Increase for pensioners aged 55 or older
84H Increase for pensioners aged 55 or older
Increase by 55‑plus percentage
The increase provided for by subsection 84(1), for a pensioner aged 55 or older at the commencement of a prescribed half‑year (the relevant prescribed half‑year), is the 55‑plus percentage of the rate at which a pension was payable to the pensioner immediately before the commencement of the relevant prescribed half‑year.
55‑plus percentage
This is how to work out the 55‑plus percentage for the relevant prescribed half‑year:
Method statement
Step 1. Work out the prescribed percentage for the prescribed half‑year.
Step 2. Use section 84K to work out the LCI percentage for the prescribed half‑year.
Step 3. Take the higher of the percentages worked out in steps 1 and 2. (If they are the same, use the step 1 percentage.) This is the CPI/LCI percentage.
Step 4. Take the indicative pension amount for the prescribed half‑year immediately before the relevant prescribed half‑year. This is the current indicative pension amount.
Step 5. Work out the amount that is the CPI/LCI percentage of the current indicative pension amount and add it to the current indicative pension amount. This is the CPI/LCI result.
Step 6. Use section 84L to work out the MTAWE result.
Step 7. If the CPI/LCI result is the same as or higher than the MTAWE result, the 55‑plus percentage for the prescribed half‑year is the CPI/LCI percentage. If the CPI/LCI result is lower than the MTAWE result, the 55‑plus percentage for the prescribed half‑year is the percentage worked out under section 84M.
Nil or negative change
If, for a prescribed half‑year:
the CPI/LCI result in step 5 is the same as the current indicative pension amount; and
the MTAWE result in step 6 is the same as or lower than the current indicative pension amount;
then, for that prescribed half‑year:
the 55‑plus percentage is taken to be 0%; and
subsection 84(1) does not provide for an increase for a pensioner aged 55 or older at the commencement of that half‑year.
This Act’s bill:Second reading speech
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