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Australian National Accounts: Finance and Wealth

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

Reference period
December 2021
Released
31/03/2022
  • Next Release 23/06/2022
    Australian National Accounts: Finance and Wealth, March 2022
  • Next Release 29/09/2022
    Australian National Accounts: Finance and Wealth, June 2022
  • Next Release 15/12/2022
    Australian National Accounts: Finance and Wealth, September 2022
  • View all releases

Key statistics

  • Household wealth rose $627.6b (4.5%) to a record $14,676.7b 
  • Demand for credit was $123.2b, a decrease of $11.9b 
  • Australia's net lending position fell $9.0b to $6.3b
  • Capital investment as a proportion of GDP fell to 22.8%

Main features

Financing resources and investment table

Financing resources and investment December quarter 2021, original, current prices, $b
    Non-financial corps Financial corps Government Households Total national Rest of world
Financing resources      
 Net saving (a) 35.0-3.2-14.041.359.1-8.9
 plus Consumption of fixed capital 44.93.211.432.892.4-
 Gross saving 80.0-0.1-2.674.2151.5-8.9
 plus Net capital transfers 0.70.0-2.61.7-0.20.2
 less Statistical discrepancy (b) ----3.2-
 Total financing resources 80.7-0.1-5.275.9148.1-8.7
Uses of financing (investment)      
 Capital formation      
  Gross fixed capital formation 57.83.122.949.1133.0-
  plus Changes in inventories 3.70.01.01.86.4-
  plus Net acquisition of non-produced non-financial assets 1.4--1.4---
  Total capital formation 62.93.122.550.9139.4-
 plus Financial investment      
  Aquistition of financial assets 28.1137.8-0.284.339.533.2
  less Incurrence of financial liabilities 45.4118.022.657.733.239.5
  Net Financial investment (Net lending (+) / net borrowing (-)) -17.319.9-22.826.66.3-6.3
 less Net errors and omissions-35.123.04.91.6-2.42.4
 Total investment80.7-0.1-5.275.9148.1-8.7

- nil or rounded to zero
(a) Net saving for the rest of world is the balance on the external income account.
(b) The statistical discrepancy is not able to be distributed among the sectors.

Financial market summary table

Financial market summary, $b
  Amounts outstanding,
Sep-21
Transactions,
Dec-21
Other changes,
Dec-21
Amounts outstanding,
Dec-21
Currency and deposits    
  Currency 103.33.8-107.0
  Transferable deposits 2,088.394.4-0.92,181.8
  Other deposits 1,378.56.9-1.41,384.0
Short term debt securities    
  Bills of exchange 9.8-1.4-8.3
  One name paper 461.157.7-1.7517.2
Long term debt securities    
  Bonds, etc. 3,219.158.3-65.23,212.2
Derivatives    
  Derivatives 697.2-134.2150.7713.6
Loans and placements    
  Short term 394.19.7-0.2403.6
  Long term 4,235.877.7-1.24,312.3
Shares and other equity    
  Listed 2,555.817.672.52,645.9
  Unlisted 5,496.979.166.35,642.3
Insurance technical reserves    
  Reserves of pension funds and life 3,185.724.670.23,280.4
  General insurance payments 151.24.00.0155.2

- nil or rounded to zero 

Flow of funds diagrams

    Net transactions during December quarter 2021

    This is a flowchart that shows the intersectoral financial flows of net transactions during the December quarter 2021.

    Net transactions during December quarter 2021

    Financial corporations borrowed $17.9b from household and $1.0b from rest of world. They lent $23.9b to non-financial corporation and $11.2b to general government.
    Rest of the world borrowed $8.2b from general government and $1.0b from non-financial corporations. They lent $0.2b to households.
    General government borrowed $15.6b from non-financial corporations and $2.4b from households.
    Households lent $5.0b to non-financial corporations.

      Amounts outstanding at end of December quarter 2021

      This is a flowchart that shows the intersectoral financial flows of amounts outstanding at the end of the December quarter 2021.

