Indexation to begin on secured properties

Indexation to begin on secured properties

Tuesday, 28 September 2021

As part of the 2018 changes to our means test, secured contributions from clients were to be indexed annually to maintain the real dollar value of the contribution. This change was designed to keep the contribution consistent with any increases to cost of living. Indexation will be measured by the consumer price index (CPI).

Initially we intended to index contributions secured from 1 October 2018, however the scheme was delayed following a state government decision to defer indexation due to the economic impacts of the pandemic. This freeze has recently been lifted and indexation will now only apply to contributions secured after 1 October 2021.

Indexation will start to be applied on relevant contributions from 1 October 2022. Please be aware of this when advising your clients in relation to secured debts.

More information

If you have concerns or questions please contact grants@vla.vic.gov.au.

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