The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.I.40 Indexation factor


The individual PPL income limit (1.1.I.55) and the family PPL income limit (1.1.F.10) are indexed to the CPI. The indexation factor is used to calculate the indexed estimate or indexed actual income that may be used to establish the PPL income limits. It is derived by dividing the index number for the reference December quarter (that is, the most recent December quarter before the indexation day) by the index number for the base December quarter (the December quarter that has the highest index number of the December quarters before the reference December quarter, but no earlier than December 2007).

The index number for a quarter means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician.

The indexation factor is worked out to 3 decimal places but rounded upwards by 0.001 if the fourth decimal place is more than 4.

If the indexation factor would be less than one, it is to be increased to one.

Act reference: PPLAct section 43 The indexation factor

Policy reference: PPL Guide 2.3.3 Indexation of PPL income limit for PLP

Last reviewed: