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NATIONAL INCOME, EXPENDITURE AND PRODUCT ACCOUNTS
The Australian national income, expenditure and product accounts are compiled and published in some detail every quarter, in Australian National Accounts: National Income, Expenditure and Product (5206.0), and in greater detail once a year, in Australian System of National Accounts (5204.0).
GDP ACCOUNT
The GDP account indicates changes in Australian production over time. Tables 29.4 and 29.5 show the GDP account in current prices for a number of years between 1975-76 and 2003-04. Table 29.4 provides a series of snapshots at five-yearly intervals to 1995-96, while table 29.5 shows annual time series from 1999-2000 to 2003-04. Table 29.6 shows expenditure on GDP in real or chain volume terms.
In real terms (i.e. after the effects of price change are removed from the dollar value of Australia's production), there was a fall in production during 1990-91. Since the recession in 1990-91, GDP has grown each year. Although growth in 1991-92 was relatively low (0.3%), by 1995-96 it had accelerated to 4.3%, a growth rate which was generally maintained until 1999-2000. In 2000-01 GDP recorded a smaller growth rate of 2.1% and then increased by 3.9% the following year. In 2003-04 GDP increased by 3.8%.
29.4 GDP ACCOUNT, Current prices - five-yearly intervals
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![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | 1975-76 | 1980-81 | 1985-86 | 1990-91 | 1995-96 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | $m | $m | $m | $m | $m |
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Final consumption expenditure | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | General government | 14,699 | 27,093 | 49,713 | 74,545 | 92,860 |
![](/icons/ecblank.gif) | Households | 45,459 | 84,097 | 144,502 | 233,726 | 299,595 |
![](/icons/ecblank.gif) | Total final consumption expenditure | 60,158 | 111,190 | 194,215 | 308,272 | 392,455 |
Gross fixed capital formation | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Private | 13,328 | 29,256 | 45,959 | 67,029 | 88,029 |
![](/icons/ecblank.gif) | Public | 6,582 | 9,926 | 19,182 | 23,238 | 23,571 |
![](/icons/ecblank.gif) | Total gross fixed capital formation | 19,910 | 39,182 | 65,141 | 90,267 | 111,600 |
Changes in inventories | 180 | 446 | 870 | -1,366 | -813 |
Gross national expenditure | 80,248 | 150,819 | 260,227 | 397,173 | 503,242 |
Exports of goods and services | 11,225 | 22,604 | 38,948 | 66,259 | 99,095 |
less Imports of goods and services | 11,163 | 25,530 | 47,199 | 66,948 | 101,078 |
Statistical discrepancy(a) | -714 | -2,025 | -3,393 | 1,320 | - |
Gross domestic product | 79,597 | 145,868 | 248,583 | 397,804 | 501,257 |
Compensation of employees | 43,919 | 75,044 | 123,434 | 192,723 | 241,100 |
Gross operating surplus | 17,283 | 36,139 | 68,289 | 118,520 | 152,053 |
Gross mixed income | 10,704 | 19,904 | 28,738 | 42,545 | 49,064 |
Total factor income | 71,906 | 131,087 | 220,461 | 353,788 | 442,217 |
Taxes less subsidies on production and imports | 7,895 | 14,753 | 27,805 | 43,407 | 59,041 |
Statistical discrepancy(b) | -204 | 29 | 317 | 609 | - |
Gross domestic product | 79,597 | 145,868 | 248,583 | 397,804 | 501,257 |
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(a) Expenditure-based.
(b) Income-based.
