Document ID: chunk:federal_register_of_legislation:C2009A00081:clause:5_198zg:p2
Version: federal_register_of_legislation:C2009A00081
Segment Type: clause
Provision Reference: sch 5 cl 198ZG (pt 2/2)
Character Range: 150836–153187

amount, but not below 1.
Note 1: A living cost indexation factor worked out under section 59EAB is (indirectly) relevant to the indexation of an amount specified in paragraph 30(1)(b). This is because:
(a) section 198 provides for indexation of the amount by reference to the pension MBR factor worked out under section 59LA; and
(b) the pension MBR factor depends on the increase in the single pension rate MBR amount, which in turn depends (under section 59G) on indexation of the pension MBR amount under section 59C, which involves the living cost indexation factor worked out under section 59EAB.
Note 2: The indexation of an amount specified in paragraph 30(1)(b) on that day depends on a pension MBR factor that is worked out on the basis of the living cost indexation factor worked out under section 59EAB and reduced under this section.
Note 3: Once the brought forward PBLCI indexation amount becomes 0, there will be no further reduction of the living cost indexation factor.
Example: Assume that the living cost indexation factor worked out under section 59EAB on 20 March 2013 is 1.005. The brought forward PBLCI indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That living cost indexation factor is reduced to 1 on 20 March 2013.
 Further assume that on 20 September 2013 the living cost indexation factor is 1.010. The brought forward PBLCI indexation amount in relation to 20 September 2013 is 0.003. That living cost indexation factor is reduced to 1.007 on 20 September 2013.
 The brought forward PBLCI indexation amount in relation to later indexation days is now 0 so there is no further reduction of the living cost indexation factor.
 (3) In this section:
brought forward CPI indexation amount, in relation to a day, means:
 (a) if the brought forward PBLCI indexation amount in relation to the day is 0—0; and
 (b) otherwise—0.008 less any reduction made under subsection (1) for a previous day.
brought forward PBLCI indexation amount, in relation to a day, means:
 (a) if the brought forward CPI indexation amount in relation to the day is 0—0; and
 (b) otherwise—0.008 less any reduction made under subsection (2) for a previous day.
 (4) This section affects the rate of a payment under this Act for a person if, and only if, section 198ZF affected that rate for the person.