How the CPI rate affects your pension
Learn how the Consumer Price Index (CPI) increase affects your pension.
On the first payday in January and July each year, we adjust your pension in line with the CPI. The CPI takes into account a range of factors as set by the Australian Bureau of Statistics (ABS). This includes the price of food, clothing, housing, health and transportation. Once the ABS releases the CPI figures, we can determine whether your pension is due for an increase.
We'll send you an email or letter from 23 June 2021 with your CPI update for July 2021.
If you have not been receiving your pension for the full six months before the CPI increase, you'll only receive a proportion of the increase in your pension. For more information, visit the Australian Bureau of Statistics website.
CPI Update for July 2021
June 2021 Calculations
CSS, PSS, MilitarySuper, DFRDB aged under 55
To arrive at this figure, the following calculation was made.
How the CPI pension adjustment is calculated:
| (March 2021 CPI figure) – (March 2020 CPI figure) × 100 | = Pension CPI increase | ||
| (March 2020 CPI figure) | |||
| Calculation for June 2021 | |
|---|---|
| (117.9-116.6) x 100 |
= 1.11492% = 1.1%1 |
| 116.6 | |
| 11.1% When rounded to the nearest tenth of one percent | |
Follow this link to the ABS website to see the consumer price index rates used in the calculation.
DFRDB aged over 55
Note: The September 2020 quarter figure (116.2) is not used as it is lower than the previous quarter.
To arrive at this figure, the following calculation was made.
How the CPI pension adjustment is calculated:
| (March 2021 CPI figure) – (March 2020 CPI figure) × 100 |
= Pension CPI increase |
| (March 2020 CPI figure) |
| ∴ (117.9 - 116.6) x 100 |
= 1.11492 = 1.1%2 |
| 116.6 |
|
|
2 1.1% when rounded to the nearest tenth of one percent |
|
Follow this link to the ABS website to see the consumer price index rates used in the calculation:
PBLCI increase calculation
On May 05 2021 the ABS announced the Pensioner and Beneficiary Living Cost Indexation (PBLCI) number of 117.9 for the March 2021 quarter. As the March 2021 number of 117.9 is higher than the previous March 2020 quarter figure (117.2) an increase of 0.6% is calculated.
Note: The September 2020 quarter figure (116.5) is not used as it is lower than the previous quarter.
How the PBLCI pension adjustment is calculated:
| (March 2021 LCI figure) – (March 2020 LCI figure) × 100 |
= LCI increase |
| (March 2020 LCI figure) |
| ∴ (117.9 - 117.2) x 100 |
= 0.59372 = 0.6%3 |
| 117.2 |
|
|
3 0.6% when rounded to the nearest tenth of one percent |
|
Frequently Asked Questions
Will my pension go down?
Are there any other changes to my pension?
No, there are no changes to the amount or date we pay you each fortnight. Your pension will be paid as normal.
Is this connected to the recent tax changes?
What can I do about my living costs?
Here are some useful services:
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Ongoing support for your 3rd Act
Visit us at csc.gov.au/Members/Retirement/3rd-act-community
Any questions? Email us at 3rdAct@csc.gov.au
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