The CPI indexation factor, which is used for FBT purposes concerning remote area benefits (under ss 60 and 60AA of the FBTAA), for the June quarter 2014 increased 0.5 from the March 2014 quarter to 105.9. The Australian Bureau of Statistics (ABS) said inflation was running at 3.0% through the year to 30 June 2014 (up from 2.9% through the year to 31 March 2014).

The most significant price rises this quarter were for medical and hospital services (+4.6%), new dwelling purchase by owner-occupiers (+1.6%) and tobacco (+3.1%). The most significant offsetting price falls this quarter were for domestic holiday travel and accommodation (-3.8%), automotive fuel (-2.7%) and telecommunication equipment and services (-1.6%).

[LTN 140, 23/7/14]