3.4.3 CPI indexation for cost of living
Context
Court orders and court registered agreements or child support agreements often contain clauses providing for an annual adjustment of the amount payable in accordance with changes in the CPI.
Treatment of CPI clauses
If a court order or court registered agreement provides for a review of the amount payable on a specified date, the arrival of that date is an affecting event (CSRC Act section 4(1)).
An order or child support agreement with a CPI clause will generally state the date on which the comparison is to be made and the particular figures to be used (e.g. the weighted average of CPI figures in all capital cities or a specific capital city). Where an order simply refers to CPI, but not a specific measure of it, the Registrar will use the weighted average of CPI in all capital cities from the corresponding quarter of the previous year. The Australian Bureau of Statistics (ABS) publishes these figures.
CPI figures used from September 2012
The relevant CPI figures published by the ABS for recent years are provided below.
| Period | Sydney | Melbourne | Brisbane | Adelaide | Perth | Hobart | Darwin | Canberra | Weighted average |
|---|---|---|---|---|---|---|---|---|---|
| Sep 2011 | 99.9 | 99.8 | 99.9 | 100.0 | 99.6 | 99.9 | 99.9 | 99.8 | 99.8 |
| Dec 2011 | 99.8 | 99.9 | 99.7 | 100.0 | 99.8 | 100.0 | 99.5 | 100.1 | 99.8 |
| Mar 2012 | 99.9 | 99.9 | 99.9 | 99.9 | 100.0 | 100.3 | 99.9 | 99.7 | 99.9 |
| Jun 2012 | 100.5 | 100.4 | 100.5 | 100.2 | 100.5 | 99.9 | 100.7 | 100.3 | 100.4 |
| Sep 2012 | 102.2 | 101.6 | 101.6 | 101.7 | 101.6 | 100.6 | 102.0 | 101.4 | 101.8 |
| Dec 2012 | 102.3 | 102.0 | 101.9 | 102.1 | 101.9 | 101.0 | 102.0 | 101.8 | 102.0 |
| Mar 2013 | 102.7 | 102.4 | 102.0 | 102.1 | 102.4 | 101.3 | 103.7 | 101.9 | 102.4 |
| Jun 2013 | 103.1 | 102.6 | 102.5 | 102.3 | 103.0 | 101.7 | 104.6 | 102.5 | 102.8 |
| Sep 2013 | 104.3 | 104.0 | 103.8 | 103.7 | 104.2 | 102.6 | 105.5 | 103.1 | 104.0 |
| Dec 2013 | 105.0 | 104.8 | 104.6 | 104.4 | 104.9 | 103.6 | 106.5 | 104.1 | 104.8 |
| Mar 2014 | 105.6 | 105.3 | 105.2 | 105.1 | 105.6 | 104.1 | 107.4 | 104.6 | 105.4 |
| Jun 2014 | 106.0 | 105.9 | 105.8 | 105.5 | 106.4 | 104.5 | 108.1 | 104.8 | 105.9 |
| Sep 2014 | 106.6 | 106.1 | 106.5 | 105.9 | 106.9 | 104.6 | 108.3 | 105.2 | 106.4 |
| Dec 2014 | 106.8 | 106.3 | 106.7 | 106.2 | 107.0 | 104.7 | 108.5 | 105.3 | 106.6 |
| Mar 2015 | 107.3 | 106.4 | 106.7 | 106.3 | 107.1 | 105.0 | 108.3 | 105.2 | 106.8 |
| Jun 2015 | 108.3 | 107.1 | 107.4 | 106.8 | 107.7 | 105.1 | 108.3 | 105.6 | 107.5 |
| Sep 2015 | 108.6 | 107.6 | 108.1 | 107.1 | 108.1 | 105.7 | 108.7 | 105.8 | 108.0 |
