6467.0 - Selected Living Cost Indexes, Australia, Mar 2016 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 04/05/2016   
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MAIN CONTRIBUTORS TO CHANGE


PENSIONER AND BENEFICIARY HOUSEHOLDS (0.0%)

The PBLCI recorded no change in the March quarter 2016. The largest contributing fall is in transport (-3.3%), which is partially offset by rises in health (+6.3%).

Transport (-3.3%) contributed the most significant fall this quarter, driven by automotive fuel. Falls in world oil prices continue to influence domestic fuel prices.

Health (+6.3%) contributed the most significant partial offset. The rise in health is mainly due to the cyclical reduction in the proportion of patients who qualify for subsidies under the Pharmaceuticals Benefit Scheme (PBS) and Medicare Benefit Scheme (MBS) as well as the co-payment indexation for PBS at the start of each calendar year. The safety net threshold amount for both government subsidy schemes are reset on 1 January annually, and the co-payment indexation for PBS is scheduled on the same date.

The PBLCI recorded no change compared to the CPI (-0.2%) this quarter. PBLCI households have a higher expenditure on health, which rose this quarter, when compared to the CPI population.

Over the last twelve months the PBLCI rose 1.1% while the CPI rose 1.3%.

EMPLOYEE HOUSEHOLDS (0.0%)

The living cost index for employee households recorded no change in the March quarter 2016. The largest contributing fall for employee households is in transport (-2.6%) which is partially offset by rises in insurance and financial services (+2.3%).

Transport (-2.6%) contributed the most significant fall this quarter, driven by automotive fuel. Falls in world oil prices continue to influence domestic fuel prices.

Insurance and financial services (+2.3%) contributed the most significant partial offset, driven by rises in mortgage interest charges and insurance.

The LCI for employee households recorded no change compared to the CPI (-0.2%). This is mainly due to a rise in interest charges, which are not included in the CPI.

Over the last twelve months the LCI for employee households rose 1.1% while the CPI rose 1.3%.

AGE PENSIONERS (0.0%)

The living cost index for age pensioners recorded no change in the March quarter 2016. The largest contributing rise for age pensioner households is in health (+5.8%), partially offset by falls in transport (-3.3%).

Health (+5.8%) contributed the most significant rise this quarter. The rise in health is mainly due to the cyclical reduction in the proportion of patients who qualify for subsidies under the Pharmaceuticals Benefit Scheme (PBS) and Medicare Benefit Scheme (MBS) as well as the co-payment indexation for PBS at the start of each calendar year. The safety net threshold amount for both government subsidy schemes are reset on 1 January annually, and the co-payment indexation for PBS is scheduled on the same date.

Transport (-3.3%) contributed the most significant fall this quarter, driven by automotive fuel. Falls in world oil prices continue to influence domestic fuel prices.

The LCI for age pensioners recorded no change compared to the CPI (-0.2%) this quarter. Age pensioner households have a higher expenditure on health, which rose this quarter, when compared to the CPI population.

Over the last twelve months the LCI for employee households rose 0.8% while the CPI rose 1.3%.

OTHER GOVERNMENT TRANSFER RECIPIENT HOUSEHOLDS (-0.1%)

The living cost index for other government transfer recipient households fell 0.1% in the March quarter 2016. The largest contributing fall for other government transfer recipient households is in transport (-3.3%), partially offset by rises in health (+7.2%).

Transport (-3.3%) contributed the most significant fall this quarter, driven by automotive fuel. Falls in world oil prices continue to influence domestic fuel prices.

Health (+7.2%) contributed the most significant partial offset. The rise in health is mainly due to the cyclical reduction in the proportion of patients who qualify for subsidies under the Pharmaceuticals Benefit Scheme (PBS) and Medicare Benefit Scheme (MBS) as well as the co-payment indexation for PBS at the start of each calendar year. The safety net threshold amount for both government subsidy schemes are reset on 1 January annually, and the co-payment indexation for PBS is scheduled on the same date.

The LCI for other government transfer recipient households recorded a smaller fall than the CPI (-0.2%) this quarter. Other government recipient households have a higher expenditure on health, which rose this quarter, when compared to the CPI population.

Over the last twelve months the LCI for other government transfer recipient households rose 1.1% while the CPI rose 1.3%.

SELF–FUNDED RETIREE HOUSEHOLDS (-0.4%)

The living cost for self-funded retiree households fell 0.4% in the March quarter 2016. The largest contributing fall for self-funded retiree households is in transport (-2.5%), partially offset by rises in health (+2.2%).

Transport (-2.5%) contributed the most significant fall this quarter, driven by automotive fuel. Falls in world oil prices continue to influence domestic fuel prices. Recreation and culture is also a main contributor to the fall this quarter (-1.0%), driven by falls in domestic holiday travel and accommodation and international holiday travel and accommodation.

Health (+2.2%) contributed the most significant partial offset. The rise in health is mainly due to the cyclical reduction in the proportion of patients who qualify for subsidies under the Pharmaceuticals Benefit Scheme (PBS) and Medicare Benefit Scheme (MBS) as well as the co-payment indexation for PBS at the start of each calendar year. The safety net threshold amount for both government subsidy schemes are reset on 1 January annually, and the co-payment indexation for PBS is scheduled on the same date.

The LCI for self–funded retiree households recorded a larger fall than the CPI (-0.2%) this quarter. Self-funded retiree households have a higher expenditure on recreation and culture, which fell this quarter, when compared to the CPI population.

Over the last twelve months the LCI for self–funded retiree households rose 1.1% while the CPI rose 1.3%.

Percentage change, Commodity group - December Quarter 2015 to March Quarter 2016

Pensioner and beneficiary LCI
Employee LCI
Age pensioner LCI
Other government transfer recipient LCI
Self-funded retiree LCI
Consumer Price Index (CPI)
Weighted average of eight capital cities
%

Food and non-alcoholic beverages
-0.3
-0.1
-0.5
-0.2
-0.4
-0.2
Alcohol and tobacco
0.9
0.9
0.9
0.9
0.7
0.9
Clothing and footwear
-2.5
-2.5
-2.6
-2.4
-2.4
-2.6
Housing(a)
0.1
0.1
0.1
0.0
0.3
0.3
Furnishings, household equipment and services
-0.5
-0.3
-0.7
-0.5
-0.6
-0.4
Health
6.3
1.7
5.8
7.2
2.2
1.9
Transport
-3.3
-2.6
-3.3
-3.3
-2.5
-2.5
Communication
-1.5
-1.5
-1.4
-1.6
-1.4
-1.5
Recreation and culture
-0.7
-1.0
-0.8
-0.8
-1.0
-1.0
Education
3.8
3.4
4.0
3.8
3.5
3.1
Insurance and financial services(b)
1.8
2.3
1.5
1.9
1.5
0.6
All groups
0.0
0.0
0.0
-0.1
-0.4
-0.2

(a) House purchases are included in the CPI but excluded from the other indexes.
(b) Includes interest charges and general insurance, except for the CPI. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.