Long Service Leave discount rates: 30 September 2012 (issued 2 October 2012) The following wage inflation rate and discount rates as at 30 September 2012 are provided to assist in the calculation of Long Service Leave liabilities. The wage inflation rate is consistent with the forecast rates in the 201213 Budget Paper No. 2 Strategy and Outlook (published May 2012), with an additional allowance for promotion and growth. Table 1: Rates to be used with the 2008 Long Service Leave Model Year % Wage inflation* 201213 4.3125 Discount rates** 201213 3.007 Table 2: Rates to be used with the 2004 Long Service Leave Model Year % Wage inflation* 201213 4.3125 Discount rates*** 1 year 2.560 2 years 2.430 3 years 2.430 4 years 2.515 5 years 2.580 6 years 2.660 7 years 2.735 8 years 2.820 9 years 2.905 10 years 2.985 11 years 3.100 12 years 3.100 * Average of forward estimates of the rates as assumed in the 201213 Budget Paper No. 2 Strategy and Outlook plus 1% for promotion and growth (3.3125% + 1%) ** The annual effective rate is based on the 10 year rate for semiannual coupon bonds RBA’s *** Source: Reserve Bank of Australia Indicative Mid Rates of Commonwealth Government Securities 2009current, . – –
Long Service Leave discount rates: 30 September 2012 (issued 2 October 2012) The following wage inflation rate and discount rates as at 30 September 2012 are provided to assist in the calculation of Long Service Leave liabilities. The wage inflation rate is consistent with the forecast rates in the 201213 Budget Paper No. 2 Strategy and Outlook (published May 2012), with an additional allowance for promotion and growth. Table 1: Rates to be used with the 2008 Long Service Leave Model Year % Wage inflation* 201213 4.3125 Discount rates** 201213 3.007 Table 2: Rates to be used with the 2004 Long Service Leave Model Year % Wage inflation* 201213 4.3125 Discount rates*** 1 year 2.560 2 years 2.430 3 years 2.430 4 years 2.515 5 years 2.580 6 years 2.660 7 years 2.735 8 years 2.820 9 years 2.905 10 years 2.985 11 years 3.100 12 years 3.100 * Average of forward estimates of the rates as assumed in the 201213 Budget Paper No. 2 Strategy and Outlook plus 1% for promotion and growth (3.3125% + 1%) ** The annual effective rate is based on the RBA’s 10 year rate for semiannual coupon bonds *** Source: Reserve Bank of Australia – Indicative Mid Rates of Commonwealth Government Securities – 2009current, .