5232.0 - Australian National Accounts: Finance and Wealth, Mar 2016 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 30/06/2016   
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MARCH 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)
-20.5
16.1
-7.8
17.3
5.0
19.8
plus Consumption of fixed capital
37.5
2.6
9.1
23.8
72.9
-
Gross saving
17.0
18.6
1.2
41.1
78.0
19.8
plus Net capital transfers
0.8
-
-1.1
0.2
-0.1
0.1
less Statistical discrepancy (b)
-
-
-
-
5.4
-
Total financing resources
17.8
18.6
0.1
41.3
72.5
19.9
Uses of financing (Investment)
Capital formation
Gross fixed capital formation
43.4
2.4
11.8
35.7
93.3
-
plus Change in inventories
-1.0
-
0.1
-0.0
-0.9
-
plus Net acquisition of non-produced non-financial assets
-0.1
-
0.1
-0.0
0.0
-
Total capital formation
42.3
2.4
12.0
35.7
92.4
-
plus Financial investment
Acquisition of financial assets
9.0
31.6
16.8
38.5
-41.6
-21.0
less Incurrence of liabilities
46.3
11.8
31.3
27.2
-21.0
-41.6
Net financial investment (Net lending (+) / net borrowing (-))
-37.3
19.8
-14.5
11.3
-20.7
20.7
less Net errors and omissions
-12.7
3.6
-2.6
5.7
-0.8
0.8
Total investment
17.8
18.6
0.1
41.3
72.5
19.9

- 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 March quarter 2016, non-financial corporations and households invested $42.3b and $35.7b respectively in capital formation. Non-financial corporations funded these investments mainly through gross saving ($17.0b) and net borrowing ($37.3b). Households funded their investment through gross savings ($41.1b). The general government sector invested $12.0b in capital formation, funding it through net borrowings ($14.5b) and gross saving ($1.2b).

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


In original terms, national capital investment decreased $20.4b from the December quarter 2015 estimate to $92.4b in March quarter 2016. The decrease was driven by a $16.3b fall in gross fixed capital formation and a $4.1b decrease in inventories.

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 March quarter 2016, national net borrowing was $20.7b, driven by non-financial corporations borrowing of $37.3b and general government borrowing of $14.5b. By contrast, financial corporations and households lent $19.8b and $11.3b respectively to other sectors.

Net borrowing of $37.3b by non-financial corporations was a result of incurring $46.3b in liabilities while acquiring $9.0b in financial assets. Non-financial corporations net incurrence of financial liabilities ($46.3b) was driven by issuance of equity ($22.7b), loan borrowings ($16.3b) and bond issuances ($9.4b) which was slightly offset by maturities of short term debt securities (-$2.5b).

Net borrowing of $14.5b by general government was due to incurring $31.3b in liabilities while acquiring $16.8b in financial assets. National general government incurred $26.3b in liabilities driven by $22.1b in net issuances of bonds during March quarter 2016. National general government acquired $16.7b in assets through increases in deposit assets ($7.2b) and other accounts receivables ($5.9b).

Financial corporations were net lenders ($19.8b) by acquiring $31.6b in financial assets while incurring $11.8b in liabilities. The financial corporations sector acquired financial assets through net purchases of bonds issued by national general government ($20.1b), increasing loans to households ($25.4b) and other private non-financial corporations ($12.7b), deposits with the rest of world ($10.3b) and increasing equity holdings by $10.0b. These asset acquisitions were partially offset by loan repayments from rest of world (-$33.8b) coupled with derivative settlements of -$18.5b. Financial corporations incurred liabilities through taking deposits ($19.9b), increasing net equity in reserves ($17.0b) and net issuance of bonds ($6.8b). This was partially offset by maturities of one name paper issued offshore (-$23.2b) and derivative settlements of -$22.0b.

Households remained net lenders ($11.3b) in March quarter 2016. Households acquired $38.5b in financial assets through net equity in reserves ($21.4b) and increases in bank deposits ($12.6b) while incurring liabilities through loan borrowings ($24.7b).


NOTES

FORTHCOMING ISSUES


ISSUE (QUARTER)Release Date
June 201629 September 2016
September 201615 December 2016
December 201630 March 2017
March 201729 June 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 March 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 APRA administrative data sets.
  • Significant revisions have been applied to account for special purpose vehicles involved in internal securitisation who reported for the first time this quarter. These revisions impact estimates published in the Bonds and Long Term Loans market tables as well as Securitisers, Banks and Household sector tables. For more information on the treatment of internal securitisation refer to technical note Treatment of Internally Securitised Paper in ABS Statistics published in September quarter 2014 release of this publication.
  • Revisions to the sectoral capital accounts where more up-to-date data have been incorporated and concurrent seasonal adjustment.


CHANGES IN FUTURE ISSUES

There are no changes to future issues.


INQUIRIES

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