Australia Yearbook - 2001

992 Year Book Australia 2001
Financial accounts
In addition to the national accounts, the ABS
produces quarterly information on the levels of
financial assets and liabilities of each institutional
sector of the economy, the market for financial
instruments, and inter-sectoral transactions in
financial assets and liabilities classified by financial
instrument (see Chapter 26, Financial system).
National and sectoral financial accounts, which
show major financial aggregates, are published in
Australian System of National Accounts (5204.0).
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 major national and sectoral
balance sheet tables are published in Australian
System of National Accounts (5204.0) and more
detailed statistics are published in Australian
National Accounts: National Balance Sheet
(5241.0.40.001). Balance sheets are provided for
each of the four domestic sectors: non-financial
corporations, financial corporations, general
government and households (including
unincorporated enterprises).
The 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.
The monetary estimates of these natural resources
should be considered in conjunction with the
physical estimates. Valuation of natural resources is
a difficult and contentious undertaking. The ABS
continues to work with agencies, in Australia and
abroad, to explore the best approaches to the
measurement of the physical resources as well as
the valuation of these resources, but it will be
some time before there is an agreed approach. For
this reason the estimates of natural resources
presented in the balance sheet are considered to
be experimental.
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 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.
Examples include: determining 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.
The ABS will continue to develop estimates of the
value of Australia’s assets for inclusion in national
balance sheets as additional data become
available. Estimation techniques will be refined as
research in Australia and abroad explores issues
relating to the valuation of natural resources.
Development work is being undertaken on
estimating non-produced intangible assets, such
as patents and goodwill; they may be included in
the national balance sheet in future years.
Balance sheet estimates
Australia’s net worth at the end of June 1999 was
estimated at $2,213.4b, an increase of $106.1b
(5.0%) since June 1998. Of the increase, $19.5b
was due to transactions (both capital and
financial), and $86.6b was due to revaluations and
other flows (including discoveries of subsoil
assets). The average annual rise over the period
30 June 1990 to 30 June 1999 was 4.5%. Net worth
relative to annual GDP has fallen from 4.1:1 at the
end of June 1990 to 3.7:1 at the end of June 1996,
and has maintained this ratio since. Graph 29.24
shows that the net worth series exhibited the
strongest growth during the years 1996–97,
1997–98 and 1998–99 when annual rates of at
least 5% were achieved.
Total produced assets at 30 June 1999 were
estimated at $1,611.6b, an increase of 4.7% from
the level at end of June 1998 (table 29.25). The
estimated value of produced assets rose at an
average annual rate of 4.4% between 30 June
1990 and 30 June 1999, and consistently
accounted for over 70% of net worth. Dwellings,
other buildings and structures, and machinery
and equipment represent about 90% of total
produced assets. While computer software has
consistently accounted for only 1% of total
produced assets over the period, the series has
exhibited by far the strongest growth of produced
assets, with an average annual growth of 21.7%.