      Amounts outstanding at end of December quarter 2021

      Net claims on non-financial corporations were $1,214.1b from financial corporations, $796.8b from households, $1,037.1b from rest of world and $403.3b from general government.
      Net claims on general government were $459.9b from financial corporations, $256.4b from rest of world and $514.6b from households.
      Net claims on rest of world were $187.2b from financial corporations and $179.7b from households.
      Net claims on financial corporations were $2,567.8b from households.

      National investment

      National investment rose $19.2b to $139.4b in the December quarter.

      • General government investment increased $2.6b to $22.5b, driven by state and local general government gross fixed capital formation.
      • Non-financial corporations' investment increased $10.0b to $62.9b, driven by gross fixed capital formation and build up of inventories by private non-financial corporations.
      • Household investment increased by $6.4b to $50.9b, driven by gross fixed capital formation and build up of inventories.

      Financial investment

      Australia was a net lender of $6.3b to rest of world (ROW). The main contributors were a:

      • $59.9b acquisition in ROW equity assets, driven by pension funds, other private non-financial corporations (OPNFC) and non-money market funds.
      • offset by $46.0b purchase of Australian debt securities by ROW, driven mainly by one name paper issued by authorised deposit taking institutions (ADI).

      Pension funds, OPNFC and non-money market funds continued to invest in overseas equity markets. ADIs sourced funding from offshore debt markets through issuance of short-term debt securities.

      Households

      Households' $26.6b net lending position was due to a $84.3b acquisition of financial assets, partly offset by a $57.7b incurrence of liabilities.
      The acquisition of assets was driven by:

      • $45.7b in deposits
      • $28.1b in net equity in pension funds

      While liabilities were driven by:

      • $54.6b in loan borrowings

      Deposits assets continued to grow, though at a reduced pace as spending increased following the easing of COVID-19 related restrictions and seasonal holiday spending. Acquisition of net equity in pension funds reflected continued growth in employment. Increased activity in the property market saw continued strength in demand for housing loans by owner-occupiers and investors.

      Non-financial corporations

      Non-financial corporations' $17.3b net borrowing position was due to a $28.1b acquisition of financial assets, offset by $45.4b incurrence of liabilities. Liabilities were driven by:

      • $41.8b in equity raising
      • $1.2b in loan borrowing

      Businesses sought to raise funds through equities markets with continued investor demand from ROW. Loans from ADIs continued to strengthen as private businesses borrowed to fund operations as economic activity increased resulting from eased restrictions and resumption of interstate travel.

      General government

      General government's $22.8b net borrowing position was due to a $0.2b disposal of assets and a $22.6b incurrence of liabilities.
      Assets were driven by:

      • $11.8b sale of equity holdings

      While liabilities were driven by:

      • $10.4b net issuance of bonds
      • $6.5b net issuance of short term debt securities

      Sale of equity assets were driven by privatisation activity during the quarter. Bonds issued by the Commonwealth government were modest reflecting decreased social assistance benefits paid to residents associated with the decline in COVID-19 outbreaks and reopening of state borders.

      Demand for credit

      Demand for credit table

      Demand for credit non-financial domestic sectors, $b
        Credit market outstandings,
      Sep-21
      Demand for credit,
      Dec-21
      Other changes,
      Dec-21
      Credit market outstandings,
      Dec-21
      Non-financial corporations    
       Investment funds 516.811.422.1550.3
       Other private 3,987.837.063.74,088.5
       Public 157.92.2-7.8152.3
      General government    
       National 926.816.3-21.6921.5
       State and local 326.12.0-0.2327.9
      Households2,530.854.40.62,585.7
      Total8,446.2123.256.78,626.2

      - nil or rounded to zero

       

      Demand for credit was $123.2b in the December quarter, of which:

      • households borrowed $54.4b
      • other private non-financial corporations borrowed $37.0b
      • general government borrowed $18.3b

      Credit market outstanding grew $179.9b (2.1%) of which $56.7b was revaluation gains. The stock market drove $70.7b of holding gains in shares of other private non-financial corporations while rising bond yields resulted in holding losses on Commonwealth government bonds of $21.6b.

