Commonwealth Numbered Regulations

DEFENCE FORCE RETIREMENT AND DEATH BENEFITS REGULATIONS 2017 (F2017L01095) - REG 7

Prescribed rate

             (1)  For the purposes of subsection 6BA(3) of the Act, the rate of $1,779.02 is prescribed.

Indexation of prescribed rate

             (2)  On 1 January 2018 and on each following 1 July and 1 January, the prescribed rate is increased in accordance with subsection (3) or (4) (as the case requires).

             (3)  If, in the 6 month period beginning on 1 July in a year (the relevant period ), the latest CPI number is greater than the earlier CPI number, the prescribed rate is increased, on 1 January immediately following the end of the relevant period, in accordance with the formula:

where:

"earlier CPI number " is the CPI number for the last March quarter before the start of the relevant period.

"latest CPI number " is the CPI number for the September quarter before the end of the relevant period.

"prescribed rate " is the rate in force under this section at the end of the relevant period.

             (4)  If, in the 6 month period beginning on 1 January in a year (the relevant period ), the latest CPI number is greater than the earlier CPI number, the prescribed rate is increased, on 1 July immediately following the end of the relevant period, in accordance with the formula:

where:

"earlier CPI number " is the CPI number for the last September quarter before the start of the relevant period.

"latest CPI number " is the CPI number for the March quarter before the end of the relevant period.

"prescribed rate " is the rate in force under this section at the end of the relevant period.

             (5)  The amount of the rate worked out under subsection (3) or (4) is to be rounded to the nearest cent (rounding 0.5 cents upwards).

             (6)  If the Australian Statistician publishes for a particular March quarter or September quarter a CPI number in substitution for a CPI number previously published by the Australian Statistician for that quarter, the publication of the later CPI number is to be disregarded for the purposes of this section.

             (7)  However, if the Australian Statistician changes the index reference period for the Consumer Price Index, then for the application of this section after the change is made, regard is to be had only to CPI numbers published in terms of the new index reference period.

             (8)  In this section:

"CPI number " means the All Groups Consumer Price Index number (being the weighted average of the 8 Australian capital cities) published by the Australian Statistician.

"March quarter " means a period of 3 months ending at the end of March.

"September quarter " means a period of 3 months ending at the end of September.