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 2023

Key statistics

  • Household wealth increased $378.5b (2.6%) to $15,099.8b.
  • Demand for credit was $38.1b, the weakest since June 2005.
  • Australia's net lending position rose $7.7b to $16.9b this quarter.
  • Capital investment as a proportion of GDP rose to 23.9%.

Main features

Financing resources and investment table

Financial market summary table

Flow of funds diagrams

National investment

National investment increased $19.8b to $156.0b in the June quarter 

  • General government investment increased by $11.4b to $34.0b driven by increases in gross fixed capital formation for both state and local general government and national general government.
  • Non-financial corporations' investment increased by $4.3b to $68.8b, driven by increases in gross fixed capital formation for both private non-financial and public non-financial corporations. 
  • Household investment increased $3.6b to $49.7b, driven by an increase in total gross fixed capital formation. 

Financial investment

Australia was a net lender of $16.9b to rest of world (ROW). The main contributors were a:

  • $21.9b disposal of equity issued by Australia by ROW
  • $19.1b withdrawal of deposits by ROW
  • $9.2b acquisition of debt securities issued by ROW by Australia
  • Partly offset by $19.2b disposal of ROW equity by Australia; and
  • $7.0b acquisition of bonds by ROW, driven mainly by those issued by banks and other private non-financial corporations

An increase in dividends remitted overseas and falling commodity prices resulted in ROW reinvesting lower amounts of profit in foreign owned resource companies. Reductions in deposits reflected funding and liquidity management by Authorised deposit taking institutions and offshore related parties. ROW acquired bonds issued by banks as banks sought additional funding as the Term Funding Facility (TFF) started to mature. Pension funds favoured investment in overseas bonds.


Households $4.1b net lending position was due to a $38.7b acquisition of financial assets, offset by $34.6b incurrence of liabilities. The acquisition of assets was driven by:

  • $36.5b in net equity in superannuation
  • partly offset by $6.1b withdrawal of deposit assets

While liabilities were driven by:

  • $37.8b in loan borrowings

Increased contributions into pension funds reflected additional contributions made by households prior to the end of the financial year. The household sector drew down on deposit assets for the first time since June quarter 2007. The withdrawal of deposits reflected a fall in the household savings ratio as households face high cost of living pressures. Loan borrowing by households reflected renewed activity in the housing market.

General government

General government’s $1.4b net lending position was due to a $13.5b acquisition of financial assets, offset by $12.1b incurrence of liabilities.
The acquisition of assets was driven by:

  • $14.3b in deposits
  • $6.0b in short-term debt securities

Liabilities were driven by:

  • $9.9b in loans
  • offset by $11.3b in bond maturities

The national general government built up deposits this quarter as tax receipts remain elevated. The national general government also experienced its largest net maturity of bond liabilities. State and territory governments continued to borrow funds from their respective central borrowing authorities to fund investment into transport and health infrastructure.

Demand for credit

Demand for credit table

Demand for credit was $38.1b in the June quarter, of which:

  • households borrowed $37.7b
  • other private non-financial corporations borrowed $851m
  • general government repaid $5.5b of their debt

Credit market outstanding increased by a modest $1.8b, comprised of demand for credit and partly offset by revaluation losses of $36.4b. Holding losses on Commonwealth government bonds of $34.3b reflected rising bond yields during the quarter.


Recovery in the housing market drove housing credit growth this quarter in line with an increase in the value of housing loan commitments. Households borrowed:

  • $37.8b in long term loans
  • $91m in short term loans

Other private non-financial corporations

Business lending was driven by investment in machinery and equipment such as motor vehicle purchases. Equity capital on issue was extinguished due to a significant corporate takeover which was funded through existing cash reserves. An increase in dividends remitted overseas and lower commodity prices resulted in less profits reinvested in foreign-owned resource companies. Business financing comprised:

  • loan borrowings of  $7.9b
  • bond issuance of $2.9b
  • and partly offset by $7.8b contraction of equity capital

General government

Favourable economic conditions have delivered a boost to taxation revenue, improving the Commonwealth government's cash surplus. This has allowed the Commonwealth government to pay down maturing bond liabilities and reduced their need for new funding. State government demand for credit continues to be driven by investment in health and transport infrastructure. This was reflected in:

  • $11.8b in net maturities of bonds issued by national general government 
  • and partly offset by $9.5b in loan borrowings by state and local general governments

"Other" includes private non-financial investment funds and public non-financial corporations.


