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Australian National Accounts: Finance and Wealth

Contains quarterly data for household sector, credit market, intersectoral financial flows, financial market, sectoral analysis and capital investment

Reference period
June Quarter 2019
Released
26/09/2019

Key statistics

  • National net lending was $3.9b in June quarter 2019
  • Australia repaid $2.2b of liabilities with non-residents
  • Residents acquired $14.7b of overseas shares and other equity
  • The rest of the world repaid $3.4b of their bank loans

Main features

June key figures

Financing resources and investment, original, current prices

   Non-financial corporationsFinancial corporationsGeneral governmentHouseholdTotal NationalRest of world
   $b$b$b$b$b$b
Financing resources      
 Net saving (a)
13.0
3.4
17.0
-9.2
24.2
-7.5
 plus Consumption of fixed capital
40.1
3.2
10.1
30.7
84.2
-
 Gross saving
53.2
6.6
27.1
21.5
108.3
-7.5
 plus Net capital transfers
0.4
-
-1.0
0.4
-0.2
0.2
 less Statistical discrepancy (b)
-
-
-
-
-13.6
-
 Total financing resources
53.6
6.6
26.1
21.9
121.7
-7.3
Uses of financing (Investment)
 
 
 
 
 
 
 Capital formation
 
 
 
 
 
 
  Gross fixed capital formation
52.8
3.7
22.5
40.1
119.1
-
  plus Change in inventories
-3.5
-
0.1
-1.3
-4.7
-
  plus Net acquisition of non-produced non-financial assets
-0.6
-
0.6
-
-
-
  Total capital formation
48.7
3.7
23.2
38.8
114.4
-
 plus Financial investment
 
 
 
 
 
 
  Acquisition of financial assets
30.2
4.6
14.0
38.9
1.8
-2.2
  less Incurrence of liabilities
18.2
19.5
17.4
28.6
-2.2
1.8
  Net financial investment (Net lending (+) / net borrowing (-))
12.0
-14.9
-3.5
10.3
3.9
-3.9
 less Net errors and omissions
7.1
-17.8
-6.3
27.3
-3.3
3.3
 Total investment
53.6
6.6
26.1
21.9
121.7
-7.3
- nil or rounded to zero (including null cells)
a. Net saving for the Rest of world is the balance on the external income account.
b. The statistical discrepancy is not able to be distributed among the sectors.
 

Australia’s national investment remains elevated

National investment continues to remain at high levels, increasing $13.7b in June quarter 2019 to $114.4b.

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Private non-financial corporations invested $42.6b over the quarter, up $3.3b from March quarter 2019. Investment in machinery and equipment was the driver this quarter, with large mining companies continuing to invest in autonomous machinery.

Households invested $38.8b, up $2.2b from the previous quarter. The increase was driven by dwelling investment as is typical in the June quarter. However the magnitude of the rise was smaller than usual, reflecting the continuing softness in the established housing market.

​​​​​​​Australia is a net lender for the first time in 39 years

National net lending was $3.9b in June quarter 2019, which was the first time Australia was a lender to the rest of the world since March quarter 1980. Australia repaid $2.2b of liabilities with non-residents and acquired $1.8b of financial assets

During the quarter, non-resident bank short term debt securities matured ($18.3b) and $15.9b of bank derivative contracts settled. These were partly offset by non-residents acquiring $28.9b of private non-financial corporations' shares and other equity.

Residents acquired $14.7b of overseas shares and other equity, with pension funds and private non-financial corporations acquiring $9.9b and $8.7b respectively. The rest of the world repaid $3.4b of their bank loans and settled $16.3b of their derivative contracts with banks.

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Non-financial corporations were net lenders of $12.0b, driven by acquisition of deposits ($11.9b) and equity ($10.6b) while they repaid $3.0b of loan borrowings and had maturities of $4.6b of short term debt securities.

The general government was a net borrower of $3.5b, driven by issuances of long term debt securities ($9.5b) and loan borrowings ($7.3b), which were offset by the acquisition of currency and deposits ($5.8b) and equity ($4.1b).