      Households

      Household demand for credit was the highest on record, driven by demand for new housing loans as easing COVID-19 restrictions in NSW, Victoria and the ACT spurred increased housing market activity. This was supported by borrowing by unincorporated businesses as business confidence grew. Growth in short term loan borrowing reflects a pick up in consumer spending in the December quarter coinciding with the ending of lockdowns. This resulted in:

      • $52.9b of long term loan borrowings
      • $1.7b of short term loan borrowings

      Private non-financial corporations

      Significant equity raising was undertaken by corporations on the stock market this quarter to help fund elevated merger and acquisition activity. Reinvested earnings also contributed to strength in equity capital investment by non-residents. Strong export revenue on energy and mineral resources drove large operating surpluses for some foreign owned companies which were predominantly retained and reinvested by these businesses. Business credit grew in the December quarter mostly driven by loan borrowing from ADIs but this was partly offset by repayment of loans to rest of the world. Funds of other private non-financial corporations were sourced through:

      • equity raising of $37.0b
      • loan borrowings of $293m

      General government

      The government's funding requirements fell in the December quarter in line with decreased government support payments coinciding with lifting of COVID-19 restrictions in NSW, Victoria and the ACT. The pace of issuance by the Australian Office of Financial Management and the state and territory borrowing authorities slowed as a result. This was reflected in:

      • $10.2b bond issuance and $6.1b Treasury note issuance by national general government
      • $2.0b in loan borrowings by state and local general governments

      Households

      Balance sheet

      Household balance sheet, $b
        Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Other changes (a),
      Dec-21
      Holding gains/losses,
      Dec-21
      Amounts outstanding,
      Dec-21
      Non-financial assets     
       Land and dwellings 9,408.812.07.2478.69,906.6
       Other non-financial assets 706.26.0-6.3718.5
      Financial assets     
       Superannuation reserves 3,606.231.3-64.83,702.3
       Shares and other equity 1,206.12.3-23.11,231.5
       Currency and deposits 1,417.847.3--0.11,465.0
       Other financial assets 382.03.4-3.7389.1
      Liabilities     
       Loans 2,525.554.6-0.62,580.6
       Other liabilities 152.43.2--155.6
      Wealth (Net worth)14,049.144.67.2575.814,676.7
      Memorandum item     
       Consumer durables (b) 462.08.0--470.7

      - nil or rounded to zero
      (a) Not all other changes in volume are separately identifiable. Some have been shown as holding gains.
      (b) Consumer durables are not included in net worth.

      Financial assets

      Household selected financial assets, $b
       Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total assets 69.16,439.7107.16,612.184.36,787.8
      Deposits 5.61,296.272.01,369.545.71,415.1
      Shares and equity 4.01,180.8-0.91,206.12.31,231.5
      Net equity in reserves 40.03,121.826.13,192.524.53,287.8
       Pension funds 37.22,974.122.93,040.128.13,135.3
      Other assets 19.5840.99.9844.011.8853.5

      Liabilities

      Household selected liabilities, $b
       Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total liabilities 48.12,634.340.52,678.257.72,736.4
      Short term loans -0.462.1-4.257.91.759.6
      Long term loans 44.82,423.141.12,467.552.92,521.0
      Other liabilities 3.7149.03.6152.73.2155.8

      Household wealth rose 4.5% ($627.6b) to a record $14,676.7b at the end of the December quarter. Household wealth was driven by continued strength in the housing market, increase in deposits accounts and revaluation growth in superannuation assets and shares and other equity.

      Wealth per capita increased 3.9% ($21,386) to $566,541 per person.

      Non-financial assets

      Non-financial assets owned by households increased 5.0% ($510.1b), driven by a:

      • $489.5b rise in residential land and dwellings

      Holding gains on residential land and dwellings reflected the sustained growth in property prices due to low interest rates and increased market activity due to lifting of state specific COVID-19 restrictions.

      Financial assets

      Financial assets of households rose 2.7% ($175.8b), driven by:

      • $96.0b rise in superannuation reserves
      • $45.7b rise in deposits
      • $25.4b rise in shares and other equity


      Revaluations drove the increases in superannuation reserves and shares and other equity reflective of the positive performance of domestic and overseas share markets. Transactions in superannuation ($28.1b) drove further increases, reflecting continued employment growth.

      The increase in deposits is in line with continued strength in household savings however growth is weaker than the September quarter as state specific COVID-19 restrictions lifted alleviating saving pressures and increasing spending opportunities.

