55Indexing relevant amounts

55  Indexing relevant amounts

 (1) Each amount mentioned in paragraph 60(2)(d) and paragraph 1.13(1)(e) of Schedule 1 is to be indexed on the first day of each financial year starting on or after 1 July 2026 by multiplying it by its indexation factor for 1 June in the preceding financial year.

 (2) The indexation factor for 1 June in a financial year is the number worked out as follows:

Method statement

Step 1. Add:

 (a) the CPI index number for the quarter ending on 31 March in that financial year; and

 (b) the CPI index numbers for the 3 quarters that immediately preceded that quarter.

Step 2. Add:

 (a) the CPI index number for the quarter ending on 31 March in the immediately preceding financial year; and

 (b) the CPI index numbers for the 3 quarters that immediately preceded that quarter.

Step 3. The indexation factor for 1 June in the financial year is the amount under step 1 divided by the amount under step 2.

 (3) The indexation factor is to be worked out to 3 decimal places, rounding up if the fourth decimal place is 5 or more.

 (4) An amount mentioned in paragraph 60(2)(d) or paragraph 13(1)(e) of Schedule 1, after indexation, must be rounded to the nearest $1,000.