Households were net lenders of $10.3b, accruing $34.9b in net equity in reserves of pension funds (superannuation). This was partly offset by loan borrowings of $22.9b.

Household sector summary

Household accumulation of wealth

  Amount outstanding at endTransactions duringOther changes in volume during (a)Holding gains (+)/losses (-) duringAmount outstanding at end
  Mar Qtr 2019Jun Qtr 2019Jun Qtr 2019Jun Qtr 2019Jun Qtr 2019
  $b$b$b$b$b
Non-financial assets     
 Land and dwellings
6 699.7
9.4
9.4
-26.5
6 691.9
 Other non-financial assets
664.2
-1.3
-
3.4
666.3
Financial assets
5 382.5
38.9
-
169.1
5 590.5
Liabilities
2 456.7
28.6
-
8.1
2 493.4
Net worth
10 289.6
18.5
9.4
137.9
10 455.3
Memorandum item
 
 
 
 
 
 Consumer durables (b)
350.0
3.9
-
-5.3
348.6
- nil or rounded to zero (including null cells)
a. Not all other changes in volume are separately identifiable. Some have been shown as holding gains.
b. Consumer durables are not included in net worth
 

Household wealth gains strength

Household net worth (wealth) increased $165.7b (1.6%) in June quarter 2019, driven by a $202.4b increase in total assets, partly offset by a $36.7b increase in total liabilities.

The increase in total assets was driven by record holding gains on financial assets, mainly in superannuation assets, which are made up of reserves of pension funds and unfunded superannuation claims. Reserves of pension funds were the main contributor to holding gains as 72.4% of reserve assets were invested in shares, which were influenced by positive revaluations in the Australian stock market over the quarter. The valuation increases in unfunded superannuation claims represent changes in actuarial assumptions due to falls in the discount rate, which reflect decreasing bond yields during the quarter.

The value of residential land and dwellings fell 0.1%, driven by holding losses of $26.5b. While detracting from growth in household wealth for a fifth consecutive quarter, the rate of decrease in the value of residential land and dwellings slowed. Through the year, household wealth increased 0.5%, a turn around from the negative March quarter result. Similarly, household wealth per capita increased $4,965.8 to $411,491.7, following three consecutive quarters of falls. The turn around reflects the second consecutive quarter of record high holding gains on financial assets, combined with June quarter 2019 having the smallest holding loss on residential land and dwellings for 2018-19.

The percentage point contributions to the change in household wealth were:

  • Financial assets contributed 2.0 percentage points
  • Land and dwellings detracted 0.1 percentage points
  • Financial liabilities detracted 0.4 percentage points.
     
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Total financial assets increased 3.9% driven by real holding gains on pension fund assets. While holdings in pension fund assets has increased to a high of 55% of total household financial assets, the share of deposits has reduced to a nine year low of 20.1%, reflecting record low interest rates. Net transactions in deposits ($2.5b) for the quarter was the second lowest result since June quarter 2007.

Household liabilities grew 1.5% and is the strongest increase since June quarter 2017. Total household sector liabilities were $2,493b, 91% of which were long term loans. The increase in household liabilities was driven by net transactions in long term loans with securitisers ($14.4b) and banks ($8.9b). Long term loans from national general government also contributed to the increase in household liabilities during the quarter with positive revaluations of $6.6b. These long term loans are predominantly Higher Education Loan Program loans, with the valuation increases representing changes in actuarial assumptions due to falls in the discount rate, which reflect decreasing bond yields during the quarter. Short term loans (-0.8%) detracted from growth in total household liabilities, driven by households paying off their short term loans with banks.

Household transactions in net worth were $18.5b. Financial transactions were the largest component contributing $10.3b, driven by a net acquisition of financial assets of $38.9b, and partly offset by a net incurrence of liabilities of $28.6b. Net capital formation contributed $8.1b to household transactions in net worth and was driven by land and dwellings ($9.4b), partly offset by other non-financial assets (-$1.3b).

