Alert September 2018 CPI movements announced, learn how the CPI affects your pension Read more

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. If the CPI rises (and exceeds the previous March or September CPI figure), we increase your payment. If the CPI falls or stays the same, your pension will not change.

If you have not been receiving your pension for the full six months before the CPI increase, you will only receive a proportion of the increase in your pension. For more information, visit the Australian Bureau of Statistics website.

CPI increase calculation

(September 2018 CPI figure) – (March 2018 CPI figure) × 100
= Pension CPI increase
(March 2018 CPI figure)
1 0.8% when rounded to the nearest tenth of one percent
∴ (113.5 - 112.6) x 100 = 0.79929            
= 0.8%1

PBLCI increase calculation

(September 2018 LCI figure) – (March 2018 LCI figure) × 100
= LCI increase
(March 2018 LCI figure)

2 0.6% when rounded to the nearest tenth of one percent

∴ (113.4 - 112.7) x 100
= 0.621118

= 0.6%2
As CPI yields the highest result, DFRDB/DFRB pensioners over the age of 55 will receive a pension increase of 0.8%

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