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6472.0 - Analytical Living Cost Indexes and Pensioner and Beneficiary Living Cost Index: 16th Series Weighting Patterns , 2011  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 22/09/2011  First Issue
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This data cube provides five tables containing the 16th series weights and household average weekly expenditure for the Analytical Living Cost Indexes (ALCIs) and Pensioner and Beneficiary Living Cost Index (PBLCI). Households have been categorised based on the principal source of household income derived from the 2009-10 Household Expenditure Survey (HES). The household types that have been identified as being appropriate for the construction of these indexes, are:

  • Employee households (i.e. those households whose principal source of income is from wages and salaries);
  • Age pensioner households (i.e. those households whose principal source of income is the age pension or veterans affairs pension);
  • Other government transfer recipient households (i.e. those households whose principal source of income is a government pension or benefit other than the age pension or veterans affairs pension) and,
  • Self-funded retiree households (i.e. those households whose principal source of income is superannuation or property income and where the HES defined reference person is ‘retired’ (not in the labour force and over 55 years of age)).
  • Pensioner and beneficiary households (i.e. includes Age pensioner households and Other government transfer recipient households described above).

The 16th series weights and household average weekly expenditure for Employee households, Age pensioner households, Other government recipient households and Pensioner and beneficiary households have been based on the 2009-10 HES expenditures at the weighted eight caps level. This is the same methodology as the Consumer Price Index.

Due to high Relative Standard Errors (RSEs), the 16th series weights and average weekly household expenditure for Self-funded retiree households are based on the 2009-10 HES national expenditures as a proxy measure for capital city expenditures.

Any discrepancies between totals and sums of components in this publication are due to rounding.


Table 1. Average weekly Employee households expenditure and weights, June quarter 2011, weighted average of eight capital cities, shows:
  • the average weekly expenditure (in June quarter 2011 dollars) of each Employee households for the weighted average of eight capital cities by group, sub–group and expenditure class. This data was used to construct the 16th series Employee households weights. For example, the average weekly expenditure for 'Fruit' is $23.28 out of the total average weekly expenditure of $1,557.77. This proportion, $23.28/$1,557.77 = 1.49%, is the same as the percentage contribution for 'Fruit' to the Employee households All groups index.
  • the percentage contribution of each Employee households group, sub–group and expenditure class to the Employee households All groups index at the weighted average of eight capital cities level. Each column will add to 100%. Each component series will add to the next level. e.g. the weights for expenditure classes 'Bread', 'Cakes and biscuits', 'Breakfast cereals and other cereal products' will add to the sub–group 'Bread and cereal products' which, along with the other sub–groups, will add to the group 'Food and non–alcoholic beverages';

Table 2. Average weekly Age pensioner households expenditure and weights, June quarter 2011, weighted average of eight capital cities, shows:
  • the average weekly expenditure (in June quarter 2011 dollars) of each Age pensioner households for the weighted average of eight capital cities by group, sub–group and expenditure class. This data was used to construct the 16th series Age pensioner households weights. For example, the average weekly expenditure for 'Fruit' is $15.48 out of the total average weekly expenditure of $539.18. This proportion, $15.48/$539.18 = 2.87%, is the same as the percentage contribution for 'Fruit' to the Age pensioner households All groups index.
  • the percentage contribution of each Age pensioner households group, sub–group and expenditure class to the Age pensioner households All groups index at the weighted average of eight capital cities level. Each column will add to 100%. Each component series will add to the next level. e.g. the weights for expenditure classes 'Bread', 'Cakes and biscuits', 'Breakfast cereals and other cereal products' will add to the sub–group 'Bread and cereal products' which, along with the other sub–groups, will add to the group 'Food and non–alcoholic beverages';

