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PBLCI

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Last amended: 15 August 2013

What is PBLCI

    

The [glossary:Pensioner and Beneficiary Living Cost Index:] (PBLCI[glossary:):] measures changes in the cost of living experienced by pensioner and beneficiary households to ensure that pension rates keep up with the increases in the cost of living experienced by pensioners. The PBLCI is calculated by the Australian Bureau of Statistics and is usually published around five weeks after the end of a quarter. Movement in the PBLCI is measured quarterly for the three month periods ending 31 March, 30 June, 30 September and 31 December each year. The PBLCI is not a percentage but an index number. Any two numbers from the index can be compared to calculate a percentage change.

PBLCI indexation factor

    

The PBLCI indexation factor is determined by comparing two quarters of PBLCI figures. The more recent of these quarters is known as the reference quarter and the older is known as the base quarter. The PBLCI number for the reference quarter is divided by the PBLCI number for the base quarter, rounding the answer to three decimal places.

Reference and base quarters for PBLCI

    

VEA →

Section 59EAB VEA – Living cost indexation factor

VEA → (go back)

The reference quarter is defined in the following table.

Indexation day

Reference quarter

20 March

Most recent December quarter before the indexation day

20 September

Most recent June quarter before the indexation day

The base quarter is the June or December quarter that:

  • is before the reference quarter; and
  • has the highest living cost index number.


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).

 

 

The reference quarter is the more recent of the two quarters of CPI or PBLCI data used in indexing a payment rate, limit or threshold. The reference quarter CPI or PBLCI figure is compared to the base quater CPI or PBLCI figure to determine the indexation factor to be applied. The reference quarter is defined in the legislation and varies according to the amount being indexed.

 

 

The base quarter is the older of the two quarters of CPI or PBLCI data used in indexing a payment rate or limit or threshold. The reference quater  of the CPI or PBLCI figure is compared to the base quarter CPI or PBLCI figure to determine the indexation factor to be applied. The base quarter is defined in the legislation and varies according to the amount being indexed.