Value of Indexed Amounts in Legislation

• Penalty Units and Other Penalties Act 1987 – amount prescribed the purposes of section 4A
• Civil Liability Act 2002  - amount prescribed for the purposes of section 27
• Defamation Act 2005 – amount prescribed for the purposes of section 35

Penalty Units and Other Penalties Act 1987

The amount to be paid by way of penalty in respect of most of Tasmania’s offences, such as drink driving fines and fishing offences, is expressed in penalty units. The Penalty Units and Other Penalties Act 1987 was amended in 2007 to provide for the periodic indexation of the dollar value of a penalty unit. 

How is the value of a Penalty Unit calculated? 

Section 4A of the Act provides that the value of a penalty unit is adjusted in $10 increments, based on consumer price index (CPI) movements in the previous year. It does not increase every year, but only when the CPI pushes it over each $10 barrier. 

Publication 

The Act requires that on or before 1 July each year, the Minister is to publish a notice in the Gazette specifying the value of a penalty unit for the following financial year, whether or not the value is to be increased. 

Table of values of penalty units under the Penalty Units and Other Penalties Act 1987 

Civil Liability Act 2002 

The Civil Liability Act 2002 came into operation on January 1, 2003. Section 27 of the Act provides for the periodic indexation of the amount to which damages for non economic loss is limited.    

How is the value under section 27 calculated? 

Section 27 of the Act provides that the limit on damages is adjusted in $500 increments, based on consumer price index (CPI) movements in the previous year. If the value is not a multiple of $500, it is rounded to the nearest multiple of $500. This value is known as ‘Amount A’. Also gazetted is ‘Amount B’, being five time ‘Amount A’, and used in the calculations of the amount to which damages for non economic loss is limited in any given year. 

Publication 

The Act requires that on or before 1 July each year, the Minister is to publish a notice in the Gazette specifying the value of the amount for the following financial year. 

Table of indexed amount to which damages for non economic loss is limited under the Civil Liability Act 2002

Defamation Act 2005 

The Defamation Act 2005 came into operation on January 1, 2006. Section 35 of the Act provides for the periodic indexation of the amount to which damages for non economic loss is limited. 

How is the value under section 35 calculated? 

Section 35 of the Act provides that the amount is adjusted by the percentage change in the amount estimated by the Australian Statistician of the average weekly total earnings of full time adults in Australia over the four quarters preceding The date of the declaration. The revised figure is rounded to the nearest multiple of $500. 

Publication 

The Act requires that on or before 1 July each year, the Minister is to publish an order in the Gazette specifying the value of the amount that is to apply from the date specified in the order. 

Table of indexed amount to which damages for non economic loss is limited under the Defamation Act 2005