Document ID: chunk:federal_register_of_legislation:C2025C00156:section:10a:p1
Version: federal_register_of_legislation:C2025C00156
Segment Type: section
Provision Reference: s 10A (pt 1/2)
Character Range: 111859–114700

10A  Indexation
 (1) In this section:
index number, in relation to 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 in respect of that quarter.
year means:
 (b) for the purpose of the indexation of the amount of the greatest permissible gap—the year beginning on 1 November 1992 or a later year beginning on 1 November; or
 (c) for the purpose of the indexation of the safety‑net amount—the year beginning on 1 January 1993 or a later year beginning on 1 January; or
 (d) for the purpose of the indexation of the concessional safety‑net amount, the FTB(A) safety‑net amount and the extended general safety‑net amount—the year beginning on 1 January 2007 or a later year beginning on 1 January.
Note 1: greatest permissible gap is defined in subsection 10(5).
 (2) The amount referred to in an item in the CPI Indexation Table below is to be indexed under this section every year on the indexation day specified in that item by using the reference quarter in that item.

CPI Indexation table

Item                  Amount                                      Indexation day  Reference quarter
2.                    The amount of the greatest permissible gap  1 November      June
3.                    The safety‑net amount                       1 January       September
4.                    The concessional safety‑net amount          1 January       September
5.                    The FTB(A) safety‑net amount                1 January       September
6.                    The extended general safety‑net amount      1 January       September

 (3) Where an amount is to be indexed on an indexation day, this Act has effect as if the indexed amount were substituted for that amount on that day.
 (4) The indexed amount for an amount to be indexed is:
 (a) the amount worked out by multiplying the amount to be indexed by the indexation factor for that amount; or
 (b) if the amount worked out under paragraph (a) is not a multiple of 10 cents—that amount rounded down to the nearest multiple of 10 cents.
 (5) Subject to subsections (6), (7) and (8), the indexation factor for an amount to be indexed on an indexation day is the amount worked out by using the formula:

where:
Most recent index number means the index number for the last quarter before the indexation day that is a reference quarter for the indexation of the amount; and
Previous index number, in relation to the indexation of an amount referred to in an item in the CPI Indexation Table in subsection (2), means the index number for the reference quarter in that item immediately before the most recent reference quarter in that item ending before the indexation day.
 (6) An indexation factor is to be worked out to 3 decimal places.
 (7) If an indexation