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The Greens' modelling is based on a real interest rate of 3%, estimating the impact of a 6% indexation rate as compared with the current inflation-linked system.
The proposal replaces government policy announced in the 2014 budget that the indexation rate of the pension would be changed from being pegged to average weekly male earnings to being pegged to inflation, which would have caused a decrease in real terms over time.
Where appropriate, a government indexation rate will be applied [ 67].
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It opens up large savings by reducing indexation rates to line up with wages growth.
Reducing indexation rates to match wages growth would save $2.8bn over four years, it says.
"With ongoing low inflation, school indexation rates are billions of dollars more generous than they need to be," the report says.
And it is proposing the government restore more generous indexation to family payments, saying lower indexation rates and freezes imposed by successive governments have significantly eroded the real value of the payments.
This week Scott Morrison played a game of pre-budget peek-a-boo on plans for the aged pension, before revealing that the government will ditch its failed attempt to change indexation rates and instead tighten the assets test.
Dangerous debt structures are characterized by a lack of granularity (front-loaded debt, or a very uneven repayment schedule), and different types of indexation (to interest rates or exchange rates).
These depositors are requesting indexation of their rates on market rates.
The regular increases in the national minimum wage (in particular those driven by the indexation to the average blue‐collar wage rate) resulted in the lowest categories on the collective pay scales in most industry contracts for most occupations being below the national minimum by the beginning of the 1990s.
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