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MAIN CONTRIBUTORS TO CHANGE


PENSIONER AND BENEFICIARY HOUSEHOLDS

The PBLCI rose 0.2% in the March quarter 2015. Health (+7.3%) was the main contributor to the rise, driven by pharmaceutical products. The rise in health was 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 (-4.3%) contributed the most significant partial offset, largely driven by a fall in automotive fuel. World oil prices continue to remain low with the price of crude oil recording a sustained fall between June 2014 and January 2015. Despite increases during the March quarter 2015, domestic fuel prices remain low compared to earlier periods.

The PBLCI recorded the same movement as the CPI (+0.2%) in the March quarter 2015. PBLCI households have a higher expenditure on health, which rose this quarter, but also has a higher expenditure on transport which fell this quarter.

The PBLCI rose 0.9% while the CPI rose 1.3% through the year to the March quarter 2015.


EMPLOYEE HOUSEHOLDS

The living cost index for employee households recorded no change in the March quarter 2015. The largest fall for employee households was recorded for transport (-3.5%), driven by automotive fuel. World oil prices continue to remain low with the price of crude oil recording a sustained fall between June 2014 and January 2015. Despite increases during the March quarter 2015, domestic fuel prices remain low compared to earlier periods. The largest rise was for Education (+5.4%) driven by rises in tertiary education and secondary education following the commencement of the new school year.

The LCI for employee households recorded no movement compared to the CPI rise (+0.2%) in the March quarter 2015. The housing group in the SLCIs does not include new dwelling purchase by owner-occupiers, which was a major contributor to the rise in the CPI this quarter. This was the main reason for the difference. For further information, see paragraph 14 of the Explanatory Notes.

The LCI for employee households rose 0.9% through the year to the March quarter 2015 compared to the CPI which rose 1.3% over the same period.


AGE PENSIONER HOUSEHOLDS

The living cost index for age pensioner households rose 0.4% in the March quarter 2015. Health (+6.8%) was the main contributor to the rise, driven by pharmaceutical products. The rise in health was 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 (-4.1%) contributed the most significant partial offset, driven by automotive fuel. World oil prices continue to remain low with the price of crude oil recording a sustained fall between June 2014 and January 2015. Despite increases during the March quarter 2015, domestic fuel prices remain low compared to earlier periods.

The LCI for age pensioner households recorded a larger rise (+0.4%) than the CPI (+0.2%) in the March quarter 2015. Age pensioner households have a higher expenditure on health, which rose this quarter, when compared to the CPI population.

The LCI for age pensioner households rose 0.8% through the year to the March quarter 2015 compared to the CPI which rose 1.3% through the year to the March quarter 2015.


OTHER GOVERNMENT TRANSFER RECIPIENT HOUSEHOLDS

The living cost index for other government transfer recipient households rose 0.2% in the March quarter 2015. Health was the main contributor to the rise (+8.4%), driven by pharmaceutical products. The rise in health was 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 (-4.4%) contributed the most significant partial offset, largely driven by a fall in automotive fuel. World oil prices continue to remain low and the price of crude oil recorded a sustained fall between June 2014 and January 2015. Despite increases during the March quarter 2015, domestic fuel prices remain low compared to earlier periods.

The LCI for other government transfer recipient households and the CPI both rose 0.2% in the March quarter 2015. Other government transfer recipient households have a higher expenditure on health, which rose this quarter, but a lower expenditure on education which also registered a rise this quarter.

The LCI for other government transfer recipient households rose 1.0% while the CPI rose 1.3% through the year to the March quarter 2015.


SELF-FUNDED RETIREE HOUSEHOLDS

The living cost index for self-funded retiree households rose 0.1% in the March quarter 2015. The main contributor to the rise was health (+2.8%), driven by rises in pharmaceutical products. The rise in health was 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. Recreation and culture (+0.8%), driven by domestic holiday travel and accommodation, also contributed to the rise this quarter.

Transport (-3.3%) contributed the most significant partial offset, largely driven by a fall in automotive fuel. World oil prices continue to remain low with the price of crude oil recording a sustained fall between June 2014 and January 2015. Despite increases during the March quarter 2015, domestic fuel prices remain low compared to earlier periods.

The LCI for self-funded retiree households recorded a smaller rise than the CPI (+0.2%) in the March quarter 2015. The housing group in the SLCIs does not include new dwelling purchase by owner-occupiers, which was a significant contributor to the rise in the CPI this quarter. Self-funded retiree households also have a smaller expenditure on education, which also rose this quarter.

The LCI for self-funded retiree households and the CPI both rose 1.3% through the year to the March quarter 2015.

Percentage change, Commodity group - December Quarter 2014 to March Quarter 2015
	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	0.2	0.2	0.2	0.2	0.1	0.2
Alcohol and tobacco	0.8	0.8	0.8	0.9	0.6	0.8
Clothing and footwear	-1.8	-1.4	-1.9	-1.9	-1.5	-1.3
Housing(a)	0.6	0.5	0.8	0.6	0.5	0.8
Furnishings, household equipment and services	-0.5	-0.5	-0.5	-0.5	-0.7	-0.5
Health	7.3	2.4	6.8	8.4	2.8	2.5
Transport	-4.3	-3.5	-4.1	-4.4	-3.3	-3.4
Communication	-1.4	-1.3	-1.3	-1.4	-1.3	-1.4
Recreation and culture	0.9	0.6	0.7	0.9	0.8	0.7
Education	5.2	5.4	5.2	5.2	5.3	5.3
Insurance and financial services(b)	0.1	0.1	0.0	0.1	0.0	0.2
All groups	0.2	0.0	0.4	0.2	0.1	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.