6CPI indexation factor

6 CPI indexation factor

(1) The CPI indexation factor for a particular 1 July is the amount of percentage points worked out using the following formula:

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where:

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

previous calendar year means the last calendar year before the recent calendar year.

recent calendar year means the calendar year that ended most recently before the 1 July in question.

Rounding (2) The CPI indexation factor worked out under subclause (1) is to be rounded up or down to one decimal place (rounding up in the case of exactly halfway between).

Note: Example: An amount of 3.55 percentage points would be rounded up to 3.6 percentage points.

Changed reference base (3) If the Australian Statistician changes the reference base for the Consumer Price Index, only index numbers published in terms of the new reference base are to be used, for the purposes of this clause. Negative factor taken to be nil (4) If the CPI indexation factor worked out under this clause is less than nil, it is taken to be nil instead. Special index numbers for March 2000 and June 2000 quarters (5) The index numbers for the March 2000 and June 2000 quarters are taken to be 128.0 and 129.1 respectively, for the purposes of this clause.

Note: This is to adjust for the special effects of the start of the GST on the index numbers.