​​​​​​​Household debt to assets ratios

The household debt to assets ratio gives an indication of the extent to which the overall household balance sheet is geared. The household debt to assets ratio remained at 19.3, as growth in household assets (1.6%) and household debt (1.5%) was similar this quarter.

The mortgage debt to residential land and dwellings ratio increased from 28.7 to 29.0, indicating mortgage debt grew faster than the value of residential land and dwellings. The rate of increase in the ratio has slowed, due to the inverse relationship with the value of residential land and dwellings, which continued to fall, though at a slower rate relative to previous quarters. Quarterly growth in mortgage debt (1.1%) showed strength compared to March quarter 2019, however through the year growth has reduced to its slowest pace since September quarter 2013.

The household debt to liquid assets ratio reflects the ability of households to quickly extinguish debts using liquid assets (currency and deposits, short and long term debt securities, and equity). The household debt to liquid asset ratio increased from 112.5 to 112.7, as growth in household debt (1.5%) outweighed growth in household liquid assets (1.3%). Growth in liquid assets was driven by increases in household equity assets which contributed 1.2 percentage points to the 1.3% increase. Growth in household debt was driven by a 1.4% increase in long term loan borrowing.

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The wealth effect

Household net saving reduced from $10.7b to -$9.2b in June quarter 2019. The $19.9b decrease was driven by a decrease in gross disposable income ($10.2b), combined with increases in final consumption expenditure ($9.4b) and consumption of fixed capital ($0.3b). The fall in gross disposable income was driven by a $9.2b fall in dividends received and a $8.1b increase in income tax payable

Household gross disposable income adjusted for other changes in real net wealth (wealth effect) increased from $289.7b to $387.6b and household net saving adjusted for other changes in real net wealth increased from -$3.1b to $85.1b. The increases in gross disposable income and household net saving when adjusted for other changes in net wealth are due to total real holding gains of $84.5b, the first positive result of 2018-19.

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Credit market summary

Non-financial domestic sectors

  Credit market outstandings at endDemand for credit duringOther changes duringCredit market outstandings at end
  Mar Qtr 2019Jun Qtr 2019Jun Qtr 2019Jun Qtr 2019
  $b$b$b$b
Non-financial corporations    
 Investment funds
425.8
-1.0
6.5
431.4
 Other private
3 644.6
8.6
81.8
3 735.0
 Public
130.3
3.8
-
134.1
General government    
 National
612.5
7.3
12.6
632.3
 State and local
159.3
7.7
0.1
167.1
Households
2 291.7
22.3
8.1
2 322.1
Total
7 264.2
48.6
109.1
7 422.0
- nil or rounded to zero (including null cells)
 
   

Demand for credit in 2018-19 weakest in 6 years

Demand for credit ($48.6b) was subdued for a third consecutive quarter, with credit demand in 2018-19 the weakest it has been since 2012-13. The growth in demand for credit this quarter was driven by loans to households ($22.9b), equity raising by other private non-financial corporations ($10.1b) and bond issuances by national general government ($8.9b).

Household's demand for credit continues to be impacted by the slowing growth in loans for residential property, reflecting the tight lending environment and soft housing market. The majority of the increase in household loans from banks this quarter were for owner occupiers, with flat growth in investor loans. Loans to unincorporated business, which are typically strong in June quarters, also contributed to the increase in loans to the household sector, while $14.5b of residential mortgages were securitised.

Demand for credit by other private non-financial corporations was modest in 2018-19. Loan borrowings by other private non-financial corporations decreased for the first time in 8 years this quarter, with loans from banks and the rest of the world falling. However, bond issuances were strong for a second consecutive quarter.

National general government's demand for credit slowed in 2018-19 as the government's saving position continued to improve. Net bond issuances increased this quarter following March quarter 2019 where maturities of national general government bonds were greater than issuances for the first time since September quarter 2008. Conversely, state and local general government's demand for credit, which rose $7.7b this quarter, continued to grow in 2018-19, partly reflecting increased spending on infrastructure over the year.

