the non partnered rate.  That is the rate shown for single veterans on the rate chart.  Currently  $112,500 for home owners and  $193,000 for non home owners.  The rate chart and ADP have used half te married rate.

The maximum basic rate of service pension payable to pensioners in this category, is contained in table B, Section 44-B1 of the VEA is an amount equal to one half of the combined married rate.  The ordinary income free area used in the assessment of pension is contained in section 44-D4 of the VEA is an amount equal to one half of the married rate.  The AVL used in the assessment of pension is contained in table F-1, section 44-F3 and is equal to that for a pensioner who is "not a member of a couple".

This has led to differences with some states manually assessing in line with the legislation, while other states have been relying on auto assessment.  Fortuanately there are a very few cases in this category that are affected by the asset test.

PROPOSED CHANGE

Auto assessing will be brought into line with the legislation, but this is not possible until approximately April 1993.  Existing cases will be automatically reassessed in July 1993, when the new Asset Values Limits are updated.  In the meantime any case of widows, widowers and non-illness separated spouses which come to notice, and need action before the adjustments to the system are completed, should be manually assessed.

The rates charts are in the process of being redrawn and will be issued early January.

MURRAY HARRISON

A/g NATIONAL PROGRAM DIRECTOR

BENEFITS

DATE OF ISSUE: 27 NOVEMBER 1992

DECEMBER 1992 QUARTERLY ADVICES

TABLE OF CONTENTS

Introduction..............................................................3

Quarterly Advices.........................................................3

Associated Departmental Instructions...........................................4

Regulation 45A certification..................................................4

Telephone Allowance - Indexation & Quarterly Payment.............................4

Rates of TA payment.................................................4

ADP Processing..........................................................4

Interface..........................................................4

Additional Processing runs.............................................5

PIPS processing....................................................5

Pre Increase Action..................................................5

Parameter Cards....................................................5

Limitation Cases....................................................5

Fringe Benefits - no changes...........................................6

Action Schedules.........................................................6

Suspension cases...................................................6

Frozen Action Records................................................6

CDB/PMF mismatch cases.............................................7

Manual Methods of Assessment.........................................7

Manual DP Recorded on the CDB.......................................7

Assessment Errors..................................................7

Timetable...............................................................8

Advices.................................................................8

Holding of daily advices...............................................8

Despatch of Quarterly Advices..........................................8

Reprint of selected advices............................................8

Liaison with Ferntree Computer Centre (NCC)....................................8

Contact numbers..........................................................9

Advices Paragraph Contents.................................................10

Sequencing of paragraphs.............................................10

Example of an advice letter ..................................................11

Introduction

There will be an increase in the rate of Dependant Child Add-On (DCAO) and Guardian's Allowance (GA) because of CPI indexation, on the 7 January 1993 payday.  There will also be an amending legislation increase in the rate of Remote Area Allowance (RAA) for service pensioners.

2. Revised pages for the Pension Payments Codebook, and new DP rate cards, will be issued prior to the payday by the Benefits Systems Management  & Support Section.

3. The new rates will be:

Dependant Child Add-on:

.each dependant child under 13 years $60.80 increased to $61.90,

.each child aged 13-15 years $85.90 increased to $87.40,

.each non-prescribed child $34.00 (no change),

.Guardian's Allowance $28.70 increased to $29.00.

Remote Area Allowance:

.single pensioner $14.00 pf increased to $17.50 pf,

.married pensioners $12.00 pf each increased to $15.00 pf each,

.each child $7.00 pf (no change).

4. On the same payday the quarterly payment of Telephone Allowance (TA) will be made to eligible pensioners.

5. The above events will be integrated with the Quarterly Advices mailout exercise.  Those service pensioners with GA/DCAO/RAA, disability pensioners not on SP but eligible for TA, and those clients including war widows in Qld, WA, TAS and NT, and Victorian first war War Widows who are eligible for TA (TA only advice) but who have not already been advised regarding TA with the card issue (DI B49/92 [13] refers) will receive a Quarterly Advice letter containing the appropriate details for the relevant event(s).

6. Although this processing does not constitute a full Statutory Increase (SI), the major re-assessment program ("BAL") will be run selectively to re-assess all cases with income/assets affected by any of the events mentioned above.

7. The rate of allowances paid to children in the Veterans' Children Education Scheme (VCES) and the Orphan's Pensions may also be reviewed.  A separate instruction relating to procedures to effect any variation will, if needed, be prepared and published separately by Benefits SM&S section.

Quarterly Advices

8. Comparatively few service pensioners will receive an advice on this occasion.  Where a service pension assessment is a joint assessment (ie married), one joint advice will be produced.  Advices will be issued for the following circumstances:

.where GA is payable (full SP advice incl TA if eligible);

.where DCAO is payable (full SP advice incl TA if eligible);

.where RAA is payable (full SP advice incl TA if eligible);

.where DP pensioners without SP are eligible for TA (TA only advice);

.those clients including War Widows in Qld, WA, TAS and NT, and Victorian first war War Widows eligible for TA (TA only advice) who have not already been advised regarding TA with the card issue (DI B49/92 [13] refers).

Associated Departmental Instructions

9. Departmental Instruction B25/92 [14] set out eligibility criteria and other details relating to TA, while DI B26/92 [15] outlined general principles covering the issue of quarterly advices.  In addition, State Program Managers (Benefits) and System Support Officers have been provided with copies of the rules for this processing run, entitled December 1992 Quarterly Advices System Rules and Components, which contains details of paragraph wording.

10. The Statutory Increase, TA  and Quarterly Advice processing is scheduled from Friday evening 18 December till Sunday 20 December 1992.  ADP processing guidelines and a  timetable  appear later in this instruction.

Regulation 45A certification

11. The Assistant Secretary of both Benefits Planning & Management and IT Applications Branches in Central Office will attest to the correctness of the new data and the programs used to conduct the exercise.  Certificates in the terms of Finance Regulation 45A will be forwarded to the Authorising Officer in your Finance Branch.

Telephone Allowance - Indexation & Quarterly Payment

12. The first quarterly payments of Telephone Allowance (TA)  were made in July 1992.  Departmental Instruction B25/92 [14] sets out the eligibility criteria and processing guidelines.  That instruction should be consulted as necessary, but references to processing dates should of course be ignored.  Significant dates for this exercise appear later in this instruction.  A further DI on TA will be issued later this year, chiefly covering arrears issues.

Rates of TA payment

13. The three rates of TA payment  are the same as for the 1 October payday, namely:

.the World War 1 rate is $165 pa ($41.30 per quarter);

.the Base Rate is $52.80 pa ($13.20 per quarter); and

.the Half Base Rate is $26.40 pa ($6.60 per quarter).

14. The quarterly TA payment amount will be shown on a person's payment advice, in the paragraph  immediately following the payment details box.

15. There is no actual pension re-assessment in this exercise, so no fringe benefits variations should occur and hence no-one should gain or lose TA eligibility in the run.

ADP Processing

16. Friday, 18 December is the cutoff date for pay period 13 (24 December).  The daily Interface and PMF Update processing runs will be scheduled that evening as usual.  The Quarterly Advices runs will commence later on Friday evening or on the weekend.

17. Prior to pension re-assessment processing, a run will occur to adjust the value of any disposed (deprived) asset or income amounts (which are due for deletion or depletion because they have reached or passed  their anniversary date) and delete fringe benefits (from those cases where the 13 week period of grace has expired).  The output from this run will be sent to Branches; it will NOT be incorporated in the quarterly advices.  Any other processing run required (eg Education Allowance, Orphan's Pensions) will be conducted independantly for that payday and will not impact on the transactions generated for this advice run.

PIPS processing

18. PIPS processing can be carried out by Branch staff as per normal, prior to and immediately after the weekend of 19/20 December.  However, client assessments which have Guardians Allowance, Dependant Child Add-On or Remote Area Allowance should NOT be in "frozen" status (ie submitted "SB" or determined "PY" status) over the weekend.  The BAL re-assessment program will not update any assessment where a frozen action record exists (SB or PY status) and any such cases will be listed for subsequent manual processing by Branch staff.

19. Although comparatively few pension records will be processed by BAL,  it is clearly desirable to minimise the number of cases with DCAO, GA or RAA which are in frozen status as at interface on Friday 18 December (which is also the payday 13 cutoff).

20. The weekend processing runs will be applied to current CDB records even where an action record exists in investigation (IN) or re-investigation (RI) status for that assessment.  Although the current assessment will be updated, data in the action record will NOT be updated by the runs.  For this exercise, however, this should be of no consequance as the correct rates of GA, DCAO or RAA will be inserted by the submission program when the examiner submits the action.

21. As well as minimising the number of frozen actions, the following additional steps should be taken prior to interface/close-off on Friday, 18 December, to minimise the need for subsequent manual actions:

.ensure any outstanding multiple segment (MS) cases are resolved; and

.resolve any SP Compare reconciliation edits.

22. Parameter cards and rate tables have been prepared at Central Office to effect the automatic updating of  GA, DCAO and RAA and list those requiring manual action.  These cards will be input to the system by Central Office.

23. Cases for which limitations are in force will have any pension variations performed automatically, but the limitation amount will not be adjusted.  Identification of these cases and any adjustment to the limitation amount must be arranged locally; i.e., a listing will NOT be produced as part of the Quarterly Advices run and Branch staff will need to arrange a suitable ADP job as needed.

Fringe Benefits - no changes

24. As mentioned before fringe benefit variations should NOT occur in this run.  Any case involving fringe benefit change will be sent to the NCC to produce the advice.  These will then be sent to Branch Offices for manual examination as to whether the circumstances are correct and whether the advice is relevant.

Action Schedules

25. The weekend run will produce schedules of cases which cannot be processed automatically by the relevant programs, or which have been processed but require further examination.  These listings are discussed in the paragraphs which follow.  Where possible, manual processing should be completed before the close-off for the payday.

26. In addition to the schedules for manual action, the Advices system will generate schedules of cases which could not be issued a Quarterly Advice.  These schedules will be despatched separately, after the Quarterly Advices have been lodged, and are not dealt with in this instruction.

27. Cases to be submitted to MS can be prepared on the schedules provided, by coding the relevant PMF segments and writing the MS consecutive number beside the case, for determination by a delegate in lieu of preparing D408 coding sheets for each case.

28. MS and manual transactions should be transmitted to the Computer Centre in the normal pension payment daily stream i.e. keyfast description $PENSIO, prior to the cut-off for payperiod 14 (7 January 1993).

Suspension cases

29. Where a part or total suspension occurs on the PMF, the rate and suspension amount should be re-assessed, and the case processed  through an MS submission.

30. When cases in PY or SB status are encountered by the SI program, update is prohibited because the record is frozen.  The cases need to be unfrozen and re-processed as follows:

.              Return case to RI status (Cancel Determination &/or Cancel Submission);

.              Re-process case using this SI as the last variation (if effective date is prior to the SI date enter arrears line for effective date);

.              Submit to MS or DA as appropriate and prepare D408 in MS cases;

.              Determine case as per normal.

CDB/PMF mismatch cases

31. Cases will need to be investigated to determine the cause of the discrepancy, then the CDB or PMF corrected as necessary.

Manual Methods of Assessment

32. Service pension cases with a manual MOA need to be manually re-assessed and the new rates processed through the PIPS system as normal.

Manual DP Recorded on the CDB

33. This schedule lists in PMF transaction format cases with the following DP codes on  the CDB:

.EATS

.COMP (Composite/Proviso 'C')

.DIV 10 (Members of the Defence Force)

.MAN, MISC, CONVERSION DATA

34. The DP should be examined, the new rates entered on the screen and the case submitted through MS if applicable.  Rates of both SP and DP should be amended as necessary on the schedule.

35. The assessment routine will produce information messages as an indication that certain action should be taken as a result of the re-assessment.

36. A number of conditions may exist on the CDB which require additional investigation beyond the normal process.  The cases listed will already be automatically processed or will appear for action on the schedules.  The conditions are detailed below:

.Last SI not processed - case not processed in the last ST that effected the case.  Check to ensure action was taken.

.Old SI process codes deleted - before SI processing,  any old SI process code (S183) will be deleted.  Action on these will depend on the reason the old process exists, but most will not require any corrective action.

.Manual arrears cases - cases where the current effective date is in advance of the SI date.   Examine cases to ensure any adjustment for the period between the SI date and the current effective date is made.

.Data Base Error detected - these cases will fail SI processing, and should be referred immediately to ADP for action.

.Transaction Generation Errors - the equivalent of Interface errors in normal daily production.  Corrective action as for Interface errors.

Timetable

37. Key timeframes are summarised below. The processing runs will begin on the evening of  Friday 18 December or the next day.

DateEvent

Fri, 18 Dec 1992 — Cutoff for pay period 13 (24 Dec), at usual time.

Fri, 18 Dec

to Sun, 20 Dec 1992 — BAL re-assessment run; TA & Quarterly               Advices processing runs.

Mon, 20 Dec New allowance rates on system.

Daily advices produced from today to be               held till Quarterly advices despatched.

Mon, 20 Dec to                 Examiner action on manual schedules for cutoff for pay 14               DCAO/GA/RAA..

Wed, 23 Dec — Quarterly Advices lodged with Australia               Post

Advices

Holding of daily advices

38. Daily payment advices, produced for pay period 14 (7 January 1993), containing reference to DCAO, GA or RAA should be held by Branch Offices until confirmation is received from the Quarterly Advices Project Manager in Central Office to release such advices. This will ensure that pensioners who have pension variations processed for payday 7 January will receive their daily advice after the quarterly advice rather than in advance of it.

Despatch of Quarterly Advices

39. The quarterly advices will be progressively lodged with Australia Post by the mailing house in Melbourne, on Wednesday, 23 December 1992. As soon as each State's advices have been lodged, the CO Project Manager will advise your Branch's contact officer.

Reprint of Selected Advices

40. Any requests for reprints of individual Quarterly Advices should be referred through Branch Office System Support Officers to the Benefits Application Help Desk on (06) 289 7828.

Liaison with Ferntree Computer Centre (NCC)

41. The Veterans Services Applications Branch will provide the NCC with a schedule of computer runs for this exercise.  Benefits SM&S Section will supply an after hours contact number closer to the processing date.

Contact numbers

42. Any enquiries should be directed in the first instance to Peter Rogers in Policy Development & Implementation Section, on (03) 284 6663 or Colette Woodford on (06) 289 6684.  Facsimile messages should be sent to (03) 284 6797.

Kay Grimsley

Assistant Secretary

Income Support

Attachment 1

Advices Paragraph Contents

This attachment summarises the sequencing and contents of paragraphs used in the December 1992 advices

PARAGRAPHCOMMENTS

Branch Office address & phone no.ALL (V,N,Q,S,W,T,NQ)

Date — ALL

File number — ALL (incl State indicator)

Name and address ALL

Salutation — ALL

Reasons for Variation:--

  - DCAO/GA/RAA IF APPROPRIATE

Payment details heading — ALL

Payment variation/continuation  ALL

Payment box ALL

Telephone Allowance paragraph — IF APPROPRIATE

Financial Obligations All SP except some blinded

Authority to impose obligations — ALL SP

Changed Circumstances — ALL SP

Closing paragraph — ALL

Signature block — ALL (STATE SPECIFIC)

ATTACHMENT 2

SERVICE PENSIONERCommonwealth Department of

COUPLE WITH DCAOVeterans' Affairs

AND TA

BRANCH OFFICE

Centennial Plaza

280 Elizabeth Street

Sydney   NSW   2000

Postal Address:

JOHN B CITIZEN — GPO Box 3994, Sydney   NSW   2001

SARAH B CITIZEN

44 ANZAC AVENUE — Telephone:

HOMEBUSH BAY   2140 — Metropolitan residents: 213 7777

Country resident:  008 257251

21 December 1992

Your file number is NX123456

Dear Mr and Mrs Citizen

Increase rates of allowances

There has been an increase in the rate of allowances payable to pensioners with dependant children, and pensioners living in remote areas.  Your new payment rates are shown below.

Payment Details

The amount of pension you receive each fortnight is set out below.  Payment at this rate will be made on 7 January 1993.

PAYMENTS TO (JOHN CITIZEN) and (SARAH BE CITIZEN)

Disability pension at 80% rate              169.68

Service pension              255.30              255.30

Additional pension for children              87.40

Pharmaceutical Allowance              5.20              5.20

TOTAL FORTNIGHTLY PAYMENT              $517.58              $260.50

Telephone Allowance payment

Your quarterly telephone Allowance of ($6.60 each) will be paid to you on (7 January 1993).  This amount is in addition to your fortnightly payments of pension and allowances, which are set out above.

Telephone Allowance is paid each quarter.  Your next payment of Telephone Allowance will be on 1 April 1993.  You must tell us if you cease to be a telephone subscriber.

Your Obligations to the Department

You must tell the Department within 21 days if your (combined) income rises above ($999) a fortnight.  You must also tell us if the value of your assets rises about ($999999).  You can do this by telephoning or writing to us or by visiting any Department of Veterans' Affairs office.  The address and telephone number is shown at the top of this letter.  If you telephone, we may ask you to confirm information in writing or to send us certain documents which are related to the matter.

If you do not tell us of these changes you may be overpaid.  There are penalties that apply for failing to fulfil your obligations or for providing false or misleading information.

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 included when sending this letter.  If this is the case, we will be sending your another letter as soon as the change has been put into place.

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

Yours sincerely,

GK Stonehouse

Deputy Commissioner as

Delegate of the Secretary

DATE OF ISSUE: 24 NOVEMBER 1992

REVISED THRESHOLD FOR GENERAL WAIVER OF DEBTS

This instruction is to advise of the revised dollar amount below which a debt falls into a class of debt specified for general waiver under s206(1)(b)(ii) of the VEA. The existing threshold of $50 has been increased by the Minister for Veterans' Affairs to $200.

A debt now falls into a class of debt specified for general waiver where:

[17].the debt is calculated to be an amount less than $200, or where the delegate is satisfied on the basis of available evidence that the amount of the overpayment is, or is likely to be, less than $200.

Notice of the change was published in Commonwealth Gazette No. GN 41 of

14 October 1992 (see attachment). The new threshold should be applied immediately.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

19 November 1992

ATTATCHMENT TO THIS INSTRUCTION

(NOTE:  This attachment has been rekeyed to enable it to be included on the General)

Commonwealth of Australia Gazette

No. GN 41, 14 October 1992Government departments  2845

Veterans' Affairs

COMMONWEALTH OF AUSTRALIA

Veterans' Entitlement Act 1986

NOTICE UNDER SUBPARAGRAPH 206(1)(b)(ii)

I, BENJAMIN CHARLES HUMPHREYS, Minister of State for Veterans' Affairs, hereby:

(1)revoke, under paragraph 206(1)(b)(ii) of the Veterans' Entitlement Act 1986 (the Act) the instrument dated 7 January 1988, in force under that subparagraph;  and

(2)specify that a debt which is, or is likely to be, less than $200 is a class of debts for the purposes of subparagraph 206(1)(b)(ii) of the Act.

Dated this 22nd day of September 19982.

Signed

BEN HUMPHREYS

Minister of State for Veterans' Affairs

9219482

Printed by P.J. Grills, Commonwealth Government Printer, Canberra

DATE OF ISSUE: 16 NOVEMBER 1992

PENSION FOR WIDOW/WIDOWERS OR EX-PRISONERS OF WAR

The Minister announced in the Budget a new special pension for the widows and widowers of ex-Prisoners of War from all theatres of war.  It has now been decided that the War Widow's/Widower's Pension (WWP) will be extended to cover widows and widowers of ex-POWs.  Beneficiaries will also receive all the benefits currently available to War Widow/ers and dependants i.e. VCES, treatment, and the veteran will also be eligible for war graves commemoration.

2.Subject to the passage of legislation, which is being introduced in the current sittings of Parliament, the extension of WWP to these widow/ers and dependants will come into operation from 1 January 1993.

Eligibility

3.From 1 January 1993, all widows/widowers and dependants of Australian ex-POWs, including those who would not otherwise have been granted WWP, will be eligible for WWP and dependant's pensions.  These benefits will be available where the ex-POW was in receipt of, or eligible to apply for, a disability pension.  It is not necessary for any claim to have been made, or any disability accepted, so long as the ex-POW would have been eligible as an Australian ex-POW.

4.In considering whether a veteran was an Australian ex-POW the essential criterion which must be met is that in section 7 of the Veterans' Entitlements Act 1986 i.e. Eligible War Service.  If a Mariner, he must meet the definition of Australian Mariner in section 3 of the Seamen's War Pensions and Allowances Act 1940.

5.Examples of those covered include widows/widowers and dependants of any:

.Members of the Defence Force who were ex-POWs;

.Members of Commonwealth or allied services who were ex-POWs and were domiciled within Australia immediately before appointment or enlistment in that service e.g. the RAF (see VEA ss.6(2);

.Persons employed by the Commonwealth on a special mission outside Australia who were ex-POWs;

."Eligible civilians" i.e. British subjects resident in TPNG (but not indigenous inhabitants) in WW II detained by the enemy (VEA ss.6(1)(k);

.Australian Mariners (SWPAA S.3(1)) who were ex-POWs; and

.Persons covered by a Minister's determination under S.5(R) of the VEA e.g. Commonwealth employees attached to the Defence Force or members of approved philanthropic organisations, such as Red Cross, Salvation Army etc., who were ex-POWs.

6.Examples of those not covered include widows/widowers and dependants of any:

.Commonwealth or allied veterans who were ex-POWs but were not domiciled within Australia immediately before appointment or enlistment e.g. a British ex-POW who migrated to Australia after the war.

.Commonwealth or allied mariners who were ex-POWs.  (Not eligible under the SWPAA for disability pension).

7.Obviously, where an ex-POW has already died or dies before the end of the year, the pension cannot be paid before that date, unless the veteran was receiving a pension before his or her death which would qualify the widow/er to an automatic grant of War Widow/er's Pension or the veteran's death can be determined to be war-caused.

Processing

8.It is proposed that where the Department is notified of the death of a pensioner (either DP or SP) who is an ex-POW, and there is sufficient information available to establish eligibility and put the widow/er and/or dependant(s) pensions into payment, it will be generated without the need for application, in the same way as is now done in other automatic grant cases.  Where this is not possible, it will be necessary for a claim form D2663 to be submitted.  (The revised claim form will include a question about whether the veteran was a POW and the period and location of detention).  The normal provisions about backdating of claims will apply, except that no pension will be payable before 1 January 1993.

9.The new pension will operate from 1 January 1993 but widows/widowers of ex-POWs who died before that date will be eligible.  Recipients will be treated exactly the same as current recipents of WWP, that is the pension will not be taxable or income-tested but will be regarded as income by Department of Social Security for a Social Security pension or benefit.

