Factor to index an accumulated higher education contribution debt (May 2005) (Cth)

Legislative Instrument

Higher Education Funding Act 1988:
Factor to index an accumulated higher education contribution debt.

I, Erin Kathleen Holland, as delegate of the Commissioner of Taxation, notify that pursuant to subsection 106N(9) of the Higher Education Funding Act 1988, that 1.024 is the factor to be used for the indexing of accumulated higher education contribution (HEC) debts on 1 June 2005.

Citation

This instrument may be cited as a factor to index an accumulated HEC debt.

Commencement

This Instrument commences on 1 June 2005.

Application

In accordance with subsection 106N(5) of the Higher Education Funding Act 1988, the indexation factor is the number worked out to three decimal places using the formula:

the sum of the index number for the March 2005 quarter and the index numbers for the 3 immediately preceding quarters

divided by

the sum of the index number for the March 2004 quarter and the index numbers for the 3 immediately preceding quarters,

where 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.

Indexation factor for 1 June 2005:

=          Mar05+Dec04+Sep04+Jun04.

Mar04+Dec03+Sep03+Jun03

=          147.5 + 146.5 + 145.4 + 144.8

144.1 + 142.8 + 142.1 + 141.3

=          584.2

570.3

=          1.024 (to 3 decimal places)

The indexation factor is 1.024 and the effective percentage increase is 2.4%.

(Erin Kathleen Holland)

Deputy Commissioner of Taxation

Dated this    11th       day of    May      2005