Source: Australian System of National Accounts, 2003-04 (5204.0). |
29.5 GDP ACCOUNT, Current prices
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![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | 1999-2000 | 2000-01 | 2001-02 | 2002-03 | 2003-04 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | $m | $m | $m | $m | $m |
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Final consumption expenditure | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | General government | 113,142 | 119,970 | 127,325 | 136,848 | 145,836 |
![](/icons/ecblank.gif) | Households | 372,509 | 401,472 | 424,829 | 453,202 | 484,935 |
![](/icons/ecblank.gif) | Total final consumption expenditure | 485,651 | 521,442 | 552,154 | 590,050 | 630,771 |
Gross fixed capital formation | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Private | 125,711 | 120,246 | 134,623 | 156,671 | 169,681 |
![](/icons/ecblank.gif) | Public | 24,898 | 25,115 | 27,314 | 28,131 | 29,568 |
![](/icons/ecblank.gif) | Total gross fixed capital formation | 150,609 | 145,361 | 161,937 | 184,802 | 199,249 |
Changes in inventories | 1,791 | 1,064 | 510 | 2,173 | 4,676 |
Gross national expenditure | 638,051 | 667,867 | 714,601 | 777,026 | 834,695 |
Exports of goods and services | 126,222 | 153,763 | 153,200 | 148,293 | 143,366 |
less Imports of goods and services | 140,811 | 153,205 | 154,573 | 167,169 | 167,169 |
Statistical discrepancy(a) | - | - | - | - | 2,333 |
Gross domestic product | 623,461 | 668,426 | 713,229 | 758,147 | 813,225 |
Compensation of employees | 302,116 | 321,023 | 337,398 | 359,189 | 379,344 |
Gross operating surplus | 193,899 | 209,500 | 225,319 | 244,014 | 267,307 |
Gross mixed income | 54,212 | 55,538 | 64,965 | 61,896 | 67,145 |
Total factor income | 550,227 | 586,061 | 627,682 | 665,099 | 713,796 |
Taxes less subsidies on production and imports | 73,227 | 82,365 | 85,547 | 93,048 | 99,485 |
Statistical discrepancy(b) | - | - | - | - | -56 |
Gross domestic product | 623,461 | 668,426 | 713,229 | 758,147 | 813,225 |
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(a) Expenditure-based.
(b) Income-based.
Source: Australian System of National Accounts, 2003-04 (5204.0). |
29.6 EXPENDITURE ON GDP, Chain volume measures(a)(b)
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![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | 1999-2000 | 2000-01 | 2001-02 | 2002-03 | 2003-04 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | $m | $m | $m | $m | $m |
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Final consumption expenditure | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | General government | 126,921 | 129,027 | 131,724 | 136,848 | 140,252 |
![](/icons/ecblank.gif) | Households | 410,685 | 422,800 | 435,762 | 453,202 | 478,429 |
![](/icons/ecblank.gif) | Total final consumption expenditure | 537,565 | 551,806 | 567,485 | 590,050 | 618,681 |
Gross fixed capital formation | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Private | 133,238 | 122,144 | 135,273 | 156,671 | 167,591 |
![](/icons/ecblank.gif) | Public | 25,111 | 25,103 | 27,280 | 28,131 | 29,662 |
![](/icons/ecblank.gif) | Total gross fixed capital formation | 157,231 | 147,401 | 163,022 | 184,801 | 197,254 |
Domestic final demand | 695,891 | 698,464 | 729,783 | 774,853 | 815,934 |
Changes in inventories | 3,773 | 1,396 | 1,696 | 2,173 | 5,887 |
Gross national expenditure | 697,931 | 699,966 | 731,919 | 777,026 | 821,821 |
Exports of goods and services | 140,633 | 151,058 | 149,226 | 148,293 | 150,560 |
less Imports of goods and services | 146,762 | 145,126 | 147,855 | 167,169 | 187,895 |
Statistical discrepancy(c) | - | - | - | - | 2,268 |
Gross domestic product | 692,889 | 707,140 | 734,575 | 758,147 | 786,754 |
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(a) Reference year is 2002-03.
(b) Chain volume measures for years other than 2002-03 and 2003-04 are not additive.
(c) Expenditure-based.
Source: Australian System of National Accounts, 2003-04 (5204.0). |
The GDP account can also be used to show changes in the share of income accruing to labour (i.e. compensation of employees) compared with the share accruing to capital (i.e. profits, defined as the gross operating surplus of non-financial and financial corporations). Graphs 29.7 and 29.8 show how the shares of total factor income accruing to wages and to profits have changed since 1967-68. (Total factor income is equal to the sum of compensation of employees, gross operating surplus and gross mixed income.)