10.In cases of death occurring before the implementation date, the widow/widower should be encouraged to immediately lodge a claim for WWP on the grounds of war-caused death (if this has not already been done).  If the claim is not accepted the widow/er should then be advised that they will qualify for WWP as a widow/er of an ex-POW from 1 January 1993.

Re-marriage

11.Like certain war widows and widowers who, under the provisions of section 13 of the VEA, are eligible to retain their pensions if they have remarried or married (after 28 May 1984 for widows and 22 January 1991 for widowers), those widows/widowers of ex-POWs who marry or remarry after being granted the new pension will also be eligible to retain it.

Systems changes

12.The appropriate system changes required to introduce the initiative are being implemented.  These changes are:

.modification of the Death Processing System (DPS) such that where a death is recorded for a POW (identified by means of treatment eligibility type "TDE" - treatment detainee), eligibility and payment changes will be effected in the same manner as for other WWP grants; and

.modification of the advice produced following the DPS processing to explain the reason for the War Widow/er's pension grant.

13.A further Departmental Instruction will be issued after the legislation has been given Royal Assent.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

10 November 1992

_

DATE OF ISSUE: 16 NOVEMBER 1992

PROCEDURES FOR REQUESTING INFORMATION FROM AUSTRALIAN MARINE SAFETY AUTHORITY

BACKGROUND

Records of Merchant Navy personnel during the 1939/45 war period contained in the General Register of Seamen System (GROSS), previously held by Department of Transport and Communication (DTC), are now held by the Australian Maritime Safety Authority (AMSA).

2.AMSA is a Statutory Authority, established on 1 January 1991, which regulates and provides services to the Australian Maritime Service Industry as part of the Government's microeconomic reform of the Australian Shipping Industry. AMSA receives no funding;, for research work concerning mariners' service during World War II.

3.Requests for information from GROSS now attract a fee to reflect the amount of research and preparation involved. DVA, however, will not be charged for this research. Individuals and other organisations will incur a fee.

PROCEDURES

4.At a meeting held recently with the Marine Crews Business Unit of AMSA, a number of issues relating to the provision of information to DVA in relation to Australian seafarers were discussed as follows:

.AMSA pointed out that DVA branch offices were seeking confirmation of original source documents and copies thereof, eg. original certificates of discharge, statements of sea service, etc. in effect, AMSA was being asked to confirm information it had previously provided to the applicant and/or authenticated.

.It is essential that any requests for information from AMSA records be precise in relation to the amount of information required. For example, where evidence of a voyage in a war zone is necessary to establish eligibility, this should be clearly stated to avoid unnecessary research and expense.

.Information required to determine if an applicant may have suffered an injury or disease was war-related cannot be provided by AMSA. This information can only be obtained from the Official Log-Book of the ship on which the injury/illness occurred. Official Log-Books for the Second World War period are held by Australian Archives. AMSA will on request provide the accession details for the log-book concerned. The applicant will need to nominate the ship and the date on which the injury occurred.

.AMSA records relate only to service on Australian ships and British ships where the seafarer was engaged/discharged at a port in Australia. Where Australian seafarers served on ships operated by allied governments during World War II eg. Norwegian, British, Dutch, U.S. small ships etc. it will be necessary to seek details from the relevant authority in that country (see attached list).

.Where information concerning the voyage records for a ship, either Australian or Allied is required. enquiries should be directed to:

Naval Historical Section

Department of Defence

PO Box E33

Canberra ACT 2600

5.The following scale of charges applies to research performed by AMSA:

Application and search fee$25 (this amount is not refundable if search fails to locate required information, but is deducted from the cost of any service provided)

Statement of sea service$43 per hour (this statement contains information on approximately 5 years of service)

Copies of/or extracts from source$43 per hour

documents

Provision of research$43 per hour

6.Where a claimant seeks information beyond that which is needed by DVA to determine a claim then they should be given the address of AMSA and advised of the charges. DVA will not seek that additional information, but refer them to AMSA. In most circumstances claimants will provide all the necessary information required to be lodged with a claim.

7.In cases where a claimant requires AMSA to validate or provide specific information regarding their service they will need to approach AMSA themselves and incur the relevant fee. An example of this may be where a person is lodging a claim for acceptance of a condition as related to service. Under the appropriate legislation the condition must be as a direct result of service. AMSA advised at the recent meeting that the ship's log book would have recorded any significant occurrence and particularly where a seamen may have been injured or taken ill.

8.The Department will not refund costs incurred by a veteran seeking information from AMSA.

9.To reduce the number of telephone contact points between AMSA and DVA, AMSA has requested that specific DVA contact officers be nominated in each state. It would be appreciated if names and numbers of contact officers could be forwarded to Justin O'Shannassy on (06) 2896786 in Central Office as soon as possible so as they can be passed on to AMSA.

10.Attached is a list of the various authorities overseas which hold information relating to Mariners.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

10 November 1992

LIST OF ADDRESSES FOR OVERSEAS CONTACTS

Malayasia

Shipping Master

Marine Department

Port Keland

SELANGOR  MALAYASIA

Netherlands

Director of Shipping Policy

& Marine Affairs

Hoopd van de Scheepvaartinpectie

Ministrie Van Verkeer

En Waterstaat

Plaesmanweg 1

S Gravenhage

NETHERLANDS

Norway

Norwegian Government

Directorate for Seamen

PO Box 8105-DEP

OSLO 1 NORWAY

Sweden

Swedish Merchant Seamen

Central Seamen's Register

Box 12083

S-40241 Gothenburg

Greece

Ministry of Mercantile Marine

Seamen Registration

18  II Mararhias Street

PIRAEUS GREECE

Hong Kong

Superintendent

Mercantile Marine Office

Marine Department

Harbour Building 3/F

38 Pier Road

HONG KONG

Telex - 64553

Fax - 852-5-449241

India

Director-General of Shipping

Ministry of Shipping and Transport

"Jahaz Bhaven"

Walchard Hirachard Marg,

BOMBAY - 1 INDIA

Ireland

Department of Transport and Power

General Register & Record Office

26/27 Eden Quay

DUBLIN 1 IRELAND

Bermuda

Registry of Shipping

PO Box 1628

Hamilton 5

BERMUDA

Canada

Superintendent

Registry of Shipping

Room 354

Hunter Building

OTTAWA  CANADA  KIA

Denmark

Danish Maritime Authority

38c, Vermundagade

DK-211 Copenhagen E

DENMARK

Fiji

Shipping Master

Marine Department

PO Box 326

SUVA FIJI

United Kingdomor

General Register & Record Office of — Block 2

Shipping & Seamen — Government Buildings

Department of Transport — St Agnes Road

PO Box 165 — CARDIFF CF4 4YA

GABALFA CARDIFF CF4 4UX

USA General

Department of Transportation

United States Coast Guard

Division of Merchant Vessel Personnel

WASHINGTON DC 20591 USA

USA Small Ships only

National Personnel Records Centre

9700 Page Boulevarde

ST LOUIS MISSOURI 63132

DATE OF ISSUE: 06 November 1992

BULK ISSUE OF 1993 CONCESSION CARDS - PRINTING, DESPATCH AND PROCEDURES

INTRODUCTION

1.This instruction deals with the issue to pensioners of 1993 concession cards in the December 1992 bulk issue.  The following cards will be despatched as part of the bulk issue:

a.1993 Pensioner Health Benefits (PHB) cards with attached Transport Concession (TC1) cards (and travel vouchers for QLD, NSW and VIC only);

b. Pharmaceutical Benefits Concession (PBC) cards with attached Veterans' Affairs Card; and

c.War Widows Transport Concession Cards (TC1) for NSW, VIC and SA only (with attached travel vouchers for NSW and VIC only).

2.All PHB cardholders and war widow TC1 cardholders will receive an advice leaflet with their card which will advise them of the 7 January 1993 payment of TA.  Those PBC cardholders entitled to TA (that is, certain disability pensioners and World War 1 veterans) will also receive an advice leaflet.

TIMETABLE

3.The following are the key activity dates:

a.The data processing run will be conducted by the National Computer Centre (NCC) on the weekend 14/15 November 1992 and the tapes will be despatched to the printer (R. L. Polk & Co Pty Ltd of Melbourne) on 16 November 1992.

b.Limited stocks of 1993 PHB and PBC cards will be made available to the NCC by 13 November for daily issues after the processing run.  Branch offices may obtain stocks of blank cards from the NCC by request.

c.The last packages to be mailed to pensioners will be lodged with Australia Post by 4 December 1992.

d.All PHB and PBC cards not used in the bulk issue will be sent to the NCC by 11 December 1992.

e.All war widow TC1 cards not used in the bulk issue will be sent to the appropriate state transport authority or branch office by 11 December 1992.

PRODUCTION OF SCHEDULES

4.The listings to be used for concession cards will be produced in alphabetical order and with a composite split (where appropriate).  The headings on reports will be descriptive and the following listings will be produced:

a.PHB/TC1 cards issued;

b.PBC/VA1 cards issued;

c.pensioners who receive PHB cards and who have been included with your State run but are paid by another State (the paying State is indicated by N, V, Q, S, W or T);

d.pensioners who do not receive any card, together with a brief explanation of why they did not receive a card (e.g. too many characters in the address).

5.Other listings may be produced for various categories not  able to be picked up automatically and requiring despatch by Branches.  These will be dealt with separately and may include: certain World War 1 (WW1) allies, special register cases and a number of war widows.

MACHINE DAMAGED OR INCORRECTLY ADDRESSED DOCUMENTS

6.The printer will despatch damaged or incompletely addressed 1993 cards to respective branch offices for manual issue.  Branch offices are to request stocks of 1993 PHB and PBC cards from the NCC so that they are capable of issuing cards manually if required.  Cards should be available at the NCC from 16 November 1992.

DESIGN CHANGES

7.PHB and PBC Cards  On the 1993 PHB and PBC cards the "Date of Effect" box has been replaced with a "Date of Grant" box.  Those pensioners whose date of grant of pension was before 1 January 1993 will have inserted in the Date of Grant box the words "PRE 1993".  Those pensioners whose date of grant is on or after 1 January 1993 will have inserted the actual date of grant..

8.PHB and PBC Cards  On the 1993 PHB and PBC cards the first line of the "Names of Pensioner and Dependants" box is to be left blank.  This change is necessary because the card is folded where the first line of printing would be inserted and, after a while, any printing on this line becomes illegible.  The details of the veteran or spouse (as appropriate) will be positioned on the second line and any dependants will follow from the third line onwards.

9.PHB Card for QUEENSLAND  The format of the PHB card for Queensland has been changed.  Two additional travel vouchers have been added and these will be personalised with the pensioner's name and file number.

10.PHB Card for VICTORIA  The format of the PHB card for Victoria has been changed.  A single travel voucher has been added which will be personalised with the pensioner's name, address and file number.

11.War Widow Card for VICTORIA  The format of the war widow TC1 card for Victoria has been changed.  A single travel voucher has been added which will be personalised with the war widow's name, address and file number.

DAILY ISSUES

12.Non personalised stock will be delivered to the NCC by Monday 13 November 1992 for daily issues.  All daily issues carried out by the NCC after the processing run on 14/15 November 1992 will be on 1993 cards.

MANUAL ISSUES

13.PHB Cards  For pensioners who gain fringe benefits from 16 November and require a 1992 card, branch offices will manually issue a PHB card to cover the pensioner until 31 December 1992.  Branch offices are to ensure that sufficient stocks of 1992 cards have been obtained from the NCC to cover likely usage.

14.War Widow TC1  The NCC does not possess a facility for daily issues of war widow TC1 for the three states which issue them, that is, NSW, VIC and SA.

Cards will be issued manually as follows:

a.In NSW new issues and replacement of cards is handled by the Concession Fares Office of State Rail.

b.In VIC new issues and replacements are handled by the DVA Victoria Branch Office.

c.In SA new issues are handled by the DVA South Australia  Branch Office and replacements are handled by the Concessions Pass Office of the State Rail Authority.

STATE OF RESIDENCE

15.In the bulk mailout, concession cards (including war widow TC1) will be issued based on the pensioner's residential address not the state of the paying branch office.

ACT USE OF NSW TRAVEL CONCESSIONS

16.PHB cardholders resident in the ACT will be issued NSW cards for travel within that state.

RAIL TRAVEL VOUCHERS

17.Concessional rail travel vouchers will be issued to PHB cardholders living in New South Wales, Queensland and Victoria.  (The vouchers form part of the composite PHB/TC1 card.).

18.In each of the three states a pensioner, who is granted or who becomes eligible for "Fringe Benefits" after the bulk issue, will be issued a complete set of cards including the rail vouchers.  Replacement cards are to be dealt with as follows:

a.New South Wales  If a pensioner living in NSW seeks a replacement issue of either the PHB or the TC1 component of the concession card, replacement rail vouchers will be issued automatically up to 28 February 1993.  From 1 March 1993 replacement cards generated by the ADP on-line system will have the rail voucher component over-printed with the word "CANCELLED".  All "CANCELLED" rail vouchers are to be detached from the set and are not to be issued to the pensioner.  In these circumstances the client is to be directed to the State Rail Authority for issue of replacement vouchers.

b.Queensland If at any time a pensioner living in Queensland seeks a replacement issue of either the PHB or TC1 component of the concession card, replacement rail vouchers are to be issued.

c.Victoria  To be advised

19.New grants, reviews and/or transfers-in with entitlement to fringe benefits will NOT have the rail voucher component cancelled by the ADP system as pensioners are entitled to the free vouchers in these circumstances.

SPECIAL REGISTER CASES

20.Concession cards for Special Registers will be printed at the NCC and sent to relevant Branch Offices for despatch.

OVERSEAS CASES

21.Pensioners with an overseas address will receive neither a card nor a Telephone allowance leaflet.  Pensioners who have been living overseas and who return to Australia will be issued the appropriate card upon request to their branch office.  Pensioners travelling overseas for a short holiday are not required to return concession cards.

TELEPHONE ALLOWANCE INSERT

22.Telephone Allowance advice leaflets, which inform pensioners about the 7 January 1993 payment, will be sent with some cards.  These advice leaflets will not be personalised and will not be state specific.  The leaflets will be inserted with the card by the printer.  Advice leaflets will be despatched on the following basis:

a.all PHB cardholders will receive an advice leaflet irrespective of whether they are receiving Telephone Allowance,

b.all War Widow TC1 holders will receive a different advice leaflet irrespective of  whether they are receiving Telephone Allowance.  Those PBC holders eligible for Telephone Allowance will also receive this advice leaflet provided they received a Telephone Allowance payment on 1 October 1992.

CONTACTS FOR NOTIFICATION OF ADP AND OTHER PROBLEMS

23.Notification of major ADP system problems should be made as an OIM system request providing specific details of the cases involved.  Contact Officer for systems related issues is Lisa Green on (06) 289 6037.

24.Any other immediate problems should be notified by telephone and fax to Peter Thorp on (06) 289 6409 or Fax : (06) 289 6553.

MAURIE GALT

ASSISTANT SECRETARY

INCOME SUPPORT

DATE OF ISSUE: 02 November 1992

COMPLIANCE OF DEPARTMENTAL FORMS/STANDARD LETTERS WITH THE PRIVACY ACT 1988

Background

The Privacy Act 1988 (the Act) is concerned with protecting the personal information collected by Commonwealth Departments and Agencies.

2. The Department of Veterans' Affairs (DVA) must comply with the Act in all of its activities which involve personal information.  DVA collects clients' personal information, the majority of which is collected by the use of Departmental forms.  The Act has particular significance in this area.

3. As well as serving a collection function, Departmental forms also store information as forms are usually placed on relevant files.  These forms may then be referred to over a number of years by DVA.  The retention of forms also places responsibility on DVA under the Act, to ensure that the information stored is accurate, up-to-date and complete.

4. The use of the word "form" in this Instruction encompasses all written communications by the Department with Departmental clients or other third parties soliciting personal information.  Such communications may be called forms, standard letters, claims, advices, applications, statements, consents, information sheets or questionnaires.

Related Departmental Instruction

5. DVA officers should acquaint themselves with Departmental Instruction B23/91 [22], dated 17 May 1991: Guidelines for Obtaining Information from Individuals and Organisations other than Departments or Agencies.

DVA as a "collector" of information

6. As DVA uses Departmental forms to collect certain personal information from veterans and/or their spouses and dependants, it is a "collector" within the meaning of section 9 of the Act.

Information Privacy Principles

7. Section 14 of the Act provides the Information Privacy Principles (IPPs) which set the standard for the handling of personal information by Commonwealth departments and agencies. These IPPs are basically a set of eleven guidelines which govern the collection, storage and security, access, correction, use and disclosure of personal information about individuals.

DVA as a collector of personal information

8. IPPs 1 to 3 impose obligations on DVA as a collector of personal information.  Collection must be fair and lawful.  Only information which is necessary for the intended purpose of the Department should be collected.  Reasonable steps should be taken to ensure that the information is relevant, up-to date-and complete.  Where the information is obtained from the individuals concerned, they should be made generally aware about the purpose and authority for the collection and also about the information's usual uses and disclosures. The Department is also required to take reasonable steps to ensure that in collecting personal information, it is not unreasonably intruding into the personal affairs of the individual concerned.

9. IPPs 1 to 3 are set out in full below:

"Principle 1

Manner and purpose of collection of personal information

1. Personal information shall not be collected by a collector for inclusion in a record or in a generally available publication unless:

(a)the information is collected for a purpose that is a lawful purpose directly related to a function or activity of the collector; and

(b)the collection of the information is necessary for or directly related to that purpose.

2.Personal information shall not be collected by a collector by unlawful or unfair means.

Principle 2

Solicitation of personal information from individual concerned

Where:

(a)a collector collects personal information for inclusion in a record or in a generally available publication; and

(b)the information is solicited by the collector from the individual concerned;

the collector shall take such steps (if any) as are, in the circumstances, reasonable to ensure that, before the information is collected or, if that is not practicable, as soon as practicable after the information is collected, the individual concerned is generally aware of:

(c)the purpose for which the information is being collected;

(d)if the collection of the information is authorised or required by or under law - the fact that the collection of the information is so authorised or required; and

(e)any person to whom, or any body or agency to which, it is the collector's usual practice to disclose personal information of the kind so collected, and (if known by the collector) any person to whom, or any body or agency to which, it is the usual practice of that first-mentioned person, body or agency to pass on that information.

Principle 3

Solicitation of personal information generally

Where:

(a) a collector collects personal information for inclusion in a record or in a generally available publication; and

(b)the information is solicited by the collector;

the collector shall take such steps (if any) as are, in the circumstances, reasonable to ensure that, having regard to the purpose for which the information is collected:

(c)the information collected is relevant to that purpose and  is up-to-date and complete; and

(d)the collection of the information does not intrude to an unreasonable extent upon the personal affairs of the individual concerned."

Effect of IPPs 1 to 3 on Departmental forms

10. In order to comply with IPPs 1 to 3, Departmental forms must have the following characteristics:

(a)the person from whom the information is being sought must be generally aware of:

-the law under which the collection of the information is authorised or required;

-the purpose for which the information is being collected;

-the name of the person, body or agency to whom it is the Department's usual practice to disclose personal information;

(b)the collector must ensure that the information is relevant to the Departmental purpose for which it is being collected;

(c)the collector must ensure that information is up-to-date and complete; and

(d)the collector must ensure that the collection does not intrude unreasonably upon the personal affairs of the  individual.

Impact on the drafter of Departmental forms

11. In order to comply with IPPs 1 to 3, the officer who is to prepare a Departmental form should ascertain the following before drafting a Departmental form:

(a)the Departmental purpose for which the information sought in the form is required;

(b)the legal authority under which the information is sought; and

(c)the names of the organisations (if any) to whom DVA usually discloses the information, and the reasons for such disclosure.

12. To satisfy the above requirements, the following is an example of the statement which should be included on all Departmental forms that request the provision of personal information:

"This information is sought pursuant to section  ..... of the Veterans' Entitlements Act 1986 in order to assist the Department of Veterans' Affairs to ........ (state the purpose for which the information is being collected).  This information may be disclosed to ...... (state to which Agency or body the information may be disclosed)."

13. It should be noted that Agencies or bodies to which personal information, collected through forms/standard letters or other means, may be disclosed include:

.the Department of Social Security and the Australian Taxation Office for the purposes of matching information;

.the Health Insurance Commission for treatment account payments;

.the various State or Local Government authorities to verify veterans'/dependants' eligibility for rebates or concessions relating to rates, electricity, transport, motor vehicles and ambulance ;

.doctors and/or hospitals to provide treatment.

DVA as a "record keeper"

14. Section 10 of the Act defines a "record keeper" to be an agency that is in possession or control of a record of personal information.  According to this definition DVA is a record keeper.

IPPs which relate to DVA's role as a record keeper

15. The responsibilities of a record-keeper under the Privacy Act are set out in IPPs 4, 5, 6, 7, 8, 9, 10 and 11.

16. IPP 4 requires record keepers to protect personal information with reasonable security safeguards against loss, unauthorised access, use, modification, disclosure or other misuse.  If it is necessary for the record to be given to a person who provides a service to the record keeper, (i.e. a consultant) then everything which is reasonably within the power of the record keeper must be done to prevent unauthorised use of the record.

17. IPP 5 requires record keepers to maintain an accessible record in the form of a register, of the kind of information held, the purposes for which the information is used, the controls which apply to its handling and details of how individuals may access their own files. This requirement is being met by the production of a Personal Information Digest.

18. Under IPPs 6 and 7 a person has, respectively, a right of access to, and correction of, personal information held by any agency, subject, of course, to exceptions contained in the Freedom of Information Act 1982, or any other law.

19. IPPs 8 and 9 require record keepers to check that information is accurate, up-to-date and complete prior to using it.  Also, the use of information must be confined to the purposes for which it is relevant.

20. IPP 10 limits the use of personal information.  Agencies may not use personal information for purposes other than those for which it was collected except:

.with the consent of the person;

.to prevent a serious and imminent threat to a person's life or health;

.as required or authorised by the law;

.where reasonably necessary for the enforcement of criminal or revenue laws; or

.for a directly related purpose.

21. Where the Department discloses personal information for the enforcement of criminal or revenue laws, or laws imposing a pecuniary penalty, a note to that effect must be put on the individual's file/record.

22. IPP 11 limits the disclosure of personal information outside an agency.  The same exceptions apply as for IPP 10, with one addition: where the subject of the information is reasonably likely to be aware of the practice of disclosure.

Subsequent handling of forms by DVA staff

23. All staff should be aware that DVA's responsibilities under the Act do not end once the information contained in Departmental forms has been used for the purpose for which it was originally collected.  Departmental forms are usually placed on file where they often remain for many years.  As long as they remain on file and can be referred to by DVA, IPPs 4 to 11 inclusive must be observed by DVA staff.

