Commonwealth Numbered Acts

SOCIAL SECURITY AND VETERANS' AFFAIRS LEGISLATION AMENDMENT ACT 1989 No. 83, 1989 - SECT 8

8. After section 34 of the Principal Act the following section is inserted:
Indexation of increased rate for persons with dependent children
''34A. (1) In this section, unless the contrary intention appears:
'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 rate' means the rate specified in subsection 33 (3);
'year to which this section applies' means 1990 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 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 index numbers published in terms of the new reference base.
''(4) Where the factor worked out under subsection (5) in relation to a year
to which this section applies is greater than 1, this Act, and any Act that
refers to this Act, have effect as if for the relevant rate there were
substituted, on the first day of that year:

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

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

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

   (b)  where the rate worked out under paragraph (a) is not a multiple of
        $2.60 per year-a rate equal to:

        (i)    if the rate so worked out exceeds the next lower rate that is
               such a multiple by $1.30 per year or more-the next highest rate
               that is such a multiple; or

        (ii)   if the rate so worked out exceeds the next lower rate that is
               such a multiple by less than $1.30 per year-that next lower
               rate.
''(5) The factor to be worked out for the purposes of subsection (4) in
relation to a year to which this section applies is:

   (a)  the number, calculated to 3 decimal places, worked out by dividing the
        index number for the last preceding June quarter by the highest index
        number in respect of an earlier June quarter, not being a June quarter
        that occurred before 1988; or

   (b)  if the number worked out under paragraph (a) would, if it were
        calculated to 4 decimal places, end in a number greater than 4-the
        number so worked out increased by 0.001.
''(6) Where, because of the application of this section, this Act has effect
as if another rate were substituted for the relevant rate 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.''. Commencement: 1 January 1990