CPI Figures

Try this link Tom:

http://www.rba.gov.au/Statistics/measures_of_cpi.html

If you go to “total” on the yearly link, that will give you the last few years’ inflation rates. You’ll note the total of the year 2000/2001 was 5.9- that was due to the implementation of the GST. This year’s total to the last quarter was 2%. The RBA always has a target of 2-3% Annual rise to be seen as managing a non-inflationary economy.

kay henry

Hi Tom

I am just doing the same thing, putting the rent up in line with the CPI. I found the following page on the ATO web site:
http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/cpi.htm

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Kay,

Try this, it took me a few shots to understand, but if you read the figures via its quartely mark, you will see the trend that takes place. Then with this trend you can determine what the indexation will proceed to be for future values.

Capital gains: indexation
Indexation is only relevant in working out the cost base of an asset acquired before 21 September 1999. If the indexation method (rather than the discount method) is used to work out a capital gain from such an asset, some of the cost base expenditure of the asset may be indexed to account for inflation up to the September 1999 quarter. Changes to the law mean that indexation is frozen at that time.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Hi Kay,

thanks for the info, though i never mentioned anything about CPI, just the trends in that table, that show and follow.

The Indexation of the figures are only relevant, to work out the cost base of the asset.

There are 2 typs of ways to use the figures to cacaluate the following figures.

• Indexation method.
• Discount method

Knowing this and putting this value against your currnet rental value, you will see the indexation figure has some what a high degree with working out the CPI rate, that is caculated against the weighted average of the 8 capital cities used.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Hi Guys,

This table is fine to work against, though this is the first time, ive seen it and im finding that for differnt properties in the same suburb, will all have different rental yeilds. Honestly i very much think CPI is only good to workout what the future wages maybe or what we could accurately guess or estimate what the current future values hold out.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

>>The RBA always has a target of 2-3% Annual rise to be seen as managing a non-inflationary economy.<<

Always ?

A number of years ago the powers that be decided to change the make up of the CPI factors and manipulated it blatantly in such a manner that would have left the crook NAB currency dealers for dead.

I cannot for the life of me remember what factor exactly they decided to ignore but it made a substantial difference.

Does anyone remember what that was all about ?

Pisces133

Hi Kay

I beleive that table is just an accumulative index of the CPI since the time it first came into use. The quarterly figure is just addedd on top.

Terryw
Discover Home Loans
North Sydney
[email protected]