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Balance of Payments and International Investment Position, Australia

Balance of payments statistics on current, capital and financial transactions and the international investment position statement

Reference period
June 2020
Released
1/09/2020
Future releases
  • Balance of Payments and International Investment Position, Australia
    Next Release 1/12/2020
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    Next Release 1/12/2021
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    Next Release 1/03/2022
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Key statistics

  • The current account surplus, seasonally adjusted, rose $8,715m to $17,738m.
  • Australia's net IIP liability position was $910.6b at 30 June 2020.
  • The capital and financial account deficit rose $7,787m to $18,636m.

  • The primary income deficit fell $4,320m to $5,583m.

Main features

Balance of payments

  • In seasonally adjusted chain volume terms, the surplus on goods and services rose $4,982m to $15,630m in the June quarter 2020. This is expected to contribute 1.0 percentage points to growth in the June quarter 2020 volume measure of GDP.

International investment position (IIP)

  • Australia's net IIP liability position was $910.6b at 30 June 2020, an increase of $59.3b on the revised 31 March 2020 position of $851.3b.
  • Australia's net foreign debt liability position decreased $75.2b to $1,093.5b.
  • Australia's net foreign equity asset position decreased $134.4b to $182.9b at 30 June 2020.
     
 Mar Qtr 2020Jun Qtr 2020Mar Qtr 2020 to Jun Qtr 2020
$m$m% change
BALANCE ON CURRENT ACCOUNT   
 Trend estimates
na
na
na
 Seasonally adjusted
9 023
17 738
97
BALANCE ON GOODS AND SERVICES   
 Trend estimates
na
na
na
 Seasonally adjusted
19 142
23 861
25
NET PRIMARY INCOME   
 Trend estimates
na
na
na
 Seasonally adjusted
-9 903
-5 583
44
LEVELS AT END OF PERIOD   
 International Investment Position
851 329
910 590
7
  Net foreign equity
-317 272
-182 861
42
  Net foreign debt
1 168 601
1 093 451
-6
na not available
a. Trend series is not published from June Quarter 2019

 
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  1. Seasonally adjusted estimates at current prices.
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Seasonal adjustment

International Accounts uses the concurrent seasonal adjustment method, meaning that seasonal factors are re-estimated each time new data becomes available. If not appropriately accounted for, unusual events, such as COVID-19, can distort estimates calculated using this method. From March quarter 2020, seasonal factors for series that have been notably impacted by COVID-19 will be calculated using data up to and including December quarter 2019, then projected from March quarter 2020 onwards. This approach, known as the forward factor method, ensures that the seasonal factors are not distorted by COVID-19 impacts.

The ABS has advised users that it had moved to using forward factors for seasonal analysis of a number of series, including Travel Services. Current ABS (and international practice) requires at least three years of data to assess whether a change in the seasonal pattern has occurred. Should COVID-19 result in a long-term change to the seasonal pattern then revisions to these series may occur in the future. The ABS will consult with users on any future methods changes to seasonal adjustment and potential revisions.

For more information on interpreting seasonally adjusted estimates of International travel services please see the May 2020 feature article International Travel Services time series which outlines the matter in greater detail.

Suspension of trend estimates

The trend series attempts to measure underlying behaviour of international trade activity. In the short term, this measurement will be significantly affected by the current COVID-19 pandemic and subsequent changes to regular patterns in international trade that will occur during this time. If the trend estimates in this publication were to be calculated without fully accounting for this unusual event, they would provide a misleading view of underlying international trade activity.

It may be some time before the underlying trend in international trade activity can be accurately estimated. The trend series has therefore been suspended from March quarter 2020 and will be reinstated when more certainty emerges in the underlying trend in international trade.

COVID-19 in June quarter

Quality assurance undertaken by the ABS confirmed that COVID-19 did not result in quality impacts to International Trade in Goods and Services statistics for June quarter 2020. For information on the expected economic impacts of COVID-19, please see the ABS Chief Economist Series paper Measuring natural disasters in the Australian economy.

Analysis and comments

Balance of payments

In original current price terms, the June quarter 2020 current account surplus was $19,246m, a rise of $9,762m on the March quarter 2020 surplus. In original current price terms, the balance on goods and services was a net surplus of $24,646m, primary income was a net deficit of $4,618m and secondary income was a net deficit of $782m.

In original current price terms, the June quarter 2020 capital and financial account deficit was $18,636m, a rise of $7,787m on the March quarter 2020 deficit. In original current price terms, the capital account was a net deficit of $219m and the financial account was a net deficit of $18,417m.

The contributors to the current account balances, in original terms at current prices, are shown in the following table.

