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SOCIAL SECURITY AND REPATRIATION (BUDGET MEASURES AND ASSETS TEST) ACT 1984 No. 93, 1984 - SECT 35

35. After section 6 of the Principal Act the following sections are inserted:
Calculation of value of property

"6AA. (1) In calculating the value of the property of a person for the
purposes of this Act-

   (a)  there shall be disregarded-

        (i)    if the person is an unmarried person-the value of any right or
               interest of the person in relation to the principal home of the
               person (not being a right or interest of the kind referred to
               in sub-paragraph (iv));

        (ii)   if the person is a married person-the value of any right or
               interest of the person in relation to one residence that is the
               principal home of the person, of the person's spouse or of both
               of them (not being a right or interest of the kind referred to
               in sub-paragraph (iv));

        (iii)  the value of any life interest of the person (not being a life
               interest in relation to the principal home of the person, of
               the person's spouse or of both of them) or annuity (including a
               superannuation pension) of the person, not being, unless the
               Director-General otherwise determines in writing, an annuity
               that is able to be disposed of or an annuity a substantial part
               of the income under which is or may be deferred;

        (iv)   if the residence that is the principal home of the person is a
               private residence and the person has acquired for valuable
               consideration, or has retained, a right to accommodation for
               life in, or a life interest in, that residence-the value of
               that right or interest;

        (v)    the value of any contingent or reversionary interest of the
               person (not being an interest created by the person or by the
               person's spouse);

        (vi)   the value of any property (not being a contingent or
               reversionary interest) to which the person is entitled from the
               estate of a deceased person but which has not been, and is not
               able to be, received;

        (vii)  the value of any medal or other decoration awarded (whether to
               the person or another person) for valour that is owned by the
               person otherwise than for the purposes of investment or a
               hobby;

        (viii) the value of one cemetery plot acquired by the person and of
               funeral expenses paid in advance by the person;

        (ix)   if the person or the person's spouse, or a child who is
               dependent on the person or the person's spouse, is a disabled
               person-the value of any personal property of the person that is
               designed for use by a disabled person and any part of the value
               of the personal property of the person that is attributable to
               modifications made to that property to enable it to be used by
               a disabled person;

        (x)    if the person is provided with a motor vehicle under the scheme
               administered by the Commonwealth known as the gift car
               scheme-the value of that motor vehicle; and

        (xi)   if the person has sold a residence that was the principal home
               of the person on terms and has purchased, also on terms,
               another residence that is the principal home of the person-so
               much of the balance due to the person in respect of the sale as
               will be applied by the person in respect of the purchase of the
               other residence; and

   (b)  where a charge or encumbrance, not being a charge or encumbrance that
        is a collateral security, exists on particular property of a person,
        not being property the value of which is disregarded under paragraph
        (a), the value of that property shall be reduced by the value of that
        charge or encumbrance.



"(2) Where a charge or encumbrance exists on property the value of which is
disregarded under paragraph (1) (a) and the same charge or encumbrance exists
on other property, the amount to be deducted under paragraph (1) (b) is the
amount that bears to the value of the charge or encumbrance the same
proportion as the value of that other property bears to the value of all the
property on which the charge or encumbrance exists.

"(3) A reference in this section to the principal home of a person shall be
read as including a reference to-

   (a)  in the case of a dwelling-house-the private land adjacent to the
        dwelling-house to the extent that that private land, together with the
        area of the ground floor of the dwelling-house, does not exceed 2
        hectares; or

   (b)  in the case of a flat or home unit-a garage or store-room that is used
        primarily for private or domestic purposes in association with the
        flat or home unit.



"(4) Where the area of private land adjacent to a dwelling-house exceeds
substantially the average area of private land adjacent to other
dwelling-houses in the same locality, so much only of the first-mentioned area
as the Director-General determines in writing not to be in excess of the
average area shall be taken into account for the purposes of paragraph (3)
(a).

