Commonwealth Numbered Acts

TERMINATION PAYMENTS TAX IMPOSITION ACT 1997 No. 74 of 1997 - SECT 6

Indexation of certain amounts for 1997-98 financial year and later financial
years

(1) Section 5 applies in relation to an indexing financial year as if each
indexable amount were replaced by the amount worked out using the formula:

Previous indexable amount   x   Relevant indexation factor


where: previous indexable amount means the indexable amount for the financial
year immediately before the indexing financial year. relevant indexation
factor means the indexation factor for the indexing financial year.

Rounding off of indexed amounts

(2) If an amount worked out under subsection (1) is an amount of dollars and
cents:

   (a)  if the number of cents is less than 50Ðthe amount is to be rounded
        down to the nearest whole dollar; or

   (b)  otherwiseÐthe amount is to be rounded up to the nearest whole dollar.

Indexation factor

(3) The indexation factor for an indexing financial year is the number
calculated, to 3 decimal places, using the formula:

Index number for last quarter in current March year
Index number for last quarter in previous March year

where: current March year means the period of 12 months ending on 31 March
immediately before the indexing financial year. previous March year means the
period of 12 months immediately before the current March year.

Rounding up of indexation factor

(4) If the number calculated under subsection (3) for a financial year would,
if it were worked out to 4 decimal places, end with a number greater than 4,
the number so calculated is increased by 0.001.

Change in index numbers

(5) If, at any time, whether before or after the commencement of this Act, the
Australian Statistician has published or publishes an index number for a
quarter in substitution for an index number previously published for the
quarter, the publication of the later index number is to be disregarded.

Indexable amounts to be published

(6) The Commissioner must publish before, or as soon as practicable after, the
start of the 1997-98 financial year, and before the start of each later
financial year, the indexable amounts as replaced under subsection (1) for
that year.

Definitions

(7) In this section: indexable amount means:

   (a)  an amount stated in section 5; or

   (b)  if that amount has previously been altered under this sectionÐthe
        altered amount. indexing financial year means the 1997-98 financial
        year or a later financial year. index number, for a quarter, means the
        estimate of full-time adult average weekly ordinary time earnings for
        the middle month of the quarter published by the Australian
        Statistician. Note: For the purposes of this section, Australian
        Statistician means the Australian Statistician referred to in
        subsection 5(2) of the Australian Bureau of Statistics Act 1975.