24. When consulting information on file staff must have regard to IPPs 8, 9 and 10 in particular.  In effect staff should first ask themselves: "Is this information accurate, up-to-date and relevant?" (i.e. are IPPs 8 and 9 complied with.)  Staff should then ask themselves: "What do I want to use this information for?" (i.e. is the use consistent with IPP 10).

Time frame for collection of information

25. Quite often an Act will specify a time frame for the return of information from an individual.  Staff should be aware of this when drafting forms or preparing accompanying letters.  For instance, sub-paragraph 128(1)(a)(ii) of the VEA authorises the Secretary to require a document to be produced to DVA within a period "not being less than 14 days ..." after notice is given to a person.  In such a case, 14 clear days must be nominated.  To avoid confusion, where possible, a date should be nominated as well as quoting the relevant section of the particular legislation being relied upon.

26. Staff should also be aware that subsection 36(2) of the Acts Interpretation Act 1901 provides that where the last day of any period prescribed or allowed by an Act for the doing of anything falls on a weekend, public holiday or bank holiday, the thing may be done on the next working day.

Production of forms

27. Reference should be made to the Departmental Forms Guide issued in October 1991 and to the Central Office Forms Sub-Section for advice on the preparation of forms and their ongoing review.

28. Branch Office staff must not produce local versions of centrally procured ("D" series) forms.  When considering the introduction of any new form, Branch Office staff should contact the Central Office Forms Sub-Section to ensure that there is not a national form which performs, or could be adapted to perform, the task required.

Clearance of forms by Central Office

29. All forms etc. are to be cleared by Central Office Forms Section and the Privacy Contact Officer.  In this regard it should be noted that the Privacy Contact Officer can only clear a form if it includes the relevant information as outlined in paragraphs 11 to 13 (inclusive).

30. In the first instance a draft form should be submitted to Central Office Forms Section for clearance as to format.  This section will clear the form to ensure:

(a) the format is acceptable;

(b) there is no existing form that could be adapted; and

(c) there is a record of the form held at Central Office should it be relevant to the requirements of other Branch or Regional Offices.

The draft form will then be cleared by the Central Office Privacy Officer.

Current forms

31. Branch Offices are requested to critically examine their locally produced current forms with a view to ascertaining whether, in the light of this DI, those forms are consistent with the relevant IPPs.  As a preliminary check of such a form, the officer concerned should examine whether the form provides relevant information as outlined in paragraphs 11 to 13.  If there is any doubt about a form, please contact one of the following contact officers for advice, as appropriate.

Enquiries

32. If there are any questions arising from this Instruction, please contact Warwick Moloney on (06) 289-6355 for benefits matters, Peter Morgan on (06) 289 6543 for format and design, and Colin Hassall on (06) 289-6208 for privacy matters.

Murray Harrison

Assistant Secretary

Planning and Management Branch

Benefits Program

_

DATE OF ISSUE:  28 October 1992

ASSESSMENT OF PROFIT ON FRIENDLY SOCIETY AND DEFERRED INTEREST INVESTMENTS PURCHASED BEFORE 1 JANUARY 1988 AND MARKET LINKED INVESTMENTS PURCHASED BEFORE 9 SEPTEMBER 1988.

MANAGED INVESTMENTS WITHDRAWALS WORKSHEET

Summary

A change in policy has been approved for the method of assessing Friendly Society and deferred interest investments purchased before 1 January 1988 and Market Linked Investments purchased before 9 September 1988. The new method of calculation of profit on the investments for service pension purposes will:

i) Only assess profit that actually accrued while the pensioner was in receipt of a service pension ;

ii) disregard any profit that accrued during periods of non-receipt of service pension ;

iii) if the period of non-receipt of pension is 2 years or more, disregard any profit that accrued prior to reinstatement of service pension; and

iv)provide a basis for assessing profit on Compulsorily Preserved Superannuation Benefits

2. The "Managed Investments Withdrawals Worksheet" (MIWW) has replaced the "Capital Profit Apportionment Sheet" (CPAS). The MIWW form is used to calculate the amount of income which will affect service pension entitlement when the following investments are realised:

i) Friendly Society and Deferred Interest investments purchased prior to 1 January 1988,

ii) Market-linked investments purchased prior to 9 September 1988, and

iii) Preserved superannuation benefits, when a withdrawal is made prior to pension age, or after pension age.

Background

3. Certain pre 1/1/88 and 9/9/88 managed investments have income which accrues on the investment assessed on realisation, that is on the sale, maturity, surrender, transfer, gifting or withdrawal  of all or part of the investment.  The profit component is then calculated and held in the pension assessment for 12 months from the day on which the person became entitled to receive the amount , instead of during the term of the investments.

4. The same investments purchased after 1/1/88 and 9/9/88 have income assessed under the legislation on an ongoing basis.

5. The policy introduced in 1987 when these changes were announced required growth to be assessed over the entire life of the investment. Various discounts were then made using actuarial formulae to reduce the profit for periods when the person was not eligible to receive a pension. The calculations involved considerable manual effort in cases where numerous deposits and withdrawals were made during the life of the investment. This could be compounded if the pensioner had multiple investments. The methodology used created confusion for the pensioner and staff. Also the method was not used or understood by the investment industry.

6. The Managed Investments Withdrawals Worksheet (MIWW) has now been introduced to simplify the assessment process for managed investments and to include preserved superannuation benefits calculations. This form simplifies the process, is readily explainable to pensioners and aligns DVA with the DSS method of calculation.

7. The MIWW is to be used for all assessments. The CPAS is not to be used.

Legislation

8. The use of the MIWW applies to investments covered by VEA sections 46,  46B, 46H, 46J, 46K and 46S.

9. "Pension age" is defined in the VEA sub-section 5Q(1).

The purpose of the MIWW

10. The MIWW is used to calculate the amount of assessable income for DVA and DSS pension and DSS benefit/allowance recipients, for those managed investments which are assessable upon realisation. Profit amounts calculated through the use of the form are to be assessed as income for 12 months following the date of realisation. However, where a realisation produces a loss, that loss may be offset against profits from other realisations assessed during the same 12 month period.

11. A realisation of an investment occurs through:

. a withdrawal from the investment;

.maturity of the investment;

. gifting of the investment; or

. in some cases, transfer of the investment to another investment.

12. The MIWW is to be used in the following circumstances:

. where there is realisation of friendly society bonds or deferred interest investments purchased prior to 1 January 1988;

. where there is realisation of market-linked investments (MLIs) purchased prior to 9 September 1988;

. Compulsorily preserved superannuation benefit (CPSB) cases where there is withdrawal before pension age from superannuation bonds and funds, or from the preserved component of an approved deposit fund (ADF) or deferred annuity (DA); and

. CPSB cases where there is a realisation after pension age from superannuation bonds and funds, or from the preserved component of market-linked ADFs and DAs purchased before 9 September 1988.

Advantages of the new worksheet

13. The advantages of the MIWW are that it:

a) Maintains the concession to only assess profit that accrued while the person is a service pensioner, but is more generous than the old CPAS in that it:

  i) only assesses profit that actually accrued while the person was in receipt of a pension; and

ii) disregards any profit accrued before periods of two or more years of non-receipt of a pension;

b) Is easier to explain to clients and members of the financial industry.

c) More accurately reflects the profit actually accrued over the period the person was in receipt of a pension.

d) Is simpler to use and will reduce much of the confusion still being experienced by processing staff some four years after the original worksheet was introduced.

e) Requires less information to be obtained by staff in order to perform the calculation, as there is no need to request information in relation to transactions that occurred prior to the person being granted pension (refer point i) above).

f) Provides a method with a legal basis for assessing profit on withdrawals from preserved superannuation benefits.

Procedures for using the MIWW

14. Before using the MIWW you need to check on the investment information screen (PP.II) to see if the investment is assessable on realisation.

15. Full information on the use of the MIWW is provided on the reverse of the form. (A draft copy of the form is attached for interim reference use until printing of a formal form has been completed.)  A summary of this information follows:

1) Section 1 of the form is used to ascertain the start date of the assessment period. The assessment period is the time during which growth in the value of the investment is assessable for pension and DSS benefit/allowance purposes. This section has also been divided into two parts to allow for the different procedures to calculate the starting dates of the assessment periods for ordinary managed investments and  compulsorily preserved superannuation benefits (CPSBs).

2) Section 2 of the form calculates the gross assessable amount of capital growth in the value of the investment. If the client was in receipt of a pension or DSS benefit/allowance for the whole of the assessment period and has realised the full amount of the investment, this will be the amount assessable for 12 months following the date of realisation.

3) Section 3 of the form is used to calculate the gross assessable amount where only part of the investment is currently being realised.

4) Section 4 of the form is used to calculate the gross assessable amount where there were gaps in the assessment period. This takes into account the principle that the growth in the value of the investment during these gaps is not assessed for pension or DSS benefit/allowance purposes.

5) The amount at box J of section 4 is the amount to be included as income for 12 months from the date of realisation.

Managed Investment  ('MI') screen procedures

16. The fortnightly amount of profit to be assessed is placed on the 'MI' screen via the Investment Information 'II' screen by adding a false manager/product which has been set up as:

MANAGER : PROFIT TO BE HELD FOR 12 MONTHS DUE TO REALISATION

PRODUCT :  OF A CAPITAL GROWTH INVESTMENT

17. The "DATE ACQUIRED' in these cases is the date of the realisation.

18. The MI automatic fortnightly reassessment run will identify the profit entry on the 'MI' screen and delete it from the pay-day after the 12 month anniversary of the 'DATE ACQUIRED' as recorded on the 'MI' screen.

19. Since these cases are either automatically processed or automatically listed for processing, there is no need to set manual reviews.

20. There may be cases where a MIWW assessment provides a loss (negative return) from a realisation, and that loss is offset against realised profits on similar managed investments during an overlapping period,  In these cases it may still be necessary to set a manual review if the end of the overlapping period is not the same as the realisation date set in the 'DATE ACQUIRED" field on the 'MI' screen.

Reference areas

21. The new issue of the GOSP will in due course contain references to the use of the MIWW form under the headings "ASSETS AND INCOME TESTS"  "Managed Investments".

22. The Investment Policy Officer in each State will organise training in the use of the new form if necessary, and will be able to provide ongoing assistance with any queries that may arise regarding the use of the MIWW.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

(BENEFITS)

ATTACHMENT TO THIS INSTRUCTION

(NOTE:  This attachment has been rekeyed to enable it to be be included on the General)

MANAGED INVESTMENT WITHDRAWALS WORKSHEET

Withdrawal date

File No.___________ — Name ___________________________________ — date/              /

              Fund Manaager __________________________________              Product ____________________________

Section 1 - Calculation of start date of Assessment Period

Ordinary Non Superannuation Investment — Superannuation (CPSB) Invesment

(groups a and b in Guide Note 1)(groups c and d in Guide Note 1)

Start date is the later of:Start date is the later of:

                                       (i)date of commencement of pension (if 2

(i)date of commencement of pension (if 2 — or more years of continuous non-

or more years of continuous non-payment prior to latest

payment prior to latest grant, ignore earlier dates

grant, ignore earlier dates of grant://

of grant://

(ii)date the investment  was

(ii)date the investment wasmade://

made://

(iii)only if the CPSB is realised

(iii)for friendly societies, after pension age - date of

write 1 November 83://pension age://

Start date of assessment (iv)only if the CPSB was formerly

period (as calculated above) is//assessed on an ongoing basis -

date this ceased://

Start date of assessment period

(as calculated above) is//

Section 2 - Calculation of Gross Assessable Amount

AValue of investment at date of maturity/withdrawalA __________

BAll earlier amounts withdrawn from the investmentB __________

during assessment period

CValue of investment at start of assessment period

(as per start date in Section 1 above) PLUS anyTotal (A + B) __________

subsequent additions to the investment.

DProfit on previous sales/withdrawals from this

investment during the assessment period - this

is the sum of any previous positive Box GD __________

amounts on this version of the form, and any

positive Box I amounts on the old version

of this form.

Total (C + D) __________

EGross Assessale Amount = (A + B) - (C + D)E ________

Section 3 - Partial Sale/Withdrawals

Is this a partial sale/withdrawal?

Yescomplete the details below — Notransfer the figure in box E above to box G below,

then go to Section 4

FAmount now being sold/withdrawnF __________

GProportion realisedF __________XE __________=G ________

A __________(profit/loss realised on sale/withdrawal)

Section 4 - Assessment Period

Start of the assessment period as End of the assessment period (date of

per Section 1//withdrawal)//

Were there gaps in payment in the assessment period?

Yescomplete the details below — Notransfer the figure in box G above to box J below,

then complete item K

HNumber of whole months in assessment period

(not calendar months)H __________

INumber of whole months in H during whichI ___________

pension was paid (not calendar months)

JProportion assessableI __________XG ___________=J ______

H __________(assessable amount)

KFortnightly amountJ __________divided by 26=K ______

Examiner ____________________ — Date//

Guide to the Managed Investment Withdrawals Worksheet

APPLICATION OF THE SHEET

1.The worksheet is to be used in the following9.Where it becomes evident that earlier

cases:withdrawals have been made in the

arealisation of friendly society bonds orassessment period without advising the

deferred interest investments purchased prior               Department, separate withdrawal worksheets

to 1 January 1988:should be prepared for each withdrawal,

b.realisation of Market Linked Investmentsbeginning with the earliest.  If appropriate.

(MLI's) which were purchased prior to overpayments should be raised.  Details of

9 September 1988;past transactions should be requested.

OR

c.CPSB cases - withdrawals from superannuation              ITEMS ON THE SHEET

funds and bonds before age pension:  10.The items on the sheet should be completed

realisation of the preserved component of an               as follows:

Approved Deposit Fund (ADF) or Deferred

Annuity (DA) before pension age.Item AThis is the value of the investment at

d.CPSB cases - withdrawals from superannuationthe date of realisation, including the amount

funds and bonds after pension age;  realisationnow being realised.

after pension age of the preserved component

of a pre 9 September 1988 market linked ADFItem BThis is the total amount withdrawn

or DA.from this investment during the assessable

NOTE: 'Pension age' means 55 years for a femaleperiod excluding periodical distributions of

veteran;  60 years for a male veteran;  or 60 yearsincome or dividends.

for any other female;  65 years for any other male

Item CThis is the value of the investment at

UNDERLYING PRINCIPLESthe start of the assessable period plus any

2.The principle underlying this sheet is that increasesadditional amounts invested during the

in the value of an investment while pension assessable period.  Includes reinvested

(including Department of Social Security pensionsdividends but not bonuses.

or benefit/allowance) was paid, should be treated

as income for 12 months when the investment isItem DThis is the net total of all earlier

realised.  The legislative basis for this procedurerealised capital profits (positive amounts)

is contained in Section 46 of the VEA.during the assessment period.  It includes

amounts assessed in the past as a result of

3.The increase in the value of an investment iscalculations such as this one even though

calculated by adding the value of the investment at — 12 months may not have elapsed since the

the date of the withdrawal to all earlier amountscalculation.  It also includes amounts which

withdrawn (A+B), and deducting the value of theshould have been assessed but for

investment at the start of the assessable period (C).Departmental oversight or failure to notify

Previously realised profits, on which income has (see 9 above).

already been assessed (D) are also deducted,

otherwise those profit amounts would be countedItem EThis is the profit liable to assessment

twice.  The profit to be assessed on a total withdrawalon sale/withdrawal as per point 3 above.  Even

(E), is therefore (A+B) - (C+D).if a loss has occurred the worksheet should be

completed - see Item J.

4.If only part of the investment is withdrawn, the realised

profit or loss must be scaled down proportionally ie.Item F              This is the part of the investment now

if only half of the investment is cashed in only half ofbeing withdrawn/sold, after deducting

the capital gain (profit) is being realised.expenses such as fees or brokerage, but

before any tax has been deducted.

Item GThis is the part of the profit or loss

ASSESSABLE PERIODwhich has been realised on this withdrawal/

5.Where pension was not paid for the whole of thesale.

assessable period, the profit or loss to be taken into

account must be reduced proportionally - if theItem HThis is the number of whole months

investor had gaps in receipt of pension resulting inin the assessment period.  Count months from

pension only being paid for 30 months out of andate to date commencing at the start of the

assessable period of 40 months, only 3/4 of the assessment period, eg. 7 April to 6 May = one

realised profit would be treated as income.whole month;  7 April to 5 May = nil whole

months.  Do not use whole calendar months

6.The assessable period does not include any periodeg. all of April or all of May.

prior to a gap of two years or more during which

pension was not paid.  If the non-payment gap isItem IThis is the number of whole months

less than 2 years, use the earliest date of grant inthat pension was received during the

determining the start date of the assessment period.assessable period.  Count whole months as

defined in Item H above.

7.Where a married couple who are joint owners of an

investment have different dates of grant, use theItem JThis is the assessable amount from

earliest date as the date of commencement of pensionthe withdrawal.  If this a profit, it should be

for both clients in determining the start date of theheld as income for 12 months from the date

assessment period.of realisation.  If this is a loss (a negative

amount) it can be offset during the 12 months

8.Where one partner only is qualified for pension against any profits calculated using this form

and the other partner is the sole owner of the (or the old form D2702) but only for the

investment, the start date of the assessment period overlapping period.  The profit/loss should be

was made.  The exception is where the non-held even if the whole investment is realised.

qualified partner withdraws from a CPSB prior to

pensionable age.  In this situation there is no Item KThis is Item J converted to a

assessable period, and this means no income can fortnightly amount.

be assessed.

DATE OF ISSUE:  16 October 1992

EXTENSION OF REPATRIATION BENEFITS TO AUSTRALIAN EX-POWS FROM THE EUROPEAN AND KOREAN THEATRES

Purpose

1.The purpose of this Instruction is to detail the Government's 1992/93 Budget decision to extend certain repatriation benefits to Australian ex-POWs from the European (E) and Korean (K) theatres, and to outline the procedures to be followed by Branch Office staff to give effect to the decision.

Budget Decision

2.The Budget decision compensates Australian ex-POWs from the European and Korean theatres for the adverse effects flowing from their incarceration by:

.removing the present annual financial limit of $440 on high-cost dental items in Schedule C of the LDO Fees Bulletin, and

.automatically accepting as being war-caused, all claims where the veteran has a medically diagnosed psychiatric disorder and/or peptic ulcerative disease.

Date of Effect

3.The Budget Decision took effect from 1 September 1992.

Implications of the Decision

4.Similar benefits are already available to Australian ex-POWs of the Japanese (ex-POWs(J)).  This latest decision means that all Australian ex-POWs will be treated the same, irrespective of their theatre of conflict.

5.Please note that ex-POWs(J) can claim also for Hepatitis B and Strongyloidiasis. These diseases were most widespread in the geographical areas where ex-POWs(J) served or were interned.

6.All Australian ex-POWs are now exempt from the annual limit on high-cost dental items contained in Schedule C of the Department's LDO Forms Bulletin including crowns, bridgework, and gold restorations.  Treatment, however, is to be provided through the LDO Scheme.

7.In addition, all diagnosed psychiatric disorders or peptic ulcerative diseases are to be accepted as war-caused.  This will make it less intrusive and less traumatic for ex-POWs to claim compensation for these disabilities.  Ex-POWs who have previously had a claim for any of these disabilities rejected, are eligible to reapply.

Range of Disabilities Covered

8.The terms 'psychiatric disorders' and 'peptic ulcerative diseases' are generic descriptions which cover a range of related disabilities.  The related disabilities that qualify for acceptance under this new initiative are currently:

Psychiatric Disorders

anxiety state

anxiety reaction

anxio-depressive illness

depression

reactive depression

anxiety neurosis

neurotic anxiety

neurotic depression

psychoneurosis

psychoneurotic disease

psychoneurotic illness

psychoneurotic state

post-traumatic stress disorder

PTSD

depressive illness

depressive reaction

depressive state

Peptic Ulcerative Diseases

peptic ulcer

peptic ulcerative disease

peptic diathesis

gastric ulcer

gastric ulceration

duodenal ulcer

duodenal ulceration

9.The authority to decide upon the inclusion of other conditions under the headings of psychiatric disorders or peptic ulcerative diseases rests with the Medical Services Adviser to the Benefits Program.  All such requests or queries about this matter are to be addressed to:

Medical Services Adviser

Benefits Program

Compensation Section

CENTRAL OFFICE

Legislation

10.As for the earlier ex-POW(J) initiative, no change to the Veterans' Entitlement Act is necessary.  The Commission's 'Treatment Principles', however, will be amended to remove the annual financial dental limit for all ex-POWs, not just for ex-POWs(J) as at present.

11.The current Statement of Principle on ex-POWs(J) will be amended to take account of all ex-POWs and the conditions that will be accepted.  Strongyloidiasis and Hepatitis B will continue to be identified as particular to ex-POWs(J).

Publicity

12.Information about the proposal will be disseminated as follows:

.by letter from the Minister to each ex-POW (E) and (K) recorded on our ADP client data base,

.by letter from the Minister to ex-Service Organisations advising them of the initiative and asking them to further advise their membership,

.by a Ministerial News Release on the day the letters are despatched, and

.by producing an information/training video for DVA staff.

13.Letters will be sent as soon as possible after data extract so that, as far as is practicable, they are sent only to surviving veterans.  Data extract will occur overnight on a Monday, with letters printed and despatched the next day.  This should ensure delivery by the following weekend.

14.Branch Offices will be advised of the dispatch date and the text of the News Release and letters when these have been agreed.

15.An information/training video is planned along the lines of the video, "Every Inch of the Way", which was produced in 1990 to cover the ex-POWs-J initiative.   Production of a similar video covering the conditions experienced by ex-POWs (E) and (K) will increase staff awareness of, and sensitivity to, the ex-POW issue.  It will also serve to demonstrate to the ex-Service community that the Department recognises the special problems experienced by ex-POWs.

Processing of Claims - Benefits

16.A veteran must apply, formally, to have the disabilities accepted.

17.Departmental Form D2585(P1) Jun 92, "Claim by a Veteran for Disability Pension and Medical Treatment", provides for veterans claiming any new injury or disease to have these diagnosed by a medical practitioner.

18.Where a claim is submitted by an Australian ex-POW for one of the disabilities listed in paragraph 7 above, and a 'final' diagnosis has been made by a medical practitioner, the disability is to be accepted as being war-caused by the Determining Officer without further investigation.

19.Where a medical practitioner makes a 'provisional' diagnosis, the claim is to be referred to the Departmental Medical Officer (DMO) for further diagnosis.  If the DMO makes a 'final' diagnosis, the disability is to be accepted as being war-caused by the Determining Officer without further investigation.

20.Claims which are being examined now can be accepted provided they include evidence to show that the veteran has been diagnosed as having the disabilities.

21.Where a spouse is claiming that the veteran died from any of the disabilities in question, but the veteran did not make a claim to have them accepted:

.the disabilities are to be accepted as being war-caused if evidence shows that the veteran had been diagnosed as having the disabilities; and

.the claim for war widow's or war widower's pension is to be processed in the usual manner to determine if the death of the veteran was due to his (newly) accepted disabilities.

