Commonwealth Numbered Acts Commonwealth Numbered Acts
1 Paragraphs 1061ZAAZA(2)(a) and (b)
Repeal the paragraphs, substitute:
(a) a social security pension (other than a special needs pension), social security benefit or social security entitlement;
(b) seniors supplement;
2 After paragraph 1061ZAAZA(2)(e)
Insert:
(ea) seniors concession allowance under Part VIIAD of the Veterans' Entitlements Act 1986 ;
3 Subsection 1192(2) (note 3)
Repeal the note, substitute:
Note 3: On the indexation days following 1 July 2012, the indexation of certain amounts may be affected by Division 8.
4 Subsection 1196(2) (note)
Omit "Note", substitute "Note 1".
5 At the end of subsection 1196(2)
Add:
Note 2: On the indexation days following 1 July 2012, the indexation of certain amounts may be affected by Division 8.
6 Division 8 of Part 3.16
Repeal the Division, substitute:
Division 8 -- Increases related to Carbon Pollution Reduction Scheme
1206GF Objects of this Division
(1) The main object of this Division is to increase certain amounts that affect the rate at which social security payments are made to certain recipients of payments of kinds that include the following, on account of the Carbon Pollution Reduction Scheme's estimated cost of living increase:
(a) age pension;
(b) austudy payment;
(c) bereavement allowance;
(d) carer payment;
(e) disability support pension;
(f) newstart allowance;
(g) parenting payment;
(h) partner allowance;
(i) sickness allowance;
(j) widow allowance;
(k) widow B pension;
(l) wife pension;
(m) youth allowance;
(n) social security payments of kinds specified under section 1206GJ.
(2) Another object of this Division is to adjust indexation of those amounts after they are increased, to reflect the inclusion in the increases of elements brought forward from the Carbon Pollution Reduction Scheme's estimated cost of living increase.
Subdivision B -- Increases to benefits
1206GG What this Subdivision applies to
This Subdivision applies to the following amounts (each of which is a base amount ):
(a) amounts provided for in a provision that is listed in column 1 of the following table and sets a rate;
(b) amounts specified under section 1206GK as amounts to which this Subdivision applies.
|
Amounts that are increased |
|||
|
|
Column 1 Provision for base amount |
Column 2 Description of amount |
Column 3 Rounding base for base amount |
|
1 |
[Austudy Payment Rate Calculator--point 1067L‑B2--Table BA--column 3--all amounts] [Austudy Payment Rate Calculator--point 1067L‑B3] |
AP MBR |
$0.10 |
|
2 |
[Benefit Rate Calculator B--point 1068‑B1--Table B--column 3--all amounts] |
Maximum basic rates for newstart allowance, sickness allowance, partner allowance and widow allowance |
$0.10 |
|
3 |
[Benefit PP (Partnered) Rate Calculator--point 1068B‑C2--Table C--column 3--all amounts] |
Maximum basic rate for parenting payment--benefit PP (partnered) |
$0.10 |
|
4 |
[Youth Allowance Rate Calculator--point 1067G‑B2--Table BA--column 3--all amounts] [Youth Allowance Rate Calculator--point 1067G‑B3--Table BB--column 3--all amounts] [Youth Allowance Rate Calculator--point 1067G‑B4--Table BC--column 3--all amounts] |
YA MBR |
$0.10 |
Note: Amounts provided for in provisions listed in the table are amounts as altered from time to time under Division 2 of this Part (CPI indexation).
1206GH Increase of 1% on 1 July 2011
This Act has effect as if, on 1 July 2011, each base amount were replaced by an amount (the replacement amount ) worked out by:
(a) calculating the amount (the provisional replacement amount ) that is 1% greater than the base amount; and
(b) if the provisional replacement amount is not a multiple of the rounding base for the base amount, rounding up or down to the nearest multiple of the rounding base (rounding up if the provisional replacement amount is not a multiple of the rounding base but is a multiple of half the rounding base).
Note: The 1% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.4% for the 2011‑2012 financial year, which has been brought forward. The change to the indexation factor on or after 20 March 2012 under section 1206GL takes account of this brought forward increase.
1206GI Increase of 1.8% on 1 July 2012
This Act has effect as if, on 1 July 2012, the base amount were replaced by an amount (the replacement amount ) worked out by:
(a) calculating the amount (the provisional replacement amount ) that is 1.8% greater than the base amount; and
(b) if the provisional replacement amount is not a multiple of the rounding base for the base amount, rounding up or down to the nearest multiple of the rounding base (rounding up if the provisional replacement amount is not a multiple of the rounding base but is a multiple of half the rounding base).
