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The Australian Bureau of Statistics (ABS) has released the September 2002 quarter Consumer Price Index (CPI). As at June 2002, the Australian Competition and Consumer Commission’s (ACCC) Price Exploitation Guidelines lapsed, ending the need to continue producing an adjusted CPI series. This means that property owners may revert back to using the headline CPI published by the ABS from September 2002 onwards. In short, property owners would use the current unadjusted ABS index number over last year's unadjusted ABS index number when calculating a rent adjustment. In the past, the Property Council had released adjusted CPI data to assist property owners in complying with the ACCC’s Price Exploitation Guidelines. During the first year following the introduction of the GST, property owners effectively applied a discount of 3.0% to the CPI when conducting rent reviews, reflecting an adjustment for the GST. Over the past year, the adjusted CPI series was higher than the ABS headline rates, reflecting an adjustment for ongoing New Tax System effects. Econtech has produced a report dated 24 October 2002, which estimates further new tax system effects on the CPI from September 2002 onwards. It is important to note that these effects do not create a statutory obligation for property owners to continue using adjusted CPI rates. You may obtain a copy of the Econtech report from http://www.bctr.org The Property Council will continue to release ABS headline CPI data on our website, http://www.propertyoz.com.au/trendsnet/cyberstats/fs_GSTCPIFull.htm
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