Dental Treatment

22.Dental treatment plans for Australian ex-POWs that  include high-cost Schedule C items are to be submitted to the Department's Dental Consultants for approval.

23.The Treatment Account System is being changed to reflect the new arrangements and allow payment of Schedule C claims on behalf of all Australian ex-POWs.

Statistics

24.Branch Offices are not required to undertake any special procedures to facilitate the subsequent extraction of statistics from ADP systems.  Central Office will extract statistics required for inclusion in any Management Report and/or to answer any Parliamentary Question or other inquiry.

Contact Officers

25.Further details or clarification of any point can be obtained by phoning the contact officers on:

Benefits Program - Ces White, 06-2896485

Health Program   - Jonathan Abrahams, 06-2896687

PETER HAWKER — TONY ASHFORD

NATIONAL PROGRAM DIRECTOR — NATIONAL PROGRAM DIRECTOR

BENEFITS HEALTH

DATE OF ISSUE: 16 October 1992

MANAGED INVESTMENTS 'ACCRUING RETURN INVESTMENTS' MEANING OF 'CURRENT ANNUAL RATE OF RETURN'

PURPOSE

1.The purpose of this instruction is twofold:

a)to advise that the calculation of the 'Current Annual Rate of Return' in relation to 'Accruing Return Investments' (ARIs) has               been standardised, and

b)to advise that the bulk of the managed investment information used by DVA and DSS staff will now be provided by an external data research firm.

BACKGROUND

2.Since 1987, DSS has collected data on managed investments for it's own On-Line Information System.  DVA has relied on DSS to provide this data for input into the DVA Managed Investment System.

3.Both DSS and DVA processing staff access this information to enable them to assess income and asset values on managed investments held by our clients.

4.The information currently in use is supplied to DSS by fund managers throughout Australia and is updated on a monthly basis.

5.Attachment A summarises the existing managed investment assessment rules in brief;  and Attachment B summarises the relevant VEA extracts relating to 'Accruing Return Investments' assessable on an ongoing basis.

OBTAINING DATA FROM AN EXTERNAL SOURCE

6.DSS have engaged a private company (Assirt Pty Ltd), to provide the bulk of the data required by DSS and DVA to assess income and asset values on managed investments held by our clients.

7.Assirt Pty Ltd are a recognised investment research firm, which collects investment data on most managed funds.

8.DSS will be supplying this managed investment data to DVA as per the Agreement entered into with Assirt Pty Ltd and in accordance with a Memorandum Of Understanding between DVA and DSS.

9.DSS will still have a role in researching and collecting data on a number of managed funds where the information cannot be provided by Assirt, and in instances where specific determinations need to be made in relation to

legislative provisions.

ENGAGEMENT OF ASSIRT PTY LTD

10.The engagement of Assirt Pty Ltd as the provider of investment data has a positive impact on DVA clients.  The result is that DVA will be provided with a more accurate and up to date supply of investment data on which to calculate the income and asset values on managed investments held by

our clients.

11.However, there is one major change that is incidental to the engagement of Assirt Pty Ltd, and that Branch staff need to be aware of.  This change centres on the standardisation of the way in which the 'Current Annual Rate Of Return' should be calculated for 'Accruing Return Investments' (i.e., managed investments that are either guaranteed, stable or secure, and that are unlikely to reduce in value).

DECISION TO STANDARDISE THE METHOD OF CALCULATING THE

CURRENT ANNUAL RATE OF RETURN FOR ACCRUING RETURN

INVESTMENTS (ARIs)

12.The information provided by Assirt will ensure that all 'Accruing Return Investments' have their 'Current Annual Rate Of Return' calculated on the basis of the performance of the investment over the previous 12 months.

13.Currently, most investments in this category have their rates of return calculated in this manner.

14.However, there are a significant number of Accruing Return Investments that have had their 'Current Annual Rate Of Return' calculated on either the last declared rate, or the current crediting rate, or on the basis of either an annualised weekly, monthly, quarterly or half yearly rate (i.e., not calculated on the basis of the performance of the investment over the previous 12 months).

15.The decision to standardise the method of calculating the 'Current Annual Rate Of Return' on all 'Accruing Return Investments' (ARIs) is supported by the Veterans' Entitlements Act and the Social Security Act.

16.  The legislation supports and allows a methodology which calculates the 'Current Annual Rate Of Return' based on returns over the preceding 12 months.  It is obviously fairer that all these investments have their 'Current Annual Rate Of Return' calculated in a consistent manner.

17.However, queries may still arise in the form of telephone calls, Branch correspondence, Ministerial correspondence and Applications For Review of a decision under s57 of the Veterans' Entitlements Act.

18.The information in this instruction should be used as a basis to answer telephone and/or written enquiries on this issue.

19.The provision of clear and accurate information to clients affected by this issue will contribute to reducing any confusion experienced by DVA clients.

METHOD OF CALCULATING THE 'CURRENT ANNUAL RATE OF RETURN' ON 'ACCRUING RETURN INVESTMENTS (ARIs)

20.In calculating the 'Current Annual Rate Of Return' on any 'Accruing Return Investment', the return on the investment over the immediately preceding 12 months will be taken into account.

21.'Return' is defined in the VEA as being any increase in the value of the investment, whether of a capital or income nature and whether or not distributed.

22.A return on an investment can include a combination of either:

.any increase in the unit price;

.any bonus units;

.any cash bonuses;

.any cash distributions.

23.'Annual Rate Of Return' is defined in the VEA in terms of the previous 12 months.

24.Therefore, the 'return' over the current immediately preceding 12 months period is taken into account when calculating the 'current annual rate of return'.

FOR EXAMPLE:

a)FOR INVESTMENTS THAT ARE UNIT BASED (ISSUE UNITS)

bonus units &

change in unit price+income distributions

over the past 12 monthsover the past 12 months

       (if any)                    (if any)       x              100

unit price 12 months ago — 1

b)FOR INVESTMENTS THAT ARE CASH BASED (DO NOT ISSUE UNITS)

bonuses &

change in value+income distributions

over the past 12 monthsover the past 12 months

       (if any)                    (if any        x              100

value 12 months ago — 1

c)FOR INVESTMENTS THAT DECLARE A RATE ANNUALLY IN ARREARS

Use the last declared rate until the subsequent year's rate is declared.

WHO WILL BE AFFECTED ?

25.This decision will affect age and service pensioners who hold 'Accruing Return Investments' and who have to date not had the revised method of calculating the 'Current Annual Rate Of Return' applied in their service pension assessments.

WHEN WILL THESE CHANGES TAKE PLACE ?

26.DSS have already established their link with Assirt Pty Ltd effective 6 July 1992.  The updates DVA are to receive will be progressively entered into the DVA Managed Investment System over the next few months.

27.Therefore, the changes are currently in effect. However, any changes in rates will occur gradually as staff recalculate the income and asset holdings of our clients on review.

STRATEGY TO DEAL WITH QUERIES

28.  Any client queries on the data provided by Assirt Pty Ltd can be addressed through the existing network of DVA Investment Policy Officers, as follows:

CURRENT INVESTMENT POLICY NETWORK PROCEDURES

(i)Client query received on accuracy of data.

(ii)Processing staff provide an explanation of the managed investment rules on Accruing Return Investments (ARIs) and explain how the 'Current Annual Rate Of Return' is calculated.

(iii)If processing staff require assistance in answering  the enquiry, or the client is still dissatisfied after the explanation and is questioning the accuracy of the data, then the processing officer should contact their Investment Policy Officer (IPO), and request that the accuracy of the data be checked to verify whether DVA/DSS data is in error.

(iv)If the data is in error, DVA can override the existing data with the correct data, and inform DSS of the error for subsequent correction on their next update.  It is not expected that this will be the case for the majority of queries.

(v)If the data is not in error, the Investment Policy Officer provides direction to the staff member or client on the legislative basis for assessing the investment with the data in question.

(vi)If the client remains dissatisfied, a right of appeal exists to the Repatriation Commission and then to the Administrative Appeals Tribunal.  The client is to be advised of his/her appeal rights.

IMPACT OF THE BUDGET ANNOUNCEMENT TO REMOVE THE DISTINCTION BETWEEN ACCRUING RETURN INVESTMENTS (ARIs) AND MARKET LINKED INVESTMENTS (MLIs)

29.The recent Budget announcement regarding the removal of the distinction between ARIs and MLIs may impact on the methodology outlined in this instruction for calculating the 'Current Annual Rate Of Return'.

30.It is possible that as a result of the Budget announcement that all managed investments (ARIs and MLIs) will have their rates of return calculated using the methodology outlined in this instruction.

31.However, details of the Budget announcement will be issued in a separate instruction when the full impact of the Budget has been assessed.

BRANCH OFFICE ENQUIRIES

32.The information in this instruction should be used as a basis to answer telephone and/or written enquiries on this issue.

33.A supplementary instruction containing samples of written responses will be issued to further assist Branch Office staff in replying to correspondence.

34.If you have any enquiries in relation to this instruction, please contact your local Investment Policy Officer.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

13 OCTOBER 1992

ATTACHMENT A

MANAGED INVESTMENT INITIATIVES

Since 1987, the Government has progressively rectified the administrative and legislative deficiencies that have enabled some pensioners with substantial managed investments to accrue income and avoid the income test until they elect to cash in their investments.

The Government believes that earnings from all investment sources should be treated in an equitable manner.

The legislation which is now in place provides a means by which capital growth can be taken into account on an ongoing basis, that is, as it accrues, rather than when the investment is cashed in.

THE MANAGED INVESTMENT ASSESSMENT RULES

If an investment is categorised as an 'Accruing Return Investment', that is, a relatively non-speculative investment which is unlikely to decrease in value, then the income which accrues on that investment is assessed on an ongoing basis as fortnightly income in determining service pension entitlement.

If an investment is categorised as a 'Market-Linked Investment', that is, a more speculative investment where the investor could lose capital if the investment performed badly, then a statutory rate of return of 11% (or lower) is used to determine the fortnightly income to be assessed on an ongoing basis in determining service pension entitlement.

The only exceptions to these rules are where the investment:

1.was made prior to 1 January 1988 with a Friendly Society; or

2.was made prior to 1.1.88 and was of a kind where the investor did not have access to the funds for at least 12 months or until realisation; or

3.is a market-linked investment made prior to 9.9.88.

The income which accrues in these situations is assessed as income only when the investment is realised, that is, on sale, maturity, surrender or withdrawal.  The profit component is then maintained in the pension assessment for 12 months, commencing on the day on which the person is entitled to receive the amount.

In the case of market-linked investments purchased prior to 9.9.88, any dividends paid will be held as ongoing income in addition to the profit component being assessed on realisation.

ATTACHMENT B

THE LEGISLATION

The VEA contains several sections in relation to 'Accruing Return Investments' and the 'Current Annual Rate Of Return', as follows:

Subsection 5J(1):'accruing return invetsment' means an arrangement by a person that consists of or includes an investment of money, being an investment:

(a)that produces:

(i)a fixed rate or quantifiable rate of return, whether or not that rate varies from time to time; or

(ii) a rate of return that may be reasonably approximated;

and

(b)the value of which from time to time is unlikely to decrease as a result of market changes.

Subsection 5J(1):'return' in relation to an investment (including an investment in the nature of superannuation), means any increase, whether of a capital or income nature and whether or not distributed, in the value or amount of the investment.

Subsection 5J(1):'annual rate of return' has the meaning given by

subsection (2).

Subsection 5J(1):'subsection (2)':  'Where the value or amount at a particular time of a market-linked investment included in an investment product is equal to or less than the value or amount of that market-linked investment 12 months previously, the annual rate of return at that first mentioned time for market-linked investments included in that investment product is to be taken, for the purposes of this Act, to be 0%.'

Section 46C:Investments made before 1 January 1988 not with Friendly Societies or where return is not deferred:  'the person is to be taken, for the purposes of this Act, to receive the current annual rate of return on that investment as ordinary income of the person....'.

Section 46D:Investments made after 1 January 1988:  'the person is to be taken, for the purposes of this Act, to be taken to receive the current annual rate of return on that investment as ordinary income of the person....'.

Section 46E:Actual return not to be treated as income:

'If:

(a)a person is to be taken, because of this subdivision, to have received income from an investment in respect of a period; and

(b)the person actually receives a return from the investment in respect of that period;

the return actually received is to be taken, for the purposes of this Act, not to be ordinary income of the person.'

Section 46F:Rate of return where it can only be approximated:     'If the rate of return on an accruing return investment is not a fixed or a quantifiable rate, for the purposes of this subdivision, the current annual rate of return on that investment is a reasonable approximation of the rate of return.'

DATE OF ISSUE 18 SEPTEMBER 1992

AUTOMATIC GRANT OF FUNERAL BENEFITS

Introduction

The purpose of this instruction is to advise that where a veteran who was in receipt of a pension at the Special Rate or had pension increased under Section 27 (items 1-8) dies, a Funeral Benefit is payable to the estate of the deceased.  The payment of the benefit is administered automatically by the Death Processing System in these circumstances.

Background

The Funeral Benefit is designed to partly defray the cost of a funeral and payment of the benefit is intended to be made to the person who incurred the cost of the funeral.  To make sure the Funeral Benefit is directed to the appropriate person, it was decided that in cases where payment is automatic, the benefit should be directed to the estate of the deceased.  This was seen as the best means of expediting payment and in most cases ensuring that the executor, who would normally be the surviving spouse or dependant, received the monies.

Procedure

On receipt of advice that an eligible veteran has died a letter is sent to the "Executor of the Estate" at the veteran's last known address.  This letter provides information concerning the automatic payment of the benefit.  A form (copy attached) is sent with the letter.  This form asks for the name and address of the executor and for details of any extra costs incurred in transporting the body of the deceased.  This method allows cheques to be sent to the correct person and allows the Department to record where cheques have been sent for audit purposes.

Where a completed form has been received payment of the benefit should be arranged.  This form effectively replaces form D307 "Claim for Funeral Benefit" and payment can be authorised from a completed form.  States are to institute procedures for random sample checking via the Client Data Base to confirm that the deceased was eligible for a Funeral Benefit.

In cases where a beneficiary of the deceased's estate is not the executor, and funeral expenses have been incurred by the person, the beneficiary should make a claim against the estate.  Before a will is granted probate all debts against the estate, including outstanding funeral expenses, must be discharged.

Where a will is being administered by the Public Trustee, a beneficiary of the estate who has paid the funeral costs should present the Public Trustee with an account for the funeral and claim back costs from the estate.

In those cases where the executor of the deceased veteran's estate is not the surviving spouse or a dependant, there is a need to ensure that the funeral benefit is quarantined from other assets and is paid only to defray the cost of the veteran's funeral.  The advice letters or notes sent out will need to be amended to ensure that the message is conveyed that the funeral benefit cannot be used for any other purpose than partly defraying the cost of the funeral.  All States will need to make suitable changes quickly.

For information, the Public Trustee in the ACT was contacted and they advised that there would be no problem in quarantining that $550 and making sure it is used as proposed.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

11 September 1992

ATTACHMENT TO THIS INSTRUCTION

Commonwealth Department of

VETERANS' AFFAIRS

BRANCH OFFICE

Centennial Plaza

280 Elizabeth Street

Sydney   NSW   2000

Postal Address:

GPO Box 3994, Sydney  NSW  2001

Telephone:

Metropolitan Residents: (02) 213 7777

Country Residents: 008 257 251

Facsimile:  (02) 281 2083

13 August 1992

File number is X073836

GRANT OF FUNERAL BENEFITS

Deceased's File Number:

Deceased's Name:

Executor;s Full Name:

Executor's Postal Address:

Was a separate change made by the funeral director for transporting the deceased?

NO

YES              Please attach a copy of the account.

Executor's Signature

_

DATE OF ISSUE: 11 SEPTEMBER 1992

TAX FILE NUMBER COLLECTION - DESTRUCTION OF TFN REGISTRATION FORMS

BACKGROUND

As outlined in DI 44/91 a Tax File Number (TFN) Registration form is included in the letter that requests a pensioner's TFN.  (Also included with the letter is an Application/Enquiry form).  This registration form is returned to DVA with a pensioner's TFN on it.

PURPOSE

The purpose of this instruction is to advise of the procedures for the destruction of TFN registration forms once they have been returned.

It is essential to ensure that the TFN registration form is shredded once the TFN has been recorded on the system.  Under no circumstances should the TFN registration form be placed on file.

PETER HAWKER

NATIONAL PROGRAM

DIRECTOR

BENEFITS

8 September 1992

DATE OF ISSUE:9 SEPTEMBER 1992

GUIDELINES FOR PROCESSING NOTIFICATION OF CHANGE OF CIRCUMSTANCES RECEIVED BY TELEPHONE

PURPOSE

The purpose of this instruction is to specify guidelines for staff receiving notification of change of circumstances via the telephone.

LEGISLATION

2.  When a notice is issued to a pensioner advising of his/her obligations to notify the Department of a change of event or change of circumstances, paragraph 54(4)(c) VEA provides that this request  " must specify the period within which, and the manner in which the person is to give the information to the Department or the specified officer".

CURRENT POLICY

3.  In June 1991, the Benefits Management Review of Efficiency (BMRE) recommended implementation of telephone notification for pensioner initiated reviews.  The Repatriation Commission has approved this recommendation and notification of a change in circumstances over the telephone is now acceptable.  It is no longer policy for service pensioners to always confirm such telephone advice in writing.

4.  Chapter 13.5.2 of the current General Orders Service Pension states,  "Where a person advises of a change by telephone, the person must be informed that details provided over the telephone will initiate review action but must be confirmed in writing as soon as possible".  This will not be included in the re-written version of the General Orders.

5.  This change in policy brings the Department in line with the Department of Social Security who will soon have teleservice centres available for their pensioners to notify of changes.

ADVICES

6.  The obligations paragraph in the quarterly advices has already been altered to include telephone advice as an acceptable manner in which pensioners may notify the Department of any change to their circumstances.  Daily and fortnightly automatic advices will also be amended.   Some advices have been issued with the three acceptable forms of notification of a change but do not point out that in some cases telephone advice is not sufficient.  The wording of all future advices (except the September 92 Quarterlies)  will be changed to state that in some cases additional written advice may be required.   The following wording is to be used in future advice letters:

When you are telling us of changes to your circumstances you should do this by telephoning or visiting any Department of Veterans' Affairs Office, or by writing to the Deputy Commissioner.  The address and telephone number is noted at the beginning of this letter.  If you telephone, we may ask you to confirm information in writing or to send us certain documents which are related to the matter.

CALLER IDENTIFICATION

7.  Effective immediately, all staff are to accept notification of change of circumstances over the telephone,  where appropriate.  Occasionally, examiners will receive calls from family or other bona-fide representative of the pensioner such as solicitors, carers,  etc.   Notification of changed circumstances will be accepted from these callers.

8.  The person making the call will be considered to be bona-fide unless there is any reason to believe otherwise.   All callers (pensioners or representatives) should be able to satisfy at least two points on the Security Check part of the new form.   The new form is at attachment A.

9. When verifying the caller's information against client records,  two screens may need to be used.   From a date in the near future the date of birth of the payee will not be displayed on the PMF.   In some States the PMF address is not updated and so is not reliable.  The account for payment details can be obtained from the PMF screen and address and date of birth from IQ.CR.

10.  In all cases contact telephone numbers should be obtained.  This will allow clarification of any matter that comes to light when the case is being actioned.

11.  Please refer to paragraph 20  for additional security checks required when Method of Payment Changes are taken over the telephone.

PENSIONER INITIATED REVIEWS

12.  All staff members are to accept Pensioner Initiated Reviews over the telephone,  where appropriate.   After completing the Caller Identity Check details of the matter are to be noted on the form.   The new form has a series of quick reference text boxes that have been designed to reduce the amount of text that has to be hand written on the form.   The use of this section of the form is not mandatory.

13.  In each case the CM.IM screen should be accessed to see if there is any current action.   If there is,  it may be appropriate to transfer the call to that action officer.

14.  There will be cases where confirmation in writing or other written material is needed,  such as Tax Returns for the self employed and primary producers.   Additional material is to be requested on a case by case basis,  but is not required as a matter of course.

Registration of PIRs

15.  All PIRs that result from a telephone call should be registered on the system using appropriate local procedures.   The new form contains space to write the case number when the case is registered on the system.

Auto Advices

16.  Automatic Advices (or parts thereof)  must not be suppressed when information has been received over the telephone.  This includes "continuation" cases.   Although income and asset details will not show on some advices,  sending an advice will alert the payee that a change has been made and places the obligation on the pensioner to advise the Department if an error appears to have been made.

DEPARTMENTALLY INITIATED REVIEW

17.  In each case of telephone advice the caller should be asked if the call is in response to a Departmentally initiated enquiry.   If it is,  the caller should be asked for the contact name on the advice or for the type of form they are responding to.   If the caller dialled the correct contact number please do not attempt to transfer the call because that phone is probably engaged or otherwise not available.   In some cases it may be appropriate to transfer the call to another section.   In these cases,  examiners should be mindful of "client service" and ensure that the caller is not transferred from one section to another.   Some callers will wish to give information about two or more matters.   For use in these cases space has been made available on the new form to indicate the section and action officer to whom the telephone message is to be referred.

CHANGES TO METHOD OF PAYMENT

18.  Details of changes to method of payment are also to be taken over the telephone.  However, in this instance examiners must exercise a higher degree of caution as this type of change is at a higher risk of fraud.

19.  The existing locally produced forms, "Direct Credit - Amended Account Details" or similar should be used to record a change to Method of Payment taken over the telephone.   It is proposed to centrally produce a new form for this purpose.   The new form will be issued soon but separately to this instruction.

20.  For security purposes the caller must be able to identify the old account number and date of birth or DVA file number.   The pensioner's address and old account number only is not suitable for a MOP change because they appear in bank books.   If the bank book had been stolen and because financial institution computer processing does not check the account name the system is open to fraud (until the pensioner contacts the Department about non receipt of payment or after the receiving the MOPC advice).

21.  It is reasonable to accept telephone advice regarding a change in method of payment and it is not necessary for the pensioner to confirm the details in writing in the following circumstances:

[17]a change for the partner of the caller if the old account is in joint names and the new account is in joint names;      or

[17]a change for the partner of the caller if the new account is in the partner's name;      or

[17]a change advised by a family member or bona-fide representative subject to the above security checks if the new account is in the payee's name.

22. It is not acceptable to take a change via the telephone if the caller advises that the new account is not in the payee's name.   It should be remembered that in every case, be it personal,  written or telephone there is no foolproof method of determining that the person is the person they say they are.  It is fortunate that the system is designed so that any case of fraud will be found out in due course.

