Document ID: chunk:federal_register_of_legislation:C2025C00162:section:1061zzch:p1
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 1061ZZCH (pt 1/2)
Character Range: 1558825–1561555

1061ZZCH  Calculation of amount outstanding under financial supplement contract at a later time
 (1) Subject to subsections 1061ZZCN(6) and (7), the amount outstanding under a financial supplement contract at a time (the test time) during a period of 12 months (the test period) referred to in either of the following paragraphs:
 (a) the period of 12 months beginning on 1 June in the year immediately after the year in which the contract was made; or
 (b) any of the following 3 periods of 12 months;
is the amount worked out using the formula:

 (2) For the purpose of applying the formula in subsection (1) at the test time:
amounts repaid means the total of the amounts repaid under the contract during the test period but before the test time.
discounts means the total of the discounts to which the person became entitled during the test period but before the test time.
indexation factor means the number that is the lower of the CPI indexation factor for the test period (see subsection (3)) and the WPI indexation factor for the test period (see subsection (3A)).
previous amount outstanding means the amount outstanding under the contract immediately before the beginning of the test period.
 (3) The CPI indexation factor for the test period is worked out using the following method statement:

               Method statement

           Step 1.  Work out the total of the index number for the March quarter in the later reference period and the index numbers for the 3 immediately preceding quarters.
           Step 2.  Work out the total of the index number for the March quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters.
           Step 3. The CPI indexation factor for the test period is the total under step 1 divided by the total under step 2, rounded to 3 decimal places.
 (3A) The WPI indexation factor for the test period is worked out using the following method statement:

               Method statement

           Step 1.  Work out the total of the index number for the March quarter in the later reference period and the index numbers for the 3 immediately preceding quarters.
           Step 2.  Work out the total of the index number for the March quarter in the earlier reference period and the index numbers for the 3 immediately preceding quarters.
           Step 3. The WPI indexation factor for the test period is the total under step 1 divided by the total under step 2, rounded to 3 decimal places.
 (4) In subsections (3) and (3A):
earlier reference period means the period of 12 months immediately before the later reference period.
later reference period means the period of 12 months immediately before the test period.
 (5) If a