Table 3. Average weekly Other government transfer recipient households expenditure and weights, June quarter 2011, weighted average of eight capital cities, shows:
  • the average weekly expenditure (in June quarter 2011 dollars) of each Other government transfer recipient households for the weighted average of eight capital cities by group, sub–group and expenditure class. This data was used to construct the 16th series Other government transfer recipient households weights. For example, the average weekly expenditure for 'Fruit' is $15.57 out of the total average weekly expenditure of $781.01. This proportion, $15.57/$781.01 = 1.99%, is the same as the percentage contribution for 'Fruit' to the Other government transfer recipient households All groups index.
  • the percentage contribution of each Other government transfer recipient households group, sub–group and expenditure class to the Other government transfer recipient households All groups index at the weighted average of eight capital cities level. Each column will add to 100%. Each component series will add to the next level. e.g. the weights for expenditure classes 'Bread', 'Cakes and biscuits', 'Breakfast cereals and other cereal products' will add to the sub–group 'Bread and cereal products' which, along with the other sub–groups, will add to the group 'Food and non–alcoholic beverages';

Table 4. Average weekly Self-funded retiree households expenditure and weights, June quarter 2011, national, shows:
  • the 16th series average weekly household expenditures and weights for Self-funded retiree households based on the 2009-10 HES national expenditures as a proxy measure for capital city expenditures, due to high Relative Standard Errors (RSEs).
  • the average weekly expenditure (in June quarter 2011 dollars) of each Self-funded retiree households at the national level. This data was used to construct the 16th series Self funded retiree households weights. For example, the average weekly expenditure for 'Fruit' is $21.38 out of the total average weekly expenditure of $1,022.73. This proportion, $21.38/$1,022.73 = 2.09%, is the same as the percentage contribution for 'Fruit' to the Self-funded retiree households All groups index.
  • the percentage contribution of each Self funded retiree households group, sub–group and expenditure class to the Self funded retiree households All groups index at the national level. Each column will add to 100%. Each component series will add to the next level. e.g. the weights for expenditure classes 'Bread', 'Cakes and biscuits', 'Breakfast cereals and other cereal products' will add to the sub–group 'Bread and cereal products' which, along with the other sub–groups, will add to the group 'Food and non–alcoholic beverages';

Table 5. Average weekly Pensioner and beneficiary households expenditure and weights, June quarter 2011, weighted average of eight capital cities, shows:
  • the average weekly expenditure (in June quarter 2011 dollars) of each Pensioner and beneficiary households for the for the weighted average of eight capital cities by group, sub–group and expenditure class. This data was used to construct the 16th series Pensioner and beneficiary Living Cost households weights. For example, the average weekly expenditure for 'Fruit' is $15.52 out of the total average weekly expenditure of $661.12. This proportion, $15.52/$661.12 = 2.35%, is the same as the percentage contribution for 'Fruit' to the Pensioner and beneficiary households All groups index.
  • the percentage contribution of each Pensioner and beneficiary households group, sub–group and expenditure class to the Pensioner and beneficiary households All groups index at the weighted average of eight capital cities level. Each column will add to 100%. Each component series will add to the next level. e.g. the weights for expenditure classes 'Bread', 'Cakes and biscuits', 'Breakfast cereals' and 'Other cereal products' will add to the sub–group 'Bread and cereal products' which, along with the other sub–groups, will add to the group 'Food and non–alcoholic beverages';

Table 6. Comparison between the 15th and 16th series weights for all household types, weighted average of eight capital cities, shows:
  • the comparison between the 15th series weights in the June quarter 2005 and the 16th series weights in the June quarter 2011 for each group, sub–group and expenditure class, for each household type. Each column will add to 100%. Please note there is a number of changes resulting from the introduction of the 16th series which should be considered when comparing the 16th series weights to the 15th series weights. These include an updated commodity classification and changes in coverage.
  • The 15th series weights were based on 2003–04 HES national expenditures for all household types. The 16th series weights for Employee households, Age pensioner households, Other government recipient households and Pensioner and beneficiary households have been based on the 2009–10 HES expenditures at the weighted average of eight capital cities level. Weights for Self-funded retirees have been retained at the national level.


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