1301.0 - Year Book Australia, 2012  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 24/05/2012   
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National accounts

NATIONAL BALANCE SHEET

The national balance sheet provides estimates of the value of Australia's produced, non-produced and financial assets, its liabilities to the rest of the world, and the net worth (defined as the difference between total assets and liabilities, including the value of equity in Australian enterprises owned by non-residents) of the total economy. The main national and sectoral balance sheet tables are published in Australian System of National Accounts (5204.0). Balance sheets are provided for each of the four domestic sectors: non-financial corporations, financial corporations, general government and households (including unincorporated enterprises and non-profit institutions serving households).

Non-produced assets included in the balance sheet cover experimental estimates of the value of some of Australia's natural resources: subsoil assets, timber available for log production and land. The monetary estimates of natural resources contained in the balance sheet are underpinned by physical estimates of particular natural resources. Further, since valuation of natural resources is a difficult and contentious undertaking, the monetary estimates of these natural resources should be considered in conjunction with the physical estimates. The natural resource estimates are used to monitor the availability and exploitation of these resources and to assist in the formulation of environmental policies. More information on valuing land and environment assets can be found in chapter 2 ENVIRONMENT.

More generally, data on the level, composition and change in assets and liabilities shown in the balance sheet indicate the extent of economic resources available to, and claims on, a nation and each of its institutional sectors.

Sectoral balance sheets provide information necessary for analysing a number of topics; for example, the estimation of household liquidity; and the computation of widely-used ratios, such as assets to liabilities, net worth to total liabilities, non-financial to financial assets, and debt to income. In a period of concern about the level of saving in Australia, national and sector balance sheets provide additional information on the relationships between consumption, saving and wealth accumulation.


CURRENT PRICE BALANCE SHEET ESTIMATES

Australia’s net worth at the end of June 2011 was estimated to be $8, 089.9 billion in current prices, an increase of 0.8% since 30 June 2010 (table 30.16). Graph 30.17 shows that net worth (in current prices) exhibited strong growth in the past, especially in the years from 2001–02, during which annual rates of up to 14% have been achieved. As at 30 June 2011, the net worth reached its lowest growth since 1992, with an increase of 0.8%.

Total produced assets at 30 June 2011 were estimated at $4,448.9 billion, an increase of 5% from the level at the end of June 2010. The estimated value of produced assets rose at an average annual rate of 7% between 30 June 2001 and 30 June 2011. At 30 June 2011, dwellings, non-dwelling construction, and machinery and equipment represented 86% of total produced assets.

The difference between Australia’s assets and liabilities with the rest of the world represents the international investment position. Australia’s liabilities stood at $2,034.2 billion at 30 June 2011, a rise of 3% on the position at the end of June 2010. Liabilities as a proportion of net worth have increased steadily from 14% at 30 June 1989 to a peak of 26% at 30 June 2007. At 30 June 2011, the proportion was 25%.


