Consumer Price Index (CPI) Adjustment to Pensions
On payday 14 January 2010 there will be a CPI pension increase of 1.3%.
On the first payday in January and July each year, your pension is indexed in line with the Consumer Price Index (CPI).
The CPI takes into account a range of factors as set by the Australian Bureau of Statistics (ABS). These factors take into consideration a range of categories of goods and services. For example; food, clothing, housing, health and transportation.
Once we know the CPI figures, we do a calculation (see below) to see if your pension is due for an increase. If the new CPI figure exceeds the previous relevant September or March CPI figure, we increase your payment. If the new CPI figure does not exceed the highest of these figures there is no increase in the CPI rate.
There was no CPI increase in July 2009. This occurred because the March 2009 CPI figure of 166.2 was less than the previously announced figure of 166.5 for September 2008.
On 28 October 2009 the ABS announced a CPI figure of 168.6 for the September 2009 quarter. As the September 2009 figure is higher than the September 2008 figure of 166.5, an increase of 1.3% is payable on payday 14 January 2010.
The following calculation was made to determine the increase to your pension:
Click here for a text description of this graph.
It is important to note that the January CPI increase does not apply to a pension commenced on or after 16 December 2009.
If your pension commenced between 16 July and 15 December 2009 you will receive a pro-rata proportion of the full increase.