1Factor to index Financial Supplement debts and accumulated Financial Supplement debts (May 2005)

Legislative Instrument

Student Assistance Act 1973:
Factor to index Financial Supplement debts and accumulated Financial Supplement debts.

I, Erin Kathleen Holland, as delegate of the Commissioner of Taxation, notify pursuant to subsection 12ZF(7A) of the Student Assistance Act 1973, that 1.024 is the indexation factor to be used for working out Financial Supplement debts and accumulated Financial Supplement debts on 1 June 2005.

Citation

This instrument may be cited as a factor to index Financial Supplement debts and accumulated Financial Supplement debts.

Commencement

This Instrument commences on 1 June 2005.

Application

In accordance with subsection 12ZF(6) of the Student Assistance Act 1973, the indexation factor is the number worked out to three decimal places using the formula:

the sum of the index number for the March 2005 quarter and the index numbers for the 3 immediately preceding quarters

divided by

the sum of the index number for the March 2004 quarter and the index numbers for the 3 immediately preceding quarters,

where index number, in relation to 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.

Indexation factor for 1 June 2005:

= Mar05+Dec04+Sep04+Jun04.

Mar04+Dec03+Sep03+Jun03

= 147.5 + 146.5 + 145.4 + 144.8

144.1 + 142.8 + 142.1 + 141.3

= 584.2

570.3

= 1.024 (to 3 decimal places)

The indexation factor is 1.024 and the effective percentage increase is 2.4%.

(Erin Kathleen Holland)

Deputy Commissioner of Taxation

Dated this 11th day of May 2005