Low-income Cutoffs for 2005 and Low-income Measures for 2004

Low-income cutoffs (LICOs) for 2005 and low-income measures (LIMs) for 2004, before and after tax, are now available.

The updated thresholds for both measurements are contained in a single publication, Low-income Cutoffs for 2005 and Low-income Measures for 2004. The publication incorporates a detailed description of the methods used to arrive at both measurements. It also explains how base years are defined and how LICOs are updated using the Consumer Price Index.

LICOs are income thresholds, determined by analysing family expenditure data, below which families will devote a larger share of income to the necessities of food, shelter and clothing than the average family would. To reflect differences in the costs of necessities among different community and family sizes, LICOs are defined for five categories of community size and seven of family size.

LIMs, on the other hand, are strictly relative measures of low income, set at 50% of adjusted median family income. These measures are categorized according to the number of adults and children present in families, reflecting the economies of scale inherent in family size and composition.

Definitions, data sources and methods: survey number 3889.

The publication Low-income Cutoffs for 2005 and Low-income Measures for 2004 (75F0002MIE2006004, free) is now available online. From the Our products and services page, under Browse our Internet publications, choose Free, then Personal finance and household finance.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (1-888-297-7355; 613-951-7355; fax: 613-951-3012; income@statcan.gc.ca), Income Statistics Division.