Reviews of foreign exchange rates 106-08020010

Foreign income and assets affected by exchange rates are recorded on specific screens. Check the following summaries and select any relevant income or assets:

• Foreign Income/Assets/Pension Summary (FIPS) screen contains a summary of foreign pensions recorded on the Foreign Pension Details (FPD) screen, and/or the Foreign Income/Asset Detail (FID) screen
• The Savings Summary (SVS) screen contains a summary of any foreign financial assets recorded on the Direct Investments (SVDI) screen
• The Securities & Investments Summary (SIS) screen contains a summary of any overseas unlisted shares on the Unlisted Public Securities (SIUS) screen

Check the Exchange Rate field on each screen for the current exchange rate being used.

Current exchange rates can also be checked using the Foreign Exchange Summary (RDFXS) screen.

Note: overseas listed shares coded on SIS are not regarded as income. They are financial investments and are subject to deeming provisions. The exchange rates used for these can only be updated by FINS. See:

• Revaluing managed investments, shares and securities, or
• contact the FINS Helpdesk

• Advise the customer that a variation of more than 5% must exist between the actual exchange rate and the exchange rate used by Centrelink before the rate of pension can be reassessed
• Ask the customer what exchange rate they believe was used to convert their income
• Check whether there was a 5% difference by either:
• Keying the exchange rate provided by the customer into the Exchange Rate field on the income screen containing the customer's overseas income, or
• Using the manual method. See the Resources page for assistance

Note: where a foreign pension on the FPD screen is to be reassessed, and there is a channel code of 'DEX' or 'CPI', only International Services (CIS) can use the screen to calculate the 5% difference, as the screen is protected.

Was the exchange rate used by the bank more than 5% different to that used by Centrelink when converting their income and it is in the customer's interest for a reassessment to occur?

Note: sometimes the reassessment can cause a reduction in rate of the Australian payment and/or a debt. If this occurs, the foreign income should not be reassessed and the customer advised of the reason.

• Yes, go to Step 3
• No, go to Step 5

Can the customer provide verification of the rate they received (for example a bank statement or letter showing the exchange rate used)?

• Yes, go to Step 4
• No, go to Step 5

Has the customer provided documents that verify the exchange rate used?

• Yes, go to Step 6
• No, record the details of the contact on a DOC for follow up when verification is provided. Procedure ends here

Unless there is a variation of greater than 5% and this can be verified, the exchange rate cannot be adjusted. Advise the customer of the inability to adjust the rate of payment and their review and appeal rights.

Advise the customer to notify if there are any changes to income or assets.

Record the details of the customer enquiry on a DOC.

Note: if a customer's payment is cancelled due to income because of exchange rate variations, see Cancellation due to foreign exchange processing.

Procedure ends here.

The exchange rate should only be updated for that income which is affected by the difference in the exchange rate. For example, if a customer receiving a UK pension and UK real estate income provides proof of a variation in the exchange rate on their real estate income, the UK pension should not be reassessed unless this has also been verified.

Go to the relevant income screen affected by the variation and select the income.

Use [F7] and [F8] to select the page which needs to be reassessed.

Note: where a customer has foreign income on the FPD screen with a channel code of 'DEX' or 'CPI' a reassessment can only be done by CIS.

If the customer's record has more than one entry line, it may be necessary to repeat the process and update exchange rates on a number of screens for the different income sources. For example, a customer received their regular payment of 3 month's pension in June. The exchange rate they received when the money was deposited into their account should be recorded for March, April and May (assuming the 5% variation rule applied to all 3 months).

• Insert the new rate to be used in the Exchange Rate: field. Note: there will need to be a difference of more than 5% between the existing and new exchange rate coded
• Code the Source: field
• Code the date the reassessment is to apply from in the DOR: field. The date the reassessment is to apply from is the date in the Date of Event: field on the screen being reassessed. Do not use today's date or the system will not pay arrears to which the customer is usually entitled (see note)
• Code a 'C' in the Action: field and press [Enter]

Note: if the customer applies for a formal review within 13 weeks of receiving the exchange rate statement which is issued in February each year, arrears are payable.

Repeat the above steps for every applicable page of every applicable foreign income record for the customer.

To update the SVS screen, select each relevant record. Go to the page containing the incorrect exchange rate. Code the correct exchange rate in the Exchange Rate: field. If the date in the Event Date: field is prior to the date of assessment, key the correct date and key an 'I' in the Action: field. If the date in the Event Date: field is correct, key a 'C' in the Action: field.

Finalise the activity on the Assessment Results (AR) screen. Ensure the system is paying correct arrears.

Record the details of the reassessment on a DOC.