30.16 NATIONAL BALANCE SHEET, Current prices—30 June
2006–07
2007–08
2008–09
2009–10
2010–11
$b
$b
$b
$b
$b
Total assets
8 116.4
8 701.7
9 071.7
10 001.7
10 124.1
Non-financial assets
7 066.6
7 619.2
7 983.0
8 804.1
8 871.0
Produced assets
3 562.3
3 853.5
4 057.3
4 237.2
4 448.9
Fixed assets
3 416.0
3 693.5
3 897.7
4 080.0
4 281.3
Dwellings
1 253.6
1 346.4
1 418.8
1 489.2
1 567.1
Ownership transfer costs
184.7
182.7
180.1
200.1
201.7
Non-dwelling construction
1 343.9
1 466.7
1 545.6
1 616.2
1 727.1
Machinery and equipment
455.1
500.8
542.9
553.5
552.3
Weapons systems
20.5
22.3
24.4
24.4
24.2
Cultivated biological resources(a)
25.2
26.3
26.1
26.5
26.5
Intellectual property products
133.0
148.3
159.7
170.0
182.5
Research and development
58.4
66.8
73.3
78.5
83.5
Mineral and petroleum exploration
35.6
40.4
44.0
47.8
53.6
Computer software
36.9
38.7
39.7
40.7
41.6
Artistic originals
2.1
2.4
2.7
3.0
3.7
Inventories
146.3
160.0
159.6
157.2
167.5
Private non-farm
121.6
134.1
134.8
130.5
138.1
Farm
7.8
8.5
8.6
9.9
12.7
Public authorities
3.9
3.0
2.0
2.3
2.4
Livestock
4.6
4.6
4.9
5.0
4.7
Plantation standing timber(b)
8.4
9.9
9.3
9.4
9.6
Non-produced assets(b)
3 504.3
3 765.7
3 925.7
4 566.9
4 422.2
Natural resources
3 501.2
3 762.7
3 923.0
4 564.5
4 420.1
Land
3 156.2
3 367.6
3 297.2
3 963.7
3 785.0
Subsoil assets
335.8
385.5
615.8
590.5
624.3
Native standing timber
2.1
2.1
1.9
1.7
1.7
Spectrum
Permission to use natural resources
3.1
2.9
2.7
2.4
2.1
Spectrum licences
3.1
2.9
2.7
2.4
2.1
Financial assets with the rest of the world
1 049.8
1 082.6
1 088.7
1 197.6
1 253.1
Monetary gold and SDRs
2.2
2.7
3.2
9.1
8.2
Currency and deposits
69.3
54.5
89.0
94.5
103.0
Securities other than shares
182.6
232.6
250.5
263.0
252.6
Loans and placements
117.3
111.9
145.4
147.7
149.8
Shares and other equity
587.3
579.6
510.6
577.3
628.5
Insurance technical reserves
15.9
13.6
7.6
6.0
6.9
Other accounts receivable
75.3
87.7
82.4
100.0
104.0
Liabilities to the rest of the world
1 663.0
1 741.1
1 792.4
1 974.5
2 034.2
Monetary gold and SDRs
0.8
0.8
0.9
5.3
4.6
Currency and deposits
76.2
87.3
111.9
111.2
125.1
Securities other than shares
727.1
778.1
815.0
928.7
909.6
Loans and placements
182.8
210.3
247.4
230.1
229.1
Shares and other equity
660.7
637.7
590.0
669.8
734.6
Insurance technical reserves
1.9
2.0
1.7
1.8
2.2
Other accounts payable
13.5
24.9
25.5
27.5
29.0
Net worth
6 453.4
6 960.6
7 279.3
8 027.2
8 089.9
Memorandum items
Consumer durables
241.8
251.6
256.7
262.5
269.4
Direct investment
Foreign investment in Australia
400.7
439.2
445.2
490.1
510.2
Australian investment abroad
374.3
371.5
354.7
377.5
387.3
(a) Cultivated biological resources – fixed assets included in the balance sheet include all animals and not just sheep and cattle as shown in the capital stock tables.
(b) Experimental estimates.

Source: Australian System of National Accounts, 2010–11 (5204.0).

30.17 Change in total net worth, 30 June



REAL/VOLUME BALANCE SHEETS

An article introducing experimental real/volume balance sheets for Australia was published in the March quarter 2001 issue of Australian National Accounts: National Income, Expenditure and Product (5206.0). The real/volume balance sheet is designed to remove the effect of price changes, in much the same way as for other real and volume estimates, and allow for comparisons of changes in the value of Australia's assets and liabilities over time, free of the direct effects of changes in prices.

Volume estimates for the major categories of fixed asset stocks described as 'produced assets' – such as dwellings, non-dwelling construction, and machinery and equipment – have been available for many years in the Australian national accounts. Volume estimates for stocks of non-produced, non-financial assets (land and other natural resources, etc.) and real estimates of financial assets, liabilities and net worth (wealth) are also available. The calculation of volume and real estimates for some of these components is subject to some practical and conceptual difficulties, and therefore the term 'experimental' has been attached to these initial estimates.

The values of non-financial assets, such as dwellings, can be decomposed into prices and volumes. Volume indexes, which measure the volume change of an aggregate between one period and another, can thus be derived by holding prices the same in the two periods.

Financial assets and liabilities cannot be decomposed into prices and volumes, and so it is impossible to derive volume indexes for them. The same is true of gross operating surplus and other income flows, and is the reason why volume estimates of GDP cannot be derived by aggregating volume indexes of its income components. However, it is possible to deflate income flows, financial assets and liabilities by a price index, such as the implicit price deflator for gross national expenditure, in order to measure changes in the purchasing power of the aggregate in question. Such measures are called 'real' estimates.

Real net worth has been derived by aggregating the volume estimates of the non-financial assets with the real estimates of financial assets less liabilities.