The highest recorded value of the wages share of total factor income was 61.5% in 1974-75. The wages share has recovered somewhat from its low value of 52.8% in 1988-89, but at 53.1% for 2003-04 it remains below the levels achieved during most of the 1970s and early-1980s. The wages share has remained stable during the 1990s, at levels similar to those during the 1960s. The profits share of total factor income of 26.7% in 2003-04 is the highest share recorded since 1959-60.
NATIONAL INCOME ACCOUNT
The national income account shows the sources of national income and how much of this income is spent on final consumption. That part of income which is not spent in this way is saving. Tables 29.9 and 29.10 show the income account for a number of years between 1975-76 and 2003-04. Table 29.9 provides a series of snapshots at five-yearly intervals to 1995-96, while table 29.10 shows annual time series from 1999-2000 to 2003-04.
29.9 NATIONAL INCOME ACCOUNT, Current prices - five-yearly intervals
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![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | 1975-76 | 1980-81 | 1985-86 | 1990-91 | 1995-96 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | $m | $m | $m | $m | $m |
|
INCOME |
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Compensation of employees | 43,919 | 75,044 | 123,434 | 192,723 | 241,100 |
Gross operating surplus | 17,283 | 36,139 | 68,289 | 118,520 | 152,053 |
Gross mixed income | 10,704 | 19,904 | 28,738 | 42,545 | 49,064 |
Taxes less subsidies on production and imports | 7,895 | 14,753 | 27,805 | 43,407 | 59,041 |
Net primary income from non-residents | -1,202 | -2,397 | -6,853 | -17,224 | -19,533 |
Gross national income | 78,599 | 143,443 | 241,413 | 379,971 | 481,725 |
Net secondary income from non-residents | -287 | -441 | -384 | 453 | 64 |
Gross disposable income | 78,312 | 143,002 | 241,029 | 380,424 | 481,789 |
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USE OF DISPOSABLE INCOME |
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Final consumption expenditure | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | General government | 14,699 | 27,093 | 49,713 | 74,545 | 92,860 |
![](/icons/ecblank.gif) | Households | 45,459 | 84,097 | 144,502 | 233,726 | 299,595 |
![](/icons/ecblank.gif) | Total final consumption expenditure | 60,158 | 111,190 | 194,215 | 308,272 | 392,455 |
Net saving(a) | 5,878 | 9,617 | 7,393 | 8,189 | 10,866 |
Consumption of fixed capital | 12,276 | 22,195 | 39,421 | 63,963 | 78,468 |
Total use of gross disposable income | 78,312 | 143,002 | 241,029 | 380,424 | 481,789 |
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(a) Net saving is derived as a balancing item.
Source: Australian System of National Accounts, 2003-04 (5204.0). |
29.10 NATIONAL INCOME ACCOUNT, Current prices
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![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | 1999-00 | 2000-01 | 2001-02 | 2002-03 | 2003-04 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | $m | $m | $m | $m | $m |
|
INCOME |
|
Compensation of employees | 302,116 | 321,023 | 337,398 | 359,189 | 379,344 |
Gross operating surplus | 193,899 | 209,500 | 225,319 | 244,014 | 267,307 |
Gross mixed income | 54,212 | 55,538 | 64,965 | 61,896 | 67,145 |
Taxes less subsidies on production and imports | 73,227 | 82,365 | 85,547 | 93,048 | 99,485 |
Net primary income from non-residents | -18,249 | -18,702 | -19,300 | -21,469 | -23,301 |
Gross national income | 605,205 | 649,724 | 693,929 | 736,678 | 789,980 |
Net secondary income from non-residents | 218 | 32 | -17 | -214 | -29 |
Gross disposable income | 605,423 | 649,756 | 693,912 | 736,464 | 789,951 |
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USE OF DISPOSABLE INCOME |
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Final consumption expenditure | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | General government | 113,142 | 119,970 | 127,325 | 136,848 | 145,836 |
![](/icons/ecblank.gif) | Households | 372,509 | 401,472 | 424,829 | 453,202 | 484,935 |
![](/icons/ecblank.gif) | Total final consumption expenditure | 485,651 | 521,442 | 552,154 | 590,050 | 630,771 |
Net saving(a) | 22,447 | 23,230 | 28,165 | 27,006 | 33,198 |
Consumption of fixed capital | 97,325 | 105,085 | 113,593 | 119,407 | 125,982 |
Total use of gross disposable income | 605,423 | 649,756 | 693,912 | 736,464 | 789,951 |
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(a) Net saving is derived as a balancing item.
