Australian National Accounts: Finance and Wealth

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National, public and private corporations, government and household financial and capital accounts, and household balance sheets.

Reference period
June 2020

Key statistics

  • $165.1b (1.5%) rise in household wealth to $11,131.8b 
  • $8.1b rise in Australia’s net lending position to a record $18.4b
  • Rise in total capital investment to 23.1% of GDP, despite a fall in the level of investment
  • Demand for credit was $138.0b, the largest funding recorded in the entire time series

Main features

Financing resources

Total financing resources available to the Australian economy rose by $16.7b to $126.9b for the June quarter. Gross saving was the biggest driver with:

  • $76.8b gross saving by households, an increase of $25.1b from the March quarter
  • $77.8b gross saving by non financial corporations, an increase of $47.6b from the March quarter

Gross saving by general government was -$63.6b, a decrease of $77.7b from the March quarter. The large fall in saving reflects the government's economic response to the COVID-19 pandemic, which resulted in record high subsidy payments to households and businesses. 

Financing resources table

Capital formation

Capital formation for the June quarter was $107.9b. This is 6.9% lower than the level in June 2019 and the lowest since 2011.

Total financing resources available exceeded the level of capital formation resulting in Australia being a net lender in the June quarter.

Capital formation and financial investment table

Financial investment

Australia was a net lender of $18.4b in the June quarter, the strongest on record. It was also Australia's fifth consecutive quarter of net lending. This was due to a $174.6b decrease in liabilities to rest of world (ROW) driven by: 

  • $50.6b in net maturites of debt securities (one name paper and bonds) held by ROW and issued by authorised deposit taking institutions (ADIs)
  • $97.0b in settlements of derivative contracts with ROW

ADIs sourced alternative, lower cost forms of funding such as deposits and RBA's term funding facility, rather than issuing debt overseas. 

Households' $62.5b net lending position was the result of a $76.0b acquisition of assets and a $13.4b incurrence of liabilities, driven by:

  • $33.4b increase in deposits
  • $13.3b increase in loan liabilities

The increase in deposits reflects increased household saving due to government income support packages combined with reduction in consumption due to COVID-19. The increase in loan liabilities was as a result of refinancing activity and deferred loan repayments relating to housing loans.

Non-financial corporations' $39.8b net lending position was due to a $37.9b acquisition of assets and a $1.9b decrease in liabilities, driven by:

  • $32.0b increase in deposits
  • $33.2b repayment of loan liabilities
  • partly offset by $26.2b in equity raisings

General government's $62.5b net borrowing position was due to a $146.7b increase in liabilities, driven by:

  • A record $106.6b issuance of debt securities (one name paper and bonds)
  • $29.4b increase in loan liabilities

Increases in both debt security issuance and loan liabilities were used to mainly fund COVID-19 related economic support policies. For further analysis, see - Financing COVID-19 government policies 

Financial market summary table

Flow of funds diagrams

Demand for credit

Demand for credit was a record $138.0b in the June quarter, of which:

  • general government borrowed $135.4b
  • households borrowed $13.1b
  • other private non-financial corporations paid back $20.9b

Credit market outstanding grew $315.8b (4.3%) due to the strong demand for credit and $177.8b in revaluation gains. The stock market drove $214.8b of revaluation gains in shares and other equity of private non-financial corporations.

General government's demand for credit was the highest on record, as significant amounts of funds were raised to finance COVID-19 policies. The funds were acquired through:

  • $72.2b in net bond issuances by national general government
  • $28.5b in loan borrowings by state and local general government

Households' took advantage of record low interest rates to refinance mortgages to larger loan amounts. Demand for short term borrowing was impacted by COVID-19 restriction measures and a continuation of households paying off credit card debt. This translated to:

  • $18.7b of long term loan borrowings
  • $5.4b repayment of short term loans

Overall, other private non-financial corporations did not require credit during the quarter as they repaid lines of credit that had been drawn upon in the March quarter. Some businesses showed a preference for sourcing funds through equity raisings during the quarter. These are reflected as:

  • $36.5b repayment of loans and placements
  • $20.2b raised through shares and other equity

Demand for credit table


Household wealth rose $165.1b (1.5%) to $11,131.8b in the June quarter. 

Average household wealth increased $5,881 (1.4%) to $433,833 per person.

The growth was driven by financial assets up $253.9b (4.6%), largely in superannuation, direct equity holdings and deposits.