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Valuations increases in bonds and equities drive credit market outstanding

Despite subdued demand for credit in 2018-19, significant valuation increases pushed through the year growth in credit market outstanding of non-financial domestic sectors to 6.1%. Strong price increases in the Australian stock market and falling bond yields, particularly over the last 2 quarters, were the main contributors to the growth.

Credit market outstanding rose 2.2% this quarter, following last quarter’s 2.9% increase. There were significant valuation increases in the equity of other private non-financial corporations and government bonds, reflecting the rise in the Australian stock market and falling bond yields during the quarter.

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Intersectoral financial flows

​​​​​​​Net transactions during June quarter 2019

During June quarter 2019, the financial sector borrowed a net $13.1b from households. This was primarily through superannuation reserves of $33.6b, which were partly offset by household long-term loan borrowings of $23.9b.

Non-financial corporations borrowed a net $24.2b from the rest of the world. This was primarily through the rest of the world purchasing $31.1b of non-financial corporation unlisted equity, and $4.4b of long-term debt securities issued by non-financial corporations. This was partly offset by the purchase of $8.7b of rest of world equity by non-financial corporations, and a $3.5b acquisition of transferable deposits by non-financial corporations in rest of world accounts.

Rest of world borrowed a net $18.1b from financial corporations. This was driven by net maturities of $20.3b of short-term debt securities and, settlements of $16.2b in derivatives held by rest of world, and the sale of $12.5b of unlisted equity. These were partly offset by settlements in derivatives of $16.6b held by financial corporations and rest of world repayment of short-term loan borrowings of $4.8b.

Diagram shows Net transactions during June quarter 2019
This is a flowchart that shows the intersectoral financial flows of net transactions during the 2019 June quarter.

From households flows $3.1 billion to general government, $13.1 billion to financial corporations, and $0.1 billion to the rest of the world.

From financial corporations flows $11.4 billion to general government, and $18.1 billion to the rest of the world.

From general government flows $1.4 billion to non-financial corporations, and $5.9 billion to the rest of the world.

From the rest of the world flows $24.2 billion to non-financial corporations.

Finally, from non-financial corporations flows $1.4 billion to households, and $32..4 billion to financial corporations.

Amounts outstanding at end of June quarter 2019

Net claims on non-financial corporations were $1,155.4b from financial corporations, $1,036.3b from rest of world, $695.2b from households and $411.7b from general government.

Net claims on financial corporations from household were $1,832.5b. These were mainly comprised of superannuation reserves of $2,648.9b and deposits of $1,105.7b, and partly offset by household loan liabilities of $2,172.4b.

Diagram shows Amounts outstanding at end of June quarter 2019
This is a flowchart that shows the intersectoral financial flows of amounts outstanding at the end of the 2019 June quarter.

From households flows $498.1 billion to general government, $1,832.5 billion to financial corporations, $695.2 billion to non-financial corporations, and $136.3 billion to the rest of the world.

From financial corporations flows $128.1 billion to general government, $1,155.4 billion to non-financial corporations and $21.4 billion to the rest of the world.

From general government flows $411.7 billion to non-financial corporations

Finally, from the rest of the world flows $215.5 billion to general government, and $1,036.3 billion to non-financial corporations.

Financial market summary

Australian financial market

  Outstanding at endTransactions duringOther changes duringOutstanding at end
  Mar Qtr 2019Jun Qtr 2019Jun Qtr 2019Jun Qtr 2019
  $b$b$b$b
Currency and deposits    
 Currency
83.8
0.3
-
84.1
 Transferable deposits
896.4
32.1
0.7
929.1
 Other deposits
1 646.9
-0.8
2.4
1 648.5
Short term debt securities    
 Bills of exchange
27.5
-2.7
-
24.7
 One name paper
508.7
-29.1
2.1
481.8
Long term debt securities    
 Bonds, etc.
2 607.1
17.1
62.8
2 687.1
Derivatives    
 Derivatives
532.7
-52.3
177.1
657.4
Loans and placements    
 Short term
380.7
-5.2
1.0
376.5
 Long term
3 832.0
34.6
12.6
3 879.2
Shares and other equity    
 Listed
1 931.8
-16.9
136.1
2 050.9
 Unlisted
4 625.1
48.0
60.1
4 733.2
Insurance technical reserves    
 Reserves of pension funds and life offices
2 548.1
33.8
70.6
2 652.4
 General insurance prepayments and reserves
119.3
3.6
-
122.9
- nil or rounded to zero (including null cells)
 
