Document ID: chunk:federal_register_of_legislation:C2017C00177:clause:11_6
Version: federal_register_of_legislation:C2017C00177
Segment Type: clause
Provision Reference: sch 11 cl 6
Character Range: 176126–178527

6  Section 960‑285
Repeal the section, substitute:

960‑285  Indexation—superannuation and employment termination
 (1) This section applies in relation to the amounts listed at items 8 to 12 in section 960‑265.

Indexing amounts
 (2) You index the amount by:
 (a) first, multiplying its base amount mentioned in subsection (3) by its *indexation factor mentioned in subsection (5); and
 (b) next, rounding the result in paragraph (a) down to the nearest multiple of its *rounding amount.
Example 1: An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $143,000, the indexed amount is rounded back down to $140,000.
Example 2: An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $146,000, the indexed amount is rounded down to $145,000.
 (3) The amount (the base amount) for an amount to which this section applies is:
 (a) unless paragraph (b) applies—the amount for the 2007‑2008 income year or *financial year; or
 (b) if the amount is mentioned in item 9 or 10A in section 960‑265—the amount for the 2017‑2018 financial year.
 (4) You do not index the amount if the *indexation factor is 1 or less.

Indexation factor
 (5) For indexing an amount, its indexation factor is:
where:
base quarter means:
 (a) unless paragraph (b) applies—the quarter ending on 31 December 2006; or
 (b) if the amount is mentioned in item 9 or 10A in section 960‑265—the quarter ending on 31 December 2016.
 (6) You work out the *indexation factor mentioned in subsection (5) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

Index number and rounding amount
 (7) For indexing an amount to which this section applies:
 (a) the index number for a *quarter is set out in column 2 of the relevant item in the following table; and
 (b) the rounding amount is set out in column 3 of that item.

Concepts for indexing rounded caps
Item                                Column 1                                 Column 2                                                                                                     Column 3
                                    Item in section 960‑265                  Index number                                                                                                 Rounding amount