Indexation
114 Indexation
If a provision of this instrument states that a dollar amount is to be indexed in accordance with this section, then at the start of each financial year (an indexation year) beginning on or after 1 July 2021, the dollar amount is replaced by the amount worked out using the following formula:
The indexation factor for an indexation year is the number worked out using the following formula:
where:
base quarter means the last March quarter before the reference quarter.
index number, for a quarter, means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician for that quarter.
reference quarter means the March quarter immediately before the indexation year.
An indexation factor is to be calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
If an indexation factor worked out under subsection (2) would be less than 1, that indexation factor is to be increased to 1.
Calculations under subsection (2):
are to be made using only the index numbers published in terms of the most recently published index reference period; and
are to be made disregarding index numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).
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