Source: Australian System of National Accounts, 2003-04 (5204.0). |
Graph 29.11 shows net saving by institutional sector as a proportion of GDP for the years 1967-68 to 2003-04. Household net saving as a percentage of GDP generally rose between 1967-68 and 1974-75, but has fallen subsequently from its high of 9.8% in 1974-75 to a position in 2002-03 where consumption by households exceeded income and, consequently, household net saving was negative for the first time. In 2003-04 consumption further exceeded household income, by $15.2 billion (b) (table 29.13). General government net saving was negative from 1975-76 to 1996-97 (except for 1988-89 and 1989-90). In 2003-04 it was positive at 1.0% of GDP ($8.5b). In 2003-04 net saving of non-financial corporations was 2.7% of GDP ($22.1b). Net saving of financial corporations was negative from 1981-82 to 1986-87, the only period for which this sector has recorded negative net saving. In 2003-04 net saving of financial corporations was 2.2% of GDP ($17.8b).
NATIONAL CAPITAL ACCOUNT
The national capital account shows how the saving from the national income account and consumption of fixed capital (depreciation) are used to finance gross fixed capital formation. If, as is currently the case for Australia, the nation's saving and consumption of fixed capital are not sufficient to pay for all the fixed capital needed for Australian production, the shortfall must be borrowed from overseas. The amount borrowed from overseas is shown in the national capital account as a negative entry for net lending to non-residents.
Tables 29.12 and 29.13 show the national capital account for a number of years between 1975-76 and 2003-04. Table 29.12 provides a series of snapshots at five-yearly intervals to 1995-96, while table 29.13 shows annual time series from 1999-2000 to 2003-04.
29.12 NATIONAL CAPITAL ACCOUNT, Current prices - five-yearly intervals
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![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | 1975-76 | 1980-81 | 1985-86 | 1990-91 | 1995-96 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | $m | $m | $m | $m | $m |
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Net saving | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Non-financial corporations | -1,681 | 43 | 1,367 | -9,222 | 4,116 |
![](/icons/ecblank.gif) | Financial corporations | 747 | 341 | -1,796 | 4,772 | 3,194 |
![](/icons/ecblank.gif) | General government | -734 | -3,144 | -9,106 | -6,269 | -11,642 |
![](/icons/ecblank.gif) | Households | 7,547 | 12,377 | 16,928 | 18,909 | 15,198 |
![](/icons/ecblank.gif) | Total net saving | 5,878 | 9,617 | 7,393 | 8,189 | 10,866 |
Consumption of fixed capital | 12,276 | 22,195 | 39,421 | 63,963 | 78,468 |
Net capital transfers receivable from non-residents | -27 | 167 | 830 | 2,071 | 1,045 |
Gross saving and capital transfers | 18,127 | 31,979 | 47,644 | 74,223 | 90,379 |
Gross fixed capital formation | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Private | 13,328 | 29,256 | 45,959 | 67,029 | 88,029 |
![](/icons/ecblank.gif) | Public corporations | 2,790 | 5,584 | 10,664 | 12,271 | 11,322 |
![](/icons/ecblank.gif) | General government | 3,792 | 4,342 | 8,518 | 10,967 | 12,249 |
![](/icons/ecblank.gif) | Total gross fixed capital formation | 19,910 | 39,182 | 65,141 | 90,267 | 111,600 |
Changes in inventories | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Private non-farm | 91 | 115 | 882 | -1,125 | -487 |
![](/icons/ecblank.gif) | Farm and public authorities | 89 | 331 | -12 | -241 | -326 |
![](/icons/ecblank.gif) | Total changes in inventories | 180 | 446 | 870 | -1,366 | -813 |
Acquisitions less disposals of non-produced non-financial assets | - | - | - | -7 | -25 |
Statistical discrepancy(a) | -510 | -2,053 | -3,710 | 711 | - |
Net lending to non-residents | -1,454 | -5,597 | -14,658 | -15,382 | -20,382 |
Total capital accumulation and net lending | 18,127 | 31,979 | 47,644 | 74,223 | 90,379 |
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(a) Expenditure-based discrepancy less income-based discrepancy.