Improving financial market conditions drove gains in superannuation and direct equity holdings, partly recouping losses experienced in the March quarter. In June quarter there was a:

  • $160.3b rise in superannuation reserves
  • $31.2b rise in shares and other equity

COVID-19 related policies and impacts, including government income support packages such as JobKeeper and early access to superannuation and reduced household consumption contributed to a: 

  • $33.4b rise in deposits
  • $5.4b reduction of short term debt

Credit cards and personal loans were the biggest contributors to the reduction in short term debt. As well as the COVID-19 impact for the June quarter, this is also a continued trend of households reducing use of credit cards in favour of alternative ways to finance consumption.

The largest offsets to household wealth related to housing. In the June quarter there was a:

  • $83.8b fall in land and dwellings
  • $14.3b rise in housing loans

The increase in household loan balances was driven by: 

  • households taking advantage of record low interest rates to refinance mortgages to larger loan amounts
  • interest accruing on deferred loan repayments as part of COVID-19 relief packages

The fall in land and dwellings reflected widespread falls in property prices due to a combination of social distancing measures (restrictions on auctions and open house inspections) and ongoing economic uncertainty. 

For further analysis, see - Insights into household wealth during COVID-19

Household balance sheet

Household financial assets

Household liabilities

Private non-financial corporations

Private non-financial corporations decreased their liabilities by $11.2b, driven by:

  • $35.7b repayment of loans
  • $1.7b net maturity of debt securities
  • offset by $26.2b equity raising 

Following record borrowings in the March quarter, private non-financial corporations this quarter took advantage of the temporary emergency capital raising measures implemented by the ASX, which resulted in:

  • debt to equity ratio falling from 0.70 to 0.67, adjusted for price changes (June 2000 base)

Private non-financial corporations increased their deposit assets by $31.0b, with:

  • $27.4b deposited with authorised deposit taking institutions
  • $3.6b deposited with rest of world

Deposit accounts of private non-financial corporations continued to grow from last quarters record increase as businesses increased their liquidity positions through equity raising and receipt of government subsidy payments. This resulted in private non-financial corporations moving to a $48.9b net lending position.

Private non-financial corporations' financial assets

Private non-financial corporations' liabilities

Financial corporations

Financial corporations' assets and liabilities

Authorised deposit-taking institutions (ADIs)

With increasing access to deposits and the RBA's term funding facility, ADIs share of funding acquired from debt securities declined during the quarter.
In the June quarter, ADIs' funding compared to the previous quarter comprised of:

  • 58.4% from deposits, an increase from 56.0%
  • 11.9% from bonds, a decrease from 12.6%
  • 10.5% from shares and other equity, an increase from 9.1%
  • 6.6% from short term debt securities, a decrease from 6.9%

ADIs funding from deposits grew $22.7b with a:

  • $28.3b increase from other private non-financial corporations
  • $33.4b increase from households
  • offset by a $34.9b decrease from rest of world

ADIs funding from short term debt securities and bonds fell $72.4b. ADIs allowed existing debt securities to mature without replacement, resulting in a net maturity of $44.2b, the largest in the time series. This was driven by maturities of:

  • $28.8b in bonds
  • $14.1b in one name paper
  • $1.2b in bills of exchange

ADIs continued to internally securitise this quarter, acquiring additional debt securities for use as collateral in exchange for low cost funding through the RBA's term funding facility. This resulted in a:

  • $84.9b decrease in long term loan assets from households
  • $97.0b increase in bond assets from securitisers

Securitisers had a corresponding:

  • $105.9b increase in long term loan assets from households
  • $97.0b increase in bond liabilities to ADIs

Authorised deposit-taking institutions' financial assets

Authorised deposit-taking institutions' liabilities

Pension (superannuation) funds

Total financial assets of pension (superannuation) funds partially recovered from last quarter's losses, increasing $130.2b. 

  •  $115.3b in valuation increases of shares and other equity drove the overall growth of 5.8% 
  •  $59.0b of funds invested through life offices were reallocated to non-money market funds 
  •  $4.1b increase in deposits

Recovery in domestic and overseas share markets drove valuation increases in shares and other equity. Deposit levels remained elevated although growth was subdued as pension funds accommodated withdrawals related to the early to access superannuation scheme during the quarter.