Note: The 1.8% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.8% for the 2012‑2013 financial year, which has also been brought forward. The change to the indexation factor on or after 20 March 2013 under section 1206GM takes account of this second brought forward increase.
1206GJ Other kinds of payments affected by this Subdivision
(1) The Minister may, by legislative instrument, specify kinds of social security payments in relation to which this Subdivision applies.
Note: For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003 .
(2) Kinds of social security payments may be specified by reference to either or both of the following:
(a) the persons to whom the payments are to be made;
(b) the circumstances in which the payments are to be made.
(3) Subsection (2) does not limit subsection (1).
1206GK Other amounts to which this Subdivision applies
(1) The Minister may, by legislative instrument, specify that this Subdivision applies to a specified amount that affects the rate at which a specified kind of social security payment is made.
Note 1: For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003 .
Note 2: A specified kind of payment could be a kind of payment specified under section 1206GJ.
(2) If the Minister does so, the instrument must also specify a rounding base for the amount for the purposes of sections 1206GH and 1206GI.
(3) An amount may be specified by reference to the fact that it affects the rate at which a specified kind of social security payment is made to specified persons or in specified circumstances.
(4) An instrument made under subsection (1) may specify that this Subdivision applies to an amount so far as it affects the rate at which a specified kind of social security payment is made to specified persons or in specified circumstances.
(5) Subsections (3) and (4) do not limit subsection (1).
(6) An instrument made under subsection (1) has effect according to its terms.
Subdivision C -- Adjustment of indexation for benefits
1206GL Special rules for indexation of some amounts on or after 20 March 2012
(1) An indexation factor worked out under section 1193 for each indexation day that is:
(a) for AP MBR and YA MBR--on or after 1 January 2013; or
(b) for any other base amount to which Subdivision B applies--on or after 20 March 2012;
is to be reduced by the brought forward indexation amount, but not below 1.
(2) In this section:
"brought forward indexation amount" , in relation to a day, means 0.004 less any reduction made under this section for a previous day.
Note: Once the brought forward indexation amount becomes zero, there will be no further reduction of the factor.
Example: Assume that the indexation factor worked out under section 1193 on 20 March 2012 is 1.003. The brought forward indexation amount in relation to 20 March 2012 is 0.004 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2012.
Further assume that on 20 September 2012 the indexation factor is 1.010. The brought forward indexation amount in relation to 20 September 2012 is 0.001. That indexation factor is reduced to 1.009 on 20 September 2012.
The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.
(3) This section affects the rate of a social security payment for a person if, and only if, section 1206GH affected that rate for the person.
1206GM Special rules for indexation of some amounts on or after 20 March 2013
(1) An indexation factor worked out under section 1193 for each indexation day that is:
(a) for AP MBR and YA MBR--on or after 1 January 2014; or
(b) for any other base amount to which Subdivision B applies--on or after 20 March 2013;
is to be reduced by the brought forward indexation amount, but not below 1.
(2) In this section:
"brought forward indexation amount" , in relation to a day, means 0.008 less any reduction made under this section for a previous day.
Note: Once the brought forward indexation amount becomes zero, there will be no further reduction of the factor.
Example: Assume that the indexation factor worked out under section 1193 on 20 March 2013 is 1.005. The brought forward indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.
Further assume that on 20 September 2013 the indexation factor is 1.010. The brought forward indexation amount in relation to 20 September 2013 is 0.003. That indexation factor is reduced to 1.007 on 20 September 2013.
The brought forward indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.
(3) This section affects the rate of a social security payment for a person if, and only if, section 1206GI affected that rate for the person.
Subdivision D -- Increases to pensions relating to 1 July 2011
1206GN Who this Subdivision applies to
This Subdivision applies to a person if, on 1 July 2011:
(a) a pension supplement amount is used to work out the rate of the person's social security payment under one of the following Rate Calculators:
(i) Pension Rate Calculator A, B or C;
(ii) Pension PP (Single) Rate Calculator; and
(b) that pension supplement amount is more than the person's pension supplement basic amount.