Balance of payments, summary(a) - original

 Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020
$m$m$m$m$m
CURRENT ACCOUNT
6 343
4 045
3 033
9 484
19 246
 Goods and services
19 212
18 636
13 629
20 502
24 646
  Credits
123 603
127 614
124 432
116 073
108 529
  Debits
-104 391
-108 978
-110 803
-95 571
-83 883
   Goods
21 522
20 646
13 111
17 858
18 920
    Credits
100 443
102 328
97 442
91 587
91 275
    Debits
-78 921
-81 682
-84 331
-73 729
-72 355
   Services
-2 310
-2 010
518
2 644
5 726
    Credits
23 160
25 286
26 990
24 486
17 254
    Debits
-25 470
-27 296
-26 472
-21 842
-11 528
 Primary income
-12 704
-14 433
-10 572
-10 540
-4 618
  Credits
17 817
17 221
18 527
18 199
15 071
  Debits
-30 521
-31 654
-29 099
-28 739
-19 689
 Secondary income
-165
-158
-24
-478
-782
  Credits
2 558
2 517
2 517
2 517
2 327
  Debits
-2 723
-2 675
-2 541
-2 995
-3 109
CAPITAL AND FINANCIAL ACCOUNT
-4 654
-5 473
-765
-10 849
-18 636
 Capital account
-233
-189
-174
-534
-219
  Acquisitions/disposals of non-produced non-financial assets
2
-24
6
-346
-1
   Credits
2
-
7
-
-
   Debits
-
-24
-1
-346
-1
  Capital transfers
-235
-165
-180
-188
-218
   Credits
-
-
-
-
-
   Debits
-235
-165
-180
-188
-218
 Financial account
-4 421
-5 284
-591
-10 315
-18 417
  Direct investment
25 343
17 186
-953
10 010
1 356
   Assets
241
4 423
-11 126
-4 094
-1 108
   Liabilities
25 102
12 763
10 173
14 103
2 464
  Portfolio investment
-38 269
-7 199
19 619
-31 453
-10 658
   Assets
-27 525
-27 464
-18 292
14 707
13 833
   Liabilities
-10 744
20 265
37 912
-46 160
-24 491
  Financial derivatives
-2 364
2 003
-5 832
734
7 850
   Assets
15 924
27 385
37 158
13 161
104 876
   Liabilities
-18 288
-25 382
-42 990
-12 428
-97 026
  Other investment
7 876
-20 811
-4 315
9 363
-40 028
   Assets
-5 101
-22 872
4 213
-68 544
15 513
   Liabilities
12 977
2 060
-8 528
77 906
-55 540
  Reserve assets
2 992
3 538
-9 111
1 033
23 063
NET ERRORS AND OMISSIONS
-1 689
1 428
-2 268
1 364
-610
- nil or rounded to zero (including null cells)
a. For sign conventions, see the Concepts section in the Explanatory Notes in the Methodology.

 

In seasonally adjusted current price terms, the June quarter 2020 current account surplus was $17,738m, a rise of $8,715m on the March quarter 2020 surplus.

The contributors to the current account balance, in seasonally adjusted at current prices, are shown in the following table.

Balance on current account in current prices - June quarter 2020

 Current pricesCurrent prices changeCurrent prices
$m$m%
Seasonally Adjusted
Balance on current account
17 738
8 715
97
 Balance on goods and services
23 861
4 719
25
  Net goods
16 958
-2 270
-12
  Net services
6 903
6 989
8 127
 Net primary income
-5 583
4 320
44
 Net secondary income
-541
-325
-150
Trend (a)
Balance on current account
na
na
na
 Balance on goods and services
na
na
na
  Net goods
na
na
na
  Net services
na
na
na
 Net primary income
na
na
na
 Net secondary income
na
na
na
na not available
a. Trend Series is not published from June Quarter 2019

 

Terms of trade (footnote 1)

Australia's seasonally adjusted terms of trade on net goods and services for the June quarter 2020 remained steady at 107.4, with a decrease of 1.2% in the implicit price deflator (IPD) for goods and services credits and a decrease of 1.7% in the IPD for goods and services debits.

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  1. Seasonally adjusted, reference year 2017-18 = 100.
     

Balance on goods and services

In seasonally adjusted chain volume terms, the balance on goods and services was a surplus of $15,630m, a rise of $4,982m on the March quarter 2020 surplus of $10,648m.

The net surplus on goods fell $1,086m on the March quarter 2020 surplus of $8,651m. Goods credits fell $2,805m (3%) and goods debits fell $1,718m (2%). The net surplus on services rose $6,068m on the March quarter 2020 surplus of $1,998m.

The rise in the balance on goods and services surplus, in seasonally adjusted chain volume terms, is expected to contribute 1.0 percentage points to growth in the June quarter 2020 chain volume measure of GDP, assuming no significant revision to the GDP chain volume estimate for the March quarter 2020.

