Document ID: chunk:federal_register_of_legislation:F2016L01701:reg:14
Version: federal_register_of_legislation:F2016L01701
Segment Type: reg
Provision Reference: reg 14
Character Range: 11698–13271

14  Indexation of pension rates
 (1) The rates of pension mentioned in Tables A and B of Schedule 1 are indexed on each indexation day for the rate.
 (2) This Part has effect on and after an indexation day as if the indexed rate were substituted for the rate in effect on the day before the indexation day.
 (3) For a rate (other than the rate specified in item 2 of Table A), the indexed rate, rounded up to the next multiple of $0.10, is:
where:
old rate is the rate of pension in effect on the day before the indexation day.
pension MBR factor is the pension MBR factor worked out under subsection 59LA(1) of the Veterans' Entitlements Act 1986.
 (4) For the rate specified in item 2 of Table A, the indexed rate, rounded to the nearest multiple of $0.10, is:
where:
old rate is the rate of pension in effect on the day before the indexation day.
orphan pension factor is the factor worked out under subsections (5) and (6).
 (5) Orphan pension factor, rounded to the nearest multiple of $0.10, is worked out using the following formula:
where:
current orphan pension rate is the rate of pension under paragraph 30(2)(a) of the Veterans' Entitlements Act 1986 applicable on the indexation day.
previous orphan pension rate is the rate of pension under paragraph 30(2)(a) of the Veterans' Entitlements Act 1986 applicable on the day before the indexation day.
 (6) Orphan pension factor is worked out to 3 decimal places but, if the factor would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the factor is to be increased by 0.001.