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FDIstats

Explained

Why the value of foreign investment changes

The value of investment between Australia and the world changes for two very different reasons: money actually coming in or going out, and changes in the value of what is already there — share prices, the Australian dollar and accounting adjustments. The ABS measures both every quarter. This page separates them, in plain English.

Foreign direct investment in Australia, June quarter 2026

A$1.42 tn

+1.3%on the quarter

Australian direct investment abroad, June quarter 2026

A$1.15 tn

−0.2%on the quarter

Net foreign liabilities (net IIP)

A$639 bn

what Australia owes the world, less what it owns abroad

Made up of

A$1.49 tn debt

offset by A$847 bn of net equity held abroad

What moved the numbers

From start to finish: 2023

Each bar shows how much one kind of change added to (right) or took away from (left) the value of direct investment over the period.

Foreign direct investment in Australia

Value at the startA$1.21 tn
  1. Profits kept and reinvestedpart of new investmentA$35.7 bn
  2. Other new investment, less withdrawalsequity and loansA$17.8 bn
  3. Change in market prices−A$34.4 bn
  4. Currency movements−A$4.3 bn
  5. Other adjustmentsA$7.3 bn
Value at the endA$1.23 tn (+A$22.2 bn)

Over calendar 2023, foreign direct investment in Australia rose by A$22.2 bn to A$1.23 tn (1.8%). New investment added A$53.6 bn, including A$35.7 bn of profits that foreign-owned businesses in Australia kept and reinvested rather than paying out. Revaluations — not new money — subtracted a further A$31.4 bn: market price changes took off A$34.4 bn, currency movements took off A$4.3 bn, other adjustments added A$7.3 bn.

Australian direct investment abroad

Value at the startA$998 bn
  1. Profits kept and reinvestedpart of new investmentA$18.5 bn
  2. Other new investment, less withdrawalsequity and loansA$1.5 bn
  3. Change in market prices−A$16.7 bn
  4. Currency movementsA$3.6 bn
  5. Other adjustmentsA$52.2 bn
Value at the endA$1.06 tn (+A$59.1 bn)

Over calendar 2023, australian direct investment abroad rose by A$59.1 bn to A$1.06 tn (5.9%). New investment added A$20.0 bn, including A$18.5 bn of profits that Australian-owned businesses overseas kept and reinvested rather than paying out. Revaluations — not new money — added a further A$39.1 bn: market price changes took off A$16.7 bn, currency movements added A$3.6 bn, other adjustments added A$52.2 bn.

In plain English

Four ideas that make the accounts make sense

1. It’s a balance sheet

The ABS keeps a national balance sheet. On one side is everything foreigners own in Australia — businesses, shares, bonds, loans (Australia’s liabilities). On the other is everything Australians own overseas (Australia’s assets). The value on each side at a point in time is called the level, stock or position — three names for the same thing.

2. Values change for four reasons

  • New investment, less withdrawals — money actually crossing the border, including profits a business keeps and reinvests rather than sending home. The ABS calls this transactions; DFAT called it net inflows.
  • Market prices — e.g. share prices rising or falling.
  • Currency — a stronger Australian dollar shrinks the Australian-dollar value of investments held overseas.
  • Other adjustments — write-offs of bad debts, reclassifications and similar.

3. Flows don’t add up to stocks

Because of the last three effects, you can’t add up years of new investment to get the value invested. Example: $100 is invested at the start of the year; during the year $40 of new money comes in and $15 is withdrawn (net new investment $25); share prices rise by $20; a stronger dollar takes off $5. The year ends at $140 — the flow was $25, but the stock rose $40. In a bad year for markets the stock can fall even while new money is flowing in.

4. Two ways of counting direct investment

When a foreign parent invests $100 in its Australian subsidiary and the subsidiary lends $40 back, the quarterly accounts on this page record a $100 liability and a $40 asset (the asset/liability basis). The annual partner-country figures in the Australia hub net the loan off and record $60 of foreign investment in Australia (the directional basis). Both are correct; they answer different questions, so their totals differ.

Year by year

The full reconciliation

The same layout DFAT’s International Investment Australia reports used, with plain labels. Each row: value at the start of the year, plus each kind of change, equals the value at the end.