"(5) A reference in sub-section (3) or (4) to private land, in relation to a
dwelling-house, is a reference to land used primarily for private or domestic
purposes in association with that dwelling-house.

"(6) For the purposes of this section, where the value of any property of a
person or, in the case of a married person, of the person and the person's
spouse, that consists of the contents of a principal home and of other
personal effects that are used primarily within the principal home, being
property that is used primarily for private or domestic purposes, does not
exceed $10,000, the value of that property shall be taken to be $10,000 unless
the person satisfies the Director-General that the value of that property is
less than $10,000.

"(7) A reference in sub-paragraph (1) (a) (i), (ii) or (iv) to a right or
interest of a person in relation to a principal home shall be read as not
including a reference to a right or interest that, in the opinion of the
Director-General, does not give reasonable security of tenure in relation to
that home.

"(8) A residence of a person shall be taken to continue to be the principal
home of a person during-

   (a)  any period, not exceeding 12 months, during which the person is
        temporarily absent from that residence; and

   (b)  any period, not exceeding 2 years, during which the person is-

        (i)    residing in a benevolent home or in premises at which
               accommodation is provided exclusively or principally for
               mentally ill persons;

        (ii)   residing in premises approved as an approved nursing home
               pursuant to section 40AA of the National Health Act 1953; or

        (iii)  a nursing-home type patient, within the meaning of the Health
               Insurance Act 1973, of a hospital.

Pension loans scheme

"6AB. (1) In this section-
'exempt property' means property to which paragraph 6AA (1) (a) applies;
'relevant interest rate' means such rate as is fixed from time to time by the
Minister by notice published in the Gazette;
'relevant property', in relation to a person, means property of the person
(other than exempt property)-

   (a)  that cannot readily be sold or realized; or

   (b)  that-

        (i)    the person does not wish to sell or realize; and

        (ii)   is not property of a kind that the person could reasonably be
               expected to sell or realize.



"(2) Where-

   (a)  a person is in receipt of or is qualified to receive a pension under
        Part III or IV, a benefit under Part IVAAA or an allowance under Part
        VIIA or VIII;

   (b)  the annual rate of that pension, benefit or allowance is determined
        under or by reference to paragraph 28 (2) (b), 32 (2) (b), 34 (2) (b)
        or 63 (2) (b);

   (c)  the person is a person who-

        (i)    has, being a man, attained the age of 65 years or, being a
               woman, attained the age of 60 years; or

        (ii)   is the spouse of a person referred to in sub-paragraph (i);

   (d)  the property of the person or, if the person is a married person, of
        the person and the person's spouse consists of or includes relevant
        property; and

   (e)  the value of the relevant property of the person or, if the person is
        a married person, of the person and the person's spouse is not less
        than 70% of the value of the property (other than exempt property) of
        the person or of the person and the person's spouse, as the case may
        be, the person may, by notice in writing in a form approved by the
        Director-General lodged with the Department, request that, for the
        purposes of determining the annual rate of the pension, benefit or
        allowance payable to the person, the value of the property of the
        person or of the person and the person's spouse, as the case may be,
        be disregarded.

"(3) A request made by a person under sub-section (2) shall be signed by the
person and, if the person is a married person, by the person's spouse.

"(4) Subject to this section, where-

   (a)  a request is made by a person in accordance with sub-section (2);

   (b)  the value of the relevant property of the person or, if the person is
        a married person, of the person and the person's spouse is not less
        than 70% of the value of the property (other than exempt property) of
        the person or of the person and the person's spouse, as the case may
        be; and

   (c)  the Director-General is satisfied that the amount of any debt that
        becomes payable by the person to the Commonwealth under this section
        is readily recoverable, the value of the property of the person or of
        the person and the person's spouse, as the case may be, shall, on and
        after the first pension pay day after the request is lodged, be
        disregarded for the purposes of this Act other than section 83CA.