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  1. Seasonally adjusted, reference year 2017-18.
     

Goods

In seasonally adjusted terms at current prices, net goods was a surplus of $16,958m, a fall of $2,270m on the March quarter 2020 surplus of $19,228m.

Goods, price and volume analysis - seasonally adjusted - June quarter 2020

 Change in:
 Current pricesCurrent pricesChain volume measures(a)Implicit price deflators(a)(b)
$m%%%
Exports
-5 106
-5.3
-3.5
-1.9
Rural goods
-913
-7.6
-6.4
-1.3
Non-rural goods
-4 066
-5.2
-2.6
-2.7
Net exports of goods under merchanting
44
47.3
44.0
2.3
Non-monetary gold
-171
-2.8
-10.3
8.4
Imports
-2 836
-3.7
-2.4
-1.3
Consumption goods
-1 123
-4.4
-6.9
2.7
Capital goods
-352
-2.0
-2.5
0.5
Intermediate and other merchandise goods
-1 919
-6.2
0.5
-6.6
Non-monetary gold
558
25.2
15.6
8.3
a. Reference year 2017-18.
b. Movements in indexes are based on data to four decimal places.
 

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Goods credits

In seasonally adjusted terms at current prices, goods credits fell $5,106m (5%) to $90,596m, with volumes down 3% and prices down 2%.

Rural goods

Exports of rural goods, in seasonally adjusted terms at current prices, fell $913m (8%) to $11,107m, with volumes down 6% and prices down 1%.

The main components contributing to the fall were:

  • meat and meat preparations, down $535m (12%), with volumes down 12%
  • wool and sheepskins, down $184m (24%), with volumes down 10% and prices down 16%
  • other rural, down $165m (3%), with volumes down 2% and prices down 1%.
     

Non-rural goods

Exports of non-rural goods, in seasonally adjusted terms at current prices, fell $4,066m (5%) to $73,417m, with volumes down 3% and prices down 3%.

The main components contributing to the fall were:

  • other mineral fuels, down $2,571m (17%), with volumes down 2% and prices down 15%
  • coal, coke and briquettes, down $1,996m (15%), with volumes down 8% and prices down 7%
  • other manufactures, down $1,047m (16%), with volumes down 13% and prices down 4%
  • transport equipment, down $495m (37%), with volumes down 37%
  • machinery, down $426m (14%), with volumes down 14%
  • metals (excl. non-monetary gold), down $370m (12%), with volumes down 3% and prices down 9%.
     

Partly offsetting these falls were:

  • metal ores and minerals, up $2,744m (9%), with volumes up 5% and prices up 3%
  • other non-rural (incl. sugar and beverages), up $174m (7%), with volumes up 13% and prices down 5%.
     
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  1. Seasonally adjusted.
     

Net exports of goods under merchanting

Net exports of goods under merchanting, in seasonally adjusted terms at current prices, rose $44m (47%) to $137m, with volumes up 44% and prices up 2%.

Non-monetary gold

Exports of non-monetary gold, in original and seasonally adjusted terms at current prices, fell $171m (3%) to $5,935m, with volumes down 10% and prices up 8%.

Goods debits

In seasonally adjusted terms at current prices, goods debits fell $2,836m (4%) to $73,638m, with volumes down 2% and prices down 1%.

Consumption goods

Imports of consumption goods, in seasonally adjusted terms at current prices, fell $1,123m (4%) to $24,490m, with volumes down 7% and prices up 3%.

The main component contributing to the fall was non-industrial transport equipment, down $2,706m (45%), with volumes down 46% and prices up 2%.

Partly offsetting this fall were:

  • textiles, clothing and footwear, up $725m (17%), with volumes up 11% and prices up 5%
  • consumption goods n.e.s., up $401m (5%), with volumes up 4% and prices up 1%
  • food and beverages, mainly for consumption, up $215m (5%), with volumes up 2% and prices up 3%
  • household electrical items, up $181m (13%), with volumes up 10% and prices up 2%.
     

Capital goods

    Imports of capital goods, in seasonally adjusted terms at current prices, fell $352m (2%) to $17,262m, with volumes down 2% and prices up 1%.

    The main components contributing to the fall were:

    • capital goods n.e.s., down $580m (24%), with volumes down 19% and prices down 6%
    • industrial transport equipment n.e.s., down $441m (19%), with volumes down 20% and prices up 2%
    • civil aircraft and confidentialised items, down $376m (36%), with volumes down 40% and prices up 7%.
       

    Partly offsetting these falls was ADP equipment, up $1,008m (39%), with volumes up 39%.