Source: Australian System of National Accounts, 2003-04 (5204.0). |
29.13 NATIONAL CAPITAL ACCOUNT, Current prices
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![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | 1999-00 | 2000-01 | 2001-02 | 2002-03 | 2003-04 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | $m | $m | $m | $m | $m |
|
Net saving | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Non-financial corporations | -6,489 | -1,186 | 13,242 | 12,382 | 22,120 |
![](/icons/ecblank.gif) | Financial corporations | 5,231 | 10,021 | 8,412 | 14,608 | 17,778 |
![](/icons/ecblank.gif) | General government | 17,530 | 2,307 | 3,191 | 12,600 | 8,527 |
![](/icons/ecblank.gif) | Households | 6,175 | 12,087 | 3,320 | -12,584 | -15,227 |
![](/icons/ecblank.gif) | Total net saving | 22,447 | 23,230 | 28,165 | 27,006 | 33,198 |
Consumption of fixed capital | 97,325 | 105,085 | 113,593 | 119,407 | 125,982 |
Net capital transfers receivable from non-residents | 1,136 | 1,182 | 1,186 | 1,103 | 1,230 |
Gross saving and capital transfers | 120,908 | 129,497 | 142,944 | 147,517 | 160,410 |
Gross fixed capital formation | | | | | |
![](/icons/ecblank.gif) | Private | 125,711 | 120,246 | 134,623 | 156,671 | 169,681 |
![](/icons/ecblank.gif) | Public corporations | 9,018 | 8,811 | 10,092 | 10,781 | 11,243 |
![](/icons/ecblank.gif) | General government | 15,879 | 16,304 | 17,222 | 17,350 | 18,325 |
![](/icons/ecblank.gif) | Total gross fixed capital formation | 150,609 | 145,361 | 161,937 | 184,802 | 199,249 |
Changes in inventories | | | | | |
![](/icons/ecblank.gif) | Private non-farm | 1,864 | 1,601 | 284 | 2,691 | 5,240 |
![](/icons/ecblank.gif) | Farm and public authorities | -73 | -537 | 226 | -518 | -564 |
![](/icons/ecblank.gif) | Total changes in inventories | 1,791 | 1,064 | 510 | 2,173 | 4,676 |
Acquisitions less disposals of non-produced non-financial assets | 83 | 73 | 170 | 112 | 31 |
Statistical discrepancy(a) | - | - | - | - | 2,388 |
Net lending to non-residents | -31,567 | -17,003 | -19,674 | -39,568 | -45,934 |
Total capital accumulation and net lending | 120,908 | 129,497 | 142,944 | 147,517 | 160,410 |
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(a) Expenditure-based discrepancy less income-based discrepancy.
Source: Australian System of National Accounts, 2003-04 (5204.0). |
Graph 29.14 shows gross fixed capital formation (investment) by institutional sector as a proportion of GDP. For non-financial corporations this proportion generally fell during the 1970s, then rose to a peak of 13.1% in 1981-82. It has subsequently been above 10% except for the years 1991-92 to 1993-94. In 2003-04 investment by non-financial corporations was 10.7% of GDP. Household investment has generally remained at around 9% of GDP since the mid-1970s. In 2003-04 the ratio to GDP was 10.7%. General government investment as a proportion of GDP peaked at 4.6% in 1975-76. It has generally fallen since and was 2.3% of GDP in 2003-04. Financial corporations investment peaked in 1989-90 at 1.9% of GDP, and was 0.8% of GDP in 2003-04.