"(5) Subject to sub-section (6), where sub-section (4) applies in relation to
a person-

   (a)  the amount (if any), together with interest on that amount at the
        relevant interest rate, by which the sum of the amount of pension,
        benefit or allowance paid to the person from time to time and any
        amount payable by the person under sub-section (9) exceeds the amount
        (if any) of pension, benefit or allowance that would have been paid to
        the person if sub-section (4) did not apply in relation to the person,
        reduced by any amounts repaid to the Commonwealth, is a debt payable
        by the person to the Commonwealth; and

   (b)  the property of the person and, if the person is a married person and
        the person's spouse has signed a request under sub-section (2), of the
        person's spouse is subject to a charge in favour of the Commonwealth
        for the purposes of securing the repayment of the debt, but such a
        charge is not applicable in relation to a bona fide purchaser for
        value who purchases any of that property without notice of the charge.



"(6) An amount is not a debt payable by a person to the Commonwealth under
paragraph (5) (a) unless the value of the property (including exempt property)
of the person or, if the person is a married person, of the person and the
person's spouse exceeds $100,000, and the amount of the debt shall not exceed
the amount by which the value of that property exceeds $100,000.

"(7) Where, by reason of the operation of paragraph (5) (b), a charge is
created on any property situated in a State or Territory, the Director-General
may lodge with the appropriate officer of the State or Territory a notice of
the charge in a form approved by the Director-General, and the person with
whom that notice is lodged may register the charge as if the notice were a
bill of sale or an instrument of charge or encumbrance duly executed under the
laws in force in that State or Territory.

"(8) Where sub-section (4) applies in relation to a person, the person and, if
the person is a married person, the person's spouse shall, if required to do
so by the Director-General, execute any instrument relating to the
registration of a charge on the property of the person or the person's spouse.

"(9) Costs incurred by the Commonwealth that are associated with the
registration of a charge on property of a person or of the person's spouse or
with the registration of the discharge of such a charge are payable by the
person.

"(10) Subject to sub-sections (11), (12) and (13), where, by reason of the
operation of paragraph (5) (b), a charge exists on property of a person or on
property of a person and the person's spouse, the Commonwealth is not, unless
the Director-General otherwise determines in writing, entitled to enforce the
charge or otherwise recover the debt secured by the charge until after the
death of the person.

"(11) Subject to sub-sections (12) and (13), where-

   (a)  by reason of the operation of paragraph (5) (b), a charge exists on
        the property of a married person and of the person's spouse; and

   (b)  the person dies and the spouse-

        (i)    has the use of that property or part of that property; and

        (ii)   has, being a man, attained the age of 65 years or, being a
               woman, attained the age of 60 years, the Commonwealth is not
               entitled to enforce the charge against that property or that
               part of that property, as the case may be, until after the
               death of the spouse.

"(12) Where-

   (a)  by reason of the operation of paragraph (5) (b), a charge is created
        on property of a person; and

   (b)  any of the property on which the charge exists ceases to be property
        of the person, then-

   (c)  in a case where the property referred to in paragraph (b) was sold or
        otherwise disposed of by the person-the Director-General may recover
        from the person out of the proceeds (if any) of the sale or disposal
        the whole or any part of the debt secured by the charge; and

   (d)  in a case where the person who is the new owner of the property
        referred to in paragraph (b) is not a bona fide purchaser for value
        without notice of the charge-the Director-General may enforce the
        charge against that property.



"(13) Where-

   (a)  by reason of the operation of paragraph (5) (b), a charge is created
        on the property of a person or on the property of a person and the
        person's spouse;

   (b)  any of the relevant property of the person or the person's spouse
        ceases to be property of the person or the person's spouse, as the
        case may be, or the person or the person's spouse acquires property
        that is not relevant property or exempt property or the person, being
        an unmarried person, becomes a married person; and

   (c)  as a result of an event referred to in paragraph (b), the value of the
        relevant property of the person or of the person and the person's
        spouse is less than 70% of the value of the property (other than
        exempt property) of the person or of the person and the person's
        spouse, as the case may be, sub-sections (4), (10) and (11) cease to
        apply in relation to the person unless the Director-General determines
        in writing that those sub-sections continue to apply in relation to
        the person.

