1360.0 - Measuring Australia's Economy, 2003  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 03/02/2003   
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Over the last ten years the proportion of private gross fixed capital formation (investment) to GDP in quarterly trend terms rose from 15.2% in June quarter 1992 to a high of 19.2% in March quarter 2000, and was 18.5% in the June quarter 2002. Changes in the proportion of total gross fixed capital formation to GDP largely reflect movements in private sector investment.





NATIONAL CAPITAL ACCOUNT, Current Prices
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
$m
$m
$m
$m
$m
$m
Net saving
19,599
20,567
17,933
20,865
21,107
24,078
Consumption of fixed capital
80,376
86,160
91,316
97,663
104,292
111,556
Capital transfers
Receivable from non-residents
2,200
2,068
2,197
2,335
2,442
2,513
less Payable to non-residents
877
971
1,011
1,199
1,260
1,393
Gross saving and capital transfers
101,298
107,824
110,435
119,664
126,581
136,754
Gross fixed capital formation
Private
95,038
108,724
112,828
123,899
115,875
128,503
Public corporations
9,525
8,014
11,468
9,276
9,418
11,862
General government
13,026
12,734
13,408
15,878
16,407
16,120
Total gross fixed capital formation
117,588
129,472
137,704
149,053
141,700
156,485
Changes in inventories
Private non-farm (a)
2,402
-418
5,165
1,837
2,438
730
Farm
-55
176
-193
59
204
515
Public authorities
-2,357
304
180
-135
-768
75
Total changes in inventories
-10
62
5,152
1,760
1,873
1,320
Acquisitions less disposals of non-produced non-financial assets
6
-30
19
83
73
82
Statistical discrepancy (b)
—
—
—
—
—
41
Net lending to non-residents
-16,285
-21,680
-32,440
-31,230
-17,061
-21,174
Total capital accumulation and net lending
101,298
107,824
110,435
119,664
126,581
136,754
(a) Includes for all periods the privatised marketing authorities
(b) Statistical discrepancy (E) less statistical discrepancy (I).

Source: Australian National Accounts: National Income, Expenditure and Product (5206.0).

Explanatory Notes

The national capital account records the saving and investment flows taking place in the economy. It shows how saving, consumption of fixed capital and capital transfers are used to finance the gross accumulation of capital formation.

If, as is typically the case in Australia, the nation’s saving and consumption of fixed capital formation are not sufficient to pay for all its capital formation, the shortfall must be borrowed from overseas. The amount borrowed from overseas is shown in the national capital account as a negative entry for net lending to non-residents.

The national capital account shows, on the receipts side, consumption of fixed capital and net saving (transferred from the national income account) and capital transfers receivable less capital transfers payable to non-residents (transferred from the external account).

Shown on the payments side are new investment in fixed assets (such as equipment and buildings), changes in inventories, acquisitions less disposals of non-produced non-financial assets (such as mineral deposits and other sub-soil assets), a balance described as net lending to non-residents and a statistical discrepancy for years in which supply and use tables are not available.

In principle, the sum of net lending for all domestic sectors is equal to the nation’s net lending to non-residents. However, in practice, net lending for each sector is derived as a balancing item and therefore includes each sector’s share of the statistical discrepancy.


Further Reading

Australian National Accounts: Concepts, Sources and Methods (5216.0)
Contains a detailed explanation of the system of Australian national accounts outlining major concepts and definitions.

Australian National Accounts: National Income, Expenditure and Product (5206.0)
Contains quarterly data for the national capital account.

Australian System of National Accounts (5204.0)
Contains annual data for the national capital account as well as capital accounts for each sector.



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