Indexation of rate
9 Indexation of rate
Unless the Minister makes a determination under subsection (5), the rate of the ZLEV charge in respect of a financial year after the 2021–22 financial year is to be varied in accordance with this section.
The rate of the ZLEV charge for a financial year is to be varied in accordance with the formula—
where—
CPIi is the all groups consumer price index for Melbourne in original terms for the last reference period in the preceding calendar year most recently published by the Australian Bureau of Statistics.
CPIii is the all groups consumer price index in original terms for Melbourne for the corresponding reference period one year earlier than the reference period referred to in CPIi most recently published by the Australian Bureau of Statistics;
PR is the rate of the ZLEV charge for the previous financial year;
R is the rate of the ZLEV charge for the financial year.
A calculation under subsection (2) is to be made to 4 decimal places but, for the purposes of the rate, is to be rounded to the nearest 0.1 cents per kilometre, with a calculation that ends in 5 being rounded up.
Example
If the calculation is 2.5634, the rate for the financial year would be 2.6 cents per kilometre. If the calculation is 2.7500, the rate for the financial year would be 2.8 cents per kilometre.
If a calculation under subsection (2) would have the effect of reducing the rate of the ZLEV charge for the purposes of a financial year—
the reduction does not take effect and the rate remains the same as for the previous financial year; and
when the rate is calculated under subsection (2) for the purposes of the next or a subsequent financial year—
PR is the rate that would have been the rate of the ZLEV charge for the previous financial year but for paragraph (a); and
if the rate as calculated would be less than the actual rate for the previous financial year, the rate of the ZLEV charge remains the same as for that financial year.
The Minister, after consulting the Treasurer, may determine, before the start of a financial year, that the rate of the ZLEV charge for that financial year is not to be varied under this section.
The Minister must cause notice of a determination under subsection (5), or notice specifying the rate of the ZLEV charge as varied under this section, to be published before the start of the financial year to which the determination or rate relates—
in the Government Gazette; and
on a website maintained by the Department.
Failure to publish notice under subsection (6) does not affect the validity of the determination or rate to which the notice relates.
This Act’s bill:Explanatory memorandumSecond reading speech
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