Document ID: chunk:federal_register_of_legislation:C2007A00009:clause:3_7
Version: federal_register_of_legislation:C2007A00009
Segment Type: clause
Provision Reference: sch 3 cl 7
Character Range: 333430–334881

7  After section 960‑280
Insert:

960‑285  Indexation—superannuation and employment termination

 (1) This section applies in relation to an amount mentioned in a provision listed at items 8 to 12 in section 960‑265.

Indexing amounts

 (2) You index the amount by:
 (a) firstly, multiplying the amount for the 2007‑2008 income year by its *indexation factor mentioned in subsection (4); and
 (b) next, rounding the result in paragraph (a) down to the nearest multiple of $5,000.

Example 1: If the amount to be indexed is $140,000 and the indexation factor increases this to an indexed amount of $143,000, the indexed amount is rounded back down to $140,000.

Example 2: If the amount to be indexed is $140,000 and the indexation factor increases this to an indexed amount of $146,000, the indexed amount is rounded down to $145,000.

 (3) You do not index the amount if its indexation factor mentioned in subsection (4) is 1 or less.

Indexation factor

 (4) For indexation of the amount on an annual basis, the indexation factor is:

 (5) You work out the *indexation factor mentioned in subsection (4) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

Index number

 (6) For calculating the amounts, the index number for a quarter is the estimate of full‑time adult average weekly ordinary time earnings for the middle month of the quarter first published by the Australian Statistician in respect of that month.