CHANGE OF ADDRESS

23.  Change of residential and postal address will continue to be taken over the phone in accordance with existing local procedures and using existing forms.   Local procedures should be established so that Pensions Section becomes aware of changes to rent paid or changes to residential situation that affect the rate of pension.

APPEALS

24.  It remains a requirement that appeals be lodged in writing .   However,  should a pensioner telephone in an attempt to lodge an appeal details should be noted so that the delegate who made the primary level decision can contact the pensioner to explain the reason for the decision.   In some cases the pensioner will not proceed with an appeal,  but in no circumstance should the pensioner be discouraged from appealing or in any other way be denied the right to appeal.

RECORD KEEPING

25.  Effective local procedures should be established so that all records of change in circumstances taken over the telephone are kept for possible future reference.   The records may be necessary in Overpayment and Appeal cases.

Contact Officer

26.  Should you require further information please contact Ric Moore on (06)289 4739  fax (06)285 2669  or LAN   B-SC-1:ACT:DVA.

PETER HAWKER
NATIONAL PROGRAM DIRECTOR
BENEFITS

ATTACHMENT TO THIS DEPARTMENTAL INSTRUCTION

(NOTE:  This attachment has been rekeyed to enable it to be included on the General).

Record of Telephone Notification of Change of Circumstances

Security check

Pensioner's full name___________________________________DOB

Pensioner's address____________________________________Account for payment

File Number orAddress

or Service Number_______________

Partner's name

Name of caller________________________________

File Number

Relationship of

caller to pensioner________________________________Other ..............

Caller's phone number(____)____________Date call received//

____________________________________________________________________________________

Change of circumstances

Change to existing account investment — New account/investment — Change to earnings

Commencement of earnings — Change to rent paid — Change to rent received

Details of change of circumstances

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Is there additional information attched? Yes — No

____________________________________________________________________________________

A copy of this notification has been sent to _____________________________________ for their action

Your name — _________________________________ — Markout  ______________              CMS Case Number

Signature — _________________________________ — Date//________________

D ... Aug 1992

DATE OF ISSUE: 4 SEPTEMBER 1992

SEPTEMBER 1992 BULK PROCESSING AND QUARTERLY ADVICES

TABLE OF CONTENTS

Quarterly Advices.........................................................3

Associated Departmental Instructions...........................................4

Regulation 45A certification..................................................4

Telephone Allowance - Indexation & Quarterly Payment.............................4

Rates of TA payment.................................................4

British Retirement Income - Exchange Rate Adjustment..............................5

Effective Date of Exchange Rate Variation.................................5

Automatic Superannuation Processing....................................5

FI Interest Rate Refresh/Deeming Rate Change...................................5

FI Interest Rates Data................................................6

Who Is Affected.....................................................6

Evaluation.........................................................6

ADP Processing..........................................................7

Disposed Asset re-assessment.........................................7

Early Interface......................................................7

Moratorium on PIPS data-collection and submission..........................7

"Frozen" action records...............................................7

Non-frozen action records.............................................8

Pre-processing.....................................................8

Preparation........................................................9

Holding of daily advices...............................................9

Despatch of Quarterly Advices..........................................9

Parameter Cards....................................................9

Limitation Cases....................................................9

Timetable.........................................................10

Fringe Benefits changes..............................................10

Manual Listings.....................................................11

Suspension cases...................................................11

Disability allowance increases..........................................11

Frozen Action Records................................................11

CDB/PMF mismatch cases.............................................12

Manual Methods of Assessment.........................................12

Manual DP Recorded on the CDB.......................................12

Assessment Errors..................................................12

Daily Advices......................................................13

Liaison with Ferntree Computer Centre (NCC)...............................13

Contact numbers..........................................................13

FI/Deeming Contact Officers.................................................14

Advices Paragraph Contents.................................................15

Sequencing of paragraphs.............................................15

British Retirement Income.............................................16

FI Interest Rates Refresh & Deeming.....................................16

Deprivation cases...................................................17

Telephone Allowance.................................................18

Fringe Benefits changes..............................................19

Introduction

There will not be an increase in the rate of service, disability or war widow pensions on the 1 October 1992 payday, because the Consumer Price Index (CPI) figure for the relevant period was negative.

1.Some allowances will however have rates increased on 1 October 1992 because they are based on a different indexation period; these are Telephone Allowance (TA), Recreation Transport Allowance (RTA), Attendant Allowance, Clothing Allowance and Specific Disability Allowances (SDA) contained in VEA section 27, items 7-15.

2.Revised pages for the Pension Payments Codebook , and new DP rate cards, will have been issued prior to the payday by the Benefits Systems Management  & Support Section.

3.On the same payday the quarterly payment of Telephone Allowance (TA) will be made to eligible pensioners.

4.On the same date there will be a British Retirement Income ("BRI") exchange rate variation, a change to the deemed rate of interest on accounts ("deeming"), and an update of the interest rates held on the pension processing system for most "at call" accounts ("FI refresh").

5.The above events will be integrated with the  Quarterly Advices mailout exercise. Those service pensioners, disability pensioners and war widows affected by any of the above will receive a Quarterly Advice letter containing the appropriate details for the relevant event(s).

6.Although this processing does not constitute a normal Statutory Increase (SI), the major re-assessment program ("BAL") will be run selectively to re-assess all cases with income/assets affected by any of the events mentioned above.

Quarterly Advices

7.Not all pensioners will receive an advice on this occasion, although most service pensioners will. Where a service pension assessment is a joint assessment (ie married), a single joint advice will be produced. Advices will be issued for the following circumstances:

.where Telephone Allowance (TA) is payable;

.where the service pension rate is varied;

.where a reduced-rate continuation occurs despite income/asset data changes (i.e., income changes are self-cancelling).

8.Paragraphs relevant to BRI, FI refresh or Deeming will only be included where the pensioner's income/asset values are varied.

9.The increased fortnightly rate of some DP allowances will not be specifically mentioned in the text of the Quarterly Advices but the new rate of the allowance will appear in the payment box if an advice has been generated for the particular pensioner(s).

10.A pensioner will not have an advice letter generated solely because of the increased rates of DP allowances, even if Rent Assistance is reduced by increased SDA rates. It is unlikely that there will be any cases in the latter situation.

Associated Departmental Instructions

11.Departmental Instruction B25/92 [14] set out eligibility criteria and other details relating to TA, while DI B26/92 [15] outlined general principles covering the issue of quarterly advices. In addition, State Program Managers (Benefits) and System Support Officers have been provided with copies of the rules for this processing run, entitled September 1992 Quarterly Advices System Rules and Components, which contains details of paragraph wording. Some further amendments have been made; a summary of the final wording is attached to this instructtion.

12.The BRI, FI refresh, Deeming, Statutory Increase, TA  and Quarterly Advice processing is scheduled from Friday afternoon 11 September till Sunday 13 September 1992.  ADP processing guidelines and a  timetable  appear later in this instruction.

Regulation 45A certification

13.The Assistant Secretary of both Benefits Planning & Management and IT Applications Branches in Central Office will attest to the correctness of the new data and the programs used to conduct the exercise.  Certificates in the terms of Finance Regulation 45A will be forwarded to the Authorising Officer in your Finance Branch.

Telephone Allowance - Indexation & Quarterly Payment

14.The first quarterly payments of Telephone Allowance (TA)  were made in July 1992. Departmental Instruction B25/92 [14] sets out the eligibility criteria and processing guidelines. That instruction should be consulted as necessary, but references to processing dates should of course be ignored. Significant dates for this exercise appear later in this instruction. A further DI on TA will be issued later this year, chiefly covering arrears issues.

Rates of TA payment

15.The three rates of TA payment have been increased, as follows:

• The World War 1 rate rises to $165 pa (or $41.30 per quarter);

• The Base Rate rises to $52.80 pa ($13.20 per quarter);

• The Half Base Rate rises to $26.40 pa ($6.60 per quarter).

16.The quarterly TA payment amount will be shown on a person's payment advice, in the paragraph  immediately following the payment details box.

17.Pension re-assessment processing precedes TA processing, so anyone gaining Fringe Benefits on 1 October will receive TA, and anyone losing Fringe Benefits (and not otherwise eligible for TA) will not receive TA.

British Retirement Income - Exchange Rate Adjustment

18.The Veterans Entitlements' Act (Part III Division 9) specifies the requirements for conversion of foreign currency amounts, and consequent re-assessment of service pension. The legislation also specifies that the rate will be calculated to four decimal places.

Effective Date of Exchange Rate Variation

19.On payday 1 October 1992 the current exchange rate for the Pound Sterling will change from A$2.2815 to A$2.5549, being the average of the "on demand airmail buying rate" for the month of July 1992.  This is the same exchange rate as the Department of Social Security will be holding from their 24 September 1992 payday.

20.The amount recorded on the Client Data Base (CDB) as superannuation  type 08 or 09 will be varied by applying a conversion factor which is calculated as follows:

new exchange rate =$2.5549    = 1.1198

old exchange rate$2.2815

21.The amount (in Australian dollars) of income recorded as British Retirement (BRI)  superannuation type 08 or 09 will be multiplied by the conversion factor to give the new rate of superannuation.  The pension amount will then be reassessed accordingly.

22.Where a quarterly  advice letter is produced and there are BRI changes, additional paragraphs will be inserted covering these changes; wording of paragraphs is attached to this instruction.

FI Interest Rate Refresh/Deeming Rate Change

23.On 8 July 1992 the Minister for Social Security announced that the interest rate under the deeming provisions would be reduced from 6% to 5% from 1 October 1992 for service pensioners (and 24 September 1992 for DSS clients).

24.The change in the deemed rate reflects the continuing fall in interest rates generally. To ensure that service pensioners receive the full benefit of this fall in interest rates, an automatic update of the bulk of "at call" accounts held by pensioners  in banks and building societies will be undertaken at the same time. 152 credit unions covering 92% of all pensioner credit union accounts have also been targeted for an interest rate update.

25.A copy of the data used for the update will be provided to all Branch Contact Officers for information. A list of contact officers is attached to this instruction.

Who Is Affected

26.It is estimated that upwards of 70,000 reduced rate service pensioner assessments nationally will be affected.

27.The new deeming rate change applies to all monies in excess of $2000 ($4000 per couple) held by pensioners in cash or on deposits with financial institutions. It also applies to bonds, debentures and loans made, as well as amounts gifted after 21 August 1991.

28.The FI update will be applied to all FI accounts held by pensioners which can be matched; i.e., acounts with interest below and above the deemed rate. This is necessary as change to interest rates where the deeming rate does not apply (e.g. investments below $2000/$4000) will affect pension rate.

29.Where a quarterly  advice letter is produced and there are deeming or FI account changes, additional paragraphs will be inserted covering these changes; where appropriate, a list of all FI accounts and current interest rates will be included.

30.The account details section will be as per the February 1992 refresh; i.e., an alphabetical listing of all valid accounts reported on the FI screen (including accounts which were not updated), plus the interest rate used in the latest assessment.  Balances and account numbers will not be listed.

31.The range of paragraphs and the circumstances under which these will be applied, and the paragraph wording, are shown in attachments to this instruction.

Evaluation

32.Due to the low inquiry/PIR rate resulting from the  20 February 1992 refresh, the collection of statistical information by the Branches will not be required.

ADP Processing

Disposed Asset re-assessment

33.Prior to pension re-assessment processing, a run will occur to adjust the value of any disposed (deprived) asset or income amounts which are due for deletion or depletion because they have reached or passed  their anniversary date.  Where  income/asset values are varied, a suitable paragraph will be added to the quarterly advice during advice formatting.  A "clean-up" run for disposed assets was completed for pay period 06 (17 September) so few cases are expected for payday 07 (1 October 1992).

Early Interface

34.On Friday 11 September, the daily Interface and PMF Update processing runs will be scheduled earlier than usual, so that the Quarterly Advices runs can commence on Friday evening.

35.Interface processing will occur shortly after noon EST on Friday 11 September  for all states excepting WA  which will have interface at 2.00pm EST (ie noon WST).

Moratorium on PIPS data-collection and submission

36.Although PIPS processing can be carried out by Branch staff on the first few days of the relevant payday (payday 07), prior to the weekend runs scheduled for 11-13 September, it is recommended that Branches avoid doing so.  The reasons for this are outlined in the following paragraphs dealing with "frozen" and "non-frozen" action records.

37.The weekend processing runs for Deprived Assets, BRI, FI refresh and deeming will select those pension records requiring re-assessment processing by the BAL assessment program. Thus, cases which have BRI (super types 08 or 09), or which have deprived asset/income anniversaries reached, or which have FI accounts, etc., will be selected for re-assessment.

38.However, the BAL re-assessment program will not update any assessment where a frozen action record exists (SB or PY status); any such cases will be listed for subsequent manual processing by Branch staff.

39.Although not all pension records will be processed by BAL, it is likely that the majority will require re-assessment (even if pension rate remains unchanged). Since there is a significant amount of work involved in manually processing cases with BRI, FI refresh and deeming data items, it is clearly desirable to minimise the number of cases in frozen status as at interface on Friday 11 September.

40.Cases submitted to MS will require determination  early, to allow time for Pension Payments processing (Keyfast data entry). It is suggested that Branches generally avoid submitting to MS during the week prior to the run (i.e., 7-11 Sept).

41.If cases are determined and successfully updated during the first few days of payday 07 (ie prior to the weekend run),  the daily advices produced will have "old" rates of interest, deemed rates, BRI and DP allowances. In these cases only, the advices should be despatched  so that they arrive prior to any quarterly advice produced by the weekend runs.

42.Payment of Telephone Allowance and the generation of a quarterly advice letter are independent of the BAL assessment program. Therefore, payment of TA and advice generation will occur even if there is a frozen action record for the particular client (and therefore no re-assessment occurred).

43.In such a case, the advice will contain the payment box, TA details, and those common paragraphs such as obligations and right of review. There will be no "variation" paragraphs re BRI, FI refresh, etc.

Non-frozen action records

44.The weekend processing runs will be applied to current CDB records even where an action record exists in investigation (IN or RI) status for that assessment.  Although the current assessment will be updated, data in the action record will NOT be updated by the runs.

45.Hence, any action records which are IN or RI status during the weekend processing (i.e., after the early interface on Friday) will require re-examination  prior to being submitted, to ensure that the BRI amounts, FI interest rates, deeming interest rates, deemed rate on money loaned and deprived asset deemed values are all corrected.

46.Since the chances of error are quite significant when manually re-examining a case in IN or RI  status, it is suggested that such cases be returned to RG status, and that no data-collection on any cases be undertaken during the first three days of  pay period 07 (ie 9,10,11 Sept). Normal data-collection and submission would then resume on Monday 14 September (day 4 of the period).

Pre-processing

47.Branches could pre-process cases (such as new grants) with an effective date of 1 October 1992 or later, using the new FI interest rates provided to the FI Contact Officer in each Branch; however, these will not be available till about 8 September.

48.A similar procedure could be used for BRI income amounts; i.e., use the "new" exchange rate  from now on.  However, deemed values cannot be adjusted prior to the weekend run, since the value used is system-determined.

49.Hence, it will generally be safer and simpler to avoid having any action records in existence during the weekend runs.

50.As well as minimising the number of frozen actions, the following additional steps should be taken prior to interface on Friday 11 September, to minimise the need for subsequent manual actions:

.ensure any outstanding MS cases are resolved;

.resolve any SP Compare reconciliation edits;

51.Daily payment advices produced for pay period 07 (1 October), and after the 11-13 Sept run,  should be held by Branch Offices until release advice is received from the Quarterly Advices Project Manager in Central Office. This will ensure that pensioners who have pension variations processed for payday 1 October but  after the 11-13 September run will receive their daily advice after the quarterly advice rather than in advance of it.

Despatch of Quarterly Advices

52.The quarterly advices will be progressively lodged with Australia Post by the mailing house in Melbourne, during the period 14-25 September. As soon as each State's advices have been lodged, the CO Project Manager will advise your Branch's contact officer.

Parameter Cards

53.Parameter cards and rate tables have been prepared at Central Office to effect the automatic updating of SDA and other affected DP allowances and list those requiring manual action.  These cards will be input to the system by Central Office.

54.Cases for which limitations are in force will have any pension variations performed automatically, but the limitation amount will not be adjusted.  Identification of these cases and any adjustment to the limitation amount must be arranged locally; i.e.,  a listing will NOT be produced as part of the Quarterly Advices run and Branch staff will need to arrange a suitable ADP job as needed.

Timetable

55.Key timeframes are summarised below. The processing runs will begin in the afternoon of Friday 11 September, and continue throughout the weekend as needed.

DateEvent

Friday 4 Sept 1992 — Suggested cessation of MS submissions at COB, to ensure no               outstanding MS cases next Friday.

Tue/Wed 8/9 Cutoff for payday 06 (17 Sept), at usual time. Any daily advices September 1992              produced after this cutoff but prior to the 11-13 Sept processing will               contain incorrect rates/data.

Wed 9 - Fri 11 Suggested moratorium on PIPS processing.

September 1992

Friday 11 Sept — Early interface for payday 7 (1 Oct), at noon local time.

Fri 11 Sept (after Deprived asset review, SI, BRI, FI refresh, Deeming runs; BAL interface) to Sun 13               re-assessment run; TA & Quarterly Advices processing runs.

Sept 1992

Mon 14 Sept — New DP allowance rates on system. Normal processing resumes, incl               MS processing.

Daily advices produced from today to be held till Quarterly advices               despatched.

Mon 14 Sept to   Examiner action on manual schedules.

cutoff for pay — Quarterly Advices progressively lodged with Australia Post from period 07              14 Sept to 25 September.

56.Fringe benefit income limits are unchanged, but some pensioners will have variations in fringe benefit eligibility due to income variations.

57.Where fringe benefits (or period of grace)  variations occur, the quarterly advice letters (and where appropriate new PHB/TC or PBC/SPID cards) will be produced at the National Computer Centre (Ferntree)  as a discrete batch with a schedule,  and will be sent to Branch Offices for despatch. Branch Offices may include local proforma letters or leaflets if desired.

58.The fringe benefits paragraphs included in those quarterly advices will request the return of PHB/TC cards for any pensioner losing fringe benefits entirely. It is expected that there will be very few of these.

59.Where fringe benefit variations cause a change in treatment eligibility, there will NOT be a paragraph about the issue or recall of the plastic treatment card. Branches may wish to arrange manual advices for any such cases, of which there should be extremely few. (It is expected to incorporate programming for treatment card paragraphs in subsequent Quarterly Advices runs. )

60.The actual issue of the plastic treatment cards to anyone gaining treatment benefits will be processed through the normal batch system following the run.

Manual Listings

61.The weekend run will produce schedules of cases which cannot be processed automatically by the relevant programs, or which have been processed but require further examination. These listings are discussed in the paragraphs which follow. Where possible, manual processing should be completed before the close-off for the payday.

62.In addition to the schedules for manual action, the Advices system will generate schedules of cases which could not be issued a Quarterly Advice. These schedules will be despatched  separately, after the Quarterly Advices have been lodged, and are not dealt with in this instruction.

63.Cases submitted to MS can be prepared on the schedules provided, by coding the relevant PMF segments and writing the MS consecutive number beside the case, for determination by a delegate in lieu of preparing D408 coding sheets for each case.

64.MS (multiple segment) and manual transactions should be transmitted to the Computer Centre in the normal pension payment daily stream i.e. keyfast description $PENSIO, prior to the cut-off for payday 1 October 1992.

Suspension cases

65.Where a part or total suspension occurs on the PMF, the rate and suspension amount should be re-assessed, and the case processed  through an MS submission.

66.Where possible, SDA will be increased to the new rates before cases are listed for any manual action required.

67.When cases in PY or SB status are encountered by the SI program, update is prohibited because the record is frozen.  The cases need to be unfrozen and re-processed as follows:

.Return case to RI status (Cancel Determination &/or Cancel Submission);

.Re-process case using this SI as the last variation (if effective date is prior to the SI date enter arrears line for effective date);

.Ensure FI account interest rates, deemed amounts and BRI values  are up-to-date;

.Enter advice wordings explaining the FI/BRI/deeming changes as appropriate;

.Submit to MS or DA as appropriate and prepare D408 in MS cases;

.Determine case as per normal.

CDB/PMF mismatch cases

68.Cases will need to be investigated to determine the cause of the discrepancy, then the CDB or PMF corrected as necessary.

Manual Methods of Assessment

69. Service pension cases with a manual MOA need to be manually re-assessed and the new rates processed through the PIPS system as normal.

Manual DP Recorded on the CDB

70. This schedule lists in PMF transaction format cases with the following DP codes on  the CDB:

.EATS

.COMP (Composite/Proviso 'C')

.DIV 10 (Members of the Defence Force)

.MAN, MISC, CONVERSION DATA

71.The DP should be examined, the new rates entered on the screen and the case submitted through MS.   Rates of both SP and DP should be amended as necessary on the schedule.

Assessment Errors

72. The assessment routine will produce information messages as an indication that certain action should be taken as a result of the re-assessment.

73.A number of conditions may exist on the CDB which require additional investigation beyond the normal processing.  The cases listed will already be automatically processed or will appear for action on the schedules.  The conditions are detailed below:

.Last SI not processed - case not processed in the last SI that effected the case.  Check to ensure appropriate SI action was taken.

.Old SI process codes deleted - before SI processing,  any old SI process code (S183) will be deleted.  Action on these will depend on the reason the old process exists, but most will not require any corrective action.

.Manual arrears cases - cases where the current effective date is in advance of the SI date.   Examine cases to ensure any adjustment for the period between the SI date and the current effective date is made.

.Data Base Error detected - these cases will fail SI processing, and should be referred immediately to ADP for action.

.Transaction Generation Errors - the equivalent of Interface errors in normal daily production.  Corrective action as for Interface errors.

Daily Advices

74.Daily advices produced during pay period 07 and after the weekend 12-13 September,  will need to be held in Branch Office until notified by Central Office that the quarterly advices have been despatched.

75.The Veterans Services Applications Branch will provide NCC with a schedule of computer runs for this exercise.  Benefits SM&S Section will supply an after hours contact number closer to the processing date.

Contact numbers

76.Because of the number of components involved in this ADP processing run, any enquiries should be directed in the first instance to Tony Whelan in Policy Development & Implementation Section, on (06) 289 6386. Facsimile messages should be sent to (06) 289 6553.

Kay Grimsley

Assistant Secretary Income Support

Attachment 1

Financial Institutions Interest Rate Refresh

FI/Deeming Contact Officers

NAMETITLEPHONEFAX

NSWKaren Hanssen — SSO(02) 213 7106(02) 281 2083

VICWendy Hall — IS10(03) 284 6213(03) 284 6792

QLDClare McCorry — SSO(07) 223 8835(07) 223 8533

SAGraham Del Casale — SSO(08) 213 2414(08) 213 2412

WAMark Hodgson — SSO(09) 425 8417(09) 221 3094

TASPhilip Beattie — SSO(002) 21 6683(002) 21 6602

Attachment 2

Advices Paragraph Contents

This attachment summarises the sequencing and contents of paragraphs used to explain changes due to Disposed Assets, BRI, FI refresh, Deeming and TA.