YearValue at startNew investment, less withdrawalsof which reinvested profitsMarket pricesCurrencyOtherValue at end
Foreign direct investment in Australia
2021A$1.08 tnA$42.6 bnA$40.7 bnA$5.3 bnA$3.4 bn−A$6.4 bnA$1.12 tn
2022A$1.12 tnA$96.2 bnA$55.8 bn−A$12.6 bnA$2.5 bn−A$5.1 bnA$1.21 tn
2023A$1.21 tnA$53.6 bnA$35.7 bn−A$34.4 bn−A$4.3 bnA$7.3 bnA$1.23 tn
2024A$1.23 tnA$80.7 bnA$36.8 bn−A$29.8 bnA$9.6 bnA$39.0 bnA$1.33 tn
2025A$1.33 tnA$60.5 bnA$42.7 bn−A$19.6 bn−A$4.3 bnA$24.7 bnA$1.39 tn
Australian direct investment abroad
2021A$811 bnA$13.3 bnA$17.8 bnA$50.7 bnA$14.6 bnA$3.0 bnA$893 bn
2022A$893 bnA$180 bnA$19.7 bn−A$45.4 bnA$2.4 bn−A$30.9 bnA$998 bn
2023A$998 bnA$20.0 bnA$18.5 bn−A$16.7 bnA$3.6 bnA$52.2 bnA$1.06 tn
2024A$1.06 tnA$21.4 bnA$12.6 bnA$33.6 bnA$43.2 bnA$43.8 bnA$1.20 tn
2025A$1.20 tn−A$10.0 bnA$13.5 bn−A$12.4 bn−A$26.6 bnA$29.4 bnA$1.18 tn
All foreign investment in Australia
2021A$4.12 tn−A$21.2 bn—A$89.3 bnA$52.8 bn−A$5.2 bnA$4.24 tn
2022A$4.24 tn−A$101 bn—A$434 bnA$76.2 bnA$15.2 bnA$4.66 tn
2023A$4.66 tn−A$328 bn—A$327 bn−A$2.2 bnA$39.0 bnA$4.70 tn
2024A$4.70 tn−A$443 bn—A$625 bnA$102 bnA$61.3 bnA$5.04 tn
2025A$5.04 tn−A$291 bn—A$461 bn−A$56.6 bnA$52.9 bnA$5.21 tn
All Australian investment abroad
2021A$3.07 tnA$30.3 bn—A$203 bnA$71.4 bnA$24.6 bnA$3.40 tn
2022A$3.40 tn−A$83.3 bn—A$353 bnA$76.5 bn−A$11.2 bnA$3.73 tn
2023A$3.73 tn−A$335 bn—A$440 bn−A$13.5 bnA$72.9 bnA$3.89 tn
2024A$3.89 tn−A$507 bn—A$778 bnA$153 bnA$67.4 bnA$4.39 tn
2025A$4.39 tn−A$385 bn—A$568 bn−A$117 bnA$46.7 bnA$4.50 tn

A$. Source: ABS, Balance of Payments and International Investment Position, Australia (quarterly, asset/liability basis; ABS Data API dataflow IIP), summed to calendar years. Rows may not add exactly because of rounding. Earlier DFAT reports labelled these columns opening stock, net inflows (or outflows), price changes, exchange rate movements, other changes and closing stock.

Australia’s net position

What Australia owes the world, less what it owns

Australia has long been a net borrower from the rest of the world: foreigners hold more Australian assets than Australians hold overseas. That gap is the net international investment position, or net foreign liabilities. It splits into net foreign debt (loans and bonds) and net foreign equity (shares and ownership). Largely because superannuation funds invest heavily overseas, Australians now own more equity abroad than foreigners own here, so net equity is negative — an asset — and the net position is mostly debt.

Net international investment position, year end
  • Net foreign liabilities
  • Net foreign debt
  • Net foreign equity

Source: ABS, International Investment Position (quarterly), December quarter each year. Positive = net liability.

Net foreign liabilities, % of GDP

Sources: ABS International Investment Position (December quarter); World Bank WDI GDP in A$ (NY.GDP.MKTP.CN).

Translation guide

The terms in ABS and DFAT reports, in plain English

Level, stock, position
The value of investment at a point in time (e.g. 31 December).
Financial account transactions, net inflows, net flows
New investment during the period, minus money withdrawn. Can be negative.
Gross injections / withdrawals
New money put in and money taken out, before netting one against the other.
Reinvestment of earnings
Profits a foreign-owned business keeps rather than paying to its owner. Counted as new investment.
Price changes
Change in the market value of what is already held, e.g. share prices.
Exchange rate changes / movements
Change in the Australian-dollar value of investments caused by currency moves.
Other adjustments / other changes
Write-offs, reclassifications and other accounting changes.
Foreign investment in Australia (FIA)
Everything foreigners own in Australia — Australia’s liabilities.
Australian investment abroad (AIA)
Everything Australians own overseas — Australia’s assets.
Net international investment position (net IIP)
FIA minus AIA. Positive means Australia is a net borrower.
Net foreign debt / net foreign equity
The debt and ownership parts of the net position.
Direct investment
A lasting stake of 10% or more with influence over how the business is run.
Portfolio investment
Shares and bonds held without control.
Other investment
Loans, deposits, trade credit and similar.
Asset/liability vs directional basis
Two ways of counting loans between related companies; see idea 4 above.
Who invests in Australia Full glossary

Independent explainer by FDIstats from ABS statistics; not a government publication. Latest data: June quarter 2026.