"(14) Where, in accordance with this section, a charge may be enforced against
property of a person, the charge may be enforced against that property, or any
part of that property, in such a manner as the Director-General determines in
writing.

"(15) The Director-General may, on behalf of the Commonwealth, by
determination in writing-

   (a)  waive or defer the right of the Commonwealth to recover the whole or
        any part of a debt that becomes payable to the Commonwealth under this
        section; or

   (b)  release particular property from the effect of a charge created on the
        property under this section.

Disposal of income or property

"6AC. (1) Subject to sub-sections (3), (6) and (7), where, on or after 1 June
1984, a married person has, during a pension year of the person or of the
person's spouse, disposed of property of the person, 50% of the amount (if
any) by which the sum of the amount of that disposition of property and the
amount of any other disposition of property by the person or by the person's
spouse that took place during that pension year exceeds $4,000 shall, for the
purposes of this Act, be included in the value of the property of the person
and of the property of the person's spouse.

"(2) Subject to sub-section (3), where, on or after 1 June 1984, an unmarried
person has, during a pension year of the person, disposed of property of the
person, the amount (if any) by which the sum of the amount of that disposition
of property and the amount of any other disposition of property by the person
that took place during that pension year exceeds $2,000 shall, for the
purposes of this Act, be included in the value of the property of the person.

"(3) Where an amount (in this sub-section referred to as the 'relevant
amount') is included in the value of the property of a person under
sub-section (1) or (2) by reason of a disposition of property that took place
during a pension year of the person, the amount to be included in that value
under that sub-section in subsequent pension years of the person shall, on
each anniversary of the day on which that disposition took place, be reduced
by an amount equal to 10% of the relevant amount.

"(4) Subject to sub-sections (6) and (7), where, on or after 1 June 1984, a
married person has disposed of income of the person, 50% of the amount of that
disposition shall, for the purposes of this Act other than Part V or VII, be
included in the income of the person and the income of the person's spouse.

"(5) Where, on or after 1 June 1984, an unmarried person has disposed of
income of the person, the amount of that disposition shall, for the purposes
of this Act other than Part V or VII, be included in the income of the person.

"(6) Where-

   (a)  an amount is included under sub-section (1) or (4) in the value of the
        property, or in the income, of a married person and the person's
        spouse by reason of a disposition of property or of income by the
        person; and

   (b)  the person and the person's spouse cease to be married persons in
        relation to each other, any amount that was included in the value of
        the property, or in the income, of the person's former spouse by
        reason of that disposition shall be included in the value of the
        property, or in the income, of the person.

"(7) Where-

   (a)  an amount is included under sub-section (1) or (4) in the value of the
        property, or in the income, of a married person and the person's
        spouse by reason of a disposition of property or of income by the
        person; and

   (b)  the person or the person's spouse dies, then-

   (c)  in the case of the death of the person-no amount shall be included in
        the value of the property, or in the income, of the person's spouse by
        reason of that disposition; or

   (d)  in the case of the death of the person's spouse-any amount that would,
        if the person's spouse had not died, be included in the value of the
        property, or in the income, of the person's spouse by reason of that
        disposition shall be included in the value of the property, or in the
        income, of the person.