      Liabilities

      Household liabilities increased 2.2% ($58.3b), driven by:

      • $41.8b rise in housing loans
      • $1.7b rise in short term loans

      The growth in housing loans is the strongest since June quarter 2016 and reflects the increased activity in the property market as housing stock levels and clearance rates increased. The rise was mainly driven by owner-occupier loans, which increased $34.3b. Investor loans also contributed $7.5b to the rise, recording a fifth consecutive quarter of positive growth.

      Higher levels of retail spending in the months of November and December combined with easing lockdown measures contributed to the increase in short term loans.

      Private non-financial corporations

      Financial assets

      Private non-financial corporations' selected financial assets, $b
       Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total assets49.71,784.630.51,806.429.91,862.9
      Deposits38.5751.20.5754.911.9766.2
      Shares and equity6.3622.719.8632.424.8673.1
      Other accounts receivable5.6211.23.7209.0-5.0214.3
      Other assets-0.6199.56.5210.2-1.7209.4

      Liabilities

      Private non-financial corporations' selected liabilities, $b
        Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total liabilities 13.74,634.954.04,699.746.94,831.4
      Total debt securities -3.3292.4-4.9295.30.5289.0
      Loans 4.5922.216.7935.36.1940.4
        Authorised deposit taking institutions 2.9581.013.3596.320.2616.0
       Rest of world -0.3249.60.6244.6-12.2231.9
      Shares and equity 8.13,189.438.43,232.341.83,367.6
       Households 4.5767.70.6777.05.0796.5
       Rest of world 8.51,187.234.01,208.927.91,258.8
      Other liabilities 4.4230.93.8236.8-1.6234.4

      Private non-financial corporations demand for credit of $46.9b, was driven by:

      • $41.8b raising of equity,
      • $6.1b borrowing of loans, and
      • $0.5b issuance of debt securities

      Private non-financial corporations favoured equity raising over debt issuance to source funds, supported by strong reinvested earnings and equity raising on the Australian Securities Exchange. This resulted in:

      • debt to equity ratio (adjusted for price changes) decreased to 0.64

      The debt to equity ratio is at its lowest level since March 2005, as businesses have deleveraged to strengthen their balance sheet positions. Businesses have maintained strong liquidity buffers through continued deposit growth since the onset of the pandemic This was supported by strong gross operating surplus for businesses as economic activity and consumption increased following the easing of COVID-19 related restrictions and resumption of interstate travel during the quarter.

      Financial corporations

      Financial assets and liabilities

      Financial corporations' financial assets, $b
       Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Other changes,
      Dec-21
      Amounts outstanding,
      Dec-21
      Central bank652.034.2-7.8678.4
      Authorised deposit taking institutions4,419.164.846.64,530.5
      Other broad money institutions181.0-2.5-0.7177.7
      Pension funds2,865.020.458.82,944.2
      Life insurance corporations191.8-5.12.9189.6
      Non-life insurance corporations268.40.4-0.6268.2
      Money market investment funds33.53.50.037.0
      Non-money market investment funds1,152.317.011.21,180.5
      Central borrowing authorities549.57.1-5.5551.1
      Securitisers706.212.2-0.7717.8
      Other financial corporations108.2-24.926.7110.0

      - nil or rounded to zero

      Financial corporations' liabilities, $b
       Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Other changes,
      Dec-21
      Amounts outstanding,
      Dec-21
      Central bank652.635.5-8.0680.1
      Authorised deposit taking institutions4,653.450.339.94,743.6
      Other broad money institutions174.9-0.1-14.8159.9
      Pension funds3,098.323.764.73,186.8
      Life insurance corporations188.2-5.53.0185.7
      Non-life insurance corporations284.51.2-4.1281.7
      Money market investment funds33.53.20.337.0
      Non-money market investment funds1,335.3-10.434.21,359.1
      Central borrowing authorities526.612.3-7.9531.0
      Securitisers723.214.9-2.1736.0
      Other financial corporations207.6-17.924.0213.7

      Authorised deposit-taking institutions (ADIs)