![Graph 29.14: GROSS FIXED CAPITAL FORMATION, By sector - share of GDP](/AUSSTATS/ABS@.NSF/bb8db737e2af84b8ca2571780015701e/9e416eeda6c703d0ca2570de0020af59/Body/5.2F68!OpenElement&FieldElemFormat=gif)
Graph 29.15 shows net lending by institutional sector as a proportion of GDP. A positive percentage for a sector indicates that it is a net lender to other sectors; a negative percentage indicates that it is a net borrower. The household sector has been a net lender for most years. As a proportion of GDP, net lending by households peaked in 1974-75 at 8.4%. Since then it has trended downwards, and in 2003-04 household lending was -6.3%. Non-financial corporations have been net borrowers over the whole period from 1967-68 to 2003-04, and the amounts borrowed have fluctuated significantly from year to year. As a proportion of GDP, their net borrowing was 1.4% in 2003-04. After being a net borrower throughout the 1980s, the financial corporations sector returned to being a net lender in 1990-91 and has remained so in all years since except for 1998-99. In 2003-04 financial corporations net lending represented 2.0% of GDP. After recording a record level of borrowing as a proportion of GDP in 1992-93 (6.4%), general government borrowing steadily declined. From 1997-98 to 1999-2000 the sector was a net lender and in 2000-01 and 2001-02 general government was a net borrower before returning to being a net lender in 2002-03. In 2003-04 general government net lending represented 0.4% of GDP.
![Graph 29.15: NET LENDING, By sector - share of GDP](/AUSSTATS/ABS@.NSF/bb8db737e2af84b8ca2571780015701e/9e416eeda6c703d0ca2570de0020af59/Body/6.4016!OpenElement&FieldElemFormat=gif)
EXTERNAL ACCOUNT
The external account is derived from the detailed balance of payments current and capital accounts (see the International accounts and trade chapter). It shows Australia's exports and imports, incomes and transfers received by Australian residents from non-residents, and incomes and transfers payable to non-residents by Australian residents. The balance on the external account is net lending to non-residents. This is the same as the balance in the national capital account.
Tables 29.16 and 29.17 show the external account for a number of years between 1975-76 and 2003-04. Table 29.16 provides a series of snapshots at five-yearly intervals to 1995-96, while table 29.17 shows annual time series from 1999-2000 to 2003-04.
29.16 EXTERNAL ACCOUNT, Current prices - five-yearly intervals
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![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | 1975-76 | 1980-81 | 1985-86 | 1990-91 | 1995-96 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | $m | $m | $m | $m | $m |
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Income account | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
| Income of non-residents | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Imports of goods and services | 11,163 | 25,530 | 47,199 | 66,948 | 101,078 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Primary income receivable | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Compensation of employees | 44 | 110 | 164 | 429 | 458 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Property income receivable | 1,587 | 3,147 | 8,879 | 20,552 | 26,215 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Total primary income receivable | 1,631 | 3,257 | 9,043 | 20,981 | 26,673 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Secondary income receivable | 773 | 1,264 | 1,797 | 2,422 | 3,228 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Total income of non-residents | 13,567 | 30,051 | 58,039 | 90,351 | 130,979 |
![](/icons/ecblank.gif) | Uses of income of non-residents | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Exports of goods and services | 11,225 | 22,604 | 38,948 | 66,259 | 99,095 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Primary income payable | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Compensation of employees | 59 | 119 | 165 | 432 | 610 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Property income payable | 370 | 741 | 2,025 | 3,325 | 6,530 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Total primary income payable | 429 | 860 | 2,190 | 3,757 | 7,140 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Secondary income payable | 486 | 823 | 1,413 | 2,875 | 3,292 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Balance on external income account | 1,427 | 5,764 | 15,488 | 17,460 | 21,452 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Total use of income of non-residents | 13,567 | 30,051 | 58,039 | 90,351 | 130,979 |
Capital account | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Balance on external income account | 1,427 | 5,764 | 15,488 | 17,460 | 21,452 |
![](/icons/ecblank.gif) | Capital transfers receivable | 203 | 320 | 486 | 653 | 907 |
![](/icons/ecblank.gif) | less Capital transfers payable | 176 | 487 | 1,316 | 2,724 | 1,952 |
