5232.0 - Australian National Accounts: Finance and Wealth, Dec 2016 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 30/03/2017   
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DECEMBER 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)
8.8
3.4
1.0
12.3
25.4
4.4
plus Consumption of fixed capital
38.5
2.8
9.5
28.4
79.2
-
Gross saving
47.2
6.2
10.5
40.6
104.5
4.4
plus Net capital transfers
0.4
-
-0.8
0.2
-0.1
0.1
less Statistical discrepancy (b)
-
-
-
-
-5.9
-
Total financing resources
47.6
6.2
9.7
40.9
110.3
4.6
Uses of financing (Investment)
Capital formation
Gross fixed capital formation
52.3
3.1
14.6
41.6
111.5
-
plus Change in inventories
1.1
-
0.3
2.0
3.3
-
plus Net acquisition of non-produced non-financial assets
-0.8
-
0.8
-
-
-
Total capital formation
52.6
3.1
15.6
43.6
114.8
-
plus Financial investment
Acquisition of financial assets
9.9
75.9
-11.8
37.6
13.9
17.2
less Incurrence of liabilities
14.8
61.5
6.8
31.9
17.2
13.9
Net financial investment (Net lending (+) / net borrowing (-))
-4.9
14.5
-18.6
5.7
-3.4
3.4
less Net errors and omissions
-
11.3
-12.7
8.5
1.2
-1.2
Total investment
47.6
6.2
9.7
40.9
110.3
4.6

- 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.


In the December quarter 2016, non-financial corporations and households invested $52.3b and $41.6b respectively. Non-financial corporations funded these investments through gross saving ($47.2b) and net borrowing ($4.9b). Households funded their investment through gross saving ($40.6b). The general government sector invested $14.6b, funding it through gross savings ($10.5b) and net borrowing ($18.6b).

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


National investment increased $9.2b in the December quarter 2016 to $114.8b.

Private non-financial corporations Gross fixed capital formation has increased to $46.8b in December 2016 after falling from its peak in June quarter 2013 ($61.7b). Conversely, Household sector Gross fixed capital formation has increased to $41.6b after growing in March quarter 2013 ($25.6b). The growth has been driven by an increase in investment.

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


During December quarter 2016, national net borrowing was $3.4b with general government borrowing of $18.6b and non-financial corporations borrowing of $4.9b. By contrast, financial corporations and households lent $14.5b and $5.7b respectively to other sectors.

Net borrowing of $18.6b by general government was due to the disposal of financial assets (-$11.8b) while incurring $6.8b in liabilities. State and local general government disposed $24.9b of financial assets by reducing equities. There was also a reduction in their liabilities driven by repayments of loans. National general government acquired $13.2b in financial assets during the quarter mainly through deposits and other accounts receivable. During the quarter they issued $23.9b of bonds contributing to the increase in their liabilities.

Net borrowing of $4.9b by non-financial corporations was a result of incurring $14.8b in liabilities and acquiring $9.9b in financial assets. Non-financial corporations net incurrence of liabilities was driven by issuance of equity and bonds partially offset by a reduction in other accounts payable and loans. Non-financial corporations acquired assets through bank deposits which were partially offset by a reduction in other accounts receivable and a disposal of bonds.

Financial corporations were net lenders ($14.5b), acquiring $75.9b in financial assets while incurring $61.5b in liabilities. Financial assets were acquired by increasing loans to households and to other private non-financial corporations, purchasing long-term Commonwealth Government Securities and acquiring equities in other private non-financial corporations. These asset acquisitions were partially offset by derivative settlements. Financial corporations incurred liabilities by increasing the acceptance of deposits and increasing net equity in reserves. The increase in liabilities was partially offset by derivative settlements.

Households remained net lenders ($5.7b) in December quarter 2016. Households acquired $37.6b in financial assets through bank deposits and increases net equity in reserves of pension funds. The acquisitions of financial assets were partially offset by disposal of equities and a reduction of other accounts receivable. Households incurred liabilities through loan borrowings.


NOTES

FORTHCOMING ISSUES


ISSUE (QUARTER)Release Date
March 201729 June 2017
June 201728 September 2017
September 201714 December 2017
December 201730 March 2018


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 2014) 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 being incorporated and concurrent seasonal adjustment.


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