Document ID: chunk:federal_register_of_legislation:C2013C00026:clause:1_1206gf:p1
Version: federal_register_of_legislation:C2013C00026
Segment Type: clause
Provision Reference: sch 1 cl 1206GF (pt 1/2)
Character Range: 71435–74073

1206GF  Special rules for indexation of certain rates on or after 20 March 2013

 (1) The indexation factor for an amount set out in subsection (2) on an indexation day on or after 20 March 2013 is to be reduced by the brought forward CPI indexation amount, but not below 1.

Note: Once the brought forward CPI indexation amount becomes 0, 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 1.003. The brought forward CPI indexation amount in relation to 20 March 2013 is 0.007 (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 0.004. That indexation factor is reduced to 1.006 on 20 September 2013.

 The brought forward CPI indexation amount in relation to later indexation days is now 0 so there is no further reduction of the indexation factor.

 (2) For the purposes of subsection (1), the amounts are as follows:
 (a) pension MBR;
 (b) PS rate;
 (c) PS minimum rate;
 (d) PS basic rate;
 (e) benefit MBR (ordinary);
 (f) pension supplement component for pension bonus;
 (g) maximum transitional pension rates.

 (3) The living cost indexation factor worked out under section 1197:
 (a) for pension MBR, except to the extent that pension MBR covers the maximum basic rate for pension PP (single); and
 (b) for each indexation day on or after 20 March 2013;
is to be reduced by the brought forward PBLCI indexation amount, but not below 1.

Note: Once the brought forward PBLCI indexation amount becomes 0, there will be no further reduction of the factor.

Example: Assume that the living cost indexation factor worked out under section 1197 on 20 March 2013 is 1.003. The brought forward PBLCI indexation amount in relation to 20 March 2013 is 0.007 (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 living cost indexation factor is 1.010. The brought forward PBLCI indexation amount in relation to 20 September 2013 is 0.004. That indexation factor is reduced to 1.006 on 20 September 2013.

 The brought forward PBLCI indexation amount in relation to later indexation days is now 0 so there is no further reduction of the living cost indexation factor.

 (4) Neither paragraph (2)(a), nor subsection (3), affect:
 (a) the rate of a payment worked out under clause 146 of Schedule 1A; or
 (b) an amount worked out in relation to a pension