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Workers Compensation Act 1951
20Meaning of cpi indexed and awe indexed
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20 Meaning of cpi indexed and awe indexed
awe indexed, for an amount, means the amount as adjusted in line
with any adjustment in the AWE after the commencement of the
provision in which the amount appears.
CPI means the All Groups Consumer Price Index (Canberra) issued
by the Australian statistician.
Note In June 2001, this was series 6401.0.
cpi indexed, for an amount, means the amount as adjusted in line with
any adjustment in the CPI since the commencement of the provision
in which the amount appears.
Note AWE is defined in the dict.
(2) However, if an amount to be awe indexed or cpi indexed would, if
adjusted in line with the adjustment (the negative adjustment) to the
AWE or CPI, become smaller, the amount is not reduced in line with
the negative adjustment.
(3) An amount that, in accordance with subsection (2), is not reduced
may be increased in line with an adjustment in the AWE or CPI that
would increase the amount only to the extent that the increase, or part
of the increase, is not one that would cancel out the effect of the
negative adjustment.
(4) Subsection (3) does not apply to a negative adjustment once the effect
of the negative adjustment has been offset against an increase in line
with an adjustment in the AWE or CPI.
Example of adjustments
An amount in a section is $100 cpi indexed.
There is a 20% increase in the CPI after the section commences. The amount in the
section becomes $120 (100 + 20%).
There is then a 10% drop in the CPI. The amount does not change from $120
(although if it had changed it would be $108).
There is a 20% increase in the CPI. The 20% increase is not to the $120, but to the
$108. $108 + 20% = $129.60. So the $120 becomes $129.60. This is the amount
($120) increased by so much of the 20% increase that did not cancel out the effect
of the adjustment down to $108.