Policy

What is the CPI?

The Consumer Price Index ([glossary:CPI:622]) provides the official measure of inflation in Australia. The CPI is calculated by the Australian Bureau of Statistics. Movement in the CPI is measured quarterly for the three month periods ending 31 March, 30 June, 30 September and 31 December each year. The CPI figures are normally published around four weeks after the end of the quarter. The CPI is not a percentage but an index number. Any two numbers from the index can be compared to calculate a percentage change.

Last amended: 1 June 2009

Asset disposals before 1 July 2002

Last amended: 20 September 2009

Last amended: 1 August 2014

Last amended: 5 March 2013

Order of reduction for service pension

Assessing income from conventional life insurance policies

Conventional life insurance policies are not [glossary:financial investments:437]. While the main purpose of conventional life insurance policies is to provide death cover, some policies include an investment element which may pay bonuses (profits) to the investor.  A person who invests in such a life insurance policy is seen as deriving income from a profit-making transaction.

Last amended: 7 October 2020

Description of private unit trusts

Private unit trusts are:

• generally small in size, and
• set up for participation by a small group of unit holders in a specific project, such as a real estate subdivision and development.    
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  Assessment of income from private unit trusts

Last amended: 25 July 2006

Last amended: 30 September 2008

Calculating a person's rate of service pension or ISS

In calculating a person's rate of [glossary:service pension:245] or income support supplement [glossary:ISS:118], the ordinary/adjusted [glossary:income test:288] and [glossary:assets tests:599] are applied as follows: