80Indexing daily rate thresholds

80  Indexing daily rate thresholds   

 (1) Starting on 1 July 2027, an amount mentioned in paragraph 75(1)(a) or (b), or such an amount as previously indexed in accordance with this section, is to be indexed on the first day of every second financial year (the indexation year) by:

 (a) multiplying the amount by the indexation factor for 1 June in the financial year 2 years before the indexation year; and

 (b) multiplying the amount resulting from paragraph (a) by the indexation factor for 1 June in the financial year that immediately preceded the indexation year; and

 (c) rounding the result to the nearest $100.

Note: The indexed amounts would be published on the Attorney‑General’s Department’s website (https://www.ag.gov.au).

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

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

Step 2. Add:

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

 (b) the 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) If the indexation factor would be less than 1, it is to be increased to 1.