24Annual payments—indexation factor

24 Annual payments—indexation factor

(1) For the purposes of this Act, the indexation factor for a financial year is worked out using the formula: start formula start fraction Sum of index numbers for quarters in first June year over Sum of index numbers for quarters in second June year end fraction end formula where:

first June year means the period of 12 months ending on 30 June immediately before the financial year.

index number, for a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.

second June year means the period of 12 months immediately before the first June year.

(2) An indexation factor is to be calculated to 3 decimal places, but increased by 0.001 if the fourth decimal place is more than 4. (3) If an indexation factor worked out under subsections (1) and (2) would be less than 1, that indexation factor is to be increased to 1. (4) Calculations under this section are to be made: (a) using only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and (b) disregarding index numbers published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).