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Commonwealth act
This Act has been repealed and is no longer in force. It is retained for historical reference.
What does this law do?
This Act gives certain Commonwealth public servants who are already retired (i.e., receiving a superannuation pension) automatic annual increases in their pension payments to help keep pace with inflation and rising wages. Think of it as an early form of "cost of living adjustment" built into the law.
Who does it affect?
How does the increase work?
The increase is calculated each year using two economic measures published by the Commonwealth Statistician:
The increase is applied only to the "non-contributory portion" of the pension — that is, the part of the pension funded by the government, not the part funded by the employee's own contributions.
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Zoe can write the in-depth analysis on top of the summary above: how it works, who it affects and what each part actually does.
Direct links to the current provisions in Superannuation Act 1973.
Zoe has indexed the source text for search and analysis. Use the official register for the original document and download formats.
View on official registerSourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
The formula picks the lower of two possible increases:
This means pensioners get a raise that reflects real economic conditions, but the government's generosity is capped.
Key timing details:
Who pays for the increases?
The Commonwealth government pays the cost of all these increases directly into the Superannuation Fund, drawn from the Consolidated Revenue Fund (the government's general budget).
Why does it matter?
Before this law, retired public servants' pensions were essentially fixed — inflation quietly eroded their purchasing power every year. This Act introduced a systematic, formula-driven mechanism to protect retirees from that erosion. It was a significant improvement in retirement income security for Commonwealth employees and their families.