Social Security Foreign Currency Exchange Rate Determination 2006 (No. 1)

Social Security Foreign Currency Exchange Rate Determination 2006 (No. 1)

as amended

made under subsection 1100(5) of the

Social Security Act 1991

This compilation was prepared on 21 August 2007
taking into account amendments up to Social Security Foreign Currency Exchange Rate Determination 2006 (No. 3)

Prepared by the Legal Services Branch,
Centrelink, Canberra

Contents

Page

Part 1 Preliminary

1.1 Name of determination

1.2 Commencement

1.3 Definition

1.4 Revocation

Part 2 Appropriate market exchange rates for Part 3, 4, 5, 6, 7 and 8

2.1 Purpose of Part 2

2.2 Application

Part 3 Appropriate market exchange (on-demand airmail buying rate)

3.1 Application

3.2 Appropriate market exchange rate

Part 4 Appropriate market exchange rate (miscellaneous exchange rate)

4.1 Application

4.2 Appropriate market exchange rate

Part 5 Appropriate market exchange rate (telegraphic transfer rate)

5.1 Application

5.2 Appropriate market exchange rate

Part 6 Appropriate market exchange rate (Reserve Bank of Australia rate)

6.1 Application

6.2 Appropriate market exchange rate

Part 7 Appropriate market exchange rate (Bank of America rate)

7.1 Application

7.2 Appropriate market exchange rate

Part 8 Appropriate market exchange rate (Central Bank of Bosnia and Herzegovina rate)

8.1 Application

8.2 Appropriate market exchange rate

Part 9 Other payments to which subsection 1100(2) of the Act does not apply

9.1 Purpose

9.2 Payments

9.3 Rate of exchange (March to September)

9.4 Rate of exchange (September to March)

9.5 Payments and rate of exchange

Part 1 Preliminary

1.1 Name of determination

 This determination is the Social Security Foreign Currency Exchange Rate Determination 2006 (No. 1).

1.2 Commencement

 This determination commences on 1 February 2006.

1.3 Definition

 In this determination:

 Act means the Social Security Act 1991.

 Economic and Monetary Union means those countries, participating in the single currency of Europe as determined, from time to time, by the Council of the European Union.

1.4 Revocation

 This determination revokes:

 the Social Security Foreign Currency Exchange Rate Determination 2004 (No. 1) made on 18 March 2004;

 the Social Security Foreign Currency Exchange Rate Determination 2004 (No. 2) made on 26 October 2004

 the Social Security Foreign Currency Exchange Rate Determination 2005 (No. 1) made on 31 January 2005;

 the Social Security Foreign Currency Exchange Rate Determination 2005 (No. 2) made on 22 March 2005; and

 the Social Security Foreign Currency Exchange Rate Determination 2005 (No. 3) made on 17 November 2005.

Part 2 Appropriate market exchange rates for Part 3, 4, 5, 6, 7 and 8

2.1 Purpose of Part 2

(1) Section 1100 of the Act deals with amounts received by a person in a foreign currency, and how to find the value in Australian currency of the amounts.

(2) Subsection 1100(2) of the Act provides that the value in Australian currency of the amount received is to be calculated using the appropriate market exchange rate for the foreign currency on the 15th business day before the calculation day.

 Note: The calculation day is the first business day for each month—see Act, s 1100(6).

(3) However, subsection 1100(2) also allows the Secretary (or his delegate) to determine that it is not appropriate for the subsection to apply to:

 (a) a specified foreign currency; or

 (b) a specified payment, or a class of payments, received in a foreign currency.

 Note: If subsection 1100(2) does not apply, the procedures for identifying the rate of exchange mentioned in subsection 1100(3) do not apply.

(4) If subsection 1100(2) does not apply, subsection 1100(4) of the Act allows the Secretary (or his delegate) to determine an appropriate rate of exchange to work out the value in Australian currency of the foreign currency of the payment in foreign currency.

2.2 Application

(1) It is not appropriate for subsection 1100(2) to apply to the identified currencies in Part 3, 4, 5, 6, 7 and 8.

Part 3 Appropriate market exchange (on-demand airmail buying rate)

3.1 Application

 This Part applies to an amount paid to a person if:

 (a) the payment is not mentioned in Part 9; and

 (b) the amount is in the currency of a country or place mentioned in Table A.

3.2 Appropriate market exchange rate

(1) This section deals with the appropriate market exchange rate on a particular day for a foreign currency mentioned in Table A.

(2) It is appropriate to use the on-demand airmail buying rate for the currency available at the Commonwealth Bank of Australia at the start of business in Sydney on the 5th business day before the calculation day.

TABLE A

TABLE A

Part 4 Appropriate market exchange rate (miscellaneous exchange rate)

4.1 Application

 This Part applies to an amount paid to a person if:

 (a) the payment is not mentioned in Part 9; and

 (b) the amount is in the currency of a country or place mentioned in Table B.

4.2 Appropriate market exchange rate

(1) This section deals with the appropriate market exchange rate on a particular day for a foreign currency mentioned in Table B.

(2) It is appropriate to use the miscellaneous exchange rate for the currency available at the Commonwealth Bank of Australia at the start of business in Sydney on the 5th business day before the calculation day.

TABLE B

TABLE B

TABLE B

TABLE B

Part 5 Appropriate market exchange rate (telegraphic transfer rate)

5.1 Application

 This Part applies to an amount paid to a person if:

 (a) the payment is not mentioned in Part 9; and

 (b) the amount is in the currency of a country or place mentioned in Table C.

