Commonwealth Numbered Acts

SOCIAL SECURITY AND VETERANS' AFFAIRS LEGISLATION AMENDMENT ACT (No. 4) 1989 No. 164, 1989 - SECT 124

124. After section 198A of the Principal Act the following sections are
inserted: Indexation of income test 'free area'

"198B. (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:

   (a)  sub-subparagraph 47 (4) (a) (i) (A); or

   (b)  sub-subparagraph 47 (5) (a) (i) (A) or (B); or

   (c)  subparagraph 48 (4) (a) (i);
'relevant year' means the year starting on 1 July 1991 and each subsequent
year.

"(2) Subject to subsection (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 is to 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 is to be had only
to index numbers published in terms of the new reference base.

"(4) Where the factor worked out under subsection (5) in relation to a
relevant year is greater than 1, this Act, and any Act that refers to this
Act, have effect as if for each relevant amount there were substituted, on the
first day of that year:

   (a)  subject to paragraph (b)-the amount worked out by multiplying by that
        factor:

        (i)    where subparagraph (ii) does not apply-the relevant amount; or

        (ii)   if, because of another application or other applications of
               this section, this Act has had effect as if another amount was
               substituted, or other amounts were successively substituted,
               for the relevant amount-the substituted amount or the last
               substituted amount, as the case may be; or

   (b)  where the amount worked out under paragraph (a) is not a multiple of
        $1-an amount equal to:

        (i)    if the amount so worked out exceeds the next lower amount that
               is such a multiple by 50 cents or more-the next highest amount
               that is such a multiple; or

        (ii)   if the amount so worked out exceeds the next lower amount that
               is such a multiple by less than 50 cents-that next lower
               amount.

"(5) The factor to be worked out for the purposes of subsection (4) in
relation to a relevant year is the number (calculated to 3 decimal places)
worked out by dividing the index number for the March quarter immediately
preceding the relevant year by the index number for the March quarter
immediately preceding the first-mentioned March quarter.

"(6) Where the factor worked out under subsection (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 worked out under that subsection in relation
to that relevant year is to be taken to be the factor calculated to 3 decimal
places under subsection (5) and increased by 0.001.

"(7) Where, because of the application of this section, this Act has effect as
if another amount were substituted for a relevant amount on the first day of a
year, the substitution, in so far as it affects instalments of pensions,
benefits and allowances under this Act, has effect in relation to every
instalment of such a pension, benefit or allowance that falls due on or after
the first day of that year. Indexation of employment amount

"198C. (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 (c) of the
definition of 'employed child' in subsection 35 (1);
'relevant year' means the year starting on 1 January 1991 and each subsequent
year.

"(2) Subject to subsection (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 is to 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 is to be had only
to index numbers published in terms of the new reference base.

"(4) Where the factor worked out under subsection (5) in relation to a
relevant year is greater than 1, this Act has effect as if for the relevant
amount there were substituted, on the first day of that year:

   (a)  subject to paragraph (b)-the amount worked out by multiplying by that
        factor:

        (i)    where subparagraph (ii) does not apply-the relevant amount; or

        (ii)   if, because of another application or other applications of
               this section, this Act has had effect as if another amount was
               substituted, or other amounts were successively substituted,
               for the relevant amount-the substituted amount or the last
               substituted amount, as the case may be; or

   (b)  where the amount worked out under paragraph (a) is not a multiple of 5
        cents-an amount equal to:

        (i)    if the amount so worked out exceeds the next lower amount that
               is such a multiple by 2.5 cents or more-the next highest amount
               that is such a multiple; or

        (ii)   if the amount so worked out exceeds the next lower amount that
               is such a multiple by less than 2.5 cents-that next lower
               amount.

"(5) The factor to be worked out for the purposes of subsection (4) in
relation to a relevant year is the number (calculated to 3 decimal places)
worked out by dividing the index number for the June quarter immediately
preceding the relevant year by the index number for the June quarter
immediately preceding the first-mentioned June quarter.

"(6) Where the factor worked out under subsection (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 worked out under that subsection in relation
to that relevant year is to be taken to be the factor calculated to 3 decimal
places under subsection (5) and increased by 0.001.

"(7) Where, because of the application of this section, this Act has effect as
if another amount were substituted for the relevant amount on the first day of
a year, the substitution, in so far as it affects instalments of pensions and
allowances under this Act, has effect in relation to every instalment of such
a pension or allowance that falls due on or after the first day of that
year.". Commencement: Day of Royal Assent