• Summary
• Downloads
• Explanatory Notes
• Related Information
• Past Releases

4.14. In presenting balance of payments statistics, ABS publications start with a summary table followed by more detailed tables. Table 4.2 shows the summary table from the quarterly publication (Cat. no. 5302.0). The table illustrates the following points:

• the classifications shown reflect the higher level standard components;

• current and capital account items are shown gross, whereas financial account items are shown net;

• gross and net credit entries are shown without sign, while gross and net debit entries are shown with a negative sign;

• various key balances are recorded, such as the current account balance and the capital and financial account balance, as well as various lower level balances such as the goods and services balance;

• the sum of the current account balance, the capital and financial account balance, and the net errors and omissions item add to zero; and

• data are presented in the form of time series (three years and six quarters).

The concept of a ‘balance’

4.15. In a complete balance of payments statement (including the net errors and omission item), the sum of all credit entries and the sum of all debit entries are necessarily equal, i.e. the sum of credits and debits is zero. The sum of all credit and debit entries may also be referred to as a balance. For any intermediate balance drawn from a selection of items it is possible for credit entries to exceed debit entries, and vice versa. It is common to speak of a balance as a surplus if it is a credit and as a deficit if it is a debit.

4.16. The main balances used in the Australian balance of payments are the balance on current account and the balance on capital and financial account. These balances, and their composition in terms of subsidiary balances and other items, are shown in table 4.3.

	4.2 AUSTRALIA'S BALANCE OF PAYMENTS - SUMMARY
						Dec Qtr	Mar Qtr	Jun Qtr	Sep Qtr	Dec Qtr	Mar Qtr
			1994-95	1995-96	1996-97	1996	1997	1997	1997	1997	1998
			$m	$m	$m	$m	$m	$m	$m	$m	$m
	CURRENT
	ACCOUNT		- 28,867	- 21,824	- 17,531	- 4,918	- 3,163	- 2,985	- 5,841	- 5,599	- 6,291
	Goods & services		- 9,916	- 1,891	1,777	- 299	1,444	2,120	- 950	- 247	- 1,396
		Credits	87,509	99,004	105,318	25,906	26,042	28,643	28,487	29,273	27,321
		Debits	- 97,425	- 100,895	- 103,541	- 26,205	- 24,598	- 26,523	- 29,437	- 29,520	- 28,717
	Goods		- 8,216	- 1,583	1,496	- 367	246	2,618	- 511	- 32	- 2,112
		Credits	67,101	76,146	80,934	19,836	19,111	22,964	22,162	23,151	20,414
		Debits	- 75,317	- 77,729	- 79,438	- 20,203	- 18,865	- 20,346	- 22,673	- 23,183	- 22,526
	Services		- 1,700	- 308	281	68	1,198	- 498	- 439	- 215	716
		Credits	20,408	22,858	24,384	6,070	6,931	5,679	6,325	6,122	6,907
		Debits	- 22,108	- 23,166	- 24,103	- 6,002	- 5,733	- 6,177	- 6,764	- 6,337	- 6,191
	Income		- 18,423	- 19,907	- 19,434	- 4,704	- 4,593	- 5,070	- 4,874	- 5,402	- 4,876
		Credits	6,954	7,162	8,319	2,233	2,071	2,099	2,250	2,331	2,545
		Debits	- 25,377	- 27,069	- 27,753	- 6,937	- 6,664	- 7,169	- 7,124	- 7,733	- 7,421
	Current transfers		- 528	- 26	126	85	- 14	- 35	- 17	50	- 19
		Credits	3,026	3,212	3,377	835	823	855	886	879	895
		Debits	- 3,554	- 3,238	- 3,251	- 750	- 837	- 890	- 903	- 829	- 914
	CAPITAL AND
	FINANCIAL ACCOUNT		28,610	21,914	18,769	5,145	3,825	3,190	5,219	6,424	5,774
	Capital account		572	1,074	1,318	324	385	218	338	275	283
	Capital transfers		540	1,049	1,323	325	377	219	340	268	277
		Credits	1,383	1,956	2,200	544	597	485	541	513	523
		Debits	- 843	- 907	- 877	- 219	- 220	- 266	- 201	- 245	- 246
	Net acquisition/ disposal of non- produced, non- financial assets		32	25	- 5	- 1	8	- 1	- 2	7	6
	Financial account		28,038	20,840	17,451	4,821	3,440	2,972	4,881	6,149	5,491
	Direct investment		4,080	5,067	5,375	1,352	- 115	2,297	2,017	895	- 480
		Abroad	- 3,429	- 7,935	- 5,908	- 2,008	- 1,189	- 1,502	- 4,294	- 895	- 1,835
		In Australia	7,509	13,002	11,283	3,360	1,074	3,799	6,311	1,790	1,355
	Portfolio investment		18,378	25,661	13,378	5,856	6,665	- 4,584	7,578	7,024	4,679
	Other investment		3,609	- 9,071	3,922	- 2,106	- 2,519	6,645	- 3,252	- 441	- 1,914
	Reserve assets		1,971	- 817	- 5,224	- 281	- 591	- 1,386	- 1,462	- 1,329	3,206
	NET ERRORS
	AND OMISSIONS		257	- 90	- 1,238	- 227	- 662	- 205	622	- 825	517
	Source: Table 1 from Balance of Payments and International Investment Position, Australia, March quarter 1998 (Cat. no. 5302.0).

4.17. The net errors and omissions item is a balancing item, reflecting the underlying double entry accounting system. It is the sum, with sign reversed, of the balance on current account and the balance on capital and financial account. In other words, the sum of the current account balance, the capital and financial account balance and the net errors and omissions item is zero.

	4.3 KEY BALANCES USED IN BALANCE OF PAYMENTS ANALYSIS
	Current account balance	=	Goods and services balance	=	Goods balance	=	Goods credits
						+	Goods debits
				+	Services balance	=	Services credits
						+	Services debits
		+	Income balance	=	Income credits
				+	Income debits
		+	Current transfers balance	=	Current transfers credits
				+	Current transfers debits
	Capital and financial account balance	=	Capital account balance	=	Capital transfers balance	=	Capital transfers credits
						+	Capital transfers debits
				+	Net acquisition/disposal of non- produced, non-financial assets	=	credits (disposal)
						+	debits (acquisition)
		+	Financial account balance	=	Direct investment balance	=	Direct investment abroad
						+	Direct investment in Australia
				+	Portfolio investment balance	=	Portfolio investment assets
						+	Portfolio investment liabilities
				+	Other investment balance	=	Other investment assets
						+	Other investment liabilities
				+	Reserve assets