Balance sheet

Financial assets


Household wealth grew 2.6% ($378.5b) to $15,099.8b at the end of the June quarter. The increase in net worth was driven by strength in the housing market.

Wealth per capita grew 2.1% ($11,442) to $567,632 per person.

Non-financial assets

Non-financial assets owned by households increased by 3.2% ($350.0b), driven by: 

  • $312.1b rise in residential land and dwellings

This increase reflects the rebound in the property market, as the number of listed properties remains below current demand.

Financial assets

Financial assets of households increased by 0.9% ($64.5b), with a:

  • $46.9b rise in superannuation reserves
  • $17.0b rise in shares and other equity 
  • $6.3b fall in currency and deposits

Total superannuation reserves increased by 1.3% this quarter, driven by strength in overseas equity markets, and strength in voluntary contributions, which is typical towards the end of the financial year.

Total deposits decreased by 0.4%, the first fall since June 2007. Transferable deposit account balances (which include mortgage offset accounts) fell by $18.0b, while other deposit accounts (which include term deposit and savings accounts) rose $12.0b. The household sector also includes unincorporated businesses and non-profit institutions serving households (such as charities and religious organisations), which contributed to the overall decline in household deposits.


Household liabilities increased by 1.2% ($35.9b), with a: 

  • $27.4b rise in housing loans
  • $0.1b rise in short term loans

The growth in housing loans was driven by both owner-occupier and investor loans experiencing slightly stronger growth than last quarter. 

Private non-financial corporations

Financial assets


Other private non-financial corporations demand for credit of $0.9b was driven by:

  • $7.9b of loan borrowings, and
  • $2.9b issuance of bonds

Partly offset by:

  • $7.8b contraction of equity capital.
  • The debt to equity ratio (adjusted for price changes) remained at 0.60

Growth in firm’s debt was driven by loan borrowing to fund investment in machinery and equipment. This was partly offset by maturities in short term debt securities and settlement of derivative contracts. Firms’ equity fell, driven by merger and acquisition activity combined with soft reinvested earnings due to lower commodity prices and higher dividends paid by foreign-owned companies.

Financial corporations

Financial assets and liabilities

Authorised deposit-taking institutions (ADIs)

Financial assets


Financial assets of ADIs rose $90.4b, reflecting a $76.3b increase in derivatives. 
The Reserve Bank's Term Funding Facility (TFF) began to unwind, with $11.2b of the total $188.0b maturing in the June quarter. ADIs used exchange settlement account balances to repay the TFF, resulting in a fall in these balances over the quarter. The majority of funding was secured with residential mortgage-backed securities, which have shifted back on to the balance sheet of ADIs as the TFF unwinds, resulting in a $17.3b increase in ADIs holdings of bonds issued by securitisers. This quarter also saw a continuation of ADIs increasing their holdings of high-quality liquid assets to replace TFF funding, with net purchases of:

  • $9.4b of treasury bonds, and
  • $4.4b of semi-government bonds

Liabilities of ADIs grew $86.0b, with increases in derivatives and long-term debt securities, offset by falls in deposits. 

 ADIs' funding from debt securities (transactions) grew $9.2b, with a: 

  • $8.3b increase in bonds issued in Australia
  • $5.1b increase in bonds issued offshore
  • offset by a $0.4b fall in one name paper issued in Australia
  • $3.9b fall in one name paper issued offshore

The continued strength in debt security issuance this quarter reflects ADIs returning to traditional pre-COVID-19 pandemic funding avenues, as funds drawn under the initial allowance of the TFF begin to unwind.