    Intermediate and other merchandise goods

    Imports of intermediate and other merchandise goods, in seasonally adjusted terms at current prices, fell $1,919m (6%) to $29,110m, with prices down 7%.

    The main components contributing to the fall were:

    • fuels and lubricants, down $3,662m (43%), with volumes down 15% and prices down 33%
    • parts for transport equipment, down $163m (5%), with volumes down 8% and prices up 3%.
       

    Partly offsetting these falls were:

    • processed industrial supplies n.e.s., up $1,379m (15%), with volumes up 13% and prices up 2%
    • organic and inorganic chemicals, up $316m (37%), with volumes up 38% and prices down 1%
    • plastics, up $99m (9%), with volumes up 8% and prices up 1%.
       

    Non-monetary gold

    Imports of non-monetary gold, in original and seasonally adjusted terms at current prices, rose $558m (25%) to $2,776m, with volumes up 16% and prices up 8%.

    Services

    In seasonally adjusted terms at current prices, net services was a surplus of $6,903m, a turnaround of $6,989m on the March quarter 2020 deficit.

    Services, price and volume and analysis - seasonally adjusted - June quarter 2020

       Change in:
    Current pricesCurrent pricesChain volume measures(a)Implicit price deflators(a)(b)
    $m%%%
    Exports
    -4 167
    -18.4
    -18.4
    -
    Manufacturing services on physical inputs owned by others
    -
    -
    -
    -
    Maintenance and repair services n.i.e.
    -4
    -50.0
    -49.8
    -0.4
    Transport
    -795
    -44.2
    -46.6
    4.6
    Travel
    -3 352
    -24.6
    -24.6
    -0.1
    Other services
    -16
    -0.2
    -0.1
    -0.2
    Imports
    11 156
    49.0
    50.5
    3.0
    Manufacturing services on physical inputs owned by others
    -
    -
    -
    -
    Maintenance and repair services n.i.e.
    113
    50.4
    50.2
    -0.5
    Transport
    1 006
    25.3
    32.9
    11.3
    Travel
    10 127
    98.7
    98.7
    -0.9
    Other services
    -90
    -1.1
    -1.8
    -0.7
    - nil or rounded to zero (including null cells)
    a. Reference year 2017-18.
    b. Movements in indexes are based on data to four decimal places.
     

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    Services credits

    Services credits, in seasonally adjusted terms at current prices, fell $4,167m (18%) to $18,499m, with volumes down 18%.

    In original terms, travel fell $6.602m (42%), with volumes down 42%.

    In seasonally adjusted terms, transport fell $796m (44%), with volumes down 47% and prices up 5%.

    In seasonally adjusted terms, tourism related services credits fell $4,034m (28%) to $10,272m.

    Services debits

    Services debits, in seasonally adjusted terms at current prices, fell $11,156m (49%) to $11,597m, with volumes down 51% and prices up 3%.

    In original terms travel fell $9,570m (99%) , with volumes down 99% and prices down 1%.

    In seasonally adjusted terms, transport fell $1,006m (25%), with volumes down 33% and prices up 11%.

    In seasonally adjusted terms, tourism related services debits fell $11,442m (99%) to $152m.

    Primary income

    In seasonally adjusted terms at current prices, the net primary income deficit fell $4,320m (44%) to $5,583m in the June quarter 2020.

    Download
    1. Trend series is not published from June Quarter 2019

    Primary income credits

    Primary income credits, in seasonally adjusted terms at current prices, fell $2,931m (16%) to $15,200m. The main components contributing to the fall were:

    • compensation of employees, down $341m (50%)
    • investment income, direct investment assets, income on equity and investment fund shares, down $1,430m (24%)
    • investment income, portfolio investment assets, income on equity and investment fund shares, down $1,028m (12%)
    • investment income, other investment assets, down $136m (10%).

    Primary income debits

    Primary income debits, in seasonally adjusted terms at current prices, fell $7,251m (26%) to $20,782m. The main components contributing to the fall were:

    • compensation of employees, down $931m (51%)
    • investment income, direct investment liabilities, income on equity and investment fund shares, down $2,189m (18%)
    • investment income, portfolio investment liabilities, income on equity and investment fund shares, down $3,265m (53%)
    • investment income, other investment liabilities, down $176m (8%).

    Secondary income

    In seasonally adjusted terms at current prices, the net secondary income deficit rose $325m to $541m in the June quarter 2020.

    Capital account

    In original terms, the capital account deficit was $219m, a decrease of $315m on the March quarter 2020 deficit of $534m. Capital account credits remained steady and capital account debits decreased $345m in the June quarter 2020.

    Financial account

    The balance on the financial account, in original terms, recorded a net outflow of $18.4b, which was driven by a net outflow of debt of $50.1b and a net inflow of equity of $31.7b.

