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Low income cut-offs


Low income cut-offs (LICOs) are intended to convey the income level at which a family may be in straitened circumstances because it has to spend a greater portion of its income on the basics (food, clothing and shelter) than does the average family of similar size. The LICOs vary by family size and by size of community.

This publication provides a brief explanation of how the LICOs are derived and updated annually. In addition, it provides on a historical basis, LICOs for different family sizes by size of area of residence. LICOs are calculated based on the spending patterns of families on basic 'necessities' - food, shelter and clothing - as collected from the Survey of Household Spending (formerly referred to as the Family Expenditure Survey (FAMEX)).

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