How the Consumer Price Index (CPI) affects your pension
On the first payday in January and July each year, your pension is increased only if there has been an upward movement in the Consumer Price Index (CPI) in the preceding six months. The Australian Bureau of Statistics (ABS) measures changes over time in the prices of a wide range of consumer goods and services acquired by Australian metropolitan households to determine the CPI.
For more information on the CPI, please visit www.abs.gov.au
Once the ABS releases the CPI numbers, we perform a calculation to see if your pension is due for an increase. If the new CPI number exceeds any of the previous CPI numbers, we increase your payment. If the new CPI number does not exceed the previous CPI numbers, your pension amount will remain the same.
The September 2007 CPI number was 158.6 and for a CPI increase to occur, the new CPI number must exceed this figure. On 23 April 2008 the ABS announced a CPI number of 162.2. As this is higher than the previous 158.6, an increase of 2.3% is payable to your pension.