   

Revaluation gains in the stock market

Other private non-financial corporation shares drove the positive revaluation gains ($76.0b) and the significant negative transactions ($22.9b) due to a structural change in the listed shares and other equity market. The total value of listed bank shares experienced their strongest growth (10%) since December quarter 2016 due to large valuation gains.

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Revaluation gains in the bonds market

The bond market experienced growth of 3.1%, the strongest quarterly growth rate since September quarter 2015. Of the $80.0b increase in the bond market, $62.8b was attributable to revaluation gains reflecting yields falling to historic lows during the quarter. Net issuances of $17.1b were primarily in the domestic market ($19.7b) driven by securitisers and the national general government who issued $11.1b and $9.1b respectively. This was partly offset by maturities of bonds issued offshore of $2.5b.

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Other notable events in financial markets during the quarter include:

  • Growth in the derivatives market was 23.4% due to strong revaluation gains reflecting volatility and large price movements in financial markets.
  • The long term loan market increased $47.2b driven mainly by an increase in household loans ($31.6b) and offset partly by a fall in private non-financial corporations loans (-$4.2b).

Sectoral analysis

Private non-financial corporations

Debt to equity ratio decreased

Private non-financial corporations’ investment in fixed assets was funded entirely through gross savings ($53.4b), as the sector became net lenders ($22.5b) for the first time in 3 years. The net lending position was a result of net acquisition of financial assets ($33.9b) outweighing net incurrence of liabilities ($11.4b). The increase in financial assets was driven by deposits with banks ($11.8b), acquisition of equity ($10.5b) and accounts receivable ($10.7b) from households and rest of the world.

The debt to equity ratio adjusted for price changes fell slightly from 0.67 to 0.66. The ratio had been declining since March quarter 2016 but has been steady over 2018-19 indicating the 'real' level of debt to equity for private non-financial corporations has stabilised. On a non-adjusted basis, the debt to equity ratio decreased from 0.52 to 0.51 due to valuation increases in equity, reflecting the rise in Australian share market over the quarter. The non-adjusted ratio tends to be more volatile due to the impact of valuation changes in shares and other equity.

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Private non-financial corporations' funding through debt and equity have been at similar amounts in the past few quarters, however this quarter private non-financial corporations paid down debts while raising $15.6 worth of equity. The largest debt repayments were on loans (-$8.7b) and short term debt securities (-$4.6b).

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Financial corporations

​​​​​​​Financial assets and liabilities of financial corporations

  Outstanding at endTransactions duringOther changes duringOutstanding at end
  Mar Qtr 2019Jun Qtr 2019Jun Qtr 2019Jun Qtr 2019
  $b$b$b$b
Assets of financial corporations    
 Central bank
180.8
2.1
4.0
186.9
 Banks
3 764.1
-10.6
93.6
3 847.1
 Other depository corporations
253.8
3.6
1.1
258.5
 Pension funds
2 318.3
34.5
71.9
2 424.7
 Life insurance corporations
284.8
n.p.
6.2
n.p.
 Non-life insurance corporations
222.7
-5.2
6.2
223.7
 Money market investment funds
39.4
0.3
0.1
39.8
 Non-money market investment funds
944.9
-23.9
41.5
962.4
 Central borrowing authorities
382.2
5.5
2.1
389.8
 Securitisers
467.1
13.9
0.0
481.0
 Other financial corporations
147.8
2.6
5.9
156.3
Liabilities of financial corporations    
 Central bank
182.7
8.5
1.3
192.4
 Banks
3 927.7
-17.2
126.6
4 037.1
 Other depository corporations
242.6
3.4
0.7
246.7
 Pension funds
2 467.6
36.9
70.9
2 575.4
 Life insurance corporations
277.9
n.p.
5.4
n.p.
 Non-life insurance corporations
245.0
3.4
2.6
251.1
 Money market investment funds
39.4
-0.5
1.0
39.8
 Non-money market investment funds
1 038.0
-11.3
28.1
1 054.9
 Central borrowing authorities
419.8
2.2
5.1
427.0
 Securitisers
467.2
10.8
3.9
481.9
 Other financial corporations
109.2
3.7
7.0
119.9
- nil or rounded to zero (including null cells)
n.p.: not available for publication but included in totals where applicable, unless otherwise indicated.
 


