6
Methodology
During the year-long review, the Group compared the expenditures of the CSSA group and the lowest five per cent income group shown in the 1994-95 Household Expenditure Survey (HES) with the standard rates plus the monthly apportionment of the annual long term supplement (Modified Standard Rates or MSR's).
The full 12-month HES data showed that MSR's exceeded the expenditure of the lowest five per cent income group except for the able-bodied adult category.
When further compared with the expenditure levels of the lowest 10, 15 and 20 per cent income groups, the results were broadly the same, that is, MSR's exceeded these expenditure levels except for able-bodied adults and elderly persons living in a family.
The Group further constructed basic baskets of commodities and services representing the basic needs for food and non-food household expenditure for various categories of CSSA customers.
Again, MSR's exceeded the basic needs budgets for all CSSA groups except for able-bodied adults and for 50 per cent disabled adults in a family.
While these findings showed clearly that rates for some categories were too low, especially in the case of adults, the statistics showed that others such as the single elderly rates were above even the spending levels of such people in the lowest 20 per cent income group.
New standard rates
Based on this analysis, the Group proposed to increase the monthly standard rate for an elderly person living in a family by $180; an able-bodied adult unable and not expected to work by $600; an adult able and expected to work by $300; and a 50 per cent disabled adult living in a family by $140,
About 54,000 people, including about 16,000 people newly drawn into the CSSA net as a result of the proposed increases, will benefit.
Together with the seven per cent inflation adjustments already announced for 1996-97, the new standard rates for these groups of recipients will be:
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