Adjustment of pensions
5A Adjustment of pensions
The Treasurer must adjust the amount of the pensions under this Act from the first payment of pension in each adjustment period to reflect—
in the case of an April adjustment period—the percentage variation (rounded to two decimal places) between the Consumer Price Index for the immediately preceding December quarter and the Consumer Price Index for the immediately preceding June quarter; and
in the case of an October adjustment period—the percentage variation (rounded to two decimal places) between the Consumer Price Index for the immediately preceding June quarter and the Consumer Price Index for the immediately preceding December quarter.
If on the first day of the relevant adjustment period, the pension has been payable for a period of less than six months, the extent of the adjustment will be reduced to reflect the proportion which the period of payment of the pension bears to six months.
To avoid a reduction in pensions the Treasurer may direct that subsection (1) does not apply in relation to a particular adjustment period.
In that event an adjustment in the next adjustment period in relation to which subsection (1) applies will be based on the variation between the Consumer Price Index for the June or December quarter (whichever is applicable) immediately preceding that period and the Consumer Price Index for the June or December quarter (whichever is applicable) immediately preceding the adjustment period in relation to which subsection (1) last applied.
In this section—
adjustment period means the period of six months commencing at the commencement of 1 April and 1 October in each year;
April adjustment period means an adjustment period commencing at the commencement of 1 April in any year;
the Consumer Price Index means the Consumer Price Index (All groups index for Adelaide);
October adjustment period means an adjustment period commencing at the commencement of 1 October in any year.
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