    The financial account deficit increased $8.1b from $10.3b in the March quarter 2020, to $18.4b in the June quarter 2020.

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    Direct investment

    Direct investment recorded a net inflow of $1.4b in the June quarter 2020, a decrease of $8.7b on the net inflow of $10.0b in the March quarter 2020, where:

    • direct investment liabilities recorded an inflow of $2.5b in June quarter 2020, a decrease of $11.6b on the inflow of $14.1b in the March quarter 2020
    • direct investment assets recorded an outflow of $1.1b in the June quarter 2020, a decrease of $3.0b on the outflow of $4.1b in the March quarter 2020.

    Portfolio investment

    Portfolio investment recorded a net outflow of $10.7b in the June quarter 2020, a decrease of $20.8b on the net outflow of $31.5b in the March quarter 2020, where:

    • equity and investment fund shares recorded a net inflow of $24.0b in the June quarter 2020, a decrease of $3.7b on the net inflow of $27.7b in the March quarter 2020
    • debt securities recorded a net outflow of $34.7b in the June quarter 2020, a decrease of $24.5b on the net outflow of $59.2b in the March quarter 2020.

    Financial derivatives

    Financial derivatives recorded a net inflow of $7.9b in the June quarter 2020, an increase of $7.1b on the net inflow of $0.7b in the March quarter 2020.

    Other investment

    Other investment recorded a net outflow of $40.0b in the June quarter 2020, a turnaround of $49.4b on the net inflow of $9.4b in the March quarter 2020.

    Reserve assets

    Reserve assets recorded an inflow of $23.1b in the June quarter 2020, an increase of $22.0b on the inflow of $1.0b in the March quarter 2020.

    International investment position (IIP)

    Australia's net IIP liability position was $910.6b at 30 June 2020, an increase of $59.3b on the revised 31 March 2020 position of $851.3b. Australia's net foreign debt liability position decreased $75.2b to $1,093.5b. Australia's net foreign equity asset position decreased $134.4b to $182.9b at 30 June 2020.

    International investment position, by net foreign equity and net foreign debt

      Changes in position reflecting 
    Position at beginning of periodTransactionsPrice changesExchange rate changesOther adjustmentsPosition at end of period
    $m$m$m$m$m$m
    Net International Investment Position     
     Dec 2019
    1 002 679
    -591
    -77 513
    13 334
    -2 915
    934 994
     Mar 2020
    934 994
    -10 315
    -2 296
    -65 930
    -5 124
    851 329
     Jun 2020
    851 329
    -18 417
    -3 971
    81 771
    -122
    910 590
    Net Foreign Equity     
     Dec 2019
    -172 647
    -7 768
    -66 082
    27 229
    -5 136
    -224 404
     Mar 2020
    -224 404
    32 583
    10 422
    -128 501
    -7 372
    -317 272
     Jun 2020
    -317 272
    31 664
    -24 619
    129 362
    -1 997
    -182 861
    Net Foreign Debt     
     Dec 2019
    1 175 326
    7 177
    -11 431
    -13 895
    2 221
    1 159 398
     Mar 2020
    1 159 398
    -42 898
    -12 718
    62 571
    2 248
    1 168 601
     Jun 2020
    1 168 601
    -50 081
    20 648
    -47 591
    1 874
    1 093 451

    Supplementary information

    Conditions

    The conditions in the global economy showed a significant decline in growth in the majority of Australia’s major trading partner countries in the June quarter 2020. According to the Organisation for Economic Cooperation and Development (OECD) (footnote 2) preliminary growth rates compared to last quarter in seasonally adjusted terms showed quarterly growth for Spain (-18.5%), France (-13.8%), Belgium (-12.2%), Canada (-12.0%), EU 27 (-11.9%), Germany (-10.1%), USA (-9.5%), Indonesia (-6.9%), South Korea (-3.3%) and China (11.5%).

    • Foreign asset transactions recorded an inflow of $156.2b in the June quarter 2020 compared to an outflow of $43.7b in the March quarter 2020.
    • Foreign liability transactions recorded an outflow of -$174.6b in the June quarter 2020 compared to an inflow of $33.4b in the March quarter 2020.
       

    The Australian share market, as measured by the MSCI global index (footnote 3), increased 14.3% in the June quarter 2020, compared to a decrease of 24.3% in the March quarter 2020. Increases were recorded in Brazil (29.7%), Germany (21.7%), the USA (21.2%), India (20.2%), New Zealand (17.9%), China (14.2%), Canada (14.2%), France (12.6%), Japan (11.4%), UK (7.8%), Hong Kong (7.6%), Switzerland (7.5%) and Singapore (5.1%). A market price change of -$143.1b was recorded for foreign equity assets and $118.5b for foreign equity liabilities in the June quarter 2020.

