Document ID: chunk:federal_register_of_legislation:C2013C00026:clause:2_10
Version: federal_register_of_legislation:C2013C00026
Segment Type: clause
Provision Reference: sch 2 cl 10
Character Range: 126083–127480

10  Adjustment of indexation factor for certain amounts on and after 1 July 2013

 (1) This clause applies to the following amounts:
 (a) FTB child rate (A1);
 (b) FTB child rate (A2);
 (c) FTB standard rate (B);
 (d) FTB standard ACO rate.

 (2) For each amount to which this clause applies, the indexation factor, worked out under clause 5 for each indexation day that is on or after 1 July 2013, is to be reduced by the brought forward indexation amount, but not below 1.

 (3) In this clause:

brought forward indexation amount, in relation to an indexation day, means 0.007 less any reduction made under this clause for a previous indexation day.

Note: Once the brought forward indexation amount becomes zero, there will be no further reduction of the indexation factor.

Example: Assume that the indexation factor worked out under clause 5 on 1 July 2013 is 1.004. The brought forward indexation amount in relation to 1 July 2013 is 0.007 (as there has been no previous reduction). That indexation factor is reduced to 1 on 1 July 2013.

 Further assume that on 1 July 2014 the indexation factor is 1.010. The brought forward indexation amount in relation to 1 July 2014 is 0.003. That indexation factor is reduced to 1.007 on 1 July 2014.

 The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.