Positive revaluations in derivatives drove the increase in both financial assets and liabilities of financial corporations this quarter. Total financial assets increased by $230.0b, driven by bonds and derivatives, while total liabilities increased $264.9b, driven by listed equity and derivatives.

​​​​​​​Bank equity funding increases

Banks funding through equity picked up to 14.3% this quarter, after falling to a seven year low in December quarter 2018 (13.3%) and remaining low in March quarter 2019 (13.6%). Banks' largest funding source, deposits, decreased to 58.0%, partly reflecting record low interest rates. Financing through short-term debt securities fell slightly to 8.1%, while funding through long-term debt securities remained at 14.1%.

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Loans to households continue to slow through the year

Growth in long term loans to household continue to slow in 2018-19, reflecting tighter lending conditions and a weak housing market. Long term loans from banks and securitisers to households increased to $23.3b this quarter, following weak growth of $10.5b last quarter. The increase was driven by strength in lending to households from securitisers, which increased $14.5b, driven by both internal and on-market securitisation. Through the year growth in long term loan balances has fallen to a historic low of 3.5%.

Both banks and securitisers need to be considered when assessing movements in loans assets of banks. Securitisers are trusts or corporations that pool various types of assets, such as property loans or credit card debt, and package them as collateral backing for bonds or short-term debt securities. Graph 4 includes both 'on market' and internal securitisation. 'On market' securitisation is used by banks as a way to move loan assets off their balance sheets to fund their lending business, while the purpose of internal securitisation is to use the securities as collateral with the RBA in its repurchase agreement program.

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Superannuation assets continue to rise

Pension fund (superannuation) assets rose $106.4b driven by valuation increases in shares and other equity ($71.9b) which remain the largest financial asset held by pension funds (72.4%).

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Pensions funds are also indirectly exposed to equities and debt securities through non-money market financial investment funds (NMMF). Pension funds holdings in NMMF equity represent 39.5% of their total investment in equities. This quarter NMMF held $626.8b in shares and other equity (65.1% of total financial assets) and $242.6b in debt securities (25.2% of total financial assets).

Households claims on net equity in reserves of superannuation (pension funds) was $2,532.9b at the end of the quarter.

General government

​​​​​​​Continued slow growth of national general government debt issuance

Despite a $8.9b net issuance this quarter, net issuances of national general government bonds in 2018-19 was its lowest annual value since 2007-08. The reduced demand for credit coincides with the national general government's improving saving position over the last 3 years. The majority of bond issuances this quarter were purchased by pension funds ($3.8b) and banks ($3.8b)

Total liabilities increased $67.7b as falling bond yields resulted in large valuation increases in bonds and unfunded superannuation claims. The valuation increases in unfunded superannuation claims represent changes in actuarial assumptions due to falls in the discount rate, which reflect decreasing bond yields during the quarter.

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State and local general government continue to borrow for capital investment

State and local general government continued to borrow this quarter, with long term loan borrowings in 2018-19 the highest since 2012-13, partly reflecting increased financing requirements with strong capital investment on infrastructure through the year. Balances of loans and placements with central borrowing authorities grew 11% through the year, with this quarter increasing 4.4% ($6.6b). The rise this quarter follows loan borrowings from central borrowing authorities of $4.5b in March quarter 2019 and $4.7b in December quarter 2018, and is consistent with large bond issuances by central borrowing authorities over 2018-19.

