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How the Consumer Price Index (CPI) Increase affects your pension

Effective from 1 January and 1 July each year we adjust your pension in line with the CPI. The CPI takes into account a range of factors as set by the Australian Bureau of Statistics (ABS). This includes the price of food, clothing, housing, health and transportation. Once the ABS releases the CPI figures, we can determine whether your pension is due for an increase. If the CPI rises (and exceeds the previous March or September CPI figure), we increase your payment. If the CPI falls or stays the same, your pension will not change.

CPI increase calculation

(September 2017 CPI figure) – (March 2017 CPI figure)
× 100

= Pension CPI increase

(March 2017 CPI figure)

∴ (111.4 - 110.5)
x 100

= 0.81447

110.5

= 0.8 %1

10.8% when rounded to the nearest tenth of one precent

The CPI figure for the September 2017 quarter was 111.4.

The CPI figure for the March 2017 quarter was 110.5.

Pension amounts increased by 0.8% on 1 January 2018.