1206GO Increase of 1% on 1 July 2011
(1) This Act has effect as if, on 1 July 2011, the PS rate used to work out the person's pension supplement amount on and after that day were replaced by the PS rate needed for the person's pension supplement amount to be equal to the amount worked out by:
(a) adding the person's CPRS amount to what, apart from this section, would be the person's pension supplement amount on that day; and
(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).
(2) This Act has effect as if, on 1 July 2011, the PS minimum rate used to work out the person's minimum pension supplement amount on and after that day were replaced by the PS minimum rate needed for the person's minimum pension supplement amount to be equal to the amount worked out by:
(a) adding the person's CPRS amount to what, apart from this section, would be the person's minimum pension supplement amount on that day; and
(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).
(3) In this section:
"CPRS amount" , for a person, means:
(a) if the person is receiving a social security pension worked out under Pension Rate Calculator A--the sum of the following amounts:
(i) 1% of the person's maximum basic rate;
(ii) 1% of the person's pension supplement basic amount; and
(b) otherwise--the result of paragraph (a) worked out as if the person were receiving a social security pension worked out under Pension Rate Calculator A.
Note: The 1% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.4% for the 2011‑2012 financial year, which has been brought forward. Subsection 1206GP(2), and the change to the indexation factor, and living cost indexation factor, on or after 20 March 2012 under section 1206GP, take account of this brought forward increase.
1206GP Special rules for indexation of some amounts on or after 20 March 2012
(1) An indexation factor worked out under section 1193 for each indexation day on or after 20 March 2012 for each of the following:
(a) the person's pension MBR;
(b) the person's PS minimum rate;
is to be reduced by the brought forward CPI indexation amount, but not below 1.
Note 1: The person's PS minimum rate is that rate as increased under subsection 1206GO(2).
Note 2: Once the brought forward CPI indexation amount becomes zero, there will be no further reduction of the factor.
Example: Assume that the indexation factor worked out under section 1193 on 20 March 2012 is 1.003. The brought forward CPI indexation amount in relation to 20 March 2012 is 0.004 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2012.
Further assume that on 20 September 2012 the indexation factor is 1.010. The brought forward CPI indexation amount in relation to 20 September 2012 is 0.001. That indexation factor is reduced to 1.009 on 20 September 2012.
The brought forward CPI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.
(2) If the indexation factor worked out under section 1193 for an indexation day is reduced under subsection (1), this Act has effect as if, on that day, the PS rate used to work out the person's pension supplement amount on and after that day were replaced by the PS rate needed for the person's pension supplement amount to be equal to the amount worked out as follows:
Method statement
Step 1. Work out the person's minimum pension supplement amount on that day.
Step 2. Work out what would, apart from subsection (1), be the person's minimum pension supplement amount on that day.
Step 3. Subtract the result of step 1 from the result of step 2.
Step 4. Subtract the result of step 3 from what would, apart from this subsection, be the person's pension supplement amount on that day.
Step 5. If the result of step 4 is not a multiple of $2.60, round the result up or down to the nearest multiple of $2.60 (rounding up if the result is not a multiple of $2.60 but is a multiple of $1.30).
Note 1: The amount in step 1 is the amount worked out from the PS minimum rate as adjusted under subsection (1).
Note 2: The amount in step 2 is the amount worked out from the PS minimum rate as increased under subsection 1206GO(2), and as indexed under section 1192, but without the adjustment under subsection (1) of this section.
Note 3: For step 4, the amount that would, apart from this subsection, be the person's pension supplement amount is the amount worked out from the PS rate as increased under subsection 1206GO(1) and as indexed under section 1192.
(3) A living cost indexation factor, worked out under section 1197 for each indexation day on or after 20 March 2012 for the person's pension MBR, is to be reduced by the brought forward PBLCI indexation amount, but not below 1.
Note: Once the brought forward PBLCI indexation amount becomes zero, there will be no further reduction of the factor.
Example: Assume that the living cost indexation factor worked out under section 1197 on 20 March 2012 is 1.003. The brought forward PBLCI indexation amount in relation to 20 March 2012 is 0.004 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2012.
Further assume that on 20 September 2012 the living cost indexation factor is 1.010. The brought forward PBLCI indexation amount in relation to 20 September 2012 is 0.001. That indexation factor is reduced to 1.009 on 20 September 2012.
The brought forward PBLCI indexation amount in relation to later indexation days is now zero so there is no further reduction of the living cost indexation factor.
