That is a good question, and somewhat complicated. It involves two separate methodologies. I will explain the main differences with Quebec. First, there are the thresholds, which along with the basket of food, as I explained, represent the housing cost. We know that housing is less expensive in Montreal and in Quebec city. If we use the low income cutoff, or LICO methodology, the threshold in Quebec would be about $7,000 lower.
I refer you to slide no 10 in our handout. Using the basket of food method, a family of four living in Montreal would need $24,325 while the low income threshold is $31,865. Therefore, if we use the basket of food measurement, which is based on the cost of living, the required threshold is much lower. There is obviously a difference there.
Another reason why Quebec is in a somewhat different position is because of the way in which we account for disposable income. Disposable income is after tax earnings, from which are deducted childcare expenses, out of pocket medical costs, social contribution and contribution to pension plans. Many families in Quebec benefit from subsidies daycare programs. The child care costs in that province are much lower than in most other provinces.
In a similar context, when it comes to disposable income, the difference with Quebec families is smaller as compared to families and other provinces where their out of pocket child care expenses are higher. Those are two factors.
Then there is the cost of transportation. In Quebec, urban transit costs about $1,000 less than it does in Toronto. There are a number of factors that come into play, but I would say that the difference is due mostly to the methodology that is used.