VIC - Statement of Adjustments
A reminder on how and why LEAP calculates adjustments:-
There are a couple of different ways to calculate the quarterly adjustment:-
- Some clients calculate the number of days in the actual period and divide the amount by that number of days to get the daily rate; and
- Some clients multiply the quarterly amount by 4 and divide by the number of days in the year.
As neither way is incorrect and we had some clients wanting the calculation done one way and other clients wanting the calculation done the other way LEAP had to make a decision as to which way to do the calculation. We therefore consulted with Russell Cocks who is a conveyancing expert and he advised that he relies on the Supreme Court Act which requires that adjustments should be made on a daily basis and therefore we should be multiplying the amount by 4 and then dividing by the number of days in the year.
As a consequence, LEAP calculates figures as follows:-
- Annual amount divided by the number of days in the year
- Quarterly amount multiplied by 4 divided by the number of days in the year
- Monthly amount multiplied by 12 divided by the number of days in the year
- A weekly amount is divided by 7 as there are not 52 weeks in the year, there are 52.2
- A fortnightly amount is divided by 14 as there are not 26 fortnights in the year.
If you wish to calculate the quarterly adjustment on the actual number of days in that particular quarter you can put in a “from date� and a “to date� rather than choosing quarterly and it will use the number of days between those two dates. 
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