(4) In this section:
"brought forward CPI indexation amount" , in relation to a day, means:
(a) if the brought forward PBLCI indexation amount in relation to the day is zero--zero; and
(b) otherwise--0.004 less any reduction made under subsection (1) for a previous day.
"brought forward PBLCI indexation amount" , in relation to a day, means:
(a) if the brought forward CPI indexation amount in relation to the day is zero--zero; and
(b) otherwise--0.004 less any reduction made under subsection (3) for a previous day.
Subdivision E -- Increases to pensions relating to 1 July 2012
1206GQ Who this Subdivision applies to
This Subdivision applies to a person if, on 1 July 2012:
(a) a pension supplement amount is used to work out the rate of the person's social security payment under one of the following Rate Calculators:
(i) Pension Rate Calculator A, B or C;
(ii) Pension PP (Single) Rate Calculator; and
(b) that pension supplement amount is more than the person's pension supplement basic amount.
1206GR Increase of 1.8% on 1 July 2012
(1) This Act has effect as if, on 1 July 2012, the PS rate used to work out the person's pension supplement amount on and after that day were replaced by the PS rate needed for the person's pension supplement amount to be equal to the amount worked out by:
(a) adding the person's CPRS amount to what, apart from this section, would be the person's pension supplement amount on that day; and
(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).
(2) This Act has effect as if, on 1 July 2012, the PS minimum rate used to work out the person's minimum pension supplement amount on and after that day were replaced by the PS minimum rate needed for the person's minimum pension supplement amount to be equal to the amount worked out by:
(a) adding the person's CPRS amount to what, apart from this section, would be the person's minimum pension supplement amount on that day; and
(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).
(3) In this section:
"CPRS amount" , for a person, means:
(a) if the person is receiving a social security pension worked out under Pension Rate Calculator A--the sum of the following amounts:
(i) 1.8% of the person's maximum basic rate;
(ii) 1.8% of the person's pension supplement basic amount; and
(b) otherwise--the result of paragraph (a) worked out as if the person were receiving a social security pension worked out under Pension Rate Calculator A.
Note: The 1.8% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.8% for the 2012‑2013 financial year, which has also been brought forward. Subsection 1206GS(2), and the change to the indexation factor, and living cost indexation factor, on or after 20 March 2013 under section 1206GS, take account of this second brought forward increase.
1206GS Special rules for indexation of some amounts on or after 20 March 2013
(1) An indexation factor worked out under section 1193 for each indexation day on or after 20 March 2013 for each of the following:
(a) the person's pension MBR;
(b) the person's PS minimum rate;
is to be reduced by the brought forward CPI indexation amount, but not below 1.
Note 1: The person's PS minimum rate is that rate as increased under subsection 1206GR(2).
Note 2: Once the brought forward CPI indexation amount becomes zero, there will be no further reduction of the factor.
Example: Assume that the indexation factor worked out under section 1193 on 20 March 2013 is 1.005. The brought forward CPI indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.
Further assume that on 20 September 2013 the indexation factor is 1.010. The brought forward CPI indexation amount in relation to 20 September 2013 is 0.003. That indexation factor is reduced to 1.007 on 20 September 2013.
The brought forward CPI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.
(2) If the indexation factor worked out under section 1193 for an indexation day is reduced under subsection (1), this Act has effect as if, on that day, the PS rate used to work out the person's pension supplement amount on and after that day were replaced by the PS rate needed for the person's pension supplement amount to be equal to the amount worked out as follows:
Method statement
Step 1. Work out the person's minimum pension supplement amount on that day.
Step 2. Work out what would, apart from subsection (1), be the person's minimum pension supplement amount on that day.
Step 3. Subtract the result of step 1 from the result of step 2.
Step 4. Subtract the result of step 3 from what would, apart from this subsection, be the person's pension supplement amount on that day.
Step 5. If the result of step 4 is not a multiple of $2.60, round the result up or down to the nearest multiple of $2.60 (rounding up if the result is not a multiple of $2.60 but is a multiple of $1.30).
Note 1: The amount in step 1 is the amount worked out from the PS minimum rate as adjusted under subsection (1).
Note 2: The amount in step 2 is the amount worked out from the PS minimum rate as increased under subsection 1206GR(2), and as indexed under section 1192, but without the adjustment under subsection (1) of this section.
Note 3: For step 4, the amount that would, apart from this subsection, be the person's pension supplement amount is the amount worked out from the PS rate as increased under subsection 1206GR(1) and as indexed under section 1192.
