5232.0 - Australian National Accounts: Finance and Wealth, Jun 2016 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 29/09/2016   
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JUNE KEY FIGURES

FINANCING RESOURCES AND INVESTMENT, ORIGINAL, CURRENT PRICES

Non-financial corporations
Financial corporations
General government
Household
Total National
Rest of world
$b
$b
$b
$b
$b
$b

Financing resources
Net saving (a)
3.2
0.1
-0.7
12.3
14.9
11.6
plus Consumption of fixed capital
38.1
2.6
9.2
24.2
74.1
-
Gross saving
41.3
2.7
8.5
36.5
89.0
11.6
plus Net capital transfers
1.1
-
-1.4
0.2
-0.2
0.2
less Statistical discrepancy (b)
-
-
-
-
-7.5
-
Total financing resources
42.4
2.7
7.1
36.6
96.3
11.7
Uses of financing (Investment)
Capital formation
Gross fixed capital formation
48.8
2.6
18.4
39.8
109.6
-
plus Change in inventories
-0.7
-
0.2
-1.1
-1.6
-
plus Net acquisition of non-produced non-financial assets
-0.8
-
0.8
-
-
-
Total capital formation
47.3
2.6
19.4
38.7
108.0
-
plus Financial investment
Acquisition of financial assets
21.3
31.1
-3.6
44.7
-13.4
0.8
less Incurrence of liabilities
33.2
31.2
4.0
39.3
0.8
-13.4
Net financial investment (Net lending (+) / net borrowing (-))
-11.9
-0.1
-7.5
5.3
-14.2
14.2
less Net errors and omissions
-7.1
-0.1
4.8
7.4
-2.5
2.5
Total investment
42.4
2.7
7.1
36.6
96.3
11.7

- 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 amongst the sectors.


During June quarter 2016, non-financial corporations and households invested $47.3b and $38.7b respectively in capital formation. Non-financial corporations funded these investments through gross saving ($41.3b) and net borrowing ($11.9b). Households funded their investment through gross saving ($36.5b). The general government sector invested $19.4b in capital formation, funding it through net borrowings ($7.5b) and gross saving ($8.5b).

Graph 1. Total capital formation, current prices
Graph Image for Graph 1. Total capital formation, current prices.


In original terms, national capital investment increased $16.1b from the March quarter 2016 estimate to $108.0b in June quarter 2016. The increase was driven by a $15.1b increase in gross fixed capital formation.

Private non-financial corporations gross fixed capital formation has fallen since peaking in June quarter 2013 ($59.3b), this has been driven by decreased non-dwelling construction investment. Conversely, household sector gross fixed capital formation has continued to grow since March quarter 2013 ($26.8b), this has been driven by increased investment in dwellings.

Graph 2. Net financial investment (Net lending (+) / net borrowing (-))
Graph Image for Graph 2. Net financial investment, Net lending net borrowing.


During June quarter 2016, national net borrowing was $14.2b, driven by non-financial corporations borrowing of $11.9b and general government borrowing of $7.5b. By contrast, households lent $5.3b to other sectors.

Net borrowing of $11.9b by non-financial corporations was a result of incurring $33.2b in liabilities while acquiring $21.3b in financial assets. Non-financial corporations net incurrence of financial liabilities was driven by issuance of equity ($22.8b) and loan borrowings ($13.2b). Non-financial corporations acquired assets through bank deposits ($10.6b) and other accounts receivables from rest of world ($8.8b).

Net borrowing of $7.5b by general government was due to incurring $4.0b in liabilities while disposing $3.6b in financial assets. National general government incurred $5.7b in liabilities, driven by $5.8b in net issuances of bonds, while disposing of $0.5b in financial assets.

Financial corporations were net borrowers ($0.1b), incurring $31.2b in liabilities while acquiring $31.1b in financial assets. Financial corporations incurred liabilities by accepting deposits ($30.9b) and increasing net equity in reserves ($29.7b). The increase in liabilities was partially offset by derivative settlements ($39.1b). Financial assets were acquired by increasing loans to households ($31.7b) and the rest of world ($7.1b) coupled with purchasing bonds issued by securitisers ($10.6b) and national general government ($6.2b). These asset acquisitions were partially offset by derivative settlements with the rest of world (-$30.0b).

Households remained net lenders ($5.3b) in June quarter 2016. Households acquired $44.7b in financial assets through increases insurance technical reserves ($33.7b) and bank deposits ($9.2b). Households incurred liabilities through loan borrowings ($30.3b).


NOTES

FORTHCOMING ISSUES


ISSUE (QUARTER)Release Date
September 201615 December 2016
December 201630 March 2017
March 201729 June 2017
June 201728 September 2017


CHANGES TO THIS ISSUE

There are no changes to this issue.


REVISIONS IN THIS ISSUE

There have been revisions to previously published aggregates due to:
  • Quality assurance reviews of compilation methodology (affecting the series after September quarter 2012) 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 have been applied to remove double counting in household loans. Securitisers balance sheet estimates are collected on the ABS Survey of Financial Information, while bank balance sheet estimates are collected by APRA for regulatory and statistical reporting purposes. APRA changes to regulatory reporting required banks to leave certain securitised loans on their balance sheet. The ABS undertook investigative research to understand and quantify the statistical impact of this regulatory change. This research found that some securitised loans were reported on both banks and securitiser balance sheets. Revisions are due to removing these double counted loans which, on average, equate to a 2% reduction in household loans and does not change the underlying economic picture. These revisions impact estimates published in the long term loans as well as Securitisers, Banks and Household tables.
  • Revisions to the sectoral capital accounts are due to more up-to-date being incorporated and concurrent seasonal adjustment.


CHANGES IN FUTURE ISSUES

There are no changes to future issues.


INQUIRIES

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