5232.0 - Australian National Accounts: Finance and Wealth, Dec 2014 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 26/03/2015   
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DECEMBER KEY FIGURES

FINANCING RESOURCES AND INVESTMENT, ORIGINAL, CURRENT PRICES
Non-financial corporations
Financial corporations
General government
Household
Total National
Rest of world
$b
$b
$b
$b
$b
$b
Financing resources
Net saving (a)
13.7
0.8
-4.7
24.0
33.8
11.4
plus Consumption of fixed capital
35.4
2.5
8.8
22.1
68.7
-
Gross saving
49.1
3.3
4.1
46.0
102.5
11.4
plus Net capital transfers
0.4
0.0
-1.1
0.5
-0.1
0.1
plus Statistical discrepancy (b)
-
-
-
-
0.5
-
Total financing resources
49.5
3.3
3.0
46.6
101.8
11.5
Uses of financing (Investment)
Capital formation
Gross fixed capital formation
59.2
2.6
13.2
36.2
111.2
-
plus Change in inventories
-0.0
-
0.1
2.0
2.1
-
plus Net acquisition of non-produced non-financial assets
-0.1
-
0.1
-
0.0
-
Total capital formation
59.0
2.6
13.5
38.2
113.3
-
plus Financial investment
Acquisition of financial assets
20.6
65.4
-2.0
45.5
14.1
25.8
less Incurrence of liabilities
40.0
62.1
9.2
30.0
25.8
14.1
Net financial investment (Net lending (+) / net borrowing (-))
-19.4
3.4
-11.2
15.4
-11.7
11.7
less Net errors and omissions
-9.9
2.8
-0.7
7.1
-0.1
0.1
Total investment
49.5
3.3
3.0
46.6
101.8
11.5
- nil or rounded to zero (including null cells)
(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 amongst the sectors.

During December quarter 2014, non-financial corporations and general government invested $59.0b and $13.5b respectively in capital formation. Non-financial corporations funded these investments mainly through gross saving ($49.1b) and net borrowing ($19.4b). General government funded their investment through net borrowing, which was $11.2b for the quarter. By contrast, household investment in capital formation ($38.2b) was less than their available financing resources for the quarter ($46.6b) therefore lending $15.4b to other sectors.

Graph 1. Total capital formation, current prices
Graph Image for Graph 1. Total capital formation, current prices

Source(s): Table 3. National Capital Account, Current prices ($ million)



In original terms, national capital formation investment increased $5.4b from the September quarter 2014 estimate to reach a total of $113.3b in December quarter 2014. The rise was driven by an increase in gross fixed capital formation of $2.4b by the non-financial corporations sector coupled with the household sector ($1.9b) and the general government sector ($1.5b). The rise in investment of gross fixed capital formation by the non-financial corporations sector was driven by private non-financial corporations ($2.2b). The largest contributor to private non-financial corporations investment is non-dwelling construction whilst dwellings is the largest component for the household sector.

Graph 2. Net financial investment (Net lending (+) / net borrowing (-))
Graph Image for Graph 2. Net financial investment, Net lending net borrowing

Source(s): Table 4. National Financial Assets and Liabilities ($ million); Table 6. Financial Assets and Liabilities of Non-Financial Corporations ($ million); Table 14. Financial Assets and Liabilities of Financial Corporations ($ million); Table 27. Financial Assets and Liabilities of General Government ($ million); Table 33. Financial Assets and Liabilities of Households ($ million)



During December quarter 2014, national net borrowing was $11.7b, driven mainly by non-financial corporations borrowing of $19.4b and general government borrowing of $11.2b. By contrast, the household and financial corporations sectors lent $15.4b and $3.4b to other sectors respectively.

The borrowing of $19.4b by non-financial corporations was a result of incurring $40.0b in liabilities and acquiring $20.6b in financial assets. The $40.0b in liabilities was driven mainly by other private non-financial corporations equity issuance of $21.1b and loan borrowing of $7.2b. The $20.6b acquisition of financial assets was driven by $11.5b of accounts receivable and $6.0b of equities issued by rest of world.

The borrowing of $11.2b by general government was a result of incurring $9.2b in liabilities and disposing $2.0b in financial assets. The $11.2b in liabilities was driven mainly by $9.0b issuance of bonds by the national general government and $2.8b loan borrowing by state and local government from their central borrowing authorities. These increases in liabilities were partially offset by a decrease in accounts payable of $4.7b by the national general government. The $2.0b disposal of financial assets was driven by the $6.0b disposal of equities in non-life insurance corporations by national general government.

