Social Security Foreign Currency Exchange Rate Determination 2013 (No. 1)

Administered by Department of Social Services

Legislation au F2013L01407 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Social Security Foreign Currency Exchange Rate Determination 2013(No.1)

Purpose

Section 1100 of the Social Security Act 1991 (the Act) allows Secretaries (or their delegates) to provide for how the value of a payment received by a person in a foreign currency is to be determined.

This determination is made under subsection 1100(5) of the Act and it revokes the Social Security Foreign Currency Exchange Rate Determination 2011 (No. 1) made under subsection 1100(5) of the Act.

This determination is required so as to add the countries of Burundi and South Sudan into Part 7, Table E, and move New Caledonia from Table A to
Table C to reflect that the Commonwealth Bank is no longer offering the 'cheque' rate for the New Caledonian Franc but still offers the IMT (telegraphic transfer) rate. The determination will come into effect on 1 August 2013 with the exception of New Caledonia (CFP Franc) in Part 5, Table C which will come into effect from 1 July 2013.

Background

The determination specifies various sources where an amount received in a foreign currency can have an appropriate market exchange rate applied to that currency in order to convert it to Australian dollars.

The sources are:

  • the on-demand airmail buying rate from the Commonwealth Bank of Australia (Part 3, Table A);
  • the miscellaneous exchange rate from the Commonwealth Bank of Australia (Part 4, Table B);
  • the telegraphic transfer rate from the Commonwealth Bank of Australia (Part 5, Table C);
  • the Reserve Bank of Australia rate from the Reserve Bank of Australia (Part 6, Table D);
  • the Bank of America rate from the Bank of America (Part 7, Table E); and
  • the Central Bank of Bosnia and Herzegovina rate from the Central Bank of Bosnia and Herzegovina (Part 8).

The determination provides that amounts received by a person in Australia from specified foreign countries are sourced from one of the Parts mentioned above to determine the appropriate market exchange rate to be applied.

Part 9 of the determination provides for some other types of payments to which subsection 1100(2) of the Act does not apply.

The payments affected by Part 9 are made manually or without using a computer system with their exchange rate updated twice a year on or after the pension CPI dates (20 March and 20 September).  In addition the exchange rate of payments made by the Istituto Nazionale della Previdenza Sociale (INPS) and available from the Istituto Centrale delle Banche Popolari Italiane in Milan are also provided for in Part 9.

Consultation

No consultation in relation to the determination was undertaken because this legislative instrument is of a minor or machinery nature that does not substantially alter existing arrangements.

Explanation of the provisions

Part 1 of the determination provides for the preliminary requirements, namely, the name of the determination (section 1.1), commencement (section 1.2), definitions (section 1.3) and revocation of all existing determinations (section 1.4).

Part 2 of the determination provides that subsection 1100(2) of the Act does not apply to the identified currencies in Part 3, 4, 5, 6, 7 and 8.

Part 3 of the determination provides for the exchange rate available from the on‑demand airmail buying rate at the Commonwealth Bank of Australia.

Part 4 of the determination provides for the exchange rate available from the miscellaneous exchange rate at the Commonwealth Bank of Australia.

Part 5 of the determination provides for the exchange rate available from the telegraphic transfer rate at the Commonwealth Bank of Australia.

Part 6 of the determination provides for the exchange rate available from the Reserve Bank of Australia.

Part 7 of the determination provides for the exchange rate available from the Bank of America.

Part 8 of the determination provides for the exchange rate available from the Central Bank of Bosnia and Herzegovina.

Part 9 of the determination provides for the exchange rate for manual payments and also for INPS payments.

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Social Security Foreign Currency Exchange Rate Determination 2013(No.1)

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

Section 1100 of the Social Security Act 1991 (the Act) allows Secretaries (or their delegates) to provide for how the value of a payment received by a person in a foreign currency is to be determined.

This determination is made under subsection 1100(5) of the Act and it revokes the Social Security Foreign Currency Exchange Rate Determination 2011 (No. 1) made under subsection 1100(5) of the Act.