![](/icons/ecblank.gif) | Total net capital transfers | 27 | -167 | -830 | -2,071 | -1,045 |
![](/icons/ecblank.gif) | Gross saving and capital transfers | 1,454 | 5,597 | 14,658 | 15,389 | 20,407 |
![](/icons/ecblank.gif) | Acquisitions less disposals of non-produced non-financial assets | - | - | - | 7 | 25 |
![](/icons/ecblank.gif) | Net lending (+) / net borrowing (-) | 1,454 | 5,597 | 14,658 | 15,382 | 20,382 |
![](/icons/ecblank.gif) | Total capital accumulation and net lending (+) / net borrowing (-) | 1,454 | 5,597 | 14,658 | 15,389 | 20,407 |
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Source: Australian System of National Accounts, 2003-04 (5204.0). |
29.17 EXTERNAL ACCOUNT, Current prices
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![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | 1999-00 | 2000-01 | 2001-02 | 2002-03 | 2003-04 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | $m | $m | $m | $m | $m |
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Income account | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Income of non-residents | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Imports of goods and services | 140,811 | 153,205 | 154,573 | 167,169 | 167,169 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Primary income receivable | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Compensation of employees | 963 | 1,057 | 1,196 | 1,324 | 1,616 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Property income receivable | 31,055 | 33,923 | 33,776 | 35,455 | 37,516 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Total primary income receivable | 32,018 | 34,980 | 34,972 | 36,779 | 39,132 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Secondary income receivable | 4,407 | 4,421 | 4,297 | 4,447 | 4,302 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Total income of non-residents | 177,236 | 192,606 | 193,842 | 208,395 | 210,603 |
![](/icons/ecblank.gif) | Uses of income of non-residents | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Exports of goods and services | 126,222 | 153,763 | 153,200 | 148,293 | 143,366 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Primary income payable | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Compensation of employees | 826 | 912 | 902 | 900 | 986 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Property income payable | 12,943 | 15,366 | 14,770 | 14,410 | 14,845 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Total primary income payable | 13,769 | 16,278 | 15,672 | 15,310 | 15,831 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Secondary income payable | 4,625 | 4,453 | 4,280 | 4,233 | 4,273 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Balance on external income account | 32,620 | 18,112 | 20,690 | 40,559 | 47,133 |
![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | Total use of income of non-residents | 177,236 | 192,606 | 193,842 | 208,395 | 210,603 |
Capital account | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) | ![](/icons/ecblank.gif) |
![](/icons/ecblank.gif) | Balance on external income account | 32,620 | 18,112 | 20,690 | 40,559 | 47,133 |
![](/icons/ecblank.gif) | Capital transfers receivable | 1,199 | 1,260 | 1,357 | 1,301 | 1,399 |
![](/icons/ecblank.gif) | less Capital transfers payable | 2,335 | 2,442 | 2,543 | 2,404 | 2,629 |
![](/icons/ecblank.gif) | Total net capital transfers | -1,136 | -1,182 | -1,186 | -1,103 | -1,230 |
![](/icons/ecblank.gif) | Gross saving and capital transfers | 31,484 | 16,930 | 19,504 | 39,456 | 45,903 |
![](/icons/ecblank.gif) | Acquisitions less disposals of non-produced non-financial assets | -83 | -73 | -170 | -112 | -31 |
![](/icons/ecblank.gif) | Net lending (+) / net borrowing (-) | 31,567 | 17,003 | 19,674 | 39,568 | 45,934 |
![](/icons/ecblank.gif) | Total capital accumulation and net lending (+) / net borrowing (-) | 31,484 | 16,930 | 19,504 | 39,456 | 45,903 |
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Source: Australian System of National Accounts, 2003-04 (5204.0). |
Australia has generally been a net borrower of funds from overseas. In the Australian national accounts, this situation is reflected by a negative value for net lending to non-residents. The only exception to this pattern was in 1972-73. Net borrowing from non-residents (i.e. negative net lending to non-residents), expressed as a proportion of GDP, increased significantly during the early-1980s and has remained at relatively high levels since then. Graph 29.18 shows net lending to non-residents as a proportion of GDP since 1967-68.
The importance of foreign trade to the Australian economy is illustrated by graph 29.19, which shows the ratios of imports and exports of goods and services to GDP for the financial years 1967-68 to 2003-04. In 2003-04 the import ratio was 20.6% and the export ratio, which has fallen for the past three years, was 17.6%.
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