Indexation
15 Indexation
This section applies to a pension payable to a person during a financial year if the pension was payable to the person immediately before the start of the financial year.
After the start of the financial year, the Minister must reassess the amount of the pension and either increase it or maintain it at the same level as in the previous financial year, as follows—
if the June index for the previous financial year is higher than the last adjustment index for the pension, the pension must be increased by the percentage increase between the 2 indexes;
otherwise, the pension remains the same.
If the pension for the financial year is increased under the reassessment, the pension is payable to the person at the increased level from 1 July in the financial year and increased payments must begin from the first full pay period in August in that financial year.
A percentage increase between 2 indexes under subsection (2)(a) must be calculated to 1 decimal place by increasing the percentage to the next highest single decimal place.
In this section—
June index, for a financial year, means the all groups consumer price index for Brisbane, published by the Australian Statistician, for the last quarter of the financial year.
last adjustment index, for a pension, means—
if the pension has ever been increased under this section or repealed section 4, the June index for the financial year immediately before the financial year in which the pension was last increased under this section or repealed section 4; or
otherwise, the June index for the financial year immediately before the financial year in which the pension began to be payable.
repealed section 4 means the Governors’ Pensions Act 1977, section 4 as in force before the commencement of this section.
This Act’s bill:Explanatory memorandum
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