| Dec 2015 | 108.9 | 108.3 | 108.5 | 107.3 | 108.6 | 106.6 | 109.0 | 106.0 | 108.4 |
| Mar 2016 | 108.7 | 108.2 | 108.5 | 107.0 | 107.9 | 106.4 | 108.0 | 106.2 | 108.2 |
| Jun 2016 | 109.3 | 108.6 | 109.0 | 107.5 | 108.2 | 106.4 | 108.3 | 106.4 | 108.6 |
| Sep 2016 | 110.4 | 109.1 | 109.7 | 108.4 | 108.6 | 107.1 | 108.7 | 107.3 | 109.4 |
| Dec 2016 | 110.9 | 109.9 | 110.2 | 108.7 | 109.0 | 108.0 | 108.6 | 107.9 | 110.0 |
| Mar 2017 | 111.3 | 110.9 | 110.5 | 109.1 | 109.0 | 108.9 | 108.5 | 108.6 | 110.5 |
| Jun 2017 | 111.7 | 111.0 | 111.0 | 109.2 | 109.0 | 108.9 | 108.8 | 108.6 | 110.7 |
| Sep 2017 | 112.5 | 111.5 | 111.4 | 110.4 | 109.5 | 109.2 | 109.4 | 109.6 | 111.4 |
| Dec 2017 | 113.3 | 112.3 | 112.3 | 111.2 | 109.9 | 110.3 | 109.7 | 110.3 | 112.1 |
| Mar 2018 | 113.6 | 113.3 | 112.4 | 111.6 | 110.0 | 111.1 | 109.7 | 111.2 | 112.6 |
| Jun 2018 | 114.0 | 113.8 | 112.9 | 112.1 | 110.2 | 111.5 | 110.1 | 111.6 | 113.0 |
| Sep 2018 | 114.7 | 114.0 | 113.4 | 112.4 | 110.8 | 112.2 | 110.8 | 112.3 | 113.5 |
| Dec 2018 | 115.2 | 114.6 | 114.0 | 113.0 | 111.3 | 113.6 | 111.0 | 113.1 | 114.1 |
| Mar 2019 | 115.1 | 114.7 | 114.1 | 113.1 | 111.2 | 113.4 | 110.1 | 113.2 | 114.1 |
| Jun 2019 | 115.9 | 115.3 | 114.8 | 113.7 | 112.0 | 114.1 | 111.0 | 113.5 | 114.8 |
| Sep 2019 | 116.5 | 115.9 | 115.5 | 114.5 | 112.6 | 114.7 | 111.3 | 114.3 | 115.4 |
| Dec 2019 | 117.1 | 116.9 | 116.3 | 115.4 | 113.1 | 116.7 | 111.5 | 115.0 | 116.2 |
| Mar 2020 | 117.4 | 117.8 | 116.2 | 115.8 | 113.5 | 117.2 | 111.8 | 115.5 | 116.6 |
| Jun 2020 | 114.7 | 115.7 | 113.6 | 114.6 | 112.1 | 115.6 | 109.0 | 112.8 | 114.4 |
| Sep 2020 | 116.8 | 116.7 | 116.2 | 115.7 | 114.1 | 116.7 | 110.8 | 115.4 | 116.2 |
| Dec 2020 | 118.0 | 118.4 | 117.5 | 116.5 | 113.0 | 117.6 | 111.5 | 116.3 | 117.2 |
| Mar 2021 | 118.5 | 118.8 | 118.2 | 117.2 | 114.6 | 118.5 | 114.4 | 117.3 | 117.9 |
Where a court order or agreement includes a clause providing for an annual adjustment of the amount payable in accordance with changes in CPI, the ABS data will be used to calculate the new amount payable. The table above should be used for any adjustments that are required to use September 2012 CPI indexation figures onwards. Note that the figures from September 2011 to June 2012 have only been provided to enable indexation for September 2012 onwards.
Example: A court order provides for the periodic amount of $100 per week to be inflated by the September Sydney CPI on 1 January each year.
September 2011 quarter CPI for Sydney - 99.9
September 2012 quarter CPI for Sydney - 102.2
Latest quarter index ÷ Earliest quarter index × previous entitlement
(102.2 ÷ 99.9) × $100
= $102.30
The periodic amount will be $102.30 per week starting 1 January 2013.
