5232.0 - Australian National Accounts: Finance and Wealth, Jun 2018 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 27/09/2018   
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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)
5.2
3.8
14.1
-8.9
14.1
11.9
plus Consumption of fixed capital
39.4
2.9
9.6
29.7
81.6
-
Gross saving
44.5
6.7
23.7
20.8
95.8
11.9
plus Net capital transfers
0.4
-
-1.2
0.6
-0.2
0.2
less Statistical discrepancy (b)
-
-
-
-
-12.6
-
Total financing resources
44.9
6.7
22.5
21.5
108.2
12.1
Uses of financing (Investment)
Capital formation
Gross fixed capital formation
52.9
3.1
20.7
44.1
120.7
-
plus Change in inventories
0.3
-
0.2
-1.0
-0.5
-
plus Net acquisition of non-produced non-financial assets
-0.1
-
-
0.1
-
-
Total capital formation
53.0
3.1
20.9
43.2
120.2
-
plus Financial investment
Acquisition of financial assets
-9.3
45.0
17.8
55.3
13.6
26.3
less Incurrence of liabilities
18.8
55.8
17.5
29.4
26.3
13.6
Net financial investment (Net lending (+) / net borrowing (-))
-28.1
-10.8
0.4
25.9
-12.7
12.7
less Net errors and omissions
-20.0
-14.5
-1.2
47.6
-0.7
0.7
Total investment
44.9
6.7
22.5
21.5
108.2
12.0

- 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 June quarter 2018, non-financial corporations funded their investments of $53.0b through both gross saving of $44.5b; and net borrowing of $28.3b, funded through share issuance mainly held by rest of the world. Overall the Australian economy borrowed $12.7b during the quarter, driven by the borrowings of the private non-financial sector.



Graph 1. Total capital formation, current prices

Graph 1 shows  Total capital formation, current prices



National investment increased $20.7b in June quarter 2018 to $120.2b. The increase takes national investment to its highest level, surpassing the previous peak of $118.8b in the December quarter 2017. Prior to December quarter 2017, national investment had peaked in the December quarter 2012 at $116.0b, before falling steadily due to a decline in mining investment. Growth in recent quarters has been driven by public infrastructure investment as well as improvements in business conditions and confidence for private sector corporations.

Private non-financial corporations investment was $45.7b in the June quarter 2018. Investment peaked for private non-financial corporations in the June quarter 2013, before falling to a low of $36.7b in March quarter 2017 with the decline in mining investment. Household investment was $43.2b in June quarter 2018 and has grown steadily since the $24.6b recorded in March quarter 2012, driven by dwellings.



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

Graph 2 shows Net financial investment (Net lending (+) / net borrowing (-))



During June quarter 2018, national net borrowing was $12.7b, driven by the issuance of shares and other equity by private non-financial sector.

Net borrowing of $28.4b by non-financial corporations was a result of disposing of $9.3b of financial assets and incurring $19.1b in liabilities. Non-financial corporations incurred liabilities through the issuance of shares and other equity.

Net borrowing of $10.6b by financial corporations was a result of acquiring $45.2b of financial assets and incurring $55.8b in liabilities. The acquisition of financial assets by financial corporations was driven by issuance of loans and acquisition of one name paper and bonds, which were partly offset by derivative settlements. Financial corporations' net incurrence of liabilities was driven by an increase in insurance technical reserves and issuance of one name paper and bonds. These were partly offset by settlement in derivative liabilities.

Net lending of $0.4b by general government was a result of acquiring $17.8b of financial assets and incurring $17.5b in liabilities mainly through bond issuance. The financial assets primarily acquired by general government were loans and placements, and one name paper holdings. These were partly offset by divestment in bonds.

Households were net lenders in June quarter 2018. Households acquired $37.4b in net equity in reserves with $4.2b of unfunded superannuation claims. Households acquired $4.0b in shares and other equity assets and incurred liabilities through $26.4b in loan borrowings.


NOTES

FORTHCOMING ISSUES

ISSUE (QUARTER)Release Date
September 201813 December 2018
December 201828 March 2019
March 201927 June 2019
June 2019 26 September 2019


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 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 data being incorporated and concurrent seasonal adjustment.


CHANGES IN FUTURE ISSUES

There are no changes to future issues.


INQUIRIES

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