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6.3.15 Indexation of Normal Earnings

Sections 182 and 183 provide that the regulations will specify how civilian daily earnings and pre-CFTS pay, used in determining normal earnings, as well as the $100 per week are indexed.  Refer to Clik for the current rates     

MRCA Regulation 19 specifies that whenever civilian earnings are used as a basis in determining NE, they are indexed annually from 1 July by reference to the Wage Price Index to 31 December of the previous year.  This rate is published by the Australian Bureau of Statistics.

MRCA Regulation 20 prescribes that the remuneration amount is indexed annually from 1 July, by reference to the percentage increase in the ADF Workplace Remuneration Arrangements at 31 December of the previous year.

As a matter of policy, where the civilian component of NE is indexed in accordance with the Wage Price Index, any deemed ability to earn in civilian work should also be indexed by the same method.

All changes to rates will be advised by Businessline.

The ADF component of NE is indexed in accordance with ADF pay increases for both Reservists and full time serving members.