INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 17 - Rebates  

Subdivision A - Concessional rebates  

SECTION 159HA   INDEXATION FOR THE PURPOSES OF THIS SUBDIVISION  

159HA(1)  


Section 159Q applies in relation to an indexing year of income as if each indexable amount were replaced by the amount calculated using the formula:


Previous indexable amount   ×   Indexation factor

where:

Previous indexable amount is the indexable amount concerned for the previous year of income;

Indexation factor is the indexation factor for the indexing year of income.

159HA(2)  
Where, apart from this subsection, an amount calculated under subsection (1) would be an amount of dollars and cents:


(a) if the number of cents is less than 50 - the amount shall be rounded down to the nearest whole dollar; and


(b) in any other case - the amount shall be rounded up to the nearest whole dollar.

159HA(3)  
The indexation factor for an indexing year of income is the number (calculated to 3 decimal places) ascertained by dividing the sum of the index numbers for the quarters of the 12 month period ending on 31 March immediately before the indexing year of income by the sum of the index numbers for the quarters of the preceding 12 month period ending on 31 March.

159HA(4)  
If the factor ascertained under subsection (3) in relation to an indexing year of income would, if it were calculated to 4 decimal places, end with a number greater than 4, the factor ascertained under that subsection in relation to that indexing year of income shall be taken to be the factor calculated to 3 decimal places and increased by 0.001.

159HA(5)  
Subject to subsection (6), if at any time, whether before or after the commencement of this section, the Australian Statistician has published or publishes an index number in respect of a quarter in substitution for an index number previously published by the Australian Statistician in respect of that quarter, the publication of the later index number shall be disregarded for the purposes of this section.

159HA(6)  


If at any time, whether before or after the commencement of this section, the Australian Statistician has changed or changes the index reference period for the Consumer Price Index, then, for the purposes of the application of this section after the change took place or takes place, regard shall be had only to the index numbers published in terms of the new index reference period.

159HA(6A)  
(Repealed by No 70 of 2015)

159HA(7)  


In this section:

indexable amount
means:


(a) an amount mentioned in column 1 of an item of the following table; or


(b) if that amount has been altered under this section in relation to the year of income mentioned in column 2 of the item, or a later year of income - the altered amount:


Indexable amounts
Item Column 1
Indexable amount
Column 2
First indexable year
1 - 3 (Repealed by No 70 of 2015)
4 the amount specified in subsection 159Q(5) (medical expense rebate higher phase-in limit) the 2013-14 year of income
5 the amount specified in subsection 159Q(6) (medical expense rebate lower phase-in limit) the 2011-12 year of income

indexation factor
means the indexation factor ascertained under subsection (3);

indexing year of income
means the year of income commencing on 1 July 2008 or a later year of income.

index number
, in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Australian Statistician in respect of that quarter.

159HA(8)  
(Repealed by No 82 of 1999)


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