Indexation factor
59D Indexation factor
Subject to subsections (2) and (3) and section 198MA, the indexation factor for an amount that is to be indexed under this Subdivision on an indexation day is:
Start formula start fraction Index number for most recent reference quarter over Index number for base quarter end fraction end formula
worked out to 3 decimal places.
For reference quarter and base quarter see the CPI Indexation Table in section 59B.
If an indexation factor worked out under subsection (1) 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.
If an indexation factor worked out under subsections (1) and (2) would be less than 1, the indexation factor is to be increased to 1.
This Act’s bill:Second reading speech
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