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JUNE KEY FIGURES

		Mar Qtr 2007	Jun Qtr 2007	Mar Qtr 2007 to Jun Qtr 2007
		$m	$m	% change
TREND ESTIMATES
Balance on current account		-15 560	-16 231	-4
Balance on goods and services		-3 494	-4 008	-15
Net income		-11 959	-12 123	-1
SEASONALLY ADJUSTED
Balance on current account		-15 545	-15 998	-3
Balance on goods and services		-3 534	-3 798	-7
Net income		-11 914	-12 094	-2
ORIGINAL
Balance on current account		-15 299	-14 303	7
Balance on capital and financial account		15 450	13 941	-10
Levels at end of period
Net international investment position		626 774	642 438	2
	Net foreign equity	91 565	98 364	7
	Net foreign debt	535 209	544 075	2

Current Account, Main aggregates - Trend estimates at current prices (a)

International Investment

JUNE KEY POINTS


BALANCE OF PAYMENTS

• The current account deficit, seasonally adjusted, rose $453m (3%) to $15,998m. The deficit on the balance of goods and services rose $264m (7%) to $3,798m. The income deficit rose $180m (2%) to $12,094m.
• In seasonally adjusted chain volume terms there was an increase of $292m (2%) in the deficit on goods and services. This could be expected to contribute -0.1 percentage points to growth in the June quarter 2007 volume measures of GDP.
• In original terms, the balance on current account for 2006-07 was a deficit of $59.2b, up $5.3b from the deficit of $53.9b in 2005-06.

• Australia's net IIP rose $15.7b to a net liability position of $642.4b. Net foreign debt was $544.1b, an increase of $8.9b. Net foreign equity increased by $6.8b to a liability of $98.4b.

Incorporation of the latest survey and administrative data has resulted in revisions to the current account back to September quarter 2003. In original terms, revisions have increased the 2005-06 current account deficit by $227m.

In addition, from September quarter 2006, goods debits (imports) on a balance of payments basis are valued using Customs value from the merchandise trade data rather than Free on Board, resulting in small upward revisions. For more detail, see the June 2007 issue of International Trade in Goods and Services, Australia (cat. no. 5368.0). The net effect of all revisions increased the March quarter 2007 current account deficit by $170m.

The financial account and international investment position have been revised back to September quarter 2003 increasing Australia's net IIP liability as at 31 March 2007 by $2,845m.

The trend breaks applying to coal, coke and briquettes for June quarter 2004 and June quarter 2005 have been revised in this issue with consequential revisions to the seasonal factors and seasonally adjusted series. The trend break for June quarter 2004 has been revised from $500m to $888m and the trend break for June quarter 2005 from $1,000m to $1,659m. These trend breaks relate to the irregular price increases that were identified in June quarters 2004 and 2005 following contractual price increases at those times. The initial trend breaks were estimated by the ABS based on the information available at that time but from recent reanalysis combined with the availability of additional quarterly original data, these trend break corrections have been improved.

CONFIDENTIALITY OF FUTURE FUND

During the June quarter, the Future Fund commenced investment activity. The Future Fund has been classified as a General Government unit and thus the investment activity and associated holdings of assets are recorded as part of the General Government sector. In order to maximise the availability of information about the activities of the General Government sector, ABS legislation allows the publication of identifiable information about this sector except where a request for confidentiality has been received from the relevant Minister. A request has been received and the relevant estimates have been confidentialised in this publication. The estimates will remain confidentialised in all releases published up to and including 30 June 2008.

CHANGES IN THIS AND FUTURE ISSUES

Details of changes in this and future issues.

INQUIRIES

For further information contact Tom Jebbink on Canberra (02) 6252 5540 for balance of payments estimates, and Val Tot on Canberra (02) 6252 5541 for international investment estimates.