Social Security Foreign Currency Exchange Rate Determination 2013 (No. 2)

Administered by Department of Social Services

Legislation au F2013L02076 Not in force Legislative Instrument

Legislation content

EXPLANATORY  STATEMENT

 

Social Security Foreign Currency Exchange Rate Determination 2013 (No.2)

 

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 2013 (No. 1) made under subsection  1100(5) of the Act.

 

This determination  is required so as to move Latvia from Table E to Table A to reflect that Latvia will adopt the Euro as its currency from 1 January 2014. The determination will come into effect on 1 January 2014.

 

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  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 international money transfer rate from the Commonwealth  Bank of Australia (Part 5, Table C);

 

o         the Reserve Bank of Australia  rate from the Reserve Bank of Australia (Part 6, Table D);

 

o         the Bank of America  rate from the Bank of America  (Part 7, Table E); and

 

o         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 lstituto Nazionale della Previdenza Sociale (INPS) and available from the lstituto Centrale delle Sanche Popolari ltaliane 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 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 international money 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.2)

 

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 2013 (No. 1) made under subsection  1100(5) of the Act.

 

This determination is required so as to move Latvia from Table E to Table A to reflect that Latvia will adopt the Euro as its currency from 1 January 2014. The determination will come into effect on 1 January 2014.

 

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.2)

Overview

The Social Security Foreign Currency Exchange Rate Determination 2013 (No.2) was enacted to address the need for updating the exchange rates of foreign currencies for payments received under the Social Security Act 1991. This legislative instrument was introduced by the Australian Government under the authority granted by section 1100 of the Act. It specifically aims to reflect the adoption of the Euro by Latvia as its official currency from 1 January 2014, thereby requiring the revision of the currency exchange rate tables to move Latvia from Table E to Table A. The determination revokes the previous Social Security Foreign Currency Exchange Rate Determination 2013 (No.1) to ensure consistency and accuracy in the application of exchange rates. The policy objective of this instrument is to maintain the integrity of foreign currency payments under the Social Security Act by providing updated and accurate exchange rates sourced from recognised financial institutions.

Scope and Application

The Social Security Foreign Currency Exchange Rate Determination 2013 (No. 2) applies to individuals who receive payments in foreign currencies and require conversion to Australian dollars for the purposes of determining their social security benefits under the Social Security Act 1991. This determination revokes the previous determination (No. 1) and updates the exchange rates to reflect Latvia's adoption of the Euro as its currency from 1 January 2014. It specifies various sources for determining the appropriate market exchange rates, including rates from the Commonwealth Bank of Australia, Reserve Bank of Australia, Bank of America, and the Central Bank of Bosnia and Herzegovina. The determination also provides for manual payments and payments made by the Instituto Nazionale della Previdenza Sociale (INPS). The legislation is applicable nationally within Australia, and no consultation was undertaken due to its minor nature. The determination does not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011, and thus, it is compatible with human rights.

Key Provisions

The Social Security Foreign Currency Exchange Rate Determination 2013 (No. 2) outlines the mechanisms for determining the value of payments received in foreign currencies under the Social Security Act 1991. Section 1100 of the Act permits the Secretary or their delegate to establish methods for valuing such payments, and this determination is made under subsection 1100(5) of the Act (section 1.1). The determination revokes the earlier Social Security Foreign Currency Exchange Rate Determination 2013 (No. 1) and is effective from 1 January 2014, the date Latvia adopts the Euro (section 1.2). The determination specifies various exchange rates sourced from financial institutions, including the Commonwealth Bank of Australia, Reserve Bank of Australia, Bank of America, and the Central Bank of Bosnia and Herzegovina (sections 3.1-8.1). The Act imposes specific obligations on the parties involved, requiring the application of designated exchange rates for payments received in foreign currencies. It mandates that the exchange rate be sourced from the appropriate table within the determination for payments from specified countries, ensuring consistency and accuracy in currency conversion (sections 2.1, 3.1-8.1). For manual or computer-less payments and those made by the lstituto Nazionale della Previdenza Sociale (INPS), the exchange rate is updated twice a year on or after the pension CPI dates (sections 2.1, 9.1). These obligations ensure that payments are correctly valued, facilitating accurate social security calculations. Failure to comply with the provisions of this determination can result in civil consequences, such as incorrect valuation of foreign currency payments, potentially affecting the amount of social security benefits. While the determination itself does not explicitly outline penalties for non-compliance, breaches of the Social Security Act 1991 could lead to fines or other legal repercussions. The specific penalties would be determined under the relevant sections of the Social Security Act 1991, which may include significant fines or imprisonment for serious or repeated breaches. The human rights compatibility statement confirms that the determination does not infringe on any rights or freedoms recognised under international human rights instruments (section 10.1).

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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.