"(8) Where-

   (a)  a person disposes, on or after 1 June 1984, of property of the person;

   (b)  the course of conduct that constituted that disposition of property
        also constituted a disposition of income and the income disposed of is
        attributable, in whole or in part, to that property; and

   (c)  either-

        (i)    no amount is included in the value of the property of the
               person under sub-section (1) or (2) by reason of that
               disposition of property; or

        (ii)   the amount that is included in the value of the property of the
               person under sub-section (1) or (2) by reason of that
               disposition of property is, in a case to which sub-section (1)
               applies, less than 50% of the amount of that disposition of
               property or, in a case to which sub-section (2) applies, less
               than the amount of that disposition, then, for the purposes of
               sub-sections (4) and (5)-

   (d)  in a case to which sub-paragraph (c) (i) applies-no amount shall be
        included in the income of a person by reason of that disposition of
        income; or

   (e)  in a case to which sub-paragraph (c) (ii) applies-an amount to be
        included in the income of a person by reason of that disposition of
        income shall be calculated disregarding so much of the amount of that
        disposition of income as the Director-General determines in writing to
        be attributable to that part of the amount of that disposition of
        property that is not included in the value of the property of a person
        under sub-section (1) or (2).



"(9) This section does not apply to a disposition of property or of income
that took place-

   (a)  more than 5 years before the time when-

        (i)    the person who disposed of that property or income; or

        (ii)   if that person was, at the time when that disposition took
               place, a married person-the person's spouse,
became qualified or eligible to receive a pension under Part III or IV, a
benefit under Part IVAAA, an allowance under Part VIIA or a rehabilitation
allowance under Part VIII; or

   (b)  less than 5 years before the time referred to in paragraph (a) and
        before the time when the Director-General is satisfied that the person
        who disposed of that property or income could reasonably have expected
        that the person or the person's spouse would become qualified or
        eligible to receive such a pension, benefit or allowance.



"(10) For the purposes of this section, a person shall be taken to have
disposed of property of the person if the person engages in a course of
conduct (not being a course of conduct under which the person ceases
employment or ceases to engage in a business or profession or reduces the
extent to which the person is employed or the extent to which the person
engages in a business or profession) that diminishes, directly or indirectly,
the value of the property of the person where-

   (a)  the person receives no consideration, or inadequate consideration, in
        money or money's worth; or

   (b)  the Director-General is satisfied that the purpose, or the dominant
        purpose, of the person in engaging in that course of conduct was-

        (i)    to obtain or enable the person's spouse to obtain a pension
               under Part III or IV, a benefit under Part IVAAA, an allowance
               under Part VIIA, a rehabilitation allowance under Part VIII or
               a service pension under the Repatriation Act 1920;

        (ii)   to obtain or enable the person's spouse to obtain such a
               pension, benefit or allowance at a higher rate than that for
               which the person or the person's spouse would otherwise have
               been eligible; or

        (iii)  to ensure that the person or the person's spouse would become a
               person other than a prescribed person for the purposes of
               section 83CA of this Act or section 123AB of the Repatriation
               Act 1920, and the amount of that disposition of property shall
               be taken to be an amount equal to the amount of the diminution
               in the value of that property reduced by the consideration (if
               any) received by the person in respect of that disposition.

"(11) For the purposes of this section, a person shall be taken to have
disposed of income of the person if the person engages in a course of conduct
(not being a course of conduct under which the person ceases employment or
ceases to engage in a business or profession or reduces the extent to which
the person is employed or the extent to which the person engages in a business
or profession) that diminishes, directly or indirectly, the rate of income of
the person where-

   (a)  the person receives no consideration, or inadequate consideration, in
        money or money's worth; or

   (b)  the Director-General is satisfied that the purpose, or the dominant
        purpose, of the person in engaging in that course of conduct was-

        (i)    to obtain or enable the person's spouse to obtain a pension
               under Part III or IV, a benefit under Part IVAAA, an allowance
               under Part VIIA, a rehabilitation allowance under Part VIII or
               a service pension under the Repatriation Act 1920;

        (ii)   to obtain or enable the person's spouse to obtain such a
               pension, benefit or allowance at a higher rate than that for
               which the person or the person's spouse would otherwise have
               been eligible; or

        (iii)  to ensure that the person or the person's spouse would become a
               person other than a prescribed person for the purposes of
               section 83CA of this Act or section 123AB of the Repatriation
               Act 1920, and the amount of that disposition of income shall be
               taken to be the amount that, in the opinion of the
               Director-General, is the annual rate of that diminution reduced
               by such percentage of the consideration (if any) received by
               the person in respect of that disposition as the
               Director-General determines in writing to be fair and
               reasonable in all the circumstances of the case.

