90Indexation

90 Indexation

Indexation of penalty amount (1) If the indexation factor for an indexation day is greater than 1, the penalty amount is, on that day, replaced by the amount worked out using the following formula: Start formula The penalty amount immediately before the indexation day times Indexation factor for the indexation day end formula (2) The amount worked out under subsection (1) is to be rounded to the nearest whole dollar (rounding 50 cents upwards). Indexation factor (3) The indexation factor for an indexation day is the number worked out using the following formula: Start formula start fraction Index number for the reference quarter over Index number for the base quarter end fraction end formula (4) The indexation factor is to be worked out to 3 decimal places (rounding up if the fourth decimal place is 5 or more). Changes to index reference period and publication of substituted index numbers (5) Amounts are to be worked out under this section: (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). Publication of penalty amount (6) If the penalty amount is replaced under subsection (1) on the indexation day, the Secretary must, by notifiable instrument, publish the replacement penalty amount as soon as practicable after the indexation day. However, a failure by the Secretary to do so does not invalidate the indexation. Definitions (7) In this section:

base quarter means the September quarter that has the highest index number of the September quarters before the reference quarter (but not earlier than the September quarter of 2027).

indexation day means 1 January 2029 and each later 1 January.

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 for that quarter.

penalty amount means the dollar amount specified in subsection 17(1).

reference quarter means the September quarter before the indexation day.

September quarter means a period of 3 months starting on 1 July.