The net lending of $15.4b by the household sector was a result of acquiring $45.5b in financial assets and incurring $30.0b in liabilities. The $30.0b in acquisition of financial assets was driven mainly by $23.0b in bank deposits and $18.5b in insurance technical reserves in superannuation funds (pension funds), and the incurrence of liabilities was driven by $32.3b loan borrowing.


NOTES

FORTHCOMING ISSUES

ISSUE (QUARTER)Release Date
March 201525 June 2015
June 201524 September 2015
September 201517 December 2015
December 201524 March 2016


CHANGES TO THIS ISSUE

There are no changes to this issue.


REVISIONS IN THIS ISSUE

There have been revisions to previously published aggregates:
  • from December quarter 2012 onwards, revisions are due to quality assurance reviews of the compilation of published estimates and through data providers to the ABS Survey of Financial Information, ABS Survey of International Investment and APRA administrative data sets.
  • Revisions to the sectoral capital are accounts due to the incorporation of more up-to-date data and concurrent seasonal adjustment.


CHANGES IN FUTURE ISSUES

As at March quarter 2015 and all forthcoming issues of this publication the following changes to data item descriptions and series ID will be implemented:

Table numberCurrent DescriptionCurrent Series IDNew DescriptionNew Series ID
Table 6. Financial Assets and Liabilities of Non-financial corporationsNet transactions during period ; Assets ; Insurance technical reserves ; Total (Counterparty sectors) ;A3405555XNet transactions during period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Total (Counterparty sectors) ;A3402396W
Table 6. Financial Assets and Liabilities of Non-financial corporationsNet transactions during period ; Assets ; Insurance technical reserves ; Non-life insurance corporations ;A3377034KNet transactions during period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Non-life insurance corporations ;A3385857X
Table 6. Financial Assets and Liabilities of Non-financial corporationsNet transactions during period ; Assets ; Insurance technical reserves ; Rest of world ;A3546314WNet transactions during period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Rest of world ;A3546367A
Table 6. Financial Assets and Liabilities of Non-financial corporationsAmounts outstanding at end of period ; Assets ; Insurance technical reserves ; Total (Counterparty sectors) ;A3405554WAmounts outstanding at end of period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Total (Counterparty sectors) ;A3402395V
Table 6. Financial Assets and Liabilities of Non-financial corporationsAmounts outstanding at end of period ; Assets ; Insurance technical reserves ; Non-life insurance corporations ;A3377033JAmounts outstanding at end of period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Non-life insurance corporations ;A3385856W
Table 6. Financial Assets and Liabilities of Non-financial corporationsAmounts outstanding at end of period ; Assets ; Insurance technical reserves ; Rest of world ;A3552024LAmounts outstanding at end of period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Rest of world ;A3552077T
Table 8. Financial Assets and Liabilities of Private Non-financial CorporationsNet transactions during period ; Assets ; Insurance technical reserves ; Total (Counterparty sectors) ;A3554946VNet transactions during period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Total (Counterparty sectors) ;A3554959F
Table 8. Financial Assets and Liabilities of Private Non-financial CorporationsNet transactions during period ; Assets ; Insurance technical reserves ; Non-life insurance corporations ;A3546315XNet transactions during period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Non-life insurance corporations ;A3546368C
Table 8. Financial Assets and Liabilities of Private Non-financial CorporationsNet transactions during period ; Assets ; Insurance technical reserves ; Rest of world ;A3546316ANet transactions during period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Rest of world ;A3546369F
Table 8. Financial Assets and Liabilities of Private Non-financial CorporationsAmounts outstanding at end of period ; Assets ; Insurance technical reserves ; Total (Counterparty sectors) ;A3560054AAmounts outstanding at end of period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Total (Counterparty sectors) ;A3560067L
Table 8. Financial Assets and Liabilities of Private Non-financial CorporationsAmounts outstanding at end of period ; Assets ; Insurance technical reserves ; Non-life insurance corporations ;A3552025RAmounts outstanding at end of period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Non-life insurance corporations ;A3552078V
Table 8. Financial Assets and Liabilities of Private Non-financial CorporationsAmounts outstanding at end of period ; Assets ; Insurance technical reserves ; Rest of world ;A3552026TAmounts outstanding at end of period ; Assets ; Prepayments of premiums and reserves against outstanding claims ; Rest of world ;A3552079W


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