5495.0 - Australian Outward Foreign Affiliates Trade, 2018-19  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 10/09/2020   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

Main Features

Acknowledgements

The ABS would like to thank the Department of Foreign Affairs and Trade (DFAT) and the Australian Trade and Investment Commission (Austrade) who have provided funding and support for this publication.


Introduction

The aim of the Australian Outward Foreign Affiliates Trade (AOFAT) is to measure the economic activity of the foreign affiliates of Australian resident enterprises, disaggregated by the level of Australian ownership, country of origin and industry with respect to the 2018-19 reference period.


Summary of findings

Number of affiliates

In 2018-19, there were 275 Australian parent enterprises with a controlling interest (i.e., more than 50 percent of the voting power in the direct investment enterprise) in 5,176 Australian owned foreign affiliates.

Of the 5,176 Australian owned foreign affiliates:

  • 4,622 were small-to-medium businesses (with 0 - 199 employees); and
  • 554 were large businesses (with 200 or more employees).

In terms of the location of Australian owned foreign affiliates (by country):
  • United States of America had 932 operating affiliates or 18% of the total number of Australian owned affiliates;
  • United Kingdom had 608 operating affiliates or 12% of the total number of Australian owned affiliates; and
  • New Zealand had 561 operating affiliates or 11% of the total number of Australian owned affiliates.


Number of employees

The total number of employees of Australian owned foreign affiliates were 412,000 in 2018-19.

With regard to the number of employees of the Australian owned foreign affiliate, by industry:
  • Manufacturing had 77,000 employees or 19% of the total number of employees;
  • Financial and insurance services had 74,000 employees or 18% of the total number of employees;
  • Mining had 59,000 employees or 14% of the total number of employees; and
  • Professional, scientific and technical services had 49,000 employees or 12% of the total number of employees.

In terms of the number of employees of the Australian owned foreign affiliate, by location (country):
  • New Zealand had 66,000 employees or 16% of the total number of employees;
  • United States of America had 62,000 employees or 15% of the total number of employees; and
  • United Kingdom had 44,000 employees or 11% of the total number of employees.

Table 1 - Number of employees by country

Employment
Country
'000

New Zealand
66
United States of America
62
United Kingdom
44
Indonesia
31
Canada
26
Germany
17
South Africa
13
Singapore
11
Papua New Guinea
11
Philippines
11



Sales of goods and services

Total sales of goods and services of Australian owned foreign affiliates was $213,044m with:
  • $123,293m total sale of goods; and
  • $89,751m total sale of services.

The sale of goods of Australian owned foreign affiliates by type of good included:
  • Metalliferous ores and metal scrap, $21,906m or 18% of total sales of goods;
  • Non-ferrous metals, $15,013m or 12% of total sales of goods; and
  • Medicinal and pharmaceutical products, $12,096m or 10% of total sales of goods.

The sale of services of Australian owned foreign affiliates by type of service included:
  • Insurance and pension services, $22,574m or 25% of total sales of services;
  • Financial services, $20,693m or 23% of total sales of services;
  • Other business services, $17,882m or 20% of total sales of services; and
  • Construction services, $11,114m or 12% of total sales of services.

Sales of goods and services by location (country) of the Australian owned foreign affiliate saw:
  • United States of America with $44,865m or 21% of total sales of goods and services;
  • New Zealand with $29,713m or 14% of total sales of goods and services; and
  • United Kingdom with $24,076m or 11% of total sales of goods and services.

The sale of goods by location (country) of the Australian owned foreign affiliate saw:
  • United States of America with $24,557m or 20% of total sale of goods;
  • United Kingdom with $11,835m or 10% of total sale of goods; and
  • New Zealand with $11,560m or 9% of total sale of goods.

The sale of services by location (country) of the Australian owned foreign affiliate included:
  • United States of America with $20,308m or 23% of total sale of services;
  • New Zealand with $18,153m or 20% of total sale of services; and
  • United Kingdom with $12,241m or 14% of total sale of services.

Table 2 - Sales of goods and services by country

Sales of goods and services
Country
$m

United States of America
44 865
New Zealand
29 713
United Kingdom
24 076
Canada
14 851
Singapore
12 105
Papua New Guinea
7 102
Indonesia
7 016
South Africa
7 014
Germany
6 883
Brazil
5 876



Purchases of goods and services

The total purchases of goods and services of all Australian owned foreign affiliates was $81,287m with:
  • $53,066m purchases of goods; and
  • $28,221m purchases of services.

Purchases of goods and services of the Australian owned foreign affiliate, by industry included:
  • Manufacturing with $21,399m or 26% of total purchases of goods and services;
  • Mining with $17,793m or 22% of total purchases of goods and services; and
  • Financial and insurance services with $14,687m or 18% of total purchases of goods and services.

Purchases of goods of the Australian owned foreign affiliate, by industry included:
  • Manufacturing with $20,734m or 39% of total purchases of goods; and
  • Mining with $16,423m or 31% of total purchases of goods.

