zero floor definition
zero floor provision in the Act means that accident towing fees are never adjusted downwards even if the Melbourne transport CPI falls. However, fees are always adjusted upwards if the Melbourne transport CPI rises by more than the productivity adjustment figure. In effect, accident towing fees are protected from decreases in the index but incorporate all increases in the index (less the productivity adjustment factor). The implications of fee adjustments being protected from downward movements can be significant given a volatile index like the Melbourne transport CPI as decreases in the index can occur frequently.