Document ID: chunk:federal_register_of_legislation:C2024C00866:section:198mb:p1
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 198MB (pt 1/2)
Character Range: 1866179–1868813

198MB  Adjustment of living cost indexation factor for limited time on and after 20 March 2013 for certain purposes

Application
 (1) This section applies for purposes connected with the following payments on or after 20 March 2013:
 (a) a service pension;
 (b) a pension under Part II or IV at a rate determined under or by reference to section 22, 23 or 24 or subsection 30(1);
 (c) Special Rate Disability Pension under the MRCA;
 (d) compensation under Division 2 (Compensation for member's death for wholly dependent partners) of Part 2 of Chapter 5 of the MRCA.
Note 1: Section 198 of the MRCA sets Special Rate Disability Pension by reference to the rate of pension under section 24 of this Act (so indexation of amounts affecting that rate also affects that pension).
Note 2: Division 2 of Part 2 of Chapter 5 of the MRCA sets compensation under that Division by reference to the rate of pension under subsection 30(1) of this Act (so indexation of amounts affecting that rate also affects the compensation).

Adjustment of living cost indexation factor
 (2) A living cost indexation factor that:
 (a) is worked out under section 59EAB on a day that is on or after 20 March 2013; and
 (b) is directly or indirectly relevant to the indexation of an amount provided for by:
 (i) subsection 22(3) or (4), 23(4) or 24(4); or
 (ii) paragraph 30(1)(a) or (b); or
 (iii) table item 2 of point SCH6‑B1 of the Rate Calculator (which provides for the pension MBR mentioned in table item 1 of section 59A);
is, for the purposes of the indexation of such an amount on that day, to be reduced by the brought‑forward PBLCI indexation 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 provided for by subsection 22(3) or (4), 23(4) or 24(4) or paragraph 30(1)(b). This is because:
(a) section 198 provides for indexation of such an 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 may involve the living cost indexation factor worked out under section 59EAB.
Note 2: A living cost indexation factor worked out under section 59EAB is indirectly relevant to the indexation of an amount provided for by paragraph 30(1)(a). This is because that amount is affected by indexation under section 59G, which in turn depends on indexation under section 59C.
Note 3: Once the brought‑forward PBLCI indexation amount becomes