5.2 Appropriate market exchange rate

(1) This section deals with the appropriate market exchange rate on a particular day for a foreign currency mentioned in Table C.

(2) It is appropriate to use the telegraphic transfer exchange rate for the currency available at the Commonwealth Bank of Australia at the start of business in Sydney on the 5th business day before the calculation day.

TABLE C

Part 6 Appropriate market exchange rate (Reserve Bank of Australia rate)

6.1 Application

 This Part applies to an amount paid to a person if:

 (a) the payment is not mentioned in Part 9; and

 (b) the amount is in the currency of a country or place mentioned in Table D.

6.2 Appropriate market exchange rate

(1) This section deals with the appropriate market exchange rate on a particular day for a foreign currency mentioned in Table D.

(2) It is appropriate to use the rate of exchange for the currency available at the Sydney office of the Reserve Bank of Australia at the start of business in Sydney on the 5th business day before the calculation day.

TABLE D

TABLE D

Part 7 Appropriate market exchange rate (Bank of America rate)

7.1 Application

 This Part applies to an amount paid to a person if:

 (a) the payment is not mentioned in Part 9; and

 (b) the amount is in the currency of a country or place mentioned in Table E.

7.2 Appropriate market exchange rate

(1) This section deals with the appropriate market exchange rate on a particular day for a foreign currency mentioned in Table E.

(2) It is appropriate to use the rate of exchange for the currency available at the Sydney office of the Bank of America at the start of business in Sydney on the 5th business day before the calculation day.

TABLE E

Part 8 Appropriate market exchange rate (Central Bank of Bosnia and Herzegovina rate)

8.1 Application

 This Part applies to an amount paid to a person if:

 (a) the payment is not mentioned in Part 9; and

 (b) the amount is in the converted mark of Bosnia and Herzegovina.

8.2 Appropriate market exchange rate

(1) This section deals with the appropriate market exchange rate on a particular day for the amount.

(2) It is appropriate to use the rate of exchange:

 (a) set by the Central Bank of Bosnia and Herzegovina; and

 (b) available at the start of business in Sydney on the 5th business day before the calculation day.

Part 9 Other payments to which subsection 1100(2) of the Act does not apply

Division 1—Purpose of Part 9

9.1 Purpose

(1) Section 1100 of the Act deals with amounts received by a person in a foreign currency, and how to find the value in Australian currency of the amounts.

(2) Subsection 1100(2) of the Act provides that the value in Australian currency of the amount received is to be calculated using the appropriate market exchange rate for the foreign currency on the 15th business day before the calculation day.

 Note: The calculation day is the first business day for each month—see Act, s 1100(6).

(3) However, subsection 1100(2) also allows the Secretary (or his delegate) to determine that it is not appropriate for the subsection to apply to:

 (a) a specified foreign currency; or

 (b) a specified payment, or a class of payments, received in a foreign currency.

 Note: If subsection 1100(2) does not apply, the procedures for identifying the rate of exchange mentioned in subsection 1100(3) do not apply.

(4) If subsection 1100(2) does not apply, subsection 1100(4) of the Act allows the Secretary (or his delegate) to determine an appropriate rate of exchange to work out the value in Australian currency of the foreign currency of the payment in foreign currency.

(5) Divisions 2 and 3 identify payments for which it is not appropriate for subsection 1100(2) to apply, and the appropriate rate of exchange.

Division 2—Payments by the Commonwealth

9.2 Payments

(1) It is not appropriate for subsection 1100(2) to apply to a payment:

 (a) made by the Commonwealth; and

 (b) worked out manually or without using a computer system.

9.3 Rate of exchange (March to September)

(1) This section applies to a payment made in the period:

 (a) starting on the first business day of the month following the 20 March in a year; and

 (b) ending immediately before the first business day of the next month following the 20 September in a year.

(2) It is appropriate to use the rate:

 (a) mentioned in Part 3, 4, 5, 6, 7 or 8 as the basis for finding the appropriate market exchange rate for the currency; and

 (b) available at the Commonwealth Bank of Australia at the start of business in Sydney on the 5th business day before the calculation day.

9.4 Rate of exchange (September to March)

(1) This section applies to a payment made in the period:

 (a) starting on the first business day of the month following the 20 September in a year; and

 (b) ending immediately before the first business day of the next month following the 20 March in a year.

(2) It is appropriate to use the rate:

 (a) mentioned in Part 3, 4, 5, 6, 7 or 8 as the basis for finding the appropriate market exchange rate for the currency; and

 (b) available at the Commonwealth Bank of Australia at the start of business in Sydney on the 5th business day before the calculation day.

Division 3—Payments in Italian currency by the Istituto Nazionale della Previdenza Sociale

9.5 Payments and rate of exchange

(1) It is not appropriate for subsection 1100(2) to apply to a payment made to a person by the Istituto Nazionale della Previdenza Sociale.

(2) It is appropriate to use the rate of exchange:

 (a) set by the Istituto Centrale delle Banche Popolari Italiane; and

 (b) available in Milan at the start of business on the day when tha Istituto Nazionale della Previdenza Sociale makes the payment.

Notes to the Social Security Foreign Currency Exchange Rate Determination 2006 (No. 1)

Note 1

The Social Security Foreign Currency Exchange Rate Determination 2006 (No. 1) (in force under subsection 1100(5) of the Social Security Act 199) as shown in this compilation is amended as indicated in the Tables below.

Under the Legislative Instruments Act 2003, which came into force on 1 January 2005, it is a requirement for all non-exempt legislative instruments to be registered on the Federal Register of Legislative Instruments.

Table of Instruments

Table of Amendments