Chapter 12 - How we review your pension
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What we will write to you about
- Vetaffairs
Government superannuation schemes
British pensions
Other foreign (overseas) pensions
Shares and managed investments
Private trusts and private companies review of circumstances
Property and business valuations
Pension reviews
Interest rate changes and deeming
We understand that your needs change and that we must provide more responsive services. We want to be less intrusive and make it easier for you to fulfil your obligations, by reducing the number of changes you need to tell us about. This chapter lists the financial changes that you don't need to tell us about because we monitor them and act on them accordingly. It also tells you what sort of information you may expect us to write to you about.
Government superannuation schemes
You need to tell us within 14 days (28 days if you live overseas or receive remote area allowance) if you begin receiving the following types of income but you do not need to tell us of increases related to movements in the Consumer Price Index.
Note: If you are receiving a social security age pension (paid by DVA) and you live in a remote area you need to tell us within 14 days not 28 days.
These include:
- Australian Government Superannuation (ComSuper).
- Defence Forces Retirement and Death Benefit (DFRDB).
- State Government Superannuation.
Note: If you are in receipt of QSuper you will need to advise DVA if your super pension increases.
British pensions
The exchange rate used for pension purposes to convert the amount of British pension from pounds sterling to Australian dollars is monitored. This means that you do not need to tell us of changes in the exchange rate. If you receive an indexed British Public Service pension, your income support pension is adjusted annually following the cost of living increase. This means that you do not need to tell us of the increase. If you receive an indexed British social security pension, or a pension from Jersey or Guernsey, you will need to advise us if your rate of pension changes for any reason other than a change in the exchange rate.
Other foreign (overseas) pensions
In March and September each year we will update the exchange rate used to convert the amount of your foreign pension (other than British social security, armed forces, public service or war disablement pensions) to Australian dollars. This means that you do not need to tell us of changes in the exchange rate, although you can ask us to update the exchange rate at any time. If you receive an indexed foreign (overseas) pension you will need to advise us if your rate of pension changes for any reason other than a change in the exchange rate.
Shares and managed investments
In March and September each year we will update the value of:
- all your shares which are listed on the Australian Stock Exchange; and
- all your unit based investments.
We update your unit or share holdings if there have been changes due to:
- a restructure to the investment or the company; or
- a name change following a product/company name change, merger or takeover.
We will also update the value of all of your listed shares and investments when you tell us specifically about changes to any of your shares or managed investments. This means that you do not need to tell us if the values of your shares or unit based investments vary.
Note: You do need to tell us about significant changes if the number of shares or units increase and you consider your pension may be affected or if the value of your account based managed investments, unlisted public company shares, overseas shares, options, rights, warrants or futures varies by more than $1000.
Private Trusts and Private Companies review of circumstances
If you are involved in a private trust or private company your income support pension will be reviewed annually. When you have finalised your financial statements for the year you should forward a copy of your personal taxation return and the profit & loss statement, balance sheet and taxation return for all private trusts and private companies within 14 days (28 days if you live overseas or receive a remote area allowance) to your nearest DVA office.
Note: If you are receiving a social security age
pension (paid by DVA) and you live in a remote area you need to forward these documents within 14 days not 28 days.
Property and business valuations
If your pension is paid under the assets test or if your assets are within $10,000 of the amount which would mean that your pension is assessed under the assets test, we will update the value of any business, farm or other property (such as a holiday home) each year. Up-to-date valuations are provided by the Australian Valuation Office and applied to the assessment of your pension each July.
Note: If you are paid under the income test you still need to tell us if the value of your assets increases to the point where they exceed the asset limit included in our latest advice to you.
Pension reviews
We may periodically ask you to provide information about your income and assets in order to ensure that you are receiving the correct rate of pension. We may also contact third parties (for example an employer) to confirm details of your income and assets.
Interest rate changes and deeming
We calculate your income from financial assets, for example bank accounts and term deposits, using the current deeming rates (see Chapter 4 - Your Income and Assets). The deeming rates are monitored to ensure they reflect the appropriate rate of return and any changes to the deeming rates are made in March and September when pensions are indexed. You do not need to tell us about any interest rate changes to your financial assets.
| Fact Sheet: IS139 |
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| The things you do not need to tell us about (PDF version) |
| The things you do not need to tell us about (HTML version) |
What we will write to you about
We want to find a balance between providing too much information and not enough. We are trying to shorten the letters we send to you and reduce the amount of repetitive information. At the same time, we understand that you need to know what is happening with your pension. We will:
- Write to you when you ask us for written information.
- Write to you when your rate of pension changes (excluding cost of living increases).
- Let you know what items of income and assets are counted in your pension assessment when we grant you a pension and after a full review.
- Let you know when your obligations change and remind you of your obligations.
- Send joint letters to couples where possible or send single letters if you prefer.
Vetaffairs
Vetaffairs is a national publication, generally printed every quarter. It is sent to all DVA pensioners and contains information of interest to the veteran community. Vetaffairs is available on the internet, address www.dva.gov.au/media/publicat/publicat.htm.
We are here to assist you
Remember we are here to assist you. Please contact us by calling into your nearest DVA office, writing or phoning us if you need this guide in compact disc (CD), fact sheets, any of the publications listed or any further information.