"(12) For the purposes of sub-sections (10) and (11), the value of a right or
interest of the kind referred to in sub-paragraph 6AA (1) (a) (iv) of a person
shall be deemed not to be consideration received by the person.

"(13) A reference in this section to a pension year, in relation to a person
who is receiving a pension under Part III or IV, a benefit under Part IVAAA,
an allowance under Part VIIA, a rehabilitation allowance under Part VIII or a
service pension under the Repatriation Act 1920, shall be read as a reference
to-

   (a)  in a case where the person is a married person and the person and the
        person's spouse were, immediately before they became married persons,
        receiving such a pension, benefit or allowance-the period of 12 months
        commencing on the day on which they became married persons;

   (b)  in a case (not being a case referred to in paragraph (a)) where the
        person is a married person and the person's spouse is receiving such a
        pension, benefit or allowance-the period of 12 months commencing on
        the pay day on which such a pension, benefit or allowance first became
        payable to the person or to the person's spouse, whichever was the
        later; or

   (c)  in any other case-the period of 12 months commencing on the pay day on
        which that pension, benefit or allowance first became payable, and to
        each succeeding and each preceding period of 12 months. Financial
        hardship

"6AD. (1) Where-

   (a)  the annual rate of a pension under Part III or IV, a benefit under
        Part IVAAA or an allowance under Part VIIA or VIII payable to a person
        is calculated under or by reference to paragraph 28 (2) (b), 32 (2)
        (b), 34 (2) (b) or 63 (2) (b);

   (b)  section 6AC does not apply in relation to the person or the
        Director-General determines in writing that the application of section
        6AC in relation to the person should, for the purposes of this
        section, be disregarded;

   (c)  any of the property of the person or, if the person is a married
        person, of the person and the person's spouse, is property that-

        (i)    the person or the person's spouse cannot sell or realize or
               could not reasonably be expected to sell or realize; and

        (ii)   the person or the person's spouse cannot use as security for
               borrowing or could not reasonably be expected to use as
               security for borrowing; and

   (d)  the Director-General is satisfied that the person would suffer severe
        financial hardship if this section did not apply in relation to the
        person, the Director-General shall determine in writing that this
        section applies in relation to the person.

"(2) Subject to sub-sections (3) and (4), where this section applies in
relation to a person, the annual rate of the pension, benefit or allowance
payable to the person shall, notwithstanding section 28, 32, 34 or 63, be
determined in the following manner:

   (a)  the value of any of the property of the person and, if the person is a
        married person, of the person's spouse, that is property referred to
        in paragraph (1) (c) shall be disregarded;

   (b)  there shall be deducted from the maximum annual rate of pension,
        benefit or allowance that would be payable to the person apart from
        the operation of sub-section 28 (1EA) or (2), 32 (2), 34 (2) or 63
        (2), as the case requires (in this section referred to as the 'maximum
        rate'), an amount per annum equal to the sum of-

        (i)    the annual rate of income of the person (other than income from
               property of the person or of the person's spouse that is not
               property referred to in paragraph (1) (c) or property to which
               paragraph 6AA (1) (a) applies); and

        (ii)   an amount per annum equal to $26 for each $250 of the value of
               the property of the person (other than property referred to in
               paragraph (1) (c) or property to which paragraph 6AA (1) (a)
               applies).