Sequencing of paragraphs

PARAGRAPHCOMMENTS

Branch Office address & phone no.ALL (V,N,Q,S,W,T,NQ)

Date — ALL

File number — ALL (incl State indicator)

Name and address ALL

Salutation — ALL

Opening Paragraph — ALL

Reasons for Assessment Variation:--

  - British Retirement Income IF APPROPRIATE

  - Disposed Assets review — IF APPROPRIATE

  - Interest Rate Refresh/Deeming IF APPROPRIATE

Payment details heading — ALL

Payment variation/continuation  ALL

Payment box ALL

Telephone Allowance paragraph — IF APPROPRIATE

FI interest rate list IF APPROPRIATE

Fringe Benefits changes paragraph — IF APPROPRIATE

Right of Review paragraph — IF APPROPRIATE

Financial Obligations All SP except some blinded

Authority to impose obligations — ALL SP

Changed Circumstances — ALL SP

Release of Information para — ALL

Closing paragraph — ALL

Signature block — ALL (STATE SPECIFIC)

British Retirement Income

Exchange Rate Variation: British Retirement Income

The value of your (variable 1)British Retirement Income has been varied as a result of an exchange rate variation.  The exchange rate that now applies is (variable 2) equals 1 Pound Sterling.

Exchange rates for foreign currencies can fluctuate as often as 4 times a day.  In order to minimise variations to your rate of service pension because of these fluctuations, this Department uses an average exchange rate to calculate the value of your income from British Retirement Income payments.  We review this rate 4 times a year, in March, June, September and December.  The average rate is calculated by obtaining the exchange rate from the Commonwealth Bank for every working day in July (or January, April, October) for the Pound Sterling to the Dollar Australian.  This is then averaged and used as the exchange rate until the next review.

Variable 1:

. Assessments with BRI only - insert a space

.Assessments with Indexed BRI only - insert word indexed

.Assessments with both BRI & Indexed BRI - insert clause indexed and non-indexed

Variable 2: Insert dollar sign plus dollar value of exchange rate eg $2.5549

FI Interest Rates Refresh & Deeming

There will be a Heading and opening  paragraph, and optionally a paragraph re listing of accounts plus the FI Account Listing, as follows:

Group A:  All paragraphs to be used where there is a change in assessed income due to the actual interest rate refresh and/or the deemed interest rate change, for the following:

. Financial Institutions only; OR

. Financial Institutions only AND money loaned and/or Deprived  Assets

Group B:  Heading and opening paragraphs only, where there is a change in assessed income due to the deemed interest rate change for the following:

. Money Loaned and/or Deprived Assets AND no financial accounts recorded OR no assessed income change for FI.

Change in Interest Rates and Change to the Deeming Rate

Recently some financial institutions have varied their interest rates on deposit accounts (savings, passbook, statement and cheque).

Because of the change in interest rates the Government has decided to vary the assumed, or deemed, interest rate on pensioner savings from (variable 1) to (variable 2).  This new deemed rate also applies to money on loan and disposed assets. Your details have been amended.

Variable 1:old percentage interest rate - eg  6%

Variable 2:new  percentage interest rate - eg  5%

Paragraph re listing of accounts

Included in this letter are interest rates we now have recorded for all your bank, building society or credit union account(s). Interest rates on your deposit account(s) have been changed automatically for you, but this does not include fixed deposits, or overseas accounts.

Account listing (sample  layout)

Your Accounts and Interest Rates%

ADVANCE BANK CASH PLUS STATEMENT — 7.5

COMMONWEALTH BANK KEYCARD — 3.25

"""4.25

"""5.75

IOOF BUILDING SOCIETY — 4.75

WESTPAC BANKING CORPORATION CHEQUE — NIL

Deprivation cases

Review Of Disposed Assets

Included in the calculation of your service pension is an amount to cover assets you gifted or disposed of above the allowable limit. When an asset is gifted or disposed of, the asset and any related income is held in your pension assessment for five years.

Any assets which you disposed of more than five years ago have been deleted from your pension assessment. Any remaining assets disposed of prior to 1 March 1991 have had their assessed value reduced by 10%.

Telephone Allowance

If TA is paid only to veteran/mariner at WW1 rate:

New Rate of Telephone Allowance

Your Telephone Allowance has been increased to (variable 1) per quarter to meet the new telephone rental charge announced recently. This new quarterly rate will be paid on (variable 2). This amount is in addition to your fortnightly payments of pension and allowances, which are set out above.

Telephone Allowance will be paid each quarter. Your next payment of Telephone Allowance will be on 7 January 1993. You must tell us if you cease to be a telephone subscriber.

Variable 1:WW1 rate of TA , incl dollar sign - eg $41.30

Variable 2:Effective payday for TA payment

Where the veteran/mariner at World War 1 rate and partner at the Base rate:

New Rate of Telephone Allowance

You receive two rates of Telephone Allowance, the World War 1 rate and the general rate. The World War 1 rate has been increased to (variable 1) per quarter to meet the new telephone rental charge announced recently. The general rate has been increased to (variable 2) in line with movements in the Consumer Price Index. The new quarterly rates will be paid on (variable 3). These amounts are in addition to your fortnightly payments of pension and allowances, which are set out above.

Telephone Allowance will be paid each quarter. Your next payment of Telephone Allowance will be on 7 January 1993. You must tell us if you cease to be a telephone subscriber.

Variable 1:WW1 rate of TA , including dollar sign - eg $41.30

Variable 2:Base rate of TA, including dollar sign - eg $13.20

Variable 3:Effective payday for TA payment - eg 1 October 1992

Other pensioners eligible for TA  (Base Rate or half the Base Rate):

Indexation of Telephone Allowance

Your Telephone Allowance has been increased in line with the Consumer Price lndex. The new quarterly rate of (variable 1) will be paid on (variable 2). This amount is in addition to your fortnightly payments of pension and allowances, which are set out above.

Telephone Allowance will be paid each quarter. Your next payment of Telephone Allowance will be on 7 January 1993. You must tell us if you cease to be a telephone subscriber.

Variable 1:

Joint assessments - TA rate (half base rate each) plus literal "each "   - eg $6.60 each

Illness-separated  - TA rate (base rate each)  plus the literal "each "   - eg $13.20 each

Spouse paid at DSS - TA rate (half base rate) - eg $6.60

Others (W/W, DP, single SP) - TA rate (base rate) - eg $13.20

Variable 2:Effective payday for TA payment - eg 1 October 1992

Fringe Benefits changes

Common first paragraph

Fringe Benefits

Fringe Benefits are benefits and concessions of various kinds, additional to your assessed rate of pension, made available to you by the Commonwealth, State and Territory governments and authorities and local authorities.  Eligibility for fringe benefits is based on certain income and assets limits.  (Variable Text - Sentences)

Pensioner with no Fringe Benefits, not in grace period, gains Fringe Benefits:

As your income and assets are below these limits, you are now eligible for service pension fringe benefits. I have enclosed Pensioner Health Benefits and Transport Concession cards. Instructions on how to use the Pensioner Health Benefit card and the concessions available to you are shown on the back of the cards. Please read this information carefully and sign both cards with a ballpoint pen.

Pensioner with Fringe Benefits (or in Grace period) loses Fringe Benefits:

As your income and assets are equal to or above these limits you are no longer eligible for service pension fringe benefits. Please return your Pensioner Health Benefits and Transport Concession cards.

I have enclosed Pharmaceutical  Benefits Concession and Service Pensioner Identification cards. Instructions on how to use the Pharmaceutical Benefits Concession card and the concession available to you are shown on the back of the card. Please read this information carefully and sign both cards with a ballpoint pen.

Pensioner currently in Grace period regains Fringe Benefits:

As your income and assets are now below these limits, you retain eligibility for service pension fringe benefits.  You will therefore not be asked to return your fringe benefits cards as previously advised.

Pensioner loses Fringe Benefits and goes onto Grace period:

As your income and assets are now equal to or above these limits you are no longer eligible for service pension fringe benefits.  However, as your income remains within 25% of the cut-off limit you still qualify for fringe benefits until  (variable). I will contact you again closer to that date to request you to return your fringe benefits cards.

*****

DATE OF ISSUE: 1 SEPTEMBER 1992

AUDITING AND PROCESSING PROCEDURES TO BE FOLLOWED FOR CERTAIN CATEGORIES OF SELF ASSESSED LIFESTYLE RATINGS

The purpose of this instruction is to advise Branch Offices of the procedures to be followed to process and audit self assessed lifestyle ratings in certain circumstances. It should be noted that the following procedures are of an interim nature, and they may need to be varied as experience is gained in processing and analysing the self assessment option.

2.Self assessed lifestyle ratings must be broadly consistent with the level of medical impairment. The "shaded area" in Appendix 7 of GARP 3 should therefore be used as a guide when checking self assessed lifestyle ratings. Those ratings which fall outside the shaded area by more than one level should be considered for auditing.

3.In such cases veterans are to be contacted, either by telephone or in writing, to provide further information on how such a rating was determined. When requesting additional information, veterans are to be advised that they may have their LMO comment on their self assessment.  A Lifestyle Questionnaire is to be completed by the veteran if insufficient information is available to support the lifestyle rating.

4.Where a veteran lodges a self assessment, and where there are multiple disabilities and not all of these are accepted, the imputation method is to be used and the veteran advised of the reasons for this action.

5.Where a veteran is applying for, or could be considered for, EDA, the lifestyle rating must be assessed on the information supplied in a completed Lifestyle Questionnaire.

6.Attributes have been placed on the CMS for recording which of the three methods a veteran has chosen to assess the lifestyle rating. Although recording of an attribute does not become mandatory until the data completion stage of EATERS, it should be recorded at the earliest point that this information becomes known.

7.A management report giving statistics on the options chosen, and the consistency of self assessed lifestyle ratings, will be extracted from the CMS at the end of 3-4 months.

Contact Officer: John Douglas (06) 2896450.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

27 August 1992

DATE OF ISSUE: 25 AUGUST 1992

DATA-MATCHING PROGRAM - CLERICAL PROCEDURES MANUAL JULY 1992

The purpose of this Instruction is to advise that a Data-matching Clerical Procedures Manual has been approved.

BACKGROUND

2.The Schedule to the Data-matching Program (Assistance and Tax) Act 1990 requires the Department of Veterans' Affairs, in its function as a source agency, "...to establish reasonable procedures for confirming the validity of results before relying on them as a basis for administrative action against an individual...".  For this reason the Data-matching Clerical Procedures Manual was developed.

3.Input was sought from each Branch Office and relevant comments were incorporated in the document.  The Clerical Procedures have also been endorsed by a representative of the Privacy Commissioner.  Therefore, by following these procedures there should be no breach of the Privacy Act 1988 or the Data-matching Program (Assistance and Tax) Act 1990.

4.Copies of the Clerical Procedures Manual have been issued to the teams responsible for the Data-matching program in each Branch Office.

5.Any problems encountered with the procedures should be raised with the Tax File Number and Data-matching Project Team in Central Office.

6.Contact numbers:

John Fely — Project Manager — 06 2896376

Jonathan Levy — Project Officer — 06 2896420

Traci O'Shannassy — Project Officer — 06 2896437

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

20 August 1992

DATE OF ISSUE: 20 AUGUST 1992

ADDRESS TO SEND REQUESTS FOR MEDICAL INFORMATION ON SERVING ARMY MEMBERS

The purpose of this instruction is to advise all staff that the address to send requests for medical information on serving Army members is as follows:

Army Health Records Office (AHRO)

320 St Kilda Road

South Melbourne  VIC  3205

The Department of Defence advised that unnecessary delays have occurred because several letters from various branches of Veterans' Affairs had been circulated to incorrect sections within Defence.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

_

DATE OF ISSUE: 11 AUGUST 1992

PROVISION OF TAX FILE NU:- MINOR LEGISLATIVE AMENDMENTS

PURPOSE:  The purpose of this instruction is to advise of minor amendments to the legislation regarding provision of tax file numbers.

BACKGROUND:  The Veterans' Affairs Legislation Amendment Act 1992 received Royal Assent on 26 June 1992.  Part 1 of the Schedule to that Act contains minor technical amendments to the Seamen's War Pensions and Allowances Act 1940 (SWPA) and the Veterans' Entitlements Act 1986 (VEA).

The amendments are set out below:

SWPA

Subsection 32AA(1):

Omit "qualified", and substitute "eligible".

After subsection 32AA(1):

Insert:

"(1A) The requirement in subsection (1) does not apply if the person is outside Australia.".

Subsection 32AA(3):

Omit "qualified", and substitute "eligible".

VEA

After subsection 128(2):

Insert:

"(2A) The requirement in subsection (2) does not apply if the person is outside Australia.".

After subsection 128A(3):

Insert:

"(3A) The requirement in subsection (3) does not apply if the person is outside Australia.".

Subparagraph 128A(4)(a)(i):

Omit "qualified", and substitute "eligible".

Subsection 128A(5):

Omit "qualified", and substitute "eligible".

EFFECTIVE DATE:  This amendment became effective from the date of Royal Assent (26 June 1992).

INTERPRETATION:  Please note that "Australia" for the purposes of these amendments does not include external territories.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

5 August 1992

DATE OF ISSUE: 10 AUGUST 1992

MANAGED INVESTMENTS - UNLISTED PROPERTY TRUSTS

Purpose

The purpose of this instruction is twofold:

to advise staff of procedures for assessing service pension entitlements on investments held in unlisted property trusts where withdrawal or redemption has been "frozen" for 12 months, and

to outline the administrative arrangements following the Government's decision to ease the Income Test treatment applying to certain unlisted property trusts where they have been restructured before 23 July 1992.

Summary Of This Instruction

With effect from 23/7/91 withdrawals from unlisted property trusts may be delayed by the fund managers for a 12 month period after receipt of the withdrawal request.

Pre and post 9/9/88 investments continue to be assessed as usual subject to the following exception:

When DSS have approved a restructure for pension assessment purposes,

and

service pensioners holding pre 9/9/88 units are paid with units in a new property trust managed by the same fund manager,

the original units are not to be assessed for growth in the investment unit value, but

are assessed on an ongoing basis.

FROZEN WITHDRAWALS

Background

4 — Legislative Amendment No.200 of 1991 to the Corporations Act (Unlisted Property Trusts) has the effect of imposing a standard 12 month notice period for the withdrawal of funds from unlisted property trusts which were in existence as at 23 July 1991.

5 — The legislation also makes provision for early buy-back of units in cases of financial hardship.  It also incorporates a management company authority to determine a discount of up to 7.5%  that may be deducted from proceeds of early withdrawals.

Current Assessment under the Income Test - (VEA section 41 Module D refers)

6 — Unlisted property trusts provide assessable income to investors in two ways:

through cash income distributions to the investor, generally quarterly;  and

through capital growth in the value of the units or the issuing of bonus units.

7 — Income from unlisted property trusts is assessed under the market-linked investment rules:

If the investment was made before 9 September 1988 only the income distributions are assessable as income affecting pension entitlement during the life of the investment.  Capital growth that has accrued while the investor has been receiving a service pension is assessable when a withdrawal is made.

If the investment was made on or after 9 September 1988 then the income distributions and capital growth are assessed as income on an ongoing basis up to a maximum rate of 11% pa.  The actual rate is determined by the Secretary of the Department of Social Security under his "deeming" authority.

Continuing Assessment under the Income Test

8 — There is no change to the treatment of these units under the Income Test, unless the trust restructures (see para 12 onwards). Rules as set out in the above paragraph 7 for assessment of market-linked investments will continue to apply to unit holders in unlisted property trusts which do not restructure.

9 — Investors should not experience hardship because they will continue to receive income distributions and have the option to redeem units under the hardship arrangements with fund managers.

Assessment under the Assets Test - (VEA section 41 Module F refers)

10 — There is no change to the treatment of property trust units under the Assets Test.  Full asset value should continue to be maintained.

11 — Any service pensioner who is assessed as being in financial hardship due to the value of these units being included in their assessment, and is unable to redeem units under arrangements made with fund managers, will be able to apply for a pension under the VEA Asset Test hardship provisions.

SPECIFIC ASSESSMENT RULES APPLYING TO UNLISTED PROPERTY TRUSTS WHICH RESTRUCTURE BEFORE 23 JULY 1992

Background

12 — As previously noted, the 12 month notice period for the withdrawal of funds from unlisted property trusts is intended as a preliminary to restructure of the industry.  Some fund managers are proposing to restructure by terminating a number of trusts and paying out investors with units in new "merged" trusts.  The new trust will usually be listed for trading through Stock Exchanges.

13 — Under the VEA and Social Security Act such mergers would usually be treated as a realisation of the investment in the trust being terminated.  For investments made before 9 September 1988, this means that any capital growth in the terminated trust would normally be assessed as income for 12 months.  In addition income would be assessed on the new investment on an ongoing basis.

14 — As the above treatment of investment income could hamper restructuring of property trusts,   especially those with a large number of pensioner investors,   the Government has decided not to hold any capital growth on pre 9 September 1998 investments in the trusts to be terminated.  These rules apply only where unlisted property trusts are restructured before 23 July 1992 by paying out investors with units in another property trust.  Assessment of income from units in the new trusts will be on an ongoing basis only.

Summary

15For unlisted property trust that have restructured, the Government has removed the growth in value of units purchased prior to 9/9/88 from the assessment of pension.

Restructured Funds

16 — It is important to note that ALL decisions about the Income and Assets Test treatment of unlisted property trusts that restructure before 23 July 1992 will be made by the Secretary of the Department of Social Security.  Under no circumstances should DVA staff make these decisions or even advise a client of what they think the decision will be.

17 — DSS will look at each restructuring proposal submitted by fund managers and assess the proposals on an individual basis.  Once a decision has been made DVA staff will be advised through the Investment Policy Officer network.

18 — Clients eager to discuss this matter in any detail should be referred to the investment management company to enquire whether the company has applied to DSS for a review of the status of their proposed restructure.

Legislation

19 — Legislation has been introduced in the 1992 Autumn session of Parliament to enact these changes.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR (BENEFITS)

30/6/92

DATE OF ISSUE: 28 JULY 1992

Veterans' Affairs Legislation Amendment Act 1992

The Veterans' Affairs Legislation Act 1992 contains the Autumn 1992 legislative amendments including:

. Extension of repatriation benefits to Australian Defence Force personnel serving in Cambodia

. Telephone Allowance

. Modified income assessment rules for unlisted property trusts

. Eligibility for carer service pension

. Provision of the tax file number -exemption for overseas residents

. -"Saving" fringe benefit eligibility for service pensioners affected by deeming provisions

-"Saving" treatment entitlement for service pensions affected by deeming provisions

  -"Concessional beneficiary" -amendments to definition to "save" entitlements for pensioners affected by deeming provisions

. Assets test -sale/leaseback arrangements

. Income Support non-Budget legislation

2.The Act gained Royal Assent on 26 June1992.

3.Departmental instructions on Telephone Allowance, B25/92 [14] and Carer, B33/92 [36] have been issued.  Other departmental instructions will be issued shortly.

4.The Income Support non-Budget legislative amendments detailed in this instruction all commenced on either 1 July 1991 or at Royal Assent.

Table of Contents

ParagraphsDate of Effect

Indexation of the income free area-5 - 71 July 1991

the rounding base

Reduction of asset value by charge or 8 - 9Royal Assent

encumbrance

Assets test -family farming enterprises10 - 17Royal Assent

Direct credit of payments made under 18 - 20Royal Assent

the VEA and the SWP&A Act

Effective date or cancellation or 21 - 231 July 1991

suspension of service pension

Remote area allowance24 - 30Royal Assent

Income test -realisation of an investment31 - 34Royal Assent

Foreign sourced superannuation 35 - 40Royal Assent

payments

Exclude as "income" insurance payments 41 - 42Royal Assent

to cover debt repayments

Assets test- disregard insurance 43 - 45Royal Assent

proceeds and compensation

Powers of exemption under the deeming 46 - 511 July 1991

provisions

Indexation of the income free area-rounding base

Background

5.When the indexation of the income free area was introduced in 1989, it was rounded to the nearest whole $1 by both DVA and DSS.  For ease of administration and advice to clients, the $1 base was changed to $26 in the 1990 Budget Sittings, the rounded figure being easily divisible by the number of fortnights in a year.

6.During the Autumn 1991 sittings DSS amended its rounding provision to a base of $52.  The DSS amendment has meant that when applying the CPI conversion factor for the income free area, DVA "married" couples received $1 less pension than the equivalent DSS pension.

The amendment

7.This amendment to the VEA will provide legislative authority for the current practice of applying the higher DSS figure when applying the CPI conversion factor.  Subsection 59B(1), column 6 of item 4, of the VEA is amended to change the rounding base for indexing the income free area from $26 to $52.  This amendment ensures ongoing consistency between DVA and DSS income free areas.

Reduction of assets value by charge or encumbrance.

Background

8.Prior to this amendment to section 52 VEA, section 52 allowed  the value of an encumbrance, other than an "excluded security", to be deducted from the value of an asset in assessing its net market value.  The intent was to prevent pensioners from reducing the value of their assessable assets by using their property as security for another person's loan.

The amendment

9.This amendment to the definition of "excluded security" in subsection 52C(5) ensures that it is only where the pensioner or partner gets the benefit of the loan secured by an asset owned by the pensioner, that the encumbrance can reduce the value of the asset.  This amendment ensures ongoing consistency between DVA and DSS definitions of excluded security and brings legislation into line with current practice.

Assets test - family farming enterprises

Background

10.Prior to this amendment section 52C of the VEA provided that the value of any charge or encumbrance, other than excluded security, was to be deducted from the value of an asset in assessing its market value.  As a result, the value of any debt could only be exclusively offset against the asset which provided the primary security for that debt, and this could  only occur when the owner of the asset and the primary debtor were the same party.

11.The purpose of these provisions was to limit the scope for people to engage in negative gearing in order to become eligible for income support pension.  Until this amendment, these provisions also excluded farmers from deducting certain charges from the value of their farming property and effectively disadvantaged them under the assets test.

The amendment

12.This amendment refers to section 52C of the VEA and provides specific assessment rules for negative gearing in relation to farms.  This amendment operates alongside the existing provisions to allow Commission discretion which will operate in the following circumstances:

13.If;

.a person owns or has a share in a property which is operated as a farm; and

.there is property (including plant, machinery, real property) which is, or the Commission considers, is used for the running of that farm;

then the proportional value of any charge or encumbrance on that farming property is to be deducted from the value of the person's and/or partner's share in the farming property.

