Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) In this section:
"index number" , in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.
"year" means:
(b) for the purpose of the indexation of the amount of the greatest permissible gap--the year beginning on 1 November 1992 or a later year beginning on 1 November; or
(c) for the purpose of the indexation of the safety - net amount--the year beginning on 1 January 1993 or a later year beginning on 1 January; or
(d) for the purpose of the indexation of the concessional safety - net amount, the FTB(A) safety - net amount and the extended general safety - net amount--the year beginning on 1 January 2007 or a later year beginning on 1 January.
Note 1: greatest permissible gap is defined in subsection 10(5).
(2) The amount referred to in an item in the CPI Indexation Table below is to be indexed under this section every year on the indexation day specified in that item by using the reference quarter in that item.
CPI Indexation table
| |||
Item | Amount | Indexation day | Reference quarter |
2. | The amount of the greatest permissible gap | 1 November | June |
3. | The safety - net amount | 1 January | September |
4. | The concessional safety - net amount | 1 January | September |
5. | The FTB(A) safety - net amount | 1 January | September |
6. | The extended general safety - net amount | 1 January | September |
(3) Where an amount is to be indexed on an indexation day, this Act has effect as if the indexed amount were substituted for that amount on that day.
(4) The indexed amount for an amount to be indexed is:
(a) the amount worked out by multiplying the amount to be indexed by the indexation factor for that amount; or
(b) if the amount worked out under paragraph (a) is not a multiple of 10 cents--that amount rounded down to the nearest multiple of 10 cents.
(5) Subject to subsections (6), (7) and (8), the indexation factor for an amount to be indexed on an indexation day is the amount worked out by using the formula:
where:
"Most recent index number" means the index number for the last quarter before the indexation day that is a reference quarter for the indexation of the amount; and
"Previous index number" , in relation to the indexation of an amount referred to in an item in the CPI Indexation Table in subsection (2), means the index number for the reference quarter in that item immediately before the most recent reference quarter in that item ending before the indexation day.
(6) An indexation factor is to be worked out to 3 decimal places.
(7) If an indexation factor worked out under subsections (5) and (6) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the indexation factor is to be increased by 0.001.
(8) If an indexation factor worked out under subsections (5), (6) and (7) would be less than 1, the indexation factor is to be increased to 1.
(9) Subject to subsection (10), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.
(10) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the change takes place, only to index numbers published in terms of the new index reference period.