Purchases of services of the Australian owned foreign affiliate, by industry included:
  • Professional, scientific and technical services with $5,781m or 20% of total purchases of services; and
  • Rental, hiring and real estate services with $2,931m or 10% of total purchases of services.

Purchases of goods and services of the Australian owned foreign affiliate, by location (country) saw:
  • United States of America with $19,146m or 24% of total purchases of goods and services;
  • New Zealand with $12,541m or 15% of total purchases of goods and services; and
  • Canada with $9,059m or 11% of total purchases of goods and services.

Purchases of goods of the Australian owned foreign affiliate, by location (country) saw:
  • United States of America with $11,720m or 22% of total purchases of goods;
  • Canada with $7,065m or 13% of total purchases of goods; and
  • New Zealand with $5,972m or 11% of total purchases of goods.

Purchases of services of the Australian owned foreign affiliate, by location (country) saw:
  • United States of America with $7,426m or 26% of total purchases of services;
  • New Zealand with $6,596m or 23% of total purchases of services; and
  • United Kingdom with $3,007m or 11% of total purchases of services.


Operating profits before tax

Total operating profits before tax of all Australian owned foreign affiliates were $42,466m with:
  • $275,305m total operating income; and
  • $232,838m total operating expenses.

Operating income of the Australian owned foreign affiliate, by industry included:
  • Financial and insurance services with $97,696m or 35% of total operating income;
  • Mining with $53,392m or 19% of total operating income; and
  • Manufacturing with $45,109m or 16% of total operating income.

Operating expenses of the Australian owned foreign affiliate, by industry included:
  • Financial and insurance services with $83,102m or 36% of total operating expenses;
  • Mining with $42,360m or 18% of total operating expenses; and
  • Manufacturing with $37,878m or 16% of total operating expenses.


Australian equity in the affiliate

Total Australian equity in the affiliates of all Australian owned foreign affiliates was $529,511m.

Australian equity in the affiliates, by industry included:
  • Financial and insurance services with $167,003m or 32% of total Australian equity;
  • Mining with $137,232m or 26% of total Australian equity; and
  • Manufacturing with $122,052m or 23% of total Australian equity.

Australian equity in the affiliates, by location (country) included:
  • United Kingdom with $118,268m or 22% of total Australian equity;
  • United States of America with $101,911m or 19% of total Australian equity; and
  • New Zealand with $83,061m or 16% of total Australian equity.


Total assets

Total assets of all Australian owned foreign affiliates were $1,956,303m.

Assets of the Australian owned foreign affiliate, by industry saw:
  • Financial and insurance services with $1,534,563m or 78% of total assets; and
  • Mining with $190,457m or 10% of total assets.

Assets of the Australian owned foreign affiliate, by location (country) saw:
  • New Zealand with $705,562m or 36% of total assets;
  • United States of America with $335,231m or 17% of total assets; and
  • United Kingdom with $285,422m or 15% of total assets.


Total Liabilities

Total liabilities of all Australian owned foreign affiliates were $1,630,497m.

Liabilities of the Australian owned foreign affiliate, by industry included:
  • Financial and insurance services with $1,442,237m or 88% of total liabilities.

Liabilities of the Australian owned foreign affiliate, by location (country) saw:
  • New Zealand with $645,203m or 40% of total liabilities;
  • United States of America with $250,200m or 15% of total liabilities; and
  • United Kingdom with $229,628m or 14% of total liabilities.


Capital expenditure

Total capital expenditure of all Australian owned foreign affiliates was $25,476m.

Capital expenditure of the Australian owned foreign affiliate, by industry included:
  • Mining with $9,979m or 39% of total capital expenditure;
  • Professional, scientific and technical services with $5,869m or 23% of total capital expenditure; and
  • Manufacturing with $2,633m or 10% of total capital expenditure.


Industry value added

Total Industry Value Added (IVA) of all Australian owned foreign affiliates was $159,682m.

IVA of the Australian owned foreign affiliate, by location (country) included,
  • New Zealand with $44,974m or 28% of total IVA;
  • United States of America with $23,655m or 15% of total IVA; and
  • United Kingdom with $17,565m or 11% of total IVA.

IVA of the Australian owned foreign affiliate, by industry saw:
  • Financial and insurance services with $79,215m or 50% of total IVA;
  • Mining with $33,824m or 21% of total IVA; and
  • Manufacturing with $11,434m or 7% of total IVA.

Table 3 - Industry value added by industry

Industry
Industry value added
$m

Financial and insurance services
79 215
Mining
33 824
Manufacturing
11 434
Construction
9 143
Rental hiring and real estate services
6 040
Health care and social assistance
4 923
Transport, postal and warehousing
4 469
Retail trade
3 356
Information media and telecommunications
2 832
Professional, scientific and technical services
1 773
Electricity, gas, water and waste services
1 447
Wholesale trade
366
Administrative and support services
256
Arts and recreation services
192
Accommodation and food services
156
Agriculture, forestry and fishing
np
Education and training
np
Other services
np