    According to Thomson Reuters (footnote 4), the composite corporate benchmark yields decreased in the USA from 3.77% to 2.26%, Germany from 1.78% to 0.91%, the UK from 2.49% to 1.67% and Australia from 2.05% to 1.80% over the June quarter 2020. Whereas the composite corporate benchmark yield increased in Japan from 0.48% to 0.52% over the June quarter 2020. The long-term 10 year government bond yields decreased in the UK from 0.36% to 0.17%, the USA from 0.70% to 0.66% and Germany from -0.46% to -0.50% over the June quarter 2020. Whereas the long-term 10 year government bond yields increased in Australia from 0.89% to 0.92% and Japan from 0.02% to 0.03% over the June quarter 2020. A market price change of -$6.9b was recorded for portfolio investment debt securities assets and $10.0b in portfolio investment debt securities liabilities in the June quarter 2020.

    The Australian dollar appreciated against most major and minor trading currencies in the June quarter 2020. The Australian dollar appreciated 16.09% against the South African rand, 11.59% against the UK pound sterling, 11.14% against the US dollar, 11.11% against the Indian rupee, 11.09% against the Hong Kong dollar, 10.86% against the Chinese renminbi, 10.61% against the Japanese yen, 9.03% against the European euro, 8.88% against the Singapore dollar, 7.07% Canadian dollar and 4.35% against the New Zealand dollar. The Trade Weighted Index (TWI) (footnote 5) rose 9.69% to 60.00 in the June quarter 2020. These movements were reflected in exchange rate changes for foreign assets of $195.2b and foreign liabilities of -$113.4b in the June quarter 2020.

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    Relationship between IPD, EPI and IPI (footnote 6)

    In original terms, the IPD for total goods credits fell 1.5% and the chain Laspeyres price index for goods exports fell 1.5%. The Export Price Index (EPI)(footnote 7) fell 2.4% during the June quarter 2020.

    In original terms, the IPD for total goods debits fell 1.2% and the chain Laspeyres price index for goods imports fell 1.5%. The Import Price Index (IPI)(footnote 7) fell 1.9% during the June quarter 2020.

    Differences between the IPD and International Trade Price Indexes can arise due to a number of methodological factors including differences in pricing points, timing, coverage and weights.

    Goods and services, price comparison - June quarter 2020

      Change in:
    Seasonally adjustedOriginal
    Implicit price deflators(a)Implicit price deflators(a)International trade price indexes(b)Chain Laspeyres price indexes(a)
    %%%%
    Exports    
     Goods
    -1.9
    -1.5
    -2.4
    -1.5
     Services
    -
    -0.3
    na
    0.3
    Imports    
     Goods
    -1.3
    -1.2
    -1.9
    -1.5
     Services
    3.0
    2.2
    na
    0.3
    na not available
    a. Reference year 2017-18 = 100.
    b. Source: International Trade Price Indexes, Australia (cat. no. 6457.0).

     
    Download
    1. Reference year 2017-18 - 100.
    2. Source: International Trade Price Indexes, Australia (6457.0).

    ​​​​​​​Commodity price indexes

    The RBA Commodity Price Index (average monthly index) for rural commodities fell 2.7% between the March quarter 2020 and the June quarter 2020 while the EPI for rural goods fell 1.4%.

    The RBA Commodity Price Index for non-rural commodities fell 2.1% between the March quarter 2020 and the June quarter 2020 while the EPI for non-rural goods (excluding non-monetary gold) fell 3.6%.

    Differences between the RBA Commodity Price Index and ABS price measures are largely a consequence of methodological differences used in the construction of the respective indexes, including coverage of included commodities and timing of source data.

    Financial year 2019-20 situation

    Current account

    In original terms, the balance on current account for 2019-20 was a surplus of $35.8b, a turnaround of $49.9b on the deficit of $14.1b recorded for 2018-19. The balance on goods and services was a surplus of $77.4b, a rise of $28.3b on the surplus of $49.1b recorded for 2018-19. Goods and services credits rose $5.9b (1%) and goods and services debits fell $22.4b (5%).

    The low value threshold adjustments applied to goods debits for 2019-20, fell $2.9b to $7.5b.

    The 2019-20 primary income deficit fell $22.1b, with a fall in primary income debits of $23.5b (18%) and a fall in primary income credits of $1.4b (2%).

    The 2019-20 secondary income deficit rose by $0.6b, with a rise in secondary income debits of $0.4b (4%) and a fall in secondary income credits of $0.1b (1%).