      Financial assets

      Authorised deposit taking institutions' selected financial assets, $b
        Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total assets -27.14,306.550.44,419.164.84,530.5
      Deposits 132.8413.155.0468.234.3502.4
      Bonds -134.1697.215.0714.110.2713.8
       Securitisers -92.2314.831.1346.015.5360.9
       National general government -30.7110.4-6.5104.3-14.188.4
      Loans 23.32,592.454.42,652.187.22,737.3
      Other assets -49.1603.8-74.0584.6-66.9576.9

      Liabilities

      Authorised deposit taking institutions' selected liabilities, $b
        Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total liabilities-27.14,522.135.84,653.450.34,743.6
      Deposits41.72,704.283.52,796.872.92,867.7
       Other private non-fin corps28.0696.90.5699.910.6710.0
       Pension funds4.4239.4-7.3232.5-4.2228.1
       Households5.61,275.572.11,348.145.51,393.5
      Bonds-0.6452.6-14.3444.07.8443.3
      Shares and equities-0.1616.40.3641.2-4.8622.5
      Other liabilities-68.1748.8-33.7771.4-25.6810.2

      ADIs continued to sell bonds issued by the national general government to the Reserve Bank of Australia (RBA) in return for deposit assets as part of the RBA's bond purchase program. The RBA’s purchasing of bonds was extended at the reduced rate of $4b per week, reflected in a slower growth of ADI deposits with the central bank. This resulted in a:

      • $41.0b acquisition in deposits accepted by the central bank
      • $14.1b sell off of bonds issued by national general government
      • $15.5b acquisition of bonds issued by securitisers

      ADI's share of funding from short term debt securities increased this quarter, following ADI’s return to commercial funding in offshore markets to take advantage of favourable issuance conditions. In the December quarter, 
      ADIs' funding composition compared to the previous quarter comprised of:

      • 63.3% from deposits, remaining steady
      • 9.8% from bonds, a decrease from 10.0%
      • 8.0% from short term debt securities, an increase from 7.3%
      • 13.7% from equities, a decrease from 14.5%

      ADI's funding from one name paper grew $43.2b with a:

      • $8.2b increase of one name paper issued in Australia 
      • $35.0b increase of one name paper issued offshore

      ADIs' funding from deposits grew $70.9b with a:

      • $45.4b increase from households 
      • $22.8b increase from rest of world
      • $10.2b increase from other private non-financial companies

      Pension (superannuation) funds

      Financial assets

      Pension (superannuation) funds' selected financial assets, $b
        Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total assets37.32,808.618.32,865.020.42,944.2
      Deposits5.7251.9-8.9243.7-4.9238.7
      Bonds-0.5119.7-3.2118.1-3.4110.1
      Shares and equity27.42,298.137.82,371.132.12,463.8
       Other private non-fin corps-2.4393.00.1392.011.3422.1
       Non-money market investment funds9.7965.06.4991.4-11.21,002.8
       Rest of world17.6474.128.2506.823.2544.1
      Net equity in life offices-0.817.8-0.517.4-1.716.0
      Other assets5.5121.2-6.9114.6-1.7115.6

      Liabilities

      Pension (superannuation) funds' selected liabilities, $b
        Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total liabilities40.63,032.720.43,098.323.73,186.8
      Net equity in reserves37.42,978.223.13,044.328.33,140.0
       Households37.22,974.122.93,040.128.13,135.3
      Other liabilities3.254.5-2.754.0-4.546.8

      Total financial assets of pension (superannuation) funds increased 2.8%($79.2b), with a:

      • $92.7b increase in shares and other equity
      • partly offset by a $8.0b decrease in bonds
      • and $5.0b decrease in deposits

      Favourable conditions in the domestic and overseas share markets drove valuation gains of $60.5b. Pension funds invested an additional $32.1b in shares and other equity, particularly in rest of world and other private financial corporations.
      Increased bond yields drove valuation losses of $4.6b in pension fund bonds assets and they disposed of $3.4b in bonds, particularly issued by ADIs.
      Deposit levels decreased as funds were allocated toward shares and other equity investments.

