Calculation of Contributory Parent Visa Composite Index for 2016/17
Relevant sections of the Migration (Visa Application) Charge Act 1997 are set out in the Attachment.
Contributory Parent Visa Composite Index for 2016/17
For financial year 2016/17, the value of the Contributory Parent Visa Composite Index is 2.3%.
Method of Calculation – 2016/17
For financial year 2016/17, the Composite Index is calculated as:
Age Pension Increase is the percentage increase in the maximum single base age pension rate from 20 March 2015 to 20 March 2016; and
Health Expenditure Increase is the estimated percentage increase in per capita Commonwealth health expenditure from financial year 2012/13 to financial year 2013/14, derived from figures published by the Australian Institute of Health and Welfare in “Health Expenditure Australia 2012-13” and “Health Expenditure Australia 2013-14” ; and
AWOTE Increase is the percentage increase in the Full-Time Adult Ordinary Time Earnings (Original Series) for persons, published by the Australian Bureau of Statistics, during the year ending November 2015.
Using the definitions given above, the relevant components of the Composite Index for 2016/17 are:
|Age Pension Increase||1.6%|
|Health Expenditure Increase||2.7%|
For 2016/17 the index is calculated as:
(1% x 1.7%) + (30% x 1.6%) + (60% x 2.7%) + (9% x 1.6%) = 2.3%
The percentage weightings of the four index components have been derived from projections of estimated Commonwealth expenditure on immigrants under the Contributory Parent Visa program over a 60 year period carried out during 2007/08. The projections took account of the most recent available expenditure and utilisation data at that time as well as the demographic characteristics of those who had entered Australia on the Contributory Parent Visa since its introduction. Based on the projections, health costs account for about 60% of total costs, with aged care accounting for a further 9% of the total costs, social security pensions about 30% of total costs, and the remaining 1% attributable to a number of miscellaneous costs.
Australian Government Actuary
15 April 2016
Section 3A and Section 6 of the Migration (Visa Application) Charge Act 1997 follow:
“ Section 3A. Definitions
In this Act, unless the contrary intention appears:
contributory parent visa means a permanent or temporary visa included in a class of visas under regulations made under the Migration Act 1958, being a class that has the words “contributory parent” or “contributory aged parent” in its title.
Contributory Parent Visa Composite Index means the Contributory Parent Visa Composite Index, expressed as a percentage, published by the Australian Government Actuary for a financial year. ”
“ Section 6. The visa application charge limit - contributory parent visas
Financial year beginning 1 July 2002
Later financial years
Contributory Parent Visa Composite Index more than zero
previous charge limit
means the charge limit for the financial year before the later financial year.
- If an amount worked out under the formula in subsection (3) is not a multiple of $5, the amount is to be rounded as follows:
- in any other case - round the amount down to the nearest lower multiple of $5.
Contributory Parent Visa Composite Index zero or less
- If the Contributory Parent Visa Composite Index for the later financial year is zero or less, the charge limit for that financial year is the same as the charge limit for the financial year before the later financial year. ”