    Financial account

    The balance on the financial account recorded a deficit of $34.6b, with a net inflow on equity of $56.1b and a net outflow on debt of $90.7b. This result was a turnaround of $54.9b on the net inflow of $20.3b recorded for the previous financial year as a result of:

    • a decrease of $38.6b on the net inflow on direct investment
    • a decrease of $56.4b on the net outflow on portfolio investment
    • a turnaround of $14.5b from a net outflow of $9.8b to a net inflow of $4.8b on financial derivatives
    • a turnaround of $102.0b from a net inflow of $46.2b to a net outflow of $55.8b on other investment
    • an increase of $14.7b of the inflow on reserve assets.
       

    International investment position

    Australia's net international investment position as at 30 June 2020 was a net foreign liability of $910.6b. This was a decrease of $106.1b on the position a year earlier as a result of:

    • net transactions of -$34.6b
    • price changes of -$76.8b
    • exchange rate changes of $24.5b
    • other changes of -$19.2b.
       

    During 2019-20, Australia's net foreign equity asset increased to $182.9b, an increase of $44.3b on the previous financial year, with price changes of $80.5b and other changes of $28.7b, offset by net transactions of $56.1b and exchange rate changes of $8.9b

    Australia's net foreign debt liability decreased to $1,093.5b, a decrease of $61.8b on the previous financial year, with a decrease in net transactions of $90.7b, offset by exchange rate changes of $15.6b, price changes of $3.7b and other changes of $9.5b.

    At 30 June 2020, the ratio of Australia's net international investment position to GDP using the latest available GDP figure (for the year ended 31 March 2020 using current prices) was 45.3%. This compares with 52.2% one year ago.

    Footnotes

    1. In this commentary movements in indexes are based on data to four decimal places. 
    2. OECD Statistics Quarterly National Account, Organisation for Economic Cooperation and Development – Economic Department, viewed 19 August 2020. 
    3. MSCI Global Market Indexes 2019, Morgan Stanley Capital International, viewed 08 July 2020. 
    4. Thomson Reuters, viewed 07 July 2020. 
    5. Exchange Rates – Daily 2014 to Current, Reserve Bank of Australia - Statistical Tables, viewed 09 July 2020. 
    6. In this commentary movements in indexes are based on data to four decimal places. 
    7. Source: International Trade Price Indexes, Australia (cat. no. 6457.0)

    Revisions

    The following goods component has been revised since the release of the June 2020 issue of International Trade in Goods and Services, Australia (cat. no. 5368.0).

    • capital goods n.e.s. component of goods debits, revised in the June quarter 2020.
       

    Summary of revisions since the last issue of this publication

    Table 28 summarises revisions, in original current price terms, since the last issue of this publication.

    Incorporation of the latest survey and administrative data has resulted in revisions to the balance of payments series back to the September quarter 2016. In original current price terms, these revisions have:

    • increased the current account deficit for September quarter 2016 by $19m
    • decreased the current account deficit for December quarter 2016 by $28m
    • increased the current account deficit for March quarter 2017 by $25m
    • decreased the current account deficit for June quarter 2017 by $6m
    • increased the current account deficit for September quarter 2017 by $104m
    • increased the current account deficit for December quarter 2017 by $98m
    • increased the current account deficit for March quarter 2018 by $181m
    • increased the current account deficit for June quarter 2018 by $286m
    • increased the current account deficit for September quarter 2018 by $208m
    • increased the current account deficit for December quarter 2018 by $236m
    • increased the current account deficit for March quarter 2019 by $103m
    • increased the current account surplus for June quarter 2019 by $12m
    • increased the current account surplus for September quarter 2019 by $184m
    • increased the current account surplus for December quarter 2019 by $863m
    • increased the current account surplus for March quarter 2020 by $235m.
       

    The International Investment Position (IIP) has been revised back to the September quarter 2016. These revisions have increased Australia's net IIP liability $43,251m to a net liability position of $851,329m at 31 March 2020. The financial account deficit has been revised down $1,098m to $10,315m at 31 March 2020.

    Seasonally adjusted and trend series have been revised due to the incorporation of revised estimates and the incorporation of estimates for the latest quarter.

    In seasonally adjusted terms, the revisions decreased the volume surplus on goods and services by $271m for the March quarter 2020.

    Data in this issue aligns with the data in the June quarter 2020 issue of Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0) to be released on 2 September 2020.

    Changes in this and forthcoming issues

    Annual seasonal re-analysis

    The seasonally adjusted and trend estimates of goods, services, primary income and secondary income will be revised in the September quarter 2020 issue of this publication as a result of the annual seasonal re-analysis. This re-analysis reviews the seasonal and trading day factors in more detail than is possible in the quarterly processing cycle and assesses the appropriateness of any prior corrections.