If;

.a person has a farm or a share of one;

.the person's farm or share of it is used as security for borrowings by the farming company/situation; and

.the Commission considers that the farming company/situation has an excess of farm-related liabilities over farm-related assets;

then the value of that excess is to be deducted from the value of the person's farm or share in the farm in proportion to the farmer's share in the farming company/situation.

14.This amendment will also insert a number of definitions in section 5L VEA to facilitate the operation of section 52C VEA and preclude "hobby farmers" from benefiting by these provisions.

15.Extra definitions in section 5L are as follows:

.primary producersomeone whose principle occupation, in the Commissions opinion, is primary production.

.primary productionmeans production resulting directly from:

a. the cultivation of land; or

b. the maintenance of animals or poultry for the purposes of selling them or their bodily produce, including natural increase; or

c. fishing operations; or

d. forest operations;

and includes the manufacture of dairy produce by the person who produced the raw material used in that manufacture.

16.Family member, fishing operations and forest operations are also defined in section 5L.

17.Cases that are affected by this amendment will be reassessed under these new provisions at the time of the annual assets test review.

Direct credit of payments made under the VEA and the SWP&A Act

Background

18.Sections 58F & 122A of the VEA and section 54A of SWP&A were intended to provide specific authority for the Commission to direct that pension payments be made directly to a bank, credit union or other financial institution.  Opinion received from the Attorney-General's Department, in respect of a similar provision in the SSA, indicated that there is nothing in the provisions to imply that the Commission had the control it wished to exercise over the manner in which payments of pension were to be  made.

The amendments

19.The amendments:

.give Commission the authority to require a pensioner to nominate a financial institution for direct payment of pension or other allowance;

.provide authority for the Commission to withhold payments should the  request not be complied with.  This includes the statutory obligation to subsequently restore pension payments from date of suspension if the request is complied with; and

.continue to permit payments by means other than direct credit where in the Commission's opinion this is warranted.

20.The decision to require the form the pension payments are made in, ie direct payment, cheque payment etc, remains a Commission discretion by virtue of

section 58C VEA.

Effective date of cancellation or suspension of service pension

Background

21.This amendment clarifies the authority to cancel or suspend a service pension due to the failure of a service pensioner to comply with a notice under section 54A VEA, and establishes the effective date from which a service pension could be cancelled or suspended under this circumstance.  It restores the situation that existed prior to the rewrite of Part III VEA on 1 July 1991.

The amendments

22.This amendment provides that where a service pensioner has failed to return a form sent under section 54A VEA, the Repatriation Commission may determine under new section 56EA, that the service pension is to be cancelled or suspended and that the cancellation or suspension take effect from the date of determination or later.

23.The amendments to section 56H ensure that a date of determination for suspension or cancellation of a pension due to section 54A(6) cannot be set earlier than the date of the adverse determination.

Remote Area Allowance

Item A

Background

24.Prior to this amendment, subsection 5Q(2) allowed a veteran who was receiving child rate of remote area allowance to be absent from the remote area for up to eight weeks without losing entitlement to the allowance.  Absence from a remote area for a longer period entails loss of entitlement to the remote area allowance but not loss of entitlement to the additional amounts for the dependant child.

25.There are instances where the veteran may be absent from the remote area for longer periods.  The amendment provides discretion for Commission to continue payment of child rate of remote area allowance under special circumstances.  These circumstances would include any situations such as medical treatment requiring extended convalescence or attendance at a training or rehabilitation course outside the remote area for more than 8 weeks.

The Amendment

26.To include a new subsection 5R(11) VEA that provides Commission with the discretion to extend eligibility for payment of remote area allowance beyond the 8 weeks continuation period.  A note is also included in subsection 5Q (2) and the relevant rate calculators to alert the reader to the existence of new subsection 5R(11).

Item B

Background

27.This amendment allows the non partnered rate of remote area allowance to be paid to couples who are separated due to illness, or where one member of a couple is receiving respite care outside the remote area.  This is in line with the treatment of basic service pension and rent assistance.

The amendment

28.This amendment effects points 41-G(3), 42-H(3) and 43-E(3) and the headings of points 42-H(3) and 43-E(3).

Item C

Background

29.There are instances where the child add-on which is usually payable to the veteran, is paid to the partner of a veteran, ie in the case of an illness separated or a respite care couple.  Until this amendment, there has been no authority under the VEA to pay the child rate of remote area allowance to any one other than the veteran service pensioner.

The amendment

30.This amendment enables payment of child rate of remote area allowance to the service pension partner of an illness separated or respite care veteran where that partner receives the additional amount for the dependant child.  Points 42-H(4) and 43-E(4) are amended.

Income test-realisation of an investment

Background

31.Section 46BA defines, for income test purposes, the circumstances under which an accruing return investment made prior to 1 January 1988 is considered to be realised.  It stipulates that a person realises an investment if all or part of the investment is "withdrawn".

32.Section 46J contains similar provisions governing the realisation of market-linked investments made prior to 9 September 1988.

33.It has been unclear when these provisions defining the realisation of investments as a "withdrawal" cover the following situations:

.the payment in money, or in the form of a return on the investment, where that action was not initiated by the investor; or

.where the fund manager winds up the funds of a managed investment, through the transfer of assets to another managed investment fund.

The amendment

34.This amendment ensures that both these circumstances constitute a realisation for the purposes of the income test for service pension purposes.  Paragraphs 46BA(a) and 46J(2) of the VEA have been amended accordingly.

Foreign sourced superannuation payments

Background

35.The definition of "superannuation benefit", "superannuation fund" and "superannuation pension" are in subsection 5J(1) VEA.  The definitions are fundamental to the assessment of superannuation under Division 8, Part III VEA.

36."Superannuation benefit" is defined by reference to the Income Tax Assessment Act 1936 (ITAA).  Superannuation income from foreign sources is specifically excluded by the operation of this provision.

37.It is not DVA policy to treat foreign-sourced superannuation under the investment income provisions.  Foreign-sourced superannuation is assessed as ordinary income.

The amendment

38.In order to effect this change, the definition of "superannuation pension" at subsection 5J(1) has been repealed and replaced by the following definition:

."superannuation pension means a pension payable from a superannuation fund."

39.As the definition of a "superannuation fund" in the VEA is based on the same term in the ITAA, the effect of this definition is to limit the operation of the investment income provisions to Australian-sourced superannuation.  Foreign-sourced superannuation will be assessed as ordinary income as defined in subsection 5H(1).

40.Foreign-sourced superannuation will continue to be treated as an "exempt asset" and disregarded for the application of the assets test purposes.  As a result, subsection 52(1) is amended to include foreign sourced superannuation as being disregarded for the application of the assets test.

Excluded as "income" insurance payments to cover debt repayments

Background

41.This amendment allows mortgages and other allowances, ie.any amount paid by  a finance company or a mortgagee as a payment for the pensioner being unable to meet insured payments due illness or unemployment, to be excluded from the income test.  This amendment maintains consistency between the SSA and the VEA.

The amendment

42.Subsection 5H(8) of the VEA is amended to include these sorts of payments as "excluded income" for service pension purposes.

Assets test-disregard insurance proceeds and compensation

Background

43.Payments in the form of insurance and compensation for the loss of plant, equipment or personal effects were excluded as income or as an asset under the Social Security Act for DSS pension purposes during the 1990 budget sittings.  DSS introduced this amendment by excluding these types of payments from both the income and assets tests.

The amendment

44.  Amendments to paragraph 5H(8)(q) VEA for income exemption, and paragraph 52(1)(o) VEA for asset exemption aligns the treatment of insurance proceeds and compensation payments under the VEA with that of the SSA.  Although the assets exemption is statutory for 12 months, Commission has the discretion to extend the period beyond the 12 months.

45.Paragraphs 5H(8)(q) and 52(1)(o) are cross referenced by notes.

Powers of exemption under the deeming provisions

Item A

Background

46.Section 46Z VEA gives the Minister power to exempt income money of a person, or a class of persons from the deeming provisions.  This provision is intended to prevent all 'exempted' income money from being included in the application of the deeming rules.

47.Until this amendment, money held in accounts which had been exempted under the deeming provisions were also included in the deeming free areas.

The amendment

48.Section 46Z VEA is amended to ensure that income money exempted from deeming by the Minister is not included in the application of the deeming rules and not counted in the deeming free area.

Item B

Background

49.The Minister has the power to exempt income money of a person or a class of persons from the deeming provisions in section 46Z with respect to money not invested or invested at a low interest rate and in section 46ZF with respect to a specific loan or specific class of loans.

The amendment

50.This amendment effects sections 46Z and 46ZF VEA to provide the Minister with the discretionary power to determine the date of effect of a decision:

.under section 46Z to exempt specified income money: and

.under section 46ZF to exempt specified loans, in relation to deemed income.

51.The inclusion of this provision gives the Minister the power to set a date of effect of a decision to grant an exemption under the deeming provisions prior to the date of determination.  This power is delegated to the SPM(B)'s as per the Instrument of Delegation, Volume 1/91/73.

Peter Hawker

National Program Director (Benefits)

24 July 1992

DATE OF ISSUE: 20 JULY 1992

ASSESSMENT OF SALE LEASEBACK AGREEMENTS

Purpose

To advise the arrangements for assessing sale leaseback agreements for income support purposes.

Definition

2.Sale leaseback agreements allow a person to sell his or her home for a fixed price but retain the right to live in that home for life or for a fixed period.  Under these arrangements, the buyer pays the pensioner an initial payment amount (IPA) with the balance or deferred payment amount (DPA) payable as a lump sum, on vacation of the property, or death of the pensioner (ie to the estate), at the end of the fixed period.  The payment of DPA may also be made by way of periodic instalments.

The sale leaseback contract

3.The sale leaseback contract will usually involve the following:

- a mutually agreed, fixed sale price.  This means that any future increase in the value of the home is not passed on to the pensioner;

- making a down payment, generally between 25% and 50% of the agreed price.  The exact amount is usually set by the firm offering the contract;

- the balance owing paid either as a regular payment to the person while they continue to reside in the property or as a lump sum amount paid on vacating the property.  The payments are usually paid free of interest;

- the title deed can remain in the person's name or be transferred to the buyer's name depending on the terms of the agreement;

- an agreement granting occupancy for life* or an agreed period; and

- the person may be required to pay rent whilst he/she is occupying the sale leaseback home.

{ * This is different to a Life Interest in that a Life Interest is usually willed to a person}

Changes to the Veterans Entitlements Act (VEA)

4.The sale leaseback agreements are to be assessed under the same provisions as those applicable to granny flats and retirement villages.  These are now all referred to as "Special Residences".

5.In the granny flat and retirement villages, the entry contribution is the amount the person pays or agrees to pay to enter into the special residence.  Under a sale leaseback agreement, the balance owing (ie. DPA) will be regarded in the same way as an entry contribution for determining whether the person is a property owner or non-property owner.

Date of Royal Assent

6.The effective date for the legislative changes is 26 June 1992.

Assessment of IPA and DPA

7.The treatment of IPA is dependant on what the pensioner does with the money.  The IPA is not regarded as an asset but if the money received is invested, gifted, etc, then the normal assessment rules will apply.

8.The DPA is treated as the entry contribution to the sale leaseback agreement.  The DPA includes any payments made by way of periodic instalments.

9.It is important to note that if payments of either the IPA or the DPA are received in periodic instalments, they are not to be treated as income.

10.Attachment A sets out a table of the basic rules for assessment.

11.These arrangements mean that where the seller:

- is classified as a property owner, the

DPA is disregarded as an asset when determining pension payable;  and

- is classified as a non-property owner, the

DPA is regarded as an asset when determining pension payable.

Commission discretion

12.Commission has the discretion under section 5MB of the VEA to determine the IPA amount or the DPA amount if for any special reason it considers it should be another amount.

13.The same delegations which are applicable to other Special Residences will also apply to sale leaseback agreements.  Formalisation of this process is currently underway.

PROCEDURES

The sale leaseback contract

14.Where a person enters into a sale leaseback contract, the following documentation is required to verify the existence of an agreement:

a)Obtain copy of the relevant pages of the sale leaseback contract.  The relevant pages will cover the terms of the agreement and includes:

. the parties of the contract,

. whether any rent, maintenance or other amounts are payable,

. the amount of the IPA and DPA, and

. the period of the contract.

b)Check if contract is stamped by the State Duty Office.

i) If the contract has been stamped, then the contract is accepted without a valuation.

ii) If the contract is presented without the stamp, then advise the pensioner that the stamp is required before the contract can be accepted.

iii) If the contract is presented without the stamp and there is any reason to believe that the sale leaseback contract has been entered into with friends or family on an informal basis and the pensioner is unwilling to provide a valuation certificate, then a property valuation may be required, pending individual circumstances.

Assessment of DPA where the home has been 'undervalued'

15.Where a person has 'undervalued' their home under the sale leaseback agreement, the DPA will be assessed as the value of the property minus the IPA, regardless of the amount agreed to be paid as the deferred payment.

16.Where a client enters into a sale leaseback agreement for life and the terms of the agreement are such that no amounts are paid or else an IPA is received but no other payment is required to be made, the life interest would be calculated in a similar manner to those used to value the life interest in granny flats (refer DI B13/92 [38] - Right to Accommodation).  In these cases, the value of the right to accommodation plus the IPA calculated would be subtracted from the actual value of the property to determine the DPA.

17.Under these procedures, there is no need to consider whether deprivation has occurred.

Payment of Rent Assistance

18.If staff receive any cases where the payment of rent, service or maintenance fees form part of the agreement, and rent assistance may be payable, details of the case are to be forwarded to Central Office Policy Development and Implementation Section in the first instance.  Central Office will then liaise with DSS before a decision can be made on whether rent assistance is payable.

19.DVA and DSS will be monitoring and reviewing the deprivation aspects of these cases as they arise to see whether any further legislative changes are required.

Systems changes

20.The PIPS home screen (PP.HO) will have a new residential situation code of "SL".  This change will also be reflected in the General Inquiry and Trial screens.

i)A LOW or HIGH ASSET LIMIT may be entered with a residential situation of SL.

ii)Where the asset limit is LOW, no rent amount or accommodation purchase amount (DPA) is to be entered.

iii)Where the asset limit is HIGH, a rent amount may be entered and an accommodation purchase amount (ie. DPA) must be recorded.  The accommodation purchase amount (DPA) entered is to be assessed as an asset.  Any rent amount entered is to be used in the calculation of the payment of rent assistance (refer paras 18 and 19 of this DI).

Pensioner enquiries

21.The Financial Information Service (FIS) run by DSS will be available to answer pensioner's enquiries relating to companies which offer sale leaseback contracts.

22.Pensioners seeking advice from staff on whether or not to enter into a sale leaseback agreement should be advised to seek independent advice.

Branch Office enquiries

23.If you have any enquiries in relation to this instruction, please telephone Masuda Sheikh on (06) 289 6442.

Peter Hawker

National Program Director

Benefits

15 July 1992

Attachment A

Entry contribution — Assessment

If the entry contribution (ie DPA). property owner

is greater than the

Extra Allowable Amount *. not eligible for rent assistance

then. DPA is disregarded as an asset

the pensioner is subject to the

LOW asset limit

If the entry contribution (DPA). non-property owner

is less than or equal to the

Extra Allowable Amount*. may be eligible for rent assistance

then. DPA is maintained as an asset

the pensioner is subject to the

HIGH asset limit

* The Extra Allowable Amount is the difference between the non-property owner high asset limit and the property owner low asset limit applicable to the pensioner's marital status.

DATE OF ISSUE: 10 JULY 1992

Carer Service Pension - minor legislative amendment

Purpose:  This instruction is to advise you of a minor amendment to the legislation governing Carer Service Pension eligibility.

Background: The Veterans' Affairs Legislation Amendment Act 1992 received Royal Assent on 26 June 1992. Part 1 of the Schedule to that Act contained minor technical amendments to the SWPA  and VEA, including an amendment in relation to Carer Service Pension.

VEA Section 39 (1)  previously provided that a person is eligible for Carer Service Pension if she or he personally provides constant care for a severely handicapped veteran, and provides that care in a home that is the home of both the person and the veteran.

Section 39(1)(b) has now been amended such that a Carer is eligible if she or he lives in a home that is either:

(i)The home of both the person and the severely handicapped veteran; or

(ii)adjacent to the home of the severely handicapped veteran.

Hence, the Carer must live either in the home of the veteran or adjacent to that home.

Effective date: This amendment became effective from the date of Royal Assent (26 June 1992), and aligns the eligibility criteria in the VEA with those which already existed in  the Social Security Act.

Processing guidelines: The legal meaning of the term adjacent is "lying near or close to" or "neighbouring". This implies that the two homes are not widely separated though they may not actually be adjoining (Black's Law Dictionary, 5th Edition).

When interpreting the word adjacent, the homes must be "closely adjoining"; examples of this include a house on the block immediately across the road from the person being cared for, or  two non-adjoining flats in the same block of flats.  This brings DVA  into line with that applying in DSS.

All other eligibility criteria for Carer Service Pension remain unchanged.

Peter Hawker

National Program Director

Benefits

6 July 1992

DATE OF ISSUE: 8 JULY 1992

COMMONWEALTH SUPERANNUATION AND DEFENCE FORCE RETIREMENT BENEFIT & DEATH BENEFITS PENSION INCREASES - EFFECT ON SERVICE PENSION

INTRODUCTION

1.The Australian Government Retirement Benefits Office (AGRBO) will increase Commonwealth Superannuation and Defence Force Retirement Benefit and Death Benefits (DFRB/DB) payments in July and, as a result of that, this Department will adjust service pension for those pensioners affected.

EFFECTIVE DATE

2.It is intended to adjust service pensions from this Department's payday 6 August 1992, being the first available payday following payment of the increased AGRBO benefits.

TIMETABLE

3.All processing will be carried out over the weekend 18-19 July 1992 in a similar manner as last year.

GENERAL MATCHING PROCESS

4.The necessary tapes will be obtained from AGRBO to commence the ADP matching exercise to identify dual payees.  In general the matching process will be conducted as follows:

.A file of service pension cases with Commonwealth or DFRB superannuation (superannuation codes 03 and 04) will be matched with tapes provided by AGRBO containing that authority's payees.

.Matching will be based upon a combined key of surname and old (super) rate as the primary key, initials will be included as a secondary matching key.

.Each State's Selected superannuation records will be compared with AGRBO records on an Australia-wide basis.

OUTPUT SCHEDULES

5.Output schedules will be produced in the following categories:

.A listing of unmatched cases.

.A listing of mismatched initials, (warning only).

NOTE:  A complete listing of AGRBO payees will not be produced as it would contravene the Information Privacy Principles of the Privacy Act 1988.

.Schedules of Unmatched Cases - Unmatched cases will be listed for Branch action.  These are the only cases which require entry of the new super rate onto the super select schedule for input to the super reassessment program.  If a match on a surname can be combined with either a matched reference number, a correct rate or a date of birth then all the "likely match" cases will be printed.

.Mismatch on Initials - Where the primary matching conditions are met but the initials in the records differ, the case will go ahead for subsequent automatic updating but, as a warning that the record may not be correct, a separate schedule of these cases will be produced for the Branch to examine the discrepancy.  This schedule will be headed:  INITIALS MISMATCH.

Where the Branch is satisfied that the records (both AGRBO and DVA) are those of the same person, no further action is necessary.  However, where an adjustment of our record is necessary to process the case, action must be taken to substitute the automatically prepared data with the correct data before cut off.

KEYFAST TRANSMISSIONS TO COMPUTER CENTRE

6.nsw, vic and qld may process super transactions entered through KEYFAST  in the normal manner.  (SA,WA and TAS may use Keyfast, however they will need to request the facility set up.)

The Super Reference Number should be included in the transaction if you wish to retain it on the CDB record.

INPUT TRANSACTION FORMAT

COL — 1 — 2-8 — 9 — 10-11 — 12-20 — 21-26 — 27-32 — 33-80

CONTENT — STATE — FILE — SEG — SUPER — SUPER — GROSS — DEDUCTIBLE — FILLER

NO — LINK — TYPE REFNO — AMOUNT — AMOUNT

LENGTH — 7 — 1 — 2 — 9 — 6 — 6

7.Once the transactions are entered through Keyfast, the following ADP MESSAGE should be sent to the NCC, OIC shift.

"Please run Schedule 9.4.2 Superannuation KEYFAST Processing of the Automatic Reassessment Processing Operations Guide to run on the (insert date) using the following parameters:

STATE IDENTIFIER:N, V, or Q

SUPER TYPE CODES:03, 04

PAY PERIOD:(as appropriate)

PAY DATE:06/08/92 (effective payday)

RUN DESCRIPTION:COMM SUPER (Report Heading)

ALL REPORTS TO BE RETURNED TO ??? BRANCH

ATTENTION:(Contact Officer's Name)"

GENERAL INFORMATION

8.Should you be uncertain about the identity of the cases and wish to prevent super processing, you should register an action and put the case into SB or PY status.  This will prevent automatic updating occurring.

Overseas Cases

9.Any case recorded on the AGRBO records as having an overseas address will now be matched on an Australia wide basis.  It is not possible to identify an overseas client from the AGRBO tape as their tape does not include State or Country indicators.

REGULATION 45A PROCEDURES

10.In line with part 11.1.7 of the Finance Regulation 45A procedures, it will be necessary for delegates to verify that payees on the AGRBO tapes have been correctly matched with service pensioners receiving superannuation.  A schedule listing all clients matched  will be provided for this task.

ADVICES

11.A short automatic payment computer advice will be printed for cases where a pension variations occurs.  Branches should make own arrangements for despatch of advices.

NCC IMPLICATIONS

12.This exercise is scheduled for the weekend 18-19 July 1992 and a short advice letter will be required.  Benefits Applications Section will provide you with the AGRBO tape and detailed information regarding the programs to be run, closer to the processing date.

CONTACT OFFICERS

13.The contact officer for this exercise is:

TRACEY CUNNINGHAM(06) 289 6398 (Business Hours)

(06) 292 7239 (After Hours).

DAVID MACKRELL

ASSISTANT SECRETARY

PLANNING & MANAGEMENT

DATE OF ISSUE: 2 JULY 1992

NEW CMS ATTRIBUTES - LIFESTYLE RATING AND FORMS D2585 (CLAIM FOR DISABILITY PENSION AND MEDICAL TREATMENT) AND FORM D2663 (CLAIM FOR PENSION BY DEPENDANTS OF A DECEASED VETERAN)

The purpose of this instruction is to advise Branches on the introduction of mandatory CMS attributes relating to the new method of assessing lifestyle and the revised forms D2585 and D2663.

IMPLEMENTATION

To permit the recording and reporting of the results of applications lodged and determined under the provisions of GARP III, the following attributes will be required to be completed from 1 July 1992.

In addition, the introduction of new form D2585 from 1 July 1992 will require the setting of a new attribute.

New form D2663 will be distributed late in July.  This instruction will apply when D2663 is implemented.