(3) A living cost indexation factor, worked out under section 1197 for each indexation day on or after 20 March 2013 for the person's pension MBR, is to be reduced by the brought forward PBLCI indexation amount, but not below 1.
Note: Once the brought forward PBLCI indexation amount becomes zero, there will be no further reduction of the factor.
Example: Assume that the living cost indexation factor worked out under section 1197 on 20 March 2013 is 1.005. The brought forward PBLCI indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.
Further assume that on 20 September 2013 the living cost indexation factor is 1.010. The brought forward PBLCI indexation amount in relation to 20 September 2013 is 0.003. That indexation factor is reduced to 1.007 on 20 September 2013.
The brought forward PBLCI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.
(4) In this section:
"brought forward CPI indexation amount" , in relation to a day, means:
(a) if the brought forward PBLCI indexation amount in relation to the day is zero--zero; and
(b) otherwise--0.008 less any reduction made under subsection (1) for a previous day.
"brought forward PBLCI indexation amount" , in relation to a day, means:
(a) if the brought forward CPI indexation amount in relation to the day is zero--zero; and
(b) otherwise--0.008 less any reduction made under subsection (3) for a previous day.
1206GT Persons receiving pension PP (single) on 1 July 2011
When this section applies
(1) This section applies to a person if, on 1 July 2011:
(a) a pension supplement amount is used to work out the rate of the person's pension PP (single) for that day; and
(b) that pension supplement amount is the person's PS basic rate; and
(c) the person is residing in Australia and:
(i) is in Australia; or
(ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.
Increase of 1% on 1 July 2011
(2) This Act has effect as if, on 1 July 2011, the person's PS basic rate on and after that day were replaced by the amount worked out by:
(a) adding the person's CPRS amount to what, apart from this section, would be the person's PS basic rate on that day; and
(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).
Special rules for indexation of some amounts on or after 20 March 2012
(3) An indexation factor worked out under section 1193 for each indexation day on or after 20 March 2012 for each of the following:
(a) the person's pension MBR;
(b) the person's PS basic rate;
is to be reduced by the brought forward CPI indexation amount, but not below 1.
Note 1: The person's PS basic rate is that rate as increased under subsection (2).
Note 2: Once the brought forward CPI indexation amount becomes zero, there will be no further reduction of the factor.
Example: Assume that the indexation factor worked out under section 1193 on 20 March 2012 is 1.003. The brought forward CPI indexation amount in relation to 20 March 2012 is 0.004 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2012.
Further assume that on 20 September 2012 the indexation factor is 1.010. The brought forward CPI indexation amount in relation to 20 September 2012 is 0.001. That indexation factor is reduced to 1.009 on 20 September 2012.
The brought forward CPI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.
(4) In this section:
"brought forward CPI indexation amount" , in relation to a day, means 0.004 less any reduction made under subsection (1) for a previous day.
"CPRS amount" , for a person, means the sum of the following amounts worked out as if the person were receiving a social security pension worked out under Pension Rate Calculator A:
(a) 1% of the person's maximum basic rate;
(b) 1% of the person's pension supplement basic amount.
Note: The 1% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.4% for the 2011‑2012 financial year, which has been brought forward. The change to the indexation factor on or after 20 March 2012 under subsection (3) takes account of this brought forward increase.
1206GU Persons receiving pension PP (single) on 1 July 2012
When this section applies
(1) This section applies to a person if, on 1 July 2012:
(a) a pension supplement amount is used to work out the rate of the person's pension PP (single) for that day; and
(b) that pension supplement amount is the person's PS basic rate; and
(c) the person is residing in Australia and:
(i) is in Australia; or
(ii) is temporarily absent from Australia and has been so for a continuous period not exceeding 13 weeks.
Increase of 1.8% on 1 July 2012
(2) This Act has effect as if, on 1 July 2012, the person's PS basic rate on and after that day were replaced by the amount worked out by:
(a) adding the person's CPRS amount to what, apart from this section, would be the person's PS basic rate on that day; and
(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).
Special rules for indexation of some amounts on or after 20 March 2013
(3) An indexation factor worked out under section 1193 for each indexation day on or after 20 March 2013 for each of the following:
(a) the person's pension MBR;
(b) the person's PS basic rate;
is to be reduced by the brought forward CPI indexation amount, but not below 1.
Note 1: The person's PS basic rate is that rate as increased under subsection (2).