    New base year and re-referencing of chain volume estimates and implicit price deflators

    A new base year 2018-19 will be introduced into chain volume estimates and implicit price deflators in the September quarter 2020 issue. As a result, the chain volume estimate series and implicit price deflators series will be re-referenced to 2018-19.

    Value adjustments

    Goods credits data presented in this publication are based on information provided by exporters to the Department of Home Affairs (Home Affairs). At the time of initial reporting to Home Affairs, the final prices at which transactions take place are not known for some commodities. Final quantity and/or unit price information is updated progressively in international merchandise trade data as exporters revise the information provided to Home Affairs.

    For commodities such as iron ore and coal, newly negotiated contract prices are not fully reflected in data first reported to Home Affairs. When additional information on quantity and/or unit price for these commodities is available, the ABS may adjust the data to reflect actual transaction values.

    Iron ore adjustments are applied on an international merchandise trade basis at the Australian Harmonized Export Commodity Classification (AHECC) level. Coal, coke and briquettes are adjusted on a balance of payments basis in original current price terms. When actual final transaction prices become available estimates are replaced with these data.

    In most instances, transfer of ownership occurs when goods cross the customs frontier. In certain circumstances the ownership of large value capital expenditure items can occur prior to the items crossing the customs frontier. The ABS may adjust the relevant balance of payments series to record the timing when transfer of ownership was effected.

    Exports on an international merchandise trade basis

    Iron ore (in original terms)

    • adjustments have been applied to iron ore lump in the the December quarter (+$25m) 2019 and the June quarter (+$145m) 2020. Adjustments have been applied to iron ore fines in the December quarter (+$45m) 2019, the March quarter (+$35m) and the June quarter (+$225m) 2020, When actual final transaction prices become available estimates are replaced with these data.
       

    Goods credits on a balance of payments basis

      Coal (in original terms)

      • adjustments have been applied to coal, coke and briquettes in the balance of payments series for the March quarter (-$15m) and the June quarter (+$1,105m) 2020. All previous adjustments have been removed.
         

      Capital expenditure (in original terms)

      • the balance of payments goods debits component capital goods n.e.s. includes an estimate of expenditure on capital goods that have changed ownership but have not yet crossed the customs frontier.

      Related releases

      New COVID-19 publication

      In response to the global COVID-19 crisis the ABS has released a new publication, International Merchandise Trade, Preliminary, Australia (cat. no. 5368.0.55.024). This release provides preliminary estimates for Australian international merchandise (goods) trade on a monthly basis to help measure the economic impact of COVID-19. These estimates are compiled from administrative data (customs records) sourced from the Department of Home Affairs and are subject to revision. This publication will run monthly until further notice. The final monthly estimates will be published in International Trade in Goods and Services, Australia (cat. no. 5368.0). For more information on the range of additional products released by the ABS to help assess the impact of COVID-19 please see the COVID-19: Additional products to measure the impact page.

      Data downloads

      All time series spreadsheets

      Table 1. Balance of payments, summary: original - quarter

      Table 2. International investment position: by net foreign equity and net foreign debt - quarter

      Table 3. Foreign assets and liabilities: by equity and debt - quarter

      Table 4. Current account transactions: seasonally adjusted and trend estimates - quarter

      Table 5. Goods and services: chain volume measures and indexes - quarter

      Table 6. Goods credits

      Table 7. Goods debits

      Table 8. Services credits

      Table 9. Services debits

      Table 10. Income credits - quarter

      Table 11. Income debits - quarter

      Table 12. Capital account: original - quarter

      Table 13. Financial account - quarter

      Table 14. International investment: foreign assets - quarter

      Table 15. International investment: foreign liabilities - quarter

      Table 16. Foreign debt levels - quarter

      Table 17. Gross external debt liabilities: levels - quarter

      Table 18. Currency and residual maturity of foreign debt - quarter

      Table 19. Exchange rates - quarter

      Table 20. Foreign assets and liabilities by industry - quarter

      Table 21. Goods and services credit by state on a balance of payments basis - quarter

      Table 22. Goods and services debits by state on a balance of payments basis - quarter

      Table 23. Selected international accounts ratios: seasonally adjusted - quarter

      Table 24. Quarterly combined current price seasonal adjustment factors

      Table 25. Exports by SITC division on a balance of payments basis - quarter

      Table 26. Imports by broad economic category on a balance of payments basis - quarter

      Table 27. International investment: directional principle - quarter

      Table 28. Summary of revisions - quarter

      Table 29. International investment position: historical summary - quarter

      Table 30. Balance of payments, summary: original - financial year

      Table 31. Selected services, chain volume measures and implicit price deflators: original - quarter

      Previous catalogue number

      This release previously used catalogue number 5302.0.