Pension (superannuation) funds

Financial assets


Total financial assets of pension (superannuation funds) increased by 2.1% ($62.2b), with a:

  • $50.2b increase in shares and other equity
  • $9.9b increase in bonds
  • $5.7b increase in deposits

Pension funds acquired $15.6b in bonds and $12.2b in shares and other equity this quarter. Valuation gains of $38.0b on their equity assets were driven by favourable movements in overseas equity markets. Increasing bond yields resulted in $5.7b in valuation losses for bonds, partly offsetting pension funds’ acquisitions. Pension funds also placed $5.6b in deposit accounts, taking advantage of rising interest rates.


National general government financial assets

National general government liabilities

State and local general government financial assets

State and local general government liabilities

General government

General government (national, and state and local) had a net financial investment position of $1.4b. This is a second consecutive net lending position and was driven by the Commonwealth government, who had a net financial position of $1.7b.

The Commonwealth government's position was mainly driven by a:

  • $11.6b net maturity of bond liabilities
  • $8.8b increase in deposit assets

National general government experienced its largest net maturity of bonds. The total value of treasury bonds outstanding further decreased as treasury bond yields rose, decreasing their market value.

The rise in deposits was largely attributable to deposits with the central bank. The strength this quarter reflects higher tax receipts.

State and local government had a net financial position of -$0.3b this quarter. Loan liabilities of state and local governments continued to grow as state government obtain funding for transport, health and education infrastructure.

(a) "Other" includes gold and special drawing rights, currency, bills of exchange, derivatives, shares and equity, unfunded superannuation and accounts payable/receivable.

Capital investment

Figures in the capital investment section are in seasonally adjusted current prices.

Net lending (+) / borrowing (-)

Australia's net lending position declined $4.8b to $7.5b this quarter.
This was driven by a: 

  • $13.0b decrease in national net saving
  • $5.4b increase in gross fixed capital formation

And partially offset by a:

  • $10.8b decrease in change in inventories

National net lending as a proportion of GDP decreased this quarter driven by a fall in net savings. 

  • Financial corporations' net lending increased by $3.4b to $14.0b
  • Non-financial corporations' net lending increased by $4.1b to $10.7b
  • General government net borrowing increased by $10.4b to $17.6b
  • Households' net lending decreased by $1.0b to $2.4b

Notable drivers were:

  • Financial corporations' net lending was driven by an increase in net savings
  • Non-financial corporations' net lending was driven by a decrease in change in inventories
  • General government net borrowing was driven by a decrease in net savings
  • Households' net lending was driven by an increase in total gross fixed capital formation

Capital Investment

National capital investment increased to 23.9% as a proportion of GDP in seasonally adjusted terms, while increasing 3.6% in current price seasonally adjusted terms. 
Relative to GDP: 

  • Household capital investment increased to 8.0%.
  • Non-financial corporations' capital investment increased to 11.5%.
  • Financial corporations' capital investment remained at 0.5%
  • General government capital investment increased to 4.3%

In current price seasonally adjusted terms:

  • Non-financial corporations' capital investment increased, driven by increases in private and public non-financial corporations
  • General government capital investment increased, driven by increases in national and state and local general government

Data downloads

Time series spreadsheets

Data files

Previous catalogue number

This release previously used catalogue number 5232.0

Revisions and changes

Revisions in this issue

This issue contains revisions to the original estimates of the capital accounts back to June quarter 2020 and concurrent seasonal adjustment.
The revisions to the financial accounts and balance sheets are back to June quarter 1988 and are a result of implementation of the quality assurance work undertaken through reviews of compilation methods and through source data provided to the ABS. Revisions have been applied to the entire time series of the financial instrument and sector tables.  
The most significant revisions are due to:  

  • improvements in the compilation of rest of world sector using data sourced from the Economic and Financial Statistics (EFS) collection
  • reviewing the methods of how Central Borrowing Authorities value their loan assets
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