Note 2: Once the brought forward CPI indexation amount becomes zero, there will be no further reduction of the factor.
Example: Assume that the indexation factor worked out under section 1193 on 20 March 2013 is 1.005. The brought forward CPI indexation amount in relation to 20 March 2013 is 0.008 (as there has been no previous reduction). That indexation factor is reduced to 1 on 20 March 2013.
Further assume that on 20 September 2013 the indexation factor is 1.010. The brought forward CPI indexation amount in relation to 20 September 2013 is 0.003. That indexation factor is reduced to 1.007 on 20 September 2013.
The brought forward CPI indexation amount in relation to later indexation days is now zero so there is no further reduction of the indexation factor.
(4) In this section:
"brought forward CPI indexation amount" , in relation to a day, means 0.008 less any reduction made under subsection (1) for a previous day.
"CPRS amount" , for a person, means the sum of the following amounts worked out as if the person were receiving a social security pension worked out under Pension Rate Calculator A:
(a) 1.8% of the person's maximum basic rate;
(b) 1.8% of the person's pension supplement basic amount.
Note: The 1.8% increase includes the Carbon Pollution Reduction Scheme's estimated cost of living increase of 0.8% for the 2012‑2013 financial year, which has also been brought forward. The change to the indexation factor on or after 20 March 2013 under subsection (3) takes account of this second brought forward increase.
7 After clause 149 of Schedule 1A
Insert:
149A Increases in rates payable under clause 146 related to Carbon Pollution Reduction Scheme
Application
(1) This clause applies if:
(a) clause 146 affects the rate at which a social security pension is payable to a person for a day on or after 1 July 2011; and
(b) subclause 147(1) or (2) is relevant to the person.
Purpose
(2) The purpose of this clause is to ensure appropriate increases in the rate of the person's pension on account of the Carbon Pollution Reduction Scheme's estimated cost of living increase, by:
(a) providing for increases in the amount described in subparagraph 146(4)(a)(i) of this Schedule; and
(b) modifying the operation of Subdivisions D and E of Division 8 of Part 3.16 (which apply because of clause 149).
Increase on 1 July 2011
(3) This Act has effect as if, on 1 July 2011, the amount described in subparagraph 146(4)(a)(i) of this Schedule (apart from this subclause) for the person were replaced by the amount worked out by:
(a) adding the CPRS amount defined in subsection 1206GO(3) for the person (worked out disregarding clause 149) to the amount described in subparagraph 146(4)(a)(i) of this Schedule on that day (apart from this subclause); and
(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).
Increase on 1 July 2012
(4) This Act has effect as if, on 1 July 2012, the amount described in subparagraph 146(4)(a)(i) of this Schedule (apart from this subclause) for the person were replaced by the amount worked out by:
(a) adding the CPRS amount defined in subsection 1206GR(3) for the person (worked out disregarding clause 149) to the amount described in subparagraph 146(4)(a)(i) of this Schedule on that day (apart from this subclause); and
(b) if the amount resulting from paragraph (a) is not a multiple of $2.60, rounding the amount up or down to the nearest multiple of $2.60 (rounding up if the amount is not a multiple of $2.60 but is a multiple of $1.30).
Modification of Division 8 of Part 3.16
(5) Subsections 1206GP(1) and 1206GS(1), and the definition of brought forward CPI indexation amount (except paragraph (a) of that definition) in each of subsections 1206GP(4) and 1206GS(4), apply in relation to the amount described in subparagraph 146(4)(a)(i) of this Schedule for the person in the same way as they apply in relation to the person's PS minimum rate.
(6) Subsections 1206GP(2) and 1206GS(2) apply as if each reference in those subsections to the PS rate were a reference to the amount described in subparagraph 146(4)(a)(i) of this Schedule for the person.
Note: The reference in step 4 of the method statement in each of subsections 1206GP(2) and 1206GS(2), as they apply because of this clause, to what would, apart from that subsection, be the person's pension supplement amount is a reference to that amount worked out taking account of clause 149. Note 3 to each of those subsections is not relevant to the application of those subsections because of this clause.
(7) The following provisions do not affect the rate of the person's pension worked out under clause 146 or an amount worked out in relation to the person's pension because of clause 149:
(b) paragraph 1206GP(1)(a);
(c) subsection 1206GP(3);
(d) subsection 1206GR(1);
(e) paragraph 1206GS(1)(a);
(f) subsection 1206GS(3).