LIFESTYLE ATTRIBUTES

The attributes defined in CMS are:

GARP II Case (existing attribute 815)

Choice 1 (Self Assess)

Choice 2 (Imputation)

Choice 3 (Questionnaire)

Lifestyle Not Assessed

These attributes are a mandatory group (ie one of the group must be set for each case).

For cases in the classification types 010, 020, 030, 050, 250, 260, 270, 280, 290, 300, 310 and 320 lodged on or after 1 July 1992, the recording of a lifestyle value on the Incapacity Assessment (IA) screen is mandatory and enforced through an edit in IA.  To allow for the processing of cases where no lifestyle rating is required (eg. an existing 100% rate), the value of N is provided and should be set for the lifestyle rating.

This process will enable reports to be provided for management information and the review of the operation of the new lifestyle assessment system.

These reports will give details of:

.the numbers of veterans selecting each lifestyle option;

.the average lifestyle rating for each option;

.the level of impairment for veterans choosing the self assessment option; and

.the numbers of appeals lodged for each option.

FORM D2585

To permit the setting and reporting of the number of veterans providing an application for disability pension and treatment containing a usable diagnosis of the medical condition(s) claimed, two new attributes have been included in the CMS.

For cases in this category, the setting of the provision of a usable diagnosis is mandatory.  Where a diagnosis was supplied and used the attribute should be set Form Z Diagnosis. Where no diagnosis was supplied or a diagnosis was supplied but not used the Form Z No Diagnosis should be set.

Classification types are 010 and 020.

FORM D2663

To permit the reporting and recording of whether a death certificate was supplied with the claim for pension by dependants of a deceased veteran, two new attributes will be included in the CMS.

For cases where a death certificate is supplied, the Form Y - Death Cert should be set.  For cases where a death certificate is not supplied, the Form Y - No Death Cert attribute should be set.

The classification type is 025.

SETTING OF NEW ATTRIBUTES

The setting of the new attributes in the system occurs at the end of the process for both lifestyle choices and form D2585.

Form D2663 will require that a entry be made at the beginning of the process.

For the lifestyle attributes, setting will simply require Y (for "YES") against only one of the lifestyle choices available to veterans or against the GARP II or Lifestyle Not Assessed attributes.

For D2585 (claim for disability pension and medical treatment), setting will simply require Y (for "YES") against whichever answers the circumstances.

For D2663 (claim for pension by a dependants of a deceased veteran), setting will simply require Y (for "YES") against whichever answers the circumstances.

In Victoria, where death certificates are not routinely available, the procedure outlined above should still be followed (ie. the appropriate attribute should be set).

Contact Officer - Jeff Kelly, 289 6569.

PETER HAWKER

NATIONAL PROGRAM DIRECTOR

BENEFITS

1 July 1992

DATE OF ISSUE: 30 JUNE 1992

DISCLOSURE OF PERSONAL INFORMATION BY THE DEPARTMENT OF SOCIAL SECURITY TO THE DEPARTMENT OF VETERANS' AFFAIRS

Purpose

The purpose of this Instruction is to advise of personal information that the Department of Social Security will disclose to the Department of Veterans' Affairs.

Background

2.On 16 April 1992, the Department of Social Security issued an instrument under paragraph 1314(1)(b) of the Social Security Act. This instrument replaces the previous instrument which was issued on 5 December 1990 and referred to at paragraphs 45-46 of DI B23/91 [22].

3.The new instrument has expanded the scope of information which the Department of Social Security can now disclose to the Department of Veterans' Affairs.

4.  The range of information now available is:

(i)information which may assist in the recovery of a debt from Social Security payments (in this regard the information which can be disclosed is:

.confirmation that a debtor is a Social Security client; and, if so, the rate and period of withholdings and amounts recovered; if withholdings cannot be made, the reasons for this);

(ii)treating doctor's reports and Commonwealth Medical Officer/Senior Medical Officer (CMO/SMO) reports concerning a person's eligibility for Disability Support Pension to enable DVA to determine a claim under the VEA if the disclosure would substantially assist the person;

(iii)information to enable the checking of discrepant cases detected by data-matching undertaken under the provisions of the Data-matching Program (Assistance and Tax) Act 1990;

(iv)information to enable the calculation of a payment by DVA where a person is transferring to or from a payment under the Social Security Act, to or from a payment by DVA (in this regard information that can be disclosed is:

client number;

payment type;

period of payment;

rate; and

rate components);

(v)information to enable the determination of a payment by DVA where the person has or had a spouse, and the spouse has or had a payment under the Social Security Act, or where the spouse has or had a payment from DVA (in this regard information about the spouse that can be disclosed is:

client number;

payment type;

period of payment;

rate; and

rate components); and

(vi)information to detect or prevent dual payments (in this regard information that can be disclosed is:

client number;

payment type;

period of payment;

rate; and

rate components).

(NB: information identified through data-matching must comply with paragraph 4(iii) exclusively)

5.  DVA officers should recognise that DSS officers cannot disclose any client information unless they are satisfied that the following criteria have been met:

(a)that the information being sought about a person was obtained in the administration of the Social Security Act;

(b)that the information is to be disclosed by the DSS Secretary to the Secretary of the Department of Veterans' Affairs; and

(c)at least one of the following five categories has also been met:

(i)that the person about whom information is being sought, is reasonably likely to have been aware, or made aware, that information of that kind is usually passed to the Department of Veterans' Affairs; or

(ii)that the person concerned has consented to the disclosure; or

(iii)that the Department of Social Security believes on reasonable grounds that the disclosure is necessary to prevent or lessen a serious and imminent threat to the life or health of the person concerned or of another person; or

(iv)that the disclosure of information sought is required or authorised by law; or

(v)that the disclosure of information sought is reasonably necessary for the enforcement of law imposing pecuniary penalties, or for the protection of public monies.

Authorised DSS Officers to Disclose Information

6. The paragraph 1314(1)(b) instrument identifies DSS officers who are authorised to disclose the specified information to DVA.  The classifications and locations of these officers are in respect of each type of information outlined in sub-paragraphs (i) to (vi) at paragraph 4 of this instruction.  Accordingly, personal information in regard to:

(a)sub-paragraph 4(i) can only be disclosed by Control, Review & Recovery (CR&R) staff in Area Offices or ASO 3 and above in Regional Offices;

(b)sub-paragraph 4(ii) can only be disclosed by ASO 3 and above in Regional Offices;

(c)sub-paragraph 4(iii) can only be disclosed by those officers who are involved in implementing the Data-matching Program through the examination of discrepant cases;

(d)sub-paragraph 4(iv) can only be disclosed by ASO 3 and above in Pensions and Newstart Sections in Regional Offices;

(e)sub-paragraph 4(v) can only be disclosed by ASO 3 and above in Regional Offices; and

(f)sub-paragraph 4(vi) can only be disclosed by ASO 3 and above in Regional Offices and CR&R staff in Area Offices.

Section 128 VEA or s.30 SWP&AA Notices

7. As already stressed in DI B23/91 [22] "Guidelines for Obtaining Information from Individuals and Organisations including other Departments or Agencies" all requests to DSS for personal information should take the form of a s.128 VEA or s.30 SWP&AA notice, whichever is relevant.  It should be noted that these notices must be signed by an officer with the relevant delegation.

8. This Instruction should be read in conjunction with DI B23/91 [22].  Guidelines specified in that instruction apply to the entire range of personal information which has been outlined in this Instruction and which may be sought from DSS.

Enquiries

9. If there are any enquiries about this Instruction, please contact Warwick Moloney on (06) 2896355 or Mushtaq Butt on (06) 2896739.

David Mackrell

Assistant Secretary

Planning and Management Branch

Benefits Program_

DATE OF ISSUE: 28 JUNE 1992

PHARMACEUTICAL ALLOWANCE : PROCESSING "PA ONLY" CASES VIA PIPS.

CONTENTS

TopicParagraph

Purpose of DI — 2

Background — 3-4

Processing guidelines — 5-9

Treatment entitlement under VEA S85 — 10-11

Recording of Treatment eligibility — 12-14

Cross Reference cases — 15

Advances and automatic suspensions — 16

Method of Assessment 04 cases — 17

Keyfast access — 18

Payment Advices — 19

Eligibility recorded prior to 24 Feb 1992 — 20-21

Tax File Numbers — 22

Screens accessed to process PA only cases — Appendix A

Choice of receiving PA from DVA or DSS — 24-27

AMS, Rule B and DP dependants pensions — 28

Overseas Disability pensions — 29

Veterans living overseas — 30

Introduction

In this instruction, clients who are eligible for Pharmaceutical Allowance (PA) but not in receipt of any other DVA payments are referred to as "PA only" cases.  A person becomes eligible for PA only when he/she is first given approval for treatment at Departmental expense, ie.

- either through acceptance of  disabilities which do not warrant payment of a pension at any rate; or

- through section 85(2) & 85(4) of the VEA (WW1, female veteran WW2, cancer, POW).

Purpose

2.The principal purpose of this instruction is to formalise guide-lines for processing PA only grants for clients who do not receive other DVA payments.

Background

3.When PA was extended to pensioners eligible for pharmaceuticals under the Repatriation Pharmaceutical Benefits Scheme (RPBS), a manual coding sheet was required to put PA only payees onto the Payment Master File.

4. Enhancements were made to the Pensions Information Processing System (PIPS) and related systems from 23 February 1992,  to enable a CDB and PMF record to be created on-line via PIPS instead of using manual coding sheets. This means that new grants of PA only must be  processed through PIPS.

Processing guide-lines

5.When the EATERS system is updated to reflect a person first becoming eligible for treatment, via the Record Decision (RD) facility, the ADP system will automatically generate a DP grant case (classification 334) on CMS and PIPS.

The DP grant case may be used to process the grant of PA in the same way that a new disability pension grant would be processed on PIPS, ie. from Assessment Control (AC) stage through to Determination (DE) stage.  A DP grant case is only generated if the client has no existing payments (including PA).

6.If a client becomes eligible for PA only, Benefits Program staff have the responsibility of putting PA into payment.

7.If the client has existing DP or SP payments, then PA will already be in payment.

8.If the action which generated treatment eligibility is also generating a grant of DP at a rate greater than zero, then PA will be granted automatically as part of the DP grant.

9.Any DP grant case created on or after 24 February has an attribute automatically set. There are three attributes which deal with PA :

. Disab Pension grant (055)for veterans first becoming eligible for               payment of  disability pension;

. PA only (DISAB) grant (065)for veterans having a disability accepted               for the first time but at a non pensionable               rate;

. PA only (TMT) grant (075)for veterans having treatment                eligibility granted for the first time.

Treatment entitlement under sections 85(2) & 85(4) of the VEA

10.The source of eligibility which lies outside the Benefits Program's control is  acceptance of treatment entitlement under sections 85(2) and 85(4) of the VEA. S85(2) deals with treatment for malignant neoplasia and tuberculosis; section 85(4) deals with treatment for any condition for WW1 veterans, certain female veterans, prisoners of war and civilian detainees of the enemy. Since these cases need not have lodged a pension claim, it it is necessary for Benefits Program staff to be made aware of new cases of this sort where no other pension is in payment.

11.Each Branch Office should have established a local mechanism by which cases which become entitled to treatment (but are not entitled to pension) can be reported upon. The Claims Management System (CMS) reporting facilities can be used to set up periodic reports (eg daily, weekly, fortnightly, monthly) which list all cases with attribute number 075, thereby ensuring that these treatment-only cases are reported on, and can be investigated for possible PA grant action.

Recording of treatment eligibility

12.Staff recording treatment eligibility should use the appropriate classification item - e.g., Tmt Malig Neoplasia,,Tmt Detainee, Tmt First War, etc on the CMS Classify Entitlement (CM.CE) screen.

13.To record TSW entitlement, the classification type Entitlement Decision Amend or Treatment Decision Amend must be used to ensure a case is automatically generated for PA payment.  This is because there is no specific classification for the treatment eligibility type of Treatment Second War (TSW) on the CMS Classify Entitlement facility.

14.It is important to note that no CMS DP grant case will be generated if Historic Data Collection (HDC) is used; ie. those staff responsible for granting the payment of PA will be unaware of the case if HDC has been used; it is therefore important that the Decision Amend type be used.

Cross reference cases

15.Some dual payments of PA have been identified with clients who receive payments or have eligibility under two different file numbers. Proper cross-referencing will resolve some of these, and wherever possible such clients should receive all their payments on the one file number.

Advances and automatic suspensions

16.For PA only cases, when an advance payment of PA is made, the system automatically generates a suspension segment (code 7240) on the PMF. This action appears on the report of PMF transactions.  At the end of the advance payment period, the system will automatically remove the suspension segment thereby restoring fortnightly PA payments. It is important to note that this will occur only when PA is the sole payment on the system.

Method of Assessment (MOA) 04 cases

17.In a married SP case where the veteran only receives service pension and the spouse receives neither SP nor DSS pension, there may be a few cases where the non-pensioner spouse is a war widow, or receives DP in their own right, or has treatment eligibility and therefore has entitlement to PA.  In those cases, the spouse is entitled to $5.20 PA, but the veteran service pensioner still receives PA of $5.20 per fortnight (rather than the partnered rate of $2.60). It is not anticipated that this will be changed, given the small numbers involved.

Keyfast Access

18.The Keyfast facility previously used to grant or cancel PA through a manual coding sheet will remain available for a time, solely to allow Systems Support staff to resolve any unusual system problems.

Pension Payment Advices

19.The daily pension payment advices produced for payment variations now are produced for grants of PA only cases. The form of the advice is almost identical to that produced for DP grants (where there is no SP in payment), with the exception that the paragraph about non-taxability is deleted.

Eligibility recorded prior to 24 Feb 1992

20.The following cases will not have an action created automatically on CMS to generate a PA payment:

.Clients who became eligible for treatment in the past few months, and prior to 24 February 1992,  but who have not as yet been put into payment for PA. (A list of these cases was sent to Branches in January 1992, and a final list for any subsequent cases granted up to 23 February 1992 has been despatched recently); and

.Clients who were already eligible for treatment but who belatedly return the PA data collection form sent to them last year.

21.These cases should be registered under the "Classify Pension" screen of CMS.  The classification to be used is "DP Data Change" (item 02).

Tax file numbers

22.The Tax File Number (TFN) legislation does not apply to PA.  There is no proposed change to this policy. The PIPS submission program will not permit a case to be submitted until the TFN exemption is recorded.  Therefore, a TFN exemption needs to be recorded as part of the processing. The reason to be recorded on the TN.AE screen is "not covered by legislation".

Screens which are accessed for PA only cases

23.Appendix A summarises the screens which are accessed  for PA only grants.

Choice of whether or not to receive PA from DVA

24.When a veteran becomes eligible for PA only through treatment eligibility, it is not necessarily the case that DVA must grant Pharmaceutical Allowance.  The veteran may not wish to receive the allowance, or may already be receiving it from Social Security. When sending a PA Payment Form to the Veteran, the covering letter should be worded so as to let the veteran know that if s/he is already receiving PA from DSS then it is not necessary to return the form.

25.In cases where PA is not to be granted, the CMS/PIPS case created by the system should be finalised by withdrawal, so that it ceases to appear as an outstanding action.

26.In cases where the veteran is a member of a couple, and both members of the couple receive a pension and PA from DSS, a DVA grant of PA to the veteran will result in cancellation of the couple's PA from DSS.  DVA cannot "split" the allowance between the veteran and spouse, and  some spouses may feel disadvantaged by this arrangement. Pensioners receiving PA only from DVA may elect to resume receipt of PA from DSS in lieu, if they wish.

27.The option of receiving PA from DSS is possible only for those not receiving any Disability Pension from DVA. Veterans who receive DP from DVA and a pension from DSS cannot choose which Department pays their PA, since the two Departments' ADP systems have been set up such that DVA must pay PA to recipients of DP.

AMS/Rule B/DP dependants

28.Clients who receive an AMS pension, frozen Rule B service pension, or a DP dependants pension are not eligible for PA from DVA.  Recipients of these

payments (provided they have no other DVA eligibility) should be receiving PA from the Department of Social Security, if they are in receipt of a DSS pension.

Overseas Disability Pensions

29.BPOD Veterans are entitled to PA, since they have RPBS eligibility - that is, they have treatment cards (STEC) issued to them. BPOD War Widows are NOT entitled to PA in their own right, as they have no RPBS eligibility.

Veterans living overseas

30.Clients do not automatically lose eligibility for PA if they reside or travel overseas. This differs from Social Security's practice, whereby eligibility is lost even during short overseas absences.

31.BPOD veterans (with no other eligibility) normally have their STEC card recalled upon returning overseas permanently; the question of whether such veterans are entitled to continue receiving PA is being examined, and a memorandum will be issued on this matter as soon as it is resolved.

Kay Grimsley

Assistant Secretary income support

Benefits program

June 1992
Appendix A

Steps for recording treatment  eligibility on CMS/EATERS

so as to generate a case for PA payment.

CM.CESelect item 16-19 or item 05  as appropriate.

(Note: use of item 01 will NOT produce a case for granting PA)

EN.OTEnter treatment eligibility details

EN.DCPrint data collection summary

EN.RDDelegate records the decision

Steps for granting Pharmaceutical Allowance on PIPS

following the generation of a DP grant case by the EATERS Record Decision (EN.RD) facility; OR

after registering a DP Data Change case via the CMS Classify Pension (CM.CP) facility.

PP.ACCreate Action Assessment

PP.PYEnter Payment details

PP.ADEnter Advice details

PP.AREnter arrears if applicable

TN.AERecord TFN exemption reason

("Not covered by legislation")

PP.SUSubmit case

PP.DEDetermine case

DATE OF ISSUE 30 JUNE 1992

REVISED FORM D2585 - CLAIM BY VETERAN FOR DISABILITY PENSION AND MEDICAL TREATMENT - AND REVISED FORM D2663 - CLAIM FOR PENSION BY A WIDOW(ER) OF A DECEASED VETERAN.

The purpose of this instruction is to advise Branches on the implementation of the revised forms D2585 and D2663 and the procedures to follow in the payment of Local Medical Officers.

IMPLEMENTATION

1.The revised Form 2585 ( Disability Claim Form or Form Z) is to be implemented prior to 1 July 1992, while the revised Form 2663 (War Widow(er) Claim Form or Form Y) is scheduled for implementation in late July 1992.

2. Attached for information is a copy of the revised Form 2585.

ABSENCE OF DIAGNOSIS

3. A claim is valid if it has been signed by the applicant and has a condition listed in the claimed condition area. If the diagnosis is absent, the claim should be processed normally.

CMS ATTRIBUTE

4. You will be advised shortly and separately of a CMS attribute which will need to be set for all claims involving the new forms.

ISSUE

5. Requests for bulk issues of the existing Forms Z and Y should be treated with caution.

PAYMENT

6. Each Branch has the responsibility for the protocol of payment to Local Medical Officers and other medical practitioners, however the system must ensure that all claims are serviced quickly.

7.Payment to Local Medical Officers and other medical practitioners will be determined by reference to the appropriate scales in Appendix 5, Part 7 of The Schedule of Fees.

8.The portion of Appendix 5, Part 7 of the Schedule of Feess appropriate to the payment of fees for the supply of clinical notes is shown below for information.

PART 7 FEES FOR MISCELLANEOUS SERVICES

7.1 FEES FOR THE SUPPLY OF CLINICAL NOTES - FORM D2039 (effective 1.12.91)

non VRGP VRGP

$ $

7.1.1 For notes which give a statement

of attendance or dianosis only,

or a brief record of one or two

visits.17.40 19.20

7.1.2 For a statement of attendances and

transcription of notes which may

include specialist reports and

diagnosis, results of x-rays,

pathology tests etc. 35.50 — 39.50

7.1.3 For notes which, in addition to

the information supplied as in

7.1.2., include a summing up of

the case over a period of time

and/or with opinions helpful to

the Department.  54.00 60.00

7.1.4 In exeptional cases, a higher fee may be

payable up to the maximum, where a

practitioner is required to spend considerable

time on research into records of the case and

recording his/her opinion 94.00 104.00

9. It is envisaged that in the majority of cases that the LMO will simply complete the diagnosis section. They will therefor qualify for payment under Section 7.1.1 above.

ADDITIONAL ADVICE

10. You will shortly be provided with additional advice answering questions commonly asked about the new claim forms.

LMO MAIL OUT

11. A letter will be sent to all LMOs advising of the new claim form.

CONTACT OFFICER

7. The Benefits Contact Officer for this exercise is

Dr Keith Horsley  (MSA)  06 2896329.

P.M. HAWKER

National Program Director

Benefits

DATE OF ISSUE: 25 JUNE 1992

GUIDE TO ASSESSMENT OF RATES OF VETERANS' PENSIONS

The purpose of this instruction is to advise Branches on the implementation of the new Guide to the Assessment of Rates of Veterans' Pensions, (GARP 3), and to outline the changes to the current method of rating Lifestyle effects.

This instruction applies only to cases where GARP is needed.

IMPLEMENTATION

2. GARP 3 was tabled on 1 June 1992 and will have effect from 1 July 1992.

CHANGES AFFECTING THE DETERMINATION OF GENERAL RATE PENSION

3. The major change from GARP 2 is in respect to the choices in the Lifestyle rating component of General Rate Pension.

4. As of 1 July 1992, the veteran will be offered three choices in the method of assessing the effect of accepted disabilities on lifestyle.

5. The first choice allows the veteran to self assess by nominating a rating in each of the four categories. That rating will generally be accepted. Determining Officers have the discretion to request further information or clarification if they consider that there is an obvious error in the self assessment.

6. A further D.I. will be issued shortly detailing changes to the recording process for audit purposes in relation to self assessed claims and applications.

7. The second choice allows the veteran to have a Lifestyle rating determined by imputation, i.e. a Lifestyle rating commensurate with the higher figure of the shaded area of Appendix 7.

8. The third choice available is the procedure currently in place. The veteran completes the revised Questionnaire and returns it to the Department of Veterans' Affairs. A Lifestyle rating is then determined by a delegate on the basis of that information.

RATING OF LIFESTYLE EFFECTS FOR CASES LODGED PRIOR TO 1 JULY 1992

9. If the veteran has completed the Questionnaire, prior to 1 July 1992 or returns a Questionnaire after that date, an assessment of the Lifestyle rating is to be determined by a delegate on the basis of that information.

10. If the veteran has chosen not to complete the Questionaire, Lifestyle rating should be by imputation.

APPEALS

11. If a veteran appeals a delegate's decision to the Veterans' Review Board he may, for the purposes of the appeal, opt for a different choice in the method of assessing the Lifestyle from the one that was used in the original decision. That choice is binding on the new decision maker.

CONTACT OFFICER

14. The Benefits Contact Officer for this exercise is

Fiona Tuckwell 06 2896458  Business Hours

P Hawker

National Program Director

Benefits