Document ID: chunk:federal_register_of_legislation:C2009A00060:clause:5_1206gs:p1
Version: federal_register_of_legislation:C2009A00060
Segment Type: clause
Provision Reference: sch 5 cl 1206GS (pt 1/2)
Character Range: 109441–112030

1206GS  Special rules for indexation of some amounts on or after 20 March 2013
 (1) An indexation factor worked out under section 1193 for each indexation day on or after 20 March 2013 for each of the following:
 (a) the person's pension MBR;
 (b) the person's PS minimum rate;
is to be reduced by the brought forward CPI indexation amount, but not below 1.
Note 1: The person's PS minimum rate is that rate as increased under subsection 1206GR(2).
Note 2: Once the brought forward CPI indexation amount becomes zero, there will be no further reduction of the factor.
Example: Assume that the indexation factor worked out under section 1193 on 20 March 2013 is 1.005. The brought forward CPI indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.
 Further assume that on 20 September 2013 the indexation factor is 1.010. The brought forward CPI indexation amount in relation to 20 September 2013 is 0.003. That indexation factor is reduced to 1.007 on 20 September 2013.
 The brought forward CPI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.
 (2) If the indexation factor worked out under section 1193 for an indexation day is reduced under subsection (1), this Act has effect as if, on that day, the PS rate used to work out the person's pension supplement amount on and after that day were replaced by the PS rate needed for the person's pension supplement amount to be equal to the amount worked out as follows:

      Method statement
           Step 1. Work out the person's minimum pension supplement amount on that day.
           Step 2. Work out what would, apart from subsection (1), be the person's minimum pension supplement amount on that day.
           Step 3. Subtract the result of step 1 from the result of step 2.
           Step 4. Subtract the result of step 3 from what would, apart from this subsection, be the person's pension supplement amount on that day.
           Step 5. If the result of step 4 is not a multiple of $2.60, round the result up or down to the nearest multiple of $2.60 (rounding up if the result is not a multiple of $2.60 but is a multiple of $1.30).
Note 1: The amount in step 1 is the amount worked out from the PS minimum rate as adjusted under subsection (1).
Note 2: The amount in step 2 is the amount worked out from the PS minimum rate as increased under subsection 1206GR(2), and as indexed under section 1192, but without the adjustment under subsection