CPI re-reference
In September 2012, the ABS re-referenced the CPI figures, setting the index base to 100.0 for the reference period 2011-12. The ABS also published conversion factors to allow the figures using the new index reference period to be converted to figures that are consistent with figures published before the re-referencing.
The following table details the historical CPI values before the ABS re-referencing activity.
| Period | Sydney | Melbourne | Brisbane | Adelaide | Perth | Hobart | Darwin | Canberra | Weighted average |
|---|---|---|---|---|---|---|---|---|---|
| Mar 2008 | 161.7 | 160.6 | 165.6 | 165.5 | 162.5 | 161.3 | 158.5 | 163.0 | 162.2 |
| Jun 2008 | 164.1 | 162.5 | 168.4 | 167.6 | 165.1 | 162.9 | 160.8 | 165.0 | 164.6 |
| Sep 2008 | 165.9 | 164.4 | 170.8 | 169.8 | 166.7 | 164.7 | 163.6 | 167.5 | 166.5 |
| Dec 2008 | 165.5 | 163.5 | 170.4 | 169.3 | 166.2 | 164.4 | 162.9 | 166.8 | 166.0 |
| Mar 2009 | 165.6 | 163.9 | 170.8 | 169.3 | 166.0 | 164.8 | 163.0 | 167.4 | 166.2 |
| Jun 2009 | 166.3 | 164.4 | 171.8 | 170.3 | 167.4 | 165.7 | 164.8 | 167.0 | 167.0 |
| Sep 2009 | 168.1 | 165.4 | 174.1 | 172.1 | 168.7 | 167.7 | 168.0 | 169.9 | 168.6 |
| Dec 2009 | 169.1 | 166.4 | 174.7 | 172.7 | 169.7 | 168.7 | 167.8 | 170.6 | 169.5 |
| Mar 2010 | 170.5 | 168.5 | 176.0 | 173.7 | 171.6 | 170.0 | 168.7 | 171.7 | 171.0 |
| Jun 2010 | 171.1 | 169.5 | 177.3 | 175.0 | 173.2 | 170.7 | 170.1 | 172.3 | 172.1 |
| Sep 2010 | 172.5 | 170.5 | 179.1 | 176.6 | 174.0 | 172.4 | 171.9 | 173.4 | 173.3 |
| Dec 2010 | 173.1 | 171.5 | 180.0 | 177.1 | 174.1 | 172.6 | 171.8 | 174.2 | 174.0 |
| Mar 2011 | 175.9 | 174.4 | 182.3 | 180.0 | 176.1 | 174.9 | 173.7 | 176.8 | 176.7 |
| Jun 2011 | 177.6 | 175.6 | 184.1 | 181.8 | 178.4 | 176.5 | 175.4 | 178.7 | 178.3 |
| Sep 2011 | 178.8 | 176.7 | 184.7 | 183.6 | 178.8 | 177.9 | 176.7 | 179.9 | 179.4 |
| Dec 2011 | 178.7 | 176.8 | 184.4 | 183.5 | 179.1 | 178.1 | 176.0 | 180.4 | 179.4 |
| Mar 2012 | 178.8 | 176.8 | 184.7 | 183.3 | 179.5 | 178.6 | 176.6 | 179.7 | 179.5 |
| Jun 2012 | 179.9 | 177.7 | 185.8 | 183.9 | 180.4 | 177.9 | 178.2 | 180.8 | 180.4 |
The above table should be used for court orders or agreements that are required to be adjusted using CPI data prior to September 2012.
Example: A court order provides for the periodic amount of $100 per week to be inflated by the March Sydney CPI on 1 July each year.
March 2011 quarter CPI for Sydney -175.9
March 2012 quarter CPI for Sydney -178.8
Latest quarter index ÷ Earliest quarter index × previous entitlement
(178.8 ÷ 175.9) × $100
= $101.65
The periodic amount will be $101.65 per week starting 1 July 2012.