Net worth is defined as the difference between total assets and total liabilities. Australia's net worth at the end of June 2007 was estimated to be $5,925 billion in current prices, an increase of $468 billion (8.6%) since 30 June 2006. Most of this increase was due to holding gains for land (+$260 billion); non-dwelling construction (+$62 billion); dwellings (+$48.9 billion) and shares and other equity (+$21 billion). Net transactions (both capital and financial) contributed $67 billion to the change. Other volume changes contributed $37 billion, mainly due to land reclassification to higher value purposes and other improvements to land ($28 billion) and discoveries of subsoil assets ($9 billion). Australia's net international investment position rose $90 billion to a net liability position of $642.5 billion at the end of June 2007, an increase of 16.3% on the June 2006 position.
Australia's real net worth rose 1.3% over the year ended 30 June 2007, a decline from the previous year's growth of 2.3%. The growth for the current year was driven by an increase in non-financial and financial assets (up 2.3% and 16.7% respectively), this was offset by an increase in Australia's liabilities to the rest of the world (up 15.1%).
Percentage change in real net worth -
as at 30 June
Balance sheets are also produced in current prices for each institutional sector in the economy. Of these the household sector has the highest net worth, $5,073 billion at 30 June 2007, an increase of 12.2% on the previous year's position. The growth in household net worth was driven by increases in the asset holdings of land, dwellings, currency and deposits, shares and other equities and insurance technical reserves. For a more detail analysis of the household sector please refer to the 5204.0 feature article: Household Sector Balance Sheet - A National Accounts' Perspective, released on the ABS website in January 2007.