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Rest of world

Rest of world were borrowers from Australia for the first time since 1980

Rest of world net financial position at the end of the quarter was $1,001.6b. This $9.2b increase from the previous quarter was due to valuation increases of $13.2b, partly offset by net transactions (net change in financial position) of -$3.9b, resulting in Australia's first net lending position since March quarter 1980.

Rest of word investment in Australia recorded transactions of -$2.2b and valuation increases of $134.6b resulting in an increase in their holdings of Australian assets to $3,826.0b during June quarter 2019. The negative transactions were driven by net maturity of one name paper and derivative contracts with domestic banks. The valuation increases to rest of world assets were driven by derivatives contracts and holdings of equity and bonds.

Rest of world increased their liabilities to Australia, with transactions of $1.8b, and valuation increases of $121.4b, resulting in a total of $2,824.4b in liabilities to Australian residents. Positive transactions were driven by shares and other equity and accounts payable, partly offset by settlement derivatives contracts. The valuation increases were driven by unlisted equities and the derivatives market.

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Capital investment

Capital account

Australia becomes a net lender to overseas for the first time in 44 years

In seasonally adjusted terms, Australia became a net lender to overseas this quarter. This is the first time since June quarter 1975 that Australia has been a net lender as opposed to a net borrower. The ratio of net lending to overseas to GDP was 1.1% this quarter.

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At a sector level, net borrowing by general government declined to its lowest level since September 2008, driven by sustained increases in saving. Non-financial corporations' net borrowing has also continued to decline in line with slowing investment in non-residential buildings and structures. Households recorded a small increase in net borrowing this quarter, however the level remains lower than it was a year ago, driven by weaker investment in dwellings.

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National capital investment continues to fall

Household investment as a proportion of GDP has now declined for four consecutive quarters. This decline continues to be driven by weakness in dwelling investment in line with soft housing market conditions.

Capital investment by non-financial corporations as a proportion of GDP was broadly unchanged this quarter. Machinery and equipment rose strongly on the back of continued investment in autonomous machinery by large mining companies. However, this was offset by softness in non-residential building investment with the completion of projects outstripping commencements this quarter. New engineering construction was also weak, continuing to be impacted by liquified natural gas projects transitioning from construction into the production phase

General government investment as a proportion of GDP fell slightly to 3.6% this quarter. from 3.8% in March 2019. Despite the fall this quarter, the ratio has been trending up since mid-2015, reflecting increased public infrastructure investment by state and local general governments to support population growth and growing demand for public services.

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Changes to this issue

Following ongoing quality assurance work a number of data quality issues have been identified with Table 52. Nominal Value of Short Term Loans and Placements Market ($ million) and Table 53. Nominal Value of Long Term Loans and Placements Market ($ million). These tables will be unavailable until further notice. However, Table 45. The Short Term Loans and Placements Market ($ million) and Table 46. The Long Term Loans and Placements Market ($ million), which are on a market value basis, are available.

Revisions in this issue

There have been revisions to previously published aggregates due to:

  • Quality assurance reviews affecting the published aggregates after March quarter 2017, in addition to amendments to data collected in the ABS Survey of Financial Information, ABS Survey of International Investment and to data derived from Australian Prudential Regulation Authority (APRA) administrative data sets.
  • Revisions to the sectoral capital accounts are due to more up-to-date data being incorporated and concurrent seasonal adjustment.
     

Changes in future issues

As part of its role as the statistical agency for the financial sector, the Australian Prudential Regulation Authority (APRA) collects data from financial institutions, including banks, for the ABS and the Reserve Bank of Australia (RBA). Some of the forms used to collect this data and used in this publication haven’t been updated since they were first introduced back in 2002.

Over the past few years, APRA, the ABS and the RBA have worked with banks and other financial institutions to modernise the set of forms and these institutions have adapted their infrastructure to report on the new forms. The new set of forms is called the Economic and Financial Statistics (EFS) collection.

The changes in the new EFS collection include:

  • collecting much more detailed data on loan and deposit balances
  • using the most up to date classifications available for economic sectors
  • using definitions that align with current international standards for economic statistics.
     