REAL/VOLUME BALANCE SHEET ESTIMATES

Australia's real net worth (total assets less total liabilities to the rest of the world) increased by 2.8% over the year ended 30 June 2011 compared to the end of June 2010. In 2010–11, the real value of non-financial assets grew by 2.3%, the real value of financial assets grew by 0.8% and the real value of liabilities fell by 0.8% (table 30.18).


30.18 NATIONAL BALANCE SHEET, Volume/Real—30 June
2006–07
2007–08
2008–09
2009–10
2010–11
$b
$b
$b
$b
$b
Total assets
9 304.1
9 540.7
9 742.8
10 031.1
10 242.1
Non-financial assets
8 210.8
8 443.3
8 654.2
8 861.8
9 064.0
Produced assets
3 734.2
3 898.2
4 045.2
4 190.9
4 350.5
Fixed assets
3 577.8
3 735.4
3 886.6
4 035.9
4 189.5
Dwellings
1 356.1
1 394.1
1 430.5
1 468.7
1 506.6
Ownership transfer costs
190.3
191.3
189.2
188.9
185.9
Non-dwelling construction
1 398.7
1 459.4
1 528.8
1 600.2
1 677.3
Machinery and equipment
460.9
504.6
539.2
565.3
591.6
Weapons systems
19.0
20.6
22.5
25.7
29.7
Cultivated biological resources(a)
17.5
17.4
17.5
17.7
18.0
Intellectual property products
135.5
148.0
158.9
169.5
180.4
Research and development
62.5
68.8
73.6
78.1
82.2
Mineral and petroleum exploration
37.5
40.6
43.9
46.8
49.8
Computer software
33.3
36.1
38.6
41.6
44.8
Artistic originals
2.2
2.5
2.7
3.0
3.6
Inventories
156.3
162.8
158.6
154.9
161.0
Private non-farm
130.8
135.6
133.5
128.1
130.8
Farm
7.8
8.5
8.6
9.9
12.7
Public authorities
3.3
2.8
1.9
2.7
3.9
Livestock
5.0
5.0
5.0
5.1
4.8
Plantation standing timber(b)
9.5
11.0
9.6
9.1
8.7
Non-produced assets(b)
4 476.6
4 545.0
4 609.0
4 671.0
4 713.5
Natural resources
4 473.3
4 542.0
4 606.3
4 668.6
4 711.5
Land
3 956.6
3 998.1
4 037.9
4 078.1
4 108.2
Subsoil assets
506.9
533.9
558.3
580.3
592.7
Native standing timber
2.1
2.0
1.9
1.7
1.8
Spectrum
7.7
8.0
8.2
8.5
8.8
Permission to use natural resources
3.4
3.0
2.7
2.3
2.0
Spectrum licences
3.4
3.0
2.7
2.3
2.0
Financial assets with the rest of the world
1 093.3
1 097.4
1 088.6
1 169.2
1 178.1
Monetary gold and SDRs
2.3
2.7
3.2
8.9
7.7
Currency and deposits
72.2
55.3
89.0
92.3
96.8
Securities other than shares
190.1
235.8
250.5
256.7
237.5
Loans and placements
122.2
113.5
145.4
144.2
140.8
Shares and other equity
611.6
587.5
510.5
563.6
590.9
Insurance technical reserves
16.5
13.8
7.6
5.8
6.5
Other accounts receivable
78.4
88.9
82.4
97.6
97.8
Liabilities to the rest of the world
1 731.9
1 765.1
1 792.2
1 927.6
1 912.5
Monetary gold and SDRs
0.9
0.8
0.9
5.2
4.3
Currency and deposits
79.3
88.5
111.9
108.5
117.6
Securities other than shares
757.2
788.8
814.9
906.7
855.2
Loans and placements
190.4
213.2
247.4
224.6
215.4
Shares and other equity
688.1
646.4
589.9
653.9
690.7
Insurance technical reserves
1.9
2.0
1.7
1.8
2.1
Other accounts payable
14.1
25.3
25.5
26.9
27.3
Net worth
7 572.2
7 775.7
7 950.6
8 103.4
8 329.6
(a) Cultivated biological resources – fixed assets included in the balance sheet include all animals and not just sheep and cattle as shown in the capital stock tables.
(b) Experimental estimates.

Source: Australian System of National Accounts, 2010–11 (5204.0).

 

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Statistics contained in the Year Book are the most recent available at the time of preparation. In many cases, the ABS website and the websites of other organisations provide access to more recent data. Each Year Book table or graph and the bibliography at the end of each chapter provides hyperlinks to the most up to date data release where available.