Section 1061ZZET — Social Security Act 1991: Indexation factor

(1) The indexation factor for the purpose of calculating a person’s FS debt or accumulated FS debt at 1 June in a year (the relevant year), is the lower of the CPI indexation factor for the relevant year (see subsection (1A)) and the WPI indexation factor for the relevant year (see subsection (1B)). (1A) The CPI indexation factor for the relevant year is worked out using the following method statement: Method statement Step 1. Work out the total of the index number for the December quarter in the relevant year and the index numbers for the 3 quarters that immediately preceded that quarter. Step 2. Work out the total of the index number for the December quarter immediately before the relevant year and the index numbers for the 3 immediately preceding quarters. Step 3. The CPI indexation factor for the relevant year is the total under step 1 divided by the total under step 2, rounded to 3 decimal places. (1B) The WPI indexation factor for the relevant year is worked out using the following method statement: Method statement Step 1. Work out the total of the WPI index number for the December quarter in the relevant year and the WPI index numbers for the 3 quarters that immediately preceded that quarter. Step 2. Work out the total of the WPI index number for the December quarter immediately before the relevant year and the WPI index numbers for the 3 immediately preceding quarters. Step 3. The WPI indexation factor for the relevant year is the amount under step 1 divided by the amount under step 2, rounded to 3 decimal places. (2) If a CPI indexation factor or a WPI indexation factor worked out under subsection (1A) or (1B) would end with a number greater than 4 were it to be worked out to 4 decimal places, the indexation factor is increased by 0.001. (3) If, apart from this subsection, the amount of an FS debt or accumulated FS debt worked out under this section would be an amount of dollars and cents, disregard the amount of the cents.