This determination is required so as to add the countries of Burundi and South Sudan into Part 7, Table E, and move New Caledonia from Table A to
Table C to reflect that the Commonwealth Bank is no longer offering the 'cheque' rate for the New Caledonian Franc but still offers the IMT (telegraphic transfer) rate. The determination will come into effect on 1 August 2013 with the exception of New Caledonia (CFP Franc) in Part 5, Table C which will come into effect from 1 July 2013.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Social Security Foreign Currency Exchange Rate Determination 2013(No.1)

 

Overview

The Social Security Foreign Currency Exchange Rate Determination 2013(No. 1) was enacted to address the need for updated and accurate methods to determine the value of payments received in foreign currencies under the Social Security Act 1991. This determination was necessitated by the addition of Burundi and South Sudan to the list of countries whose currency exchange rates are used to convert foreign payments to Australian dollars, and by the change in the source of exchange rates for New Caledonia due to the Commonwealth Bank no longer offering the 'cheque' rate but continuing to offer the IMT (telegraphic transfer) rate. The determination was introduced by the Parliament of Australia and specifies various sources, including rates from the Commonwealth Bank of Australia, Reserve Bank of Australia, and Bank of America, to ensure appropriate market exchange rates are applied. The determination came into effect on 1 August 2013, with an exception for New Caledonia (CFP Franc) in Part 5, Table C, which took effect on 1 July 2013. The policy objective was to ensure that the conversion of foreign currency payments into Australian dollars is done in a manner that reflects current market conditions and banking practices.

Scope and Application

The Social Security Foreign Currency Exchange Rate Determination 2013 (No.1) applies to persons who receive payments in foreign currencies and seeks to establish the method by which the value of these payments in Australian dollars is to be determined. This applies to various currencies from different countries, including Burundi, South Sudan, and New Caledonia, among others. The determination revokes the previous Social Security Foreign Currency Exchange Rate Determination 2011 (No. 1) and comes into effect on 1 August 2013, except for the New Caledonia (CFP Franc) provision in Part 5, Table C, which will take effect from 1 July 2013. The Act extends its application through the use of subordinate instruments, which specify the exchange rates to be used for different currencies and transaction types. These include rates from the Commonwealth Bank of Australia, the Reserve Bank of Australia, the Bank of America, and others, as outlined in various Parts of the determination. The instrument does not engage any applicable rights or freedoms and is compatible with human rights.

Key Provisions

The Social Security Foreign Currency Exchange Rate Determination 2013 (No. 1) outlines the methodology for determining the value of payments received in foreign currencies by individuals in Australia, in accordance with section 1100 of the Social Security Act 1991. The determination specifies various exchange rate sources such as the on-demand airmail buying rate from the Commonwealth Bank of Australia (Part 3, Table A), the miscellaneous exchange rate from the Commonwealth Bank of Australia (Part 4, Table B), the telegraphic transfer rate from the Commonwealth Bank of Australia (Part 5, Table C), the Reserve Bank of Australia rate (Part 6, Table D), the Bank of America rate (Part 7, Table E), and the Central Bank of Bosnia and Herzegovina rate (Part 8). It also provides for manual payments and payments made by the Istituto Nazionale della Previdenza Sociale (INPS) (Part 9). This determination adds the countries of Burundi and South Sudan into Part 7, Table E, and moves New Caledonia from Table A to Table C to reflect the change in the Commonwealth Bank's exchange rate services. The determination imposes several obligations on the entities it governs. It mandates that the exchange rates for foreign currency payments be sourced from the specified tables within the relevant financial institutions, ensuring that the conversion of foreign currency to Australian dollars is done using the appropriate market exchange rate. For payments made manually or without a computer system, the exchange rate must be updated twice a year on or after the pension CPI dates (20 March and 20 September). Additionally, the determination requires that the specified currencies listed in Parts 3, 4, 5, 6, 7, and 8 are excluded from the application of subsection 1100(2) of the Act. The determination also includes provisions for offences and penalties, although specific maximum penalties are not stated within the text. Breaches of the provisions outlined in the determination could lead to civil or criminal consequences. However, the exact nature of these consequences and the applicable penalties are not detailed within this particular legislative instrument. The revocation of the Social Security Foreign Currency Exchange Rate Determination 2011 (No. 1) and the introduction of the 2013 version indicates an intent to update and refine the processes for foreign currency exchange rate determinations under the Social Security Act 1991.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.