How the Consumer Price Index (CPI) Increase affects your pension
On the first payday in January and 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.
If you have not been receiving your pension for the full six months before the CPI increase, you will only receive a proportion of the increase in your pension. For more information, visit the Australian Bureau of Statistics website.
CPI increase calculation
|(March 2017 CPI figure) – (September 2016 CPI figure)||X 100 = CPI Change|
|(110.5 – 109.4)||X100 = 1.00548%|
|= 1.0% (when rounded to the nearest tenth of one per cent)|
You can view a copy of the most recent pension newsletter update in our Pension Update section.