      Government

      National general government financial assets

      National general government selected financial assets, $b
        Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total assets1.5652.88.0672.54.6673.7
      Deposits0.087.13.991.47.398.7
       Central bank0.461.61.463.06.969.8
       Authorised deposit taking institutions-0.419.91.721.70.422.1
      One name paper-3.244.30.945.71.146.4
      Shares and equity5.4198.8-0.2207.3-0.7201.9
      Other assets-0.6322.63.3328.2-3.1326.7

      National general government liabilities

      National general government selected liabilities, $b
        Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total liabilities10.71,366.036.51,406.718.41,404.6
      One name paper-6.127.31.528.86.134.9
      Bonds6.2871.525.4898.410.4887.2
       Central bank36.2209.651.2261.625.9282.2
       Authorised deposit taking institutions-30.7110.4-6.5104.3-14.188.4
       Rest of world3.2434.7-15.5419.0-7.1399.2
      Other liabilities10.6467.29.5479.51.9482.5

      State and local general government financial assets

      State and local general government selected financial assets, $b
        Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total assets5.9581.17.4594.1-4.7594.2
      Deposits1.181.76.488.11.789.7
      Loans and placements9.360.9-0.660.34.064.3
      Shares and equity-7.1408.10.0413.9-11.1407.8
       State and local PNFCs0.0320.70.0324.30.0328.0
       Other private non-fin corps-7.747.80.349.8-11.239.0
      Other assets2.530.41.631.90.832.4

      - nil or rounded to zero

      State and local general government liabilities

      State and local general government selected liabilities, $b
        Transactions,
      Jun-21
      Amounts outstanding,
      Jun-21
      Transactions,
      Sep-21
      Amounts outstanding,
      Sep-21
      Transactions,
      Dec-21
      Amounts outstanding,
      Dec-21
      Total liabilities16.2524.225.0542.44.4544.3
      Loans and placements7.6297.922.3320.21.3321.5
       Central borrowing authorities7.9273.623.1296.73.0299.7
      Unfunded superannuation claims0.8154.40.9148.41.0147.1
      Other liabilities7.872.01.973.82.275.8

      General government

      Total bond liability of general government (national, and state and local) decreased $11.3b, driven by

      • $21.7b negative revaluations, partly offset by
      • $10.4b transactions

      The total value of government bonds on issue fell as rising bond yields resulted in a large valuation decrease reflecting rising inflation and inflation expectations. Net issuance of government bonds weakened, reflecting the reduction in support payments to households and businesses as COVID-19 related restrictions eased in New South Wales, Victoria, and the Australian Capital Territory.

      Capital investment

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

      Net lending (+) / borrowing (-)

      Australia's net lending position decreased by $9.3b to $12.5b this quarter. This was driven by a:

      • $4.9b increase in change in inventories 
      • $4.6b decrease in national net savings
      • $1.2b increase in gross fixed capital formation
         

      National net lending as a proportion of GDP fell this quarter driven largely by a fall in net saving as household final consumption expenditure rebounded due to easing of restrictions.

      • Households' net lending decreased by $21.6b to $32.8b 
      • General government net borrowing decreased by $14.8b to $28.0b
      • Financial corporations' net lending increased by $0.8b to $6.8b 
      • Non-financial corporations' net lending decreased by $10.9b, to a net borrowing position of $2.3b

      Notable drivers for general government and non-financial corporations were:

      • General government net savings increased strongly due to an increase in income tax receivable and taxes on production and imports as well as a decrease in income payable in social assistance benefits in cash to residents and subsidies due to the easing of COVID-19 restrictions.
      • Non-financial corporations net savings decreased driven by an increase in income payable and was supported by a built up in non-farm inventories.

      Capital Investment

      National capital investment fell to 22.8% as a proportion of GDP:
      Relative to GDP:

      • Non-financial corporations' investment decreased to 9.8%
      • Household investment decreased slightly to 8.4%
      • Financial corporations' investment decreased slightly to 0.5%
      • General government investment decreased slightly to 4.0%

      Non-financial corporations' investment fell, driven by decreased investment in private machinery and equipment.
      Household investment fell driven by ownership transfer costs as the housing market begins to stabilise following strength in previous quarters.
      General government investment fell, driven by a decrease in national general government with both defence and non-defence showing weakness.

      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

      There have been revisions to previously published aggregates due to:

      • Quality assurance reviews affecting the published aggregates after December quarter 2019, 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.