Commonwealth Numbered Acts

SOCIAL SECURITY AND VETERANS' AFFAIRS LEGISLATION AMENDMENT ACT (No. 4) 1989 No. 164, 1989 - SECT 30

30. The Principal Act is amended by inserting after Division 1 of Part I the
following Division:

"Division 1A-Conversion of foreign currency amounts Application of Division

"12AA. (1) The Secretary may determine in writing that this Division applies
relation to a foreign currency.

"(2) This Division applies in relation to a foreign currency in relation to
which a determination under subsection (1) is in force.

"(3) This Division applies for the purposes of Parts IV, V, VI, VII, VIII, XIV
and XVI, section 251A and Schedule 1B, and not otherwise. Conversion of
foreign currency amounts

"12AB. The value in Australian currency of a payment received by a person in
foreign currency is to be worked out using the applicable exchange rate. Base
exchange rate

"12AC. The base exchange rate for a foreign currency for a foreign exchange
period is the average (calculated to 4 decimal places) of the actual market
exchange rates available on each working day of the first month of the year to
start during the immediately preceding foreign exchange period. Re-assessed
exchange rate

"12AD. (1) Where for 10 consecutive working days:

   (a)  starting after a month of the year in relation to which section 12AC
        operates; and

   (b)  ending before the next month of the year in relation to which section
        12AC operates; the actual market exchange rate available differs from:

   (c)  except where paragraph (d) applies-the base exchange rate for the next
        foreign exchange period; or

   (d)  where a re-assessed exchange rate has already been worked out under
        this subsection for the purposes of the next foreign exchange
        period-the last re-assessed exchange rate so worked out; by at least
        10% of that base exchange rate or last re-assessed exchange rate, as
        the case may be, the re-assessed exchange rate for a foreign currency
        is the average (calculated to 4 decimal places) of the actual market
        exchange rates available on those consecutive working days.

"(2) The Secretary must determine in writing the day on which a re-assessed
exchange rate becomes applicable.

"(3) The day determined under subsection (2) is to be no later than 6 weeks
after the tenth consecutive working day covered by subsection (1).

"(4) A re-assessed exchange rate:

   (a)  becomes applicable on the day determined under subsection (2), unless
        a new re-assessed exchange rate has already become applicable; and

   (b)  remains applicable until:

        (i)    a new re-assessed exchange rate becomes applicable; or

        (ii)   the commencement of the next exchange period the base exchange
               rate for which has been worked out by reference to working days
               later than those by reference to which the re-assessed exchange
               rate was worked out.

"(5) Subsection (1) does not apply to a working day if the actual market
exchange rate available on that day has been used to work out a re-assessed
exchange rate in a previous application of that subsection. Rounding off of
exchange rates

"12AE. Where an exchange rate worked out under this Division would, if it were
calculated to 5 decimal places, end in a number greater than 4, the rate
worked out is to be taken to be the rate calculated to 4 decimal places and
increased by 0.0001.". Commencement: Day of Royal Assent