Changes from the implementation of EFS will be incorporated into the September quarter 2019 publication of Finance and Wealth, to be released on 19 December 2019.

Information paper: product changes to the Australian National Accounts: Finance and Wealth, 2019 (cat. no. 5232.0.55.005)

An information paper containing the upcoming changes to the quarterly product Australian National Accounts: Finance and Wealth (cat. no. 5232.0) will be released on 3 October 2019. The changes are mainly due to the implementation of the new Australian Prudential Regulation Authority, Economic and Financial Statistics collection. The release details the changes and expansion to the time series spreadsheets to be published in the September quarter 2019 issue of cat. no. 5232.0. The information paper includes previews of the time series spreadsheets and associated series identifiers.

Inquiries

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or National accounts by email national.accounts@abs.gov.au.

Privacy policy

The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to us.

Data downloads

Table 1. Credit market outstandings ($ million)

Table 2. Demand for credit ($ million)

Table 3. National capital account, current prices ($ million)

Table 4. National financial assets and liabilities ($ million)

Table 5. Non-financial corporations capital account, current prices ($ million)

Table 6. Financial assets and liabilities of non-financial corporations ($ million)

Table 7. Private non-financial corporations capital account, current prices ($ million)

Table 8. Financial assets and liabilities of private non-financial corporations ($ million)

Table 9. Financial assets and liabilities of private non-financial investment funds ($ million)

Table 10. Financial assets and liabilities of other private non-financial corporations ($ million)

Table 11. Public non-financial corporations capital account, current prices ($ million)

Table 12. Financial assets and liabilities of public non-financial corporations ($ million)

Table 13. Financial corporations capital account, current prices ($ million)

Table 14. Financial assets and liabilities of financial corporations ($ million)

Table 15. Financial assets and liabilities of the central bank ($ million)

Table 16. Financial assets and liabilities of banks ($ million)

Table 17. Financial assets and liabilities of other depository corporations ($ million)

Table 18. Financial assets and liabilities of pension funds ($ million)

Table 19. Financial assets and liabilities of life insurance corporations ($ million)

Table 20. Financial assets and liabilities of non-life insurance corporations ($ million)

Table 21. Financial assets and liabilities of money market financial investment funds ($ million)

Table 22. Financial assets and liabilities of non-money market financial investment funds ($ million)

Table 23. Financial assets and liabilities of central borrowing authorities ($ million)

Table 24. Financial assets and liabilities of securitisers ($ million)

Table 25. Financial assets and liabilities of other financial corporations ($ million)

Table 26. General government capital account, current prices ($ million)

Table 27. Financial assets and liabilities of general government ($ million)

Table 28. National general government capital account, current prices ($ million)

Table 29. Financial assets and liabilities of national general government ($ million)

Table 30. State and local general government capital account, current prices ($ million)

Table 31. Financial assets and liabilities of state and local general government ($ million)

Table 32. Household capital account, current prices ($ million)

Table 33. Financial assets and liabilities of households ($ million)

Table 34. Household balance sheet, current prices ($ billion)

Table 35. Analytical measures of household income, consumption, saving and wealth, current prices ($ billion)

Table 36. Rest of world capital account, current prices ($ million)

Table 37. Financial assets and liabilities of rest of world ($ million)

Table 38. The currency market ($ million)

Table 39. The transferable deposits market ($ million)

Table 40. The other deposits market ($ million)

Table 41. The bills of exchange market ($ million)

Table 42. The one name paper market ($ million)

Table 43. The bonds market ($ million)

Table 44. The derivatives and employee stock options market ($ million)

Table 45. The short term loans and placements market ($ million)

Table 46. The long term loans and placements market ($ million)

Table 47. The listed shares and other equity market ($ million)

Table 48. The unlisted shares and other equity market ($ million)

Table 49. Accounts payable/receivable ($ million)

Table 50. Financial accounts summary of bank deposits and lending split by household subsectors ($ million)

Table 51. Financial accounts summary of loan outstandings to households for housing by type of lending institution ($ million)

All time series spreadsheets