COMMUNITY SERVICES AND HEALTH LEGISLATION AMENDMENT ACT 1990 No. 106 of 1990 - SECT 15

COMMUNITY SERVICES AND HEALTH LEGISLATION AMENDMENT ACT 1990 No. 106 of 1990 - SECT 15

15. After section 10 of the Principal Act the following section is inserted:
Indexation

"10A. (1) In this section: `index number', in relation to a quarter, means the
All Groups Consumer Price Index number that is the weighted average of the 8
capital cities and is published by the Australian Statistician in respect of
that quarter; `year' means:

   (a)  the year commencing on 1 July 1991; or

   (b)  any later year commencing on 1 July.

"(2) The amount referred to in an item in the CPI Indexation Table below is to
be indexed under this section every year on the indexation day specified in
that item by using the reference quarter in that item.
CPI INDEXATION TABLE
Item       Amount                       Indexation       Reference

                                          day            quarter

1.      The amount specified in

        subsection 10 (2A)              1 November         June

2.      The amount specified in

paragraph (d) of the
definition of `relevant
        amount' in subsection 10 (6)     1 July            March


"(3) Where an amount is to be indexed on an indexation day, this Act has
effect as if the indexed amount were substituted for that amount on that day.

"(4) The indexed amount for an amount to be indexed is:

   (a)  the amount worked out by multiplying the amount to be indexed by the
        indexation factor for that amount; or

   (b)  if the amount worked out under paragraph (a) is not a multiple of 10
        cents - that amount rounded down to the nearest multiple of 10 cents.

"(5) Subject to subsections (6), (7) and (8), the indexation factor for an
amount to be indexed on an indexation day is the amount worked out by using
the formula:
Most recent index number
------------------------
Previous index number where: `Most recent index number' means the index number
for the last quarter before the indexation day that is a reference quarter for
the indexation of the amount; and `Previous index number' means:

   (a)  in relation to the indexation on 1 July 1991 of the amount referred to
        in Item 2 in the CPI Indexation Table in subsection (2) - the index
        number for the September 1990 quarter; or

   (b)  in any other case - the index number for the reference quarter for the
        amount immediately preceding the most recent reference quarter for the
        amount ending before the indexation day.

"(6) An indexation factor is to be worked out to 3 decimal places.

"(7) If an indexation factor worked out under subsections (5) and (6) would,
if it were worked out to 4 decimal places, end in a number that is greater
than 4, the indexation factor is to be increased by 0.001.

"(8) If an indexation factor worked out under subsections (5), (6) and (7)
would be less than 1, the indexation factor is to be increased to 1.

"(9) Subject to subsection (10), if at any time (whether before or after the
commencement of this section), the Australian Statistician publishes an index
number for a quarter in substitution for an index number previously published
by the Statistician for that quarter, the publication of the later index
number is to be disregarded for the purposes of this section.

"(10) If at any time (whether before or after the commencement of this
section) the Australian Statistician changes the reference base for the
Consumer Price Index, regard is to be had, for the purposes of applying this
section after the change takes place, only to index numbers published in terms
of the new reference base.".
Commencement: 1 January 1991