For further analysis, see - Impacts of COVID-19 on superannuation funds

Pension (superannuation) funds' financial assets

Pension (superannuation) funds' liabilities


Financial assets of general government (national, and state and local) increased $47.9b (4.3%), driven by deposits with a:

  • $41.6b increase in deposits with the RBA
  • $5.3b increase in deposits with authorised deposit taking institutions

The record increase in deposit assets were due to excess funds raised by the Commonwealth government being placed with the RBA, and state government funds being placed with ADIs, for future outlay.
Liabilities of general government increased $144.7b (9.1%), driven by a:

  • $72.9b issuance of bonds
  • $33.6b issuance of one name paper
  • $29.4b increase in loans

The record increases in bonds and one name paper were due to issuance of Treasury bonds and notes by the Commonwealth government to meet funding requirements, as the government increased spending in response to COVID-19. Similarly, central borrowing authorities raised $29.9b through issuance of semi-government bonds and passed on this record amount to the state governments to meet increased funding requirements.

For further analysis, see - Financing COVID-19 government policies

National general government financial assets

National general government liabilities

State and local general government financial assets

State and local general government liabilities

Capital investment

Net lending (+) / borrowing (-)

Australia’s net lending position increased by $9.0b to $17.5b this quarter. This was driven by a:

  • $5.4b fall in gross fixed capital formation
  • $4.7b rundown in inventories

These were party offset by a:

  • $4.0b decline in national net saving

In the 2019-20 financial year, Australia became a net lender to non-residents following 46 consecutive years as a net borrower. 

Government subsidies to business and households in response to COVID-19, including JobKeeper, JobSeeker and Boosting Cash Flow for Employers, drove movements across all sectors:

  • Households’ net lending increased by $47.3b to $57.9b 
  • Non-financial corporations’ net lending increased by $27.9b to $28.2b 
  • Financial corporations’ net lending increased by $15.3b to $21.5b 
  • General government net borrowing increased by $85.9b to $96.4b, this is $74.8b higher than the level during the global financial crisis

Other notable drivers on households and non-financial corporations were:

  • Household final consumption declined 12.8%, the largest fall on record, driven by COVID-19 related restrictions
  • Declines in dividends payable and gross fixed capital formation as non-financial corporations sought to maintain liquidity

Capital Investment

National capital investment increased to 23.1% as a proportion of GDP, as gross fixed capital formation fell by less than other areas of the economy. 
Relative to GDP:

  • Non-financial corporations’ investment rose to 10.4% 
  • General government investment rose to 4.3% 
  • Financial corporations’ investment was weak at 0.6% 
  • Households’ investment fell to 7.7%

The level of non-financial corporations’ investment fell this quarter as businesses reduced capital expenditure in response to COVID-19. This was less than the 7% fall across the economy, meaning the ratio of investment to GDP increased slightly. 
General government investment rose driven by continued works on state and local infrastructure projects. 
The decline in household investment was led by falls in dwelling construction and ownership transfer costs. COVID-19 social distancing measures led to reduced work done on housing construction as well as declines in real estate sales activity. As a proportion of GDP, household investment recorded its lowest level since 2014. 

Data downloads

Time series spreadsheets

Data files

Previous catalogue number

This release previously used catalogue number 5232.0

Future changes to the publication

In September quarter 2020, Table 19. Financial Assets and Liabilities of Pension Funds - Self-Managed Superannuation Funds ($ million) will be renamed Table 19. Pension Funds - Self-Managed Superannuation Funds Balance Sheet ($ million).

Revisions in this issue

There have been revisions to previously published aggregates due to:

  • Quality assurance reviews affecting the published aggregates after June quarter 2016, 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.

There have also been revisions to some series prior to December quarter 2012 due to corrections of unfunded superannuation claims. The corrections impact:

  • TABLE 28. Financial Assets and Liabilities of General Government ($ million)
  • TABLE 32. Financial Assets and Liabilities of State and Local General Government ($ million)
  • TABLE 34. Financial Assets and Liabilities of Households ($ million)

Suppression of data

The ABS has suppressed the release of some data in this issue due to confidentiality. Tables affected include:

  • TABLE 20. Financial Assets and Liabilities of Life Insurance Corporations ($ million)
  • TABLE 21. Financial Assets and Liabilities of Non-Life Insurance Corporations ($ million)
  • TABLE 44. The Bonds Market ($ million)
  • TABLE 49. The Unlisted Shares and Other Equity Market ($ million)
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