Social security pension indexation using Pensioner and Beneficiary Living Cost Index
1196 Social security pension indexation using Pensioner and Beneficiary Living Cost Index
This section applies to the amount (the starting amount) referred to in column 2 of item 1 of the table in subsection 1191(1), except to the extent that it covers the maximum basic rate for pension PP (single).
If the indexed amount for the starting amount, worked out under section 1192 on an indexation day and disregarding section 1195 and this Division, is less than the living cost amount worked out on that indexation day using the following method statement, then that indexed amount is taken to be an amount equal to that living cost amount:
Method statement
Step 1. Use section 1197 to work out the living cost indexation factor on that indexation day.
Step 2. Work out the current figure for the starting amount immediately before that indexation day.
For current figure see subsection 20(1).
Step 3. Multiply the current figure by the living cost indexation factor: the result is the provisional living cost amount.
Step 4. Use section 1198 to round off the provisional living cost amount: the result is the living cost amount.
If the indexed amount for the starting amount, worked out under section 1192, is taken to be an amount equal to that living cost amount, there may be a further increase of that replaced indexed amount under section 1195.
On and after 20 March 2013, the indexation of certain amounts may be affected by Division 8.
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