5232.0 - Australian National Accounts: Finance and Wealth, Mar 2020 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 25/06/2020   
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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)
-12.7
16.4
4.2
19.1
26.9
-9.2
plus Consumption of fixed capital
42.9
3.2
11.0
31.2
88.2
-
Gross saving
30.2
19.5
15.2
50.2
115.1
-9.2
plus Net capital transfers
0.8
-
-2.0
1.0
-0.2
0.2
less Statistical discrepancy (b)
-
-
-
-
6.2
-
Total financing resources
31.0
19.5
13.2
51.2
108.7
-9.1
Uses of financing (Investment)
Capital formation
Gross fixed capital formation
46.2
3.0
17.1
35.6
101.9
-
plus Change in inventories
-2.6
-
0.8
-0.4
-2.2
-
plus Net acquisition of non-produced non-financial assets
-0.1
-
0.1
-
-
-
Total capital formation
43.5
3.0
18.0
35.2
99.7
-
plus Financial investment
Acquisition of financial assets
54.0
146.1
31.4
27.6
41.1
29.7
less Incurrence of liabilities
55.0
143.8
43.9
4.9
29.7
41.1
Net financial investment (Net lending (+) / net borrowing (-))
-1.0
2.2
-12.5
22.7
11.4
-11.4
less Net errors and omissions
11.5
-14.4
-7.7
6.7
2.4
-2.4
Total investment
31.0
19.5
13.2
51.2
108.7
-1.7

- 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 among the sectors.


National investment experiences largest fall on record

National investment declined by $22.9b this quarter to $99.7b. The fall this quarter was the largest on record and brings investment down to its lowest level since March 2017. In seasonally adjusted terms the decline was $1.1b.

Graph 1. Total capital formation, current prices
Graph 1 shows Total capital formation, current prices


Non-financial corporations investment fell by $11.4b to $43.5b, with private non-financial corporations driving the decline. A run down in inventories contributed to the fall with increased sales of household goods in response to COVID-19 lockdown measures.

Household investment declined by $8.2b to $35.2b, with demand for new housing remaining weak.

General government investment declined by $3.0b to $18.0b, following asset purchases from the public corporations sector last quarter.


Australia at its strongest net lending position

National net lending was $11.4b in March quarter 2020, the strongest net lending position on record, and Australia's fourth consecutive quarter as a net lender. The net lending position was driven by a record net acquisition of financial assets from the rest of the world of $41.1b, which outweighed the incurrence of $29.7b in liabilities.

Australia's net lending position was driven by a $39.6b decrease in non-resident holdings of Australian bonds, due to a major sell off of Commonwealth government bonds and a net maturity of corporate bonds. Authorised deposit taking institutions (ADIs) also made significant purchases of bonds issued by non-residents, further contributing to the strength in net lending.

Australia lent a record $40.9b to non-residents, predominantly made up of loans from ADIs to related overseas entities. This was offset by Australia borrowing record amounts through loans from non-residents ($47.2b), also driven by ADIs.

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

Households were net lenders, accruing $13.7b in deposits and $18.5b in net equity in reserves of pension funds (superannuation). During the March quarter, the impacts of COVID-19 on superannuation contributions were minimal. Households' loan borrowings were $2.0b for the quarter. Long term loan borrowing ($7.7b) was driven by modest growth in mortgages, while the fall in short term loans borrowing (-$5.6b) was the strongest on record, due to falls in demand for motor vehicles, travel and accommodation, which in part is a response to the pandemic and imposed lock downs.

General government was a net borrower of $12.5b, driven by bond issuance of $14.4b by national general government, and loan borrowing of $18.4b by state and local general governments. These funds were used for bushfire recovery and COVID-19 support packages.

Non-financial corporations were net borrowers of $1.0b. Private non-financial corporations loan borrowing increased by a record $47.0b, as businesses drew down on existing lines of credit . However, a large proportion of these funds were placed in deposit accounts ($46.1b), as businesses sought to ensure sufficient liquidity to cover expenses in anticipation of the impacts of COVID-19 next quarter.


Notes

Forthcoming issues

Issue (quarter)Release Date
June 202024 September 2020
September 202017 December 2020
December 202025 March 2021
March 202124 June 2021


Changes to this issue

Table 53. Nominal Value of Short Term Loans and Placements Market ($ million) and Table 54. Nominal Value of Long Term Loans and Placements Market ($ million) have been reinstated following some quality assurance work.


Revisions in this issue

There have been revisions to previously published aggregates due to:
  • Quality assurance reviews affecting the published aggregates after March quarter 2018, 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.


New ABS website

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