1 Section 5 (notional subparagraph 912AA(4)(a)(i) of the Act)Omit “$150,000”, substitute “$200,000 (as indexed in accordance with subsections (8A) to (8C))”.2 Section 5 (notional subparagraph 912AA(4)(a)(ii) of the Act)Omit “$5 million”, substitute “$7 million (as indexed in accordance with subsections (8A) to (8C))”.3 Section 5 (notional subparagraph 912AA(4)(b)(i) of the Act)Omit “$10 million”, substitute “$14 million (as indexed in accordance with subsections (8A) to (8C))”.4 Section 5 (notional paragraph 912AA(5)(b) of the Act)Omit “Tier $500,000 class assets”, substitute “eligible assets”.5 Section 5 (notional subparagraph 912AA(5)(b)(iv) of the Act)Omit “$500,000”, substitute “$700,000 (as indexed in accordance with subsections (8A) to (8C))”.6 Section 5 (notional sub-subparagraph 912AA(5)(b)(v)(A) of the Act)Omit “$500,000”, substitute “$700,000 (as indexed in accordance with subsections (8A) to (8C))”.7 Section 5 (notional subparagraph 912AA(8)(a)(i) of the Act)Omit “$150,000”, substitute “$200,000 (as indexed in accordance with subsections (8A) to (8C))”.8 Section 5 (after notional subsection 912AA(8) of the Act)Insert:“Indexation of certain amounts(8A) Each amount mentioned in the following provisions is to be indexed on the first day of each indexation year starting on or after 1 July 2027 by multiplying the previously indexable amount for the provision by the indexation factor for the indexation year:(a) subparagraph (4)(a)(i);(b) subparagraph (4)(a)(ii);(c) subparagraph (4)(b)(i);(d) subparagraph (5)(b)(iv);(e) sub-subparagraph (5)(b)(v)(A);(f) subparagraph (8)(a)(i).(8B) An amount that applies under a provision referred to in paragraphs (8A)(a) to (f), after indexation, must be rounded to the nearest $1,000 (rounding up if the amount ends in $500 exactly).Example: If the amount that would apply under subparagraph (4)(a)(i), after indexation, is $206,500, this must be rounded up to $207,000.(8C) For the purposes of subsection (8A):indexation factor for an indexation year means the number calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more), using the formula: latest CPI numberearlier CPI numberwhere:(a) the CPI number for a quarter means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician for that quarter; and(b) latest CPI number means the CPI number for the March quarter in the preceding indexation year; and(c) earlier CPI number means the CPI number for the March quarter in the second preceding indexation year; and(d) if the Australian Statistician publishes a CPI number for a quarter in substitution for a CPI number previously published by the Australian Statistician for that quarter, the publication of the later CPI number must be disregarded; and(e) if the Australian Statistician changes the reference base for the All Groups Consumer Price Index, then, after the change is made, regard must be had only to the CPI numbers published using the new reference base.indexation year means a period of 12 months starting on 1 July.previously indexable amount for a provision referred to in paragraphs (8A)(a) to (f) means:(a) in respect of the indexation year starting on 1 July 2027, the unindexed amount specified in the provision; and(b) in respect of an indexation year starting on or after 1 July 2028, the amount that applied under the provision immediately before the start of the indexation year.Example: The indexation factor for the indexation year starting on 1 July 2027 will be the CPI number for the quarter ending on 31 March 2026 divided by the CPI number for the quarter ending on 31 March 2025. On 1 July 2027, the amount of $200,000 applying under subparagraph (4)(a)(i) will be indexed by multiplying $200,000 by that indexation factor. For example, if the indexation factor were 1.03, the indexed amount will be $206,000. On 1 July 2028, the amount of $206,000 then applying under subparagraph (4)(a)(i) will be indexed by multiplying that amount by the indexation factor for the indexation year starting on 1 July 2028, being the CPI number for the quarter ending on 31 March 2027 divided by the CPI number for the quarter ending on 31 March 2026.”.9 Section 5 (definition of Tier $500,000 class assets in notional subsection 912AA(11) of the Act)Omit “Tier $500,000 class assets”, substitute “eligible assets” and relocate the definition to its appropriate alphabetical position, determined on a letter-by-letter basis.