"(3) Where the Director-General is of the opinion that the annual rate of
pension, benefit or allowance applicable to a person under sub-section (2)
should, having regard to the annual rate of income that could reasonably be
expected to be derived from, or produced with the use of, property of the
person or the person's spouse that is property referred to in paragraph (1)
(c), be reduced, the Director-General may direct that the annual rate of
pension, benefit or allowance payable to the person be reduced by such amount
per annum as the Director-General determines in writing.

"(4) Where the sum of the annual rate of pension, benefit or allowance that
would, apart from this sub-section, be payable to a person under this section
and the annual rate of income of the person exceeds the maximum rate, the
annual rate so payable shall be reduced by the amount per annum of that
excess. Pension reduction amounts

"6AE. A pension reduction amount is applicable to a person who is qualified to
receive a pension under Part III or IV, a benefit under Part IVAAA, an
allowance under Part VIIA or a rehabilitation allowance under Part VIII where
the value of the property of the person exceeds by not less than $250-

   (a)  in the case of an unmarried person to whom sub-paragraph 6AA (1) (a)
        (i) applies-$70,000;

   (b)  in the case of any other unmarried person-$120,000;

   (c)  in the case of a married person to whom sub-paragraph 6AA (1) (a) (ii)
        applies-$50,000; or

   (d)  in the case of any other married person-$75,000, and the amount of
        that pension reduction amount is an amount equal to that excess
        (disregarding any part of that excess that is not a multiple of $250).
        Indexation

"6AF. (1) In this section-
'index number', in relation to a quarter, means the All Groups Consumer Price
Index number, being the weighted average of the 8 capital cities, published by
the Australian Statistician in respect of that quarter;
'relevant amount' means the amount specified in paragraph 6AE (a), (b), (c) or
(d) or 83CA (4) (a), (b), (c) or (d);
'relevant year' means the period of 12 months commencing on 1 May 1986 and
each subsequent period of 12 months.



"(2) Subject to sub-section (3), if at any time, whether before or after the
commencement of this section, the Australian Statistician has published or
publishes an index number in respect of a quarter in substitution for an index
number previously published by the Australian Statistician in respect of that
quarter, the publication of the later index number shall be disregarded for
the purposes of this section.

"(3) If at any time, whether before or after the commencement of this section,
the Australian Statistician has changed or changes the reference base for the
Consumer Price Index, then, for the purposes of the application of this
section after the change took place or takes place, regard shall be had only
to the index number published in terms of the new reference base.

"(4) Where the factor ascertained under sub-section (5) in relation to a
relevant year is greater than one, this Act has effect as if for each relevant
amount there were substituted, on the first day of that relevant year, an
amount calculated by multiplying by that factor-

   (a)  in a case to which paragraph (b) does not apply-the relevant amount;
        or

   (b)  if, by virtue of another application or other applications of this
        section, this Act has effect as if another amount or amounts were
        substituted for that relevant amount-the substituted amount or the
        last substituted amount.

"(5) The factor to be ascertained for the purposes of sub-section (4) in
relation to a relevant year is the number (calculated to 3 decimal places)
ascertained by dividing the index number for the December quarter immediately
preceding that relevant year by the index number for the December quarter
immediately preceding that first-mentioned December quarter.

"(6) Where the factor ascertained in accordance with sub-section (5) in
relation to a relevant year would, if it were calculated to 4 decimal places,
end with a number greater than 4, the factor ascertained in accordance with
that sub-section in relation to that relevant year shall be taken to be the
factor calculated to 3 decimal places in accordance with that sub-section and
increased by 0.001.

"(7) Where this Act would have effect in relation to a relevant year as if an
amount were substituted for each relevant amount, being an amount that is not
a multiple of $250, then, for the purposes of paragraph (4) (b)-

   (a)  in a case where that amount is a multiple of $125-that amount shall be
        increased by $125; or

   (b)  in any other case-that amount shall be increased or reduced to the
        nearest multiple of $250.".



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