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9.7.1 Overview of Statutory Increases

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Last amended: 15 August 2013

What is a statutory increase

A statutory increase is the process of indexing pensions, allowances, limits and thresholds to maintain their value against increases in the cost of living and/or average earnings. Most amounts are indexed against movements in the Consumer Price Index [glossary:(:]CPI[glossary:):] while some are also benchmarked against Male Total Average Weekly Earnings [glossary:(:]MTAWE[glossary:):]. The [glossary:Pensioner and Beneficiary Living Cost Index:] (PBLCI[glossary:),:] which specifically measures the cost of living for pensioners, is also used for some amounts. Some amounts are not indexed.    

Indexed and derived amounts

Some amounts that vary at the statutory indexation dates are not indexed themselves but are derived from other amounts that are indexed.

Indexation timetable

Indexation occurs either annually or biannually, depending on the payment, allowance or limit. The indexation date and method for each payment, allowance or limit is determined by legislation.     

History of amounts

The CLIK Reference Library displays both current and historic amounts.     


The consumer price index (CPI) provides the official measure of inflation in Australia. The CPI measures quarterly changes in the price of a 'basket' of goods and services which account for a high proportion of expenditure by the CPI population group (i.e. metropolitan households).

The consumer price index (CPI) provides the official measure of inflation in Australia. The CPI measures quarterly changes in the price of a 'basket' of goods and services which account for a high proportion of expenditure by the CPI population group (i.e. metropolitan households).

MTAWE is an amount set by the Australian statistician and published in a document called 'Average Weekly Earning, States and Australia'. Section 59EA of VEA specifies that certain income support indexed amounts are increased in line with increases in MTAWE. The first MTAWE increase of $6.80 per fortnight in the single rate of service pension occurred on 26 March 1998.

 

 

MTAWE is an amount set by the Australian statistician and published in a document called 'Average Weekly Earning, States and Australia'. Section 59EA of VEA specifies that certain income support indexed amounts are increased in line with increases in MTAWE. The first MTAWE increase of $6.80 per fortnight in the single rate of service pension occurred on 26 March 1998.

 

 

The Pensioner and Beneficiary Living Cost Index (PBLCI) is used to adjust the maximum basic rate (MBR) of pension where movement in the PBLCI is greater than movement in the consumer price index  (CPI) for the relevant indexation period. The PBLCI specifically measures changes in the cost of living experienced by pensioner and beneficiary households to ensure that pension rates keep up with the changes in their cost of living. Movements in the CPI will be compared to movements in the PBLCI and the pension MBR will be indexed in line with the higher of these two indexes before benchmarking to male total average weekly earnings (MTAWE).