Document ID: chunk:federal_register_of_legislation:F2023C00203:clause:6_42
Version: federal_register_of_legislation:F2023C00203
Segment Type: clause
Provision Reference: sch 6 cl 42
Character Range: 292904–295435

42  Indexation of compensation amounts
 (1) On 1 July 2021 and each later 1 July (an indexation day), if the indexation factor for the indexation day is greater than 1, this Act has effect as if each compensation amount were substituted by the amount worked out using the formula:
 (2) The indexation factor for an indexation day is the number worked out using the formula:
where:
base quarter means the March quarter ending 1 year before the reference quarter ends.
index number, for a quarter, means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician for that quarter.
March quarter means a period of 3 months ending on 31 March.
reference quarter means the March quarter immediately before the indexation day.
 (3) Amounts worked out under subsection (1) are to be rounded to the nearest whole dollar (rounding 50 cents upwards).
 (4) The indexation factor is to be worked out:
 (a) to 3 decimal places (rounding up if the fourth decimal place is 5 or more); and
 (b) using only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and
 (c) disregarding index numbers published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).

When substituted amount is payable
 (5) If an amount is substituted under subsection (1) on an indexation day, the substituted amount is payable:
 (a) in respect of periodical compensation—on and after the first payment date for the compensation occurring after the indexation day; or
 (b) in respect of lump sum compensation—in respect of any payment of lump sum compensation made after the indexation day.

Publication of substituted amounts
 (6) As soon as practicable after the day on which the Australian Statistician publishes the index number for a March quarter, the Employment Liaison Officer must:
 (a) ascertain whether any amounts will be substituted under subsection (1) on the indexation day immediately after the end of the quarter; and
 (b) if any amounts will be substituted—publish notice, by notifiable instrument, of the substituted amounts.

Compensation amount
 (7) A compensation amount is:
 (a) an amount prescribed by the rules for the purposes of subparagraph 30(4)(b)(i) or paragraph 32B(2)(b); or
 (b) the amount (if any) last substituted under this section for an amount mentioned in paragraph (a).