5232.0 - Australian National Accounts: Finance and Wealth, Dec 2015 Quality Declaration 
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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)
5.9
0.6
-2.1
19.3
23.8
22.1
plus Consumption of fixed capital
36.9
2.5
9.0
23.5
71.8
-
Gross saving
42.8
3.1
6.9
42.8
95.6
22.1
plus Net capital transfers
1.3
-
-1.7
0.3
-0.1
0.1
less Statistical discrepancy (b)
-
-
-
-
4.5
-
Total financing resources
44.1
3.1
5.1
43.1
91.0
22.2
Uses of financing (Investment)
Capital formation
Gross fixed capital formation
53.5
2.8
12.6
41.1
109.9
-
plus Change in inventories
0.6
-
0.2
2.4
3.3
-
plus Net acquisition of non-produced non-financial assets
-0.3
-
0.3
-0.0
0.0
-
Total capital formation
53.8
2.8
13.1
43.5
113.2
-
plus Financial investment
Acquisition of financial assets
-16.0
25.7
-6.1
29.2
-23.5
-2.4
less Incurrence of liabilities
3.8
23.8
1.3
25.0
-2.4
-23.5
Net financial investment (Net lending (+) / net borrowing (-))
-19.7
1.9
-7.4
4.2
-21.1
21.1
less Net errors and omissions
-10.0
1.5
0.6
4.6
1.1
-1.1
Total investment
44.1
3.1
5.1
43.1
91.0
22.2

- 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 December quarter 2015, non-financial corporations and household invested $53.8b and $43.5b respectively in capital formation. Non-financial corporations funded these investments mainly through gross saving ($42.8b) and net borrowing ($19.7b). Household funded their investment through gross savings ($42.8b).The general government sector invested $13.1b in capital formation funding it through net borrowings ($7.4b) and gross saving ($6.9b), where consumption of fixed capital contributed $9.0b.

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


In original terms, national capital investment increased $7.4b from the September quarter 2015 estimate to $113.2b in December quarter 2015. The increase was driven by a $5.3b rise in gross fixed capital formation, which was aided by a $2.1b increase in change of inventories.

Private non-financial corporations gross fixed capital formation has fallen since peaking in June quarter 2013 ($59.2b), this has been driven by decreased non-dwelling construction investment. Conversely, household gross fixed capital formation has continued to grow since March quarter 2014 ($30.0b), 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 December quarter 2015, national net borrowing was $21.1b, driven by non-financial corporations borrowing of $19.7b and general government borrowing of $7.4b. By contrast, household lent $4.2b to other sectors.

Net borrowing of $19.7b by non-financial corporations was a result of incurring $3.8b in liabilities while disposing $16.0b in financial assets. Non-financial corporations net disposal of financial assets (-$16.0b) was driven by loans and placements (-$19.4b) where non-resident counterparts repaid $15.4b in loans. Non-financial corporations incurred a net $3.8b in liabilities with $13.3b in issuance of listed equity and $10.2b in bonds issued offshore offset by a sale of $14.1b in unlisted equities, a reduction in accounts payable (-$4.5b) and net settlements of derivatives (-$3.6b).

Net borrowing of $7.4b by general government was due to the disposal of financial assets (-$6.1b) while incurring $1.3b in liabilities. The general government sold equity in state and local public non-financial corporations ($10.8b) through the privatisation of state owned non-financial corporations during the quarter. This was partially offset by an increase of $7.3b in accounts receivable. The general government incurred liabilities through issuance of bonds ($8.4b) which was partially offset by a repayment of loans (-$4.0b) and maturities of short term debt securities ($3.4b).

Household remained net lenders ($4.2b) in December quarter 2015. Household acquired $29.2b in financial assets through net equity and reserves ($25.4b) and increases in bank deposits ($19.8b) while incurring liabilities through loan borrowings ($26.3b).

Financial corporations remained net lenders ($1.9b) by acquiring $25.7b in financial assets while incurring $23.8b in liabilities. The financial corporations sector acquired financial assets through loans and placements ($43.5b) driven by lending to household ($26.9b), rest of world ($14.2b) and other private non-financial corporations ($9.0b). Financial corporations acquired equity in other private non-financial corporations ($18.9b) and rest of world ($5.7b). These acquisitions were partially offset by derivative settlements of -$41.0b. Financial corporations incurred liabilities during the quarter through deposits ($22.5b), and net equity in reserves ($20.9b) which were partially offset by derivative settlements of -$39.3b.


NOTES

FORTHCOMING ISSUES


ISSUE (QUARTER)Release Date
March 201630 June 2016
June 201627 September 2016
September 201615 December 2016
December 201630 March 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 2013) 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.
  • 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.

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