Explained
Why the value of foreign investment changes
Foreign direct investment in Australia, June quarter 2026
A$1.42 tn
Australian direct investment abroad, June quarter 2026
A$1.15 tn
Net foreign liabilities (net IIP)
A$639 bn
Made up of
A$1.49 tn debt
What moved the numbers
From start to finish: June quarter 2026
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
- Profits kept and reinvestedpart of new investmentA$8.8 bn
- Other new investment, less withdrawalsequity and loansA$9.5 bn
- Change in market prices−A$8.7 bn
- Currency movements−A$835 m
- Other adjustmentsA$9.0 bn
Over the June quarter 2026, foreign direct investment in Australia rose by A$17.8 bn to A$1.42 tn (1.3%). New investment added A$18.3 bn, including A$8.8 bn of profits that foreign-owned businesses in Australia kept and reinvested rather than paying out. Revaluations — not new money — subtracted a further A$490 m: market price changes took off A$8.7 bn, currency movements took off A$835 m, other adjustments added A$9.0 bn.
Australian direct investment abroad
- Profits kept and reinvestedpart of new investmentA$4.5 bn
- Other new investment, less withdrawalsequity and loans−A$1.4 bn
- Change in market prices−A$3.2 bn
- Currency movements−A$4.5 bn
- Other adjustmentsA$2.7 bn
Over the June quarter 2026, australian direct investment abroad fell by A$1.9 bn to A$1.15 tn (−0.2%). New investment added A$3.1 bn, including A$4.5 bn of profits that Australian-owned businesses overseas kept and reinvested rather than paying out. Revaluations — not new money — subtracted a further A$5.0 bn: market price changes took off A$3.2 bn, currency movements took off A$4.5 bn, other adjustments added A$2.7 bn. That is why the value moved the opposite way to the flow of new investment.
In plain English
Four ideas that make the accounts make sense
1. It’s a balance sheet
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
4. Two ways of counting direct investment
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.
| Year | Value at start | New investment, less withdrawals | of which reinvested profits | Market prices | Currency | Other | Value at end |
|---|---|---|---|---|---|---|---|
| Foreign direct investment in Australia | |||||||
| 2021 | A$1.08 tn | A$42.6 bn | A$40.7 bn | A$5.3 bn | A$3.4 bn | −A$6.4 bn | A$1.12 tn |
| 2022 | A$1.12 tn | A$96.2 bn | A$55.8 bn | −A$12.6 bn | A$2.5 bn | −A$5.1 bn | A$1.21 tn |
| 2023 | A$1.21 tn | A$53.6 bn | A$35.7 bn | −A$34.4 bn | −A$4.3 bn | A$7.3 bn | A$1.23 tn |
| 2024 | A$1.23 tn | A$80.7 bn | A$36.8 bn | −A$29.8 bn | A$9.6 bn | A$39.0 bn | A$1.33 tn |
| 2025 | A$1.33 tn | A$60.5 bn | A$42.7 bn | −A$19.6 bn | −A$4.3 bn | A$24.7 bn | A$1.39 tn |
| Australian direct investment abroad | |||||||
| 2021 | A$811 bn | A$13.3 bn | A$17.8 bn | A$50.7 bn | A$14.6 bn | A$3.0 bn | A$893 bn |
| 2022 | A$893 bn | A$180 bn | A$19.7 bn | −A$45.4 bn | A$2.4 bn | −A$30.9 bn | A$998 bn |
| 2023 | A$998 bn | A$20.0 bn | A$18.5 bn | −A$16.7 bn | A$3.6 bn | A$52.2 bn | A$1.06 tn |
| 2024 | A$1.06 tn | A$21.4 bn | A$12.6 bn | A$33.6 bn | A$43.2 bn | A$43.8 bn | A$1.20 tn |
| 2025 | A$1.20 tn | −A$10.0 bn | A$13.5 bn | −A$12.4 bn | −A$26.6 bn | A$29.4 bn | A$1.18 tn |
| All foreign investment in Australia | |||||||
| 2021 | A$4.12 tn | −A$21.2 bn | — | A$89.3 bn | A$52.8 bn | −A$5.2 bn | A$4.24 tn |
| 2022 | A$4.24 tn | −A$101 bn | — | A$434 bn | A$76.2 bn | A$15.2 bn | A$4.66 tn |
| 2023 | A$4.66 tn | −A$328 bn | — | A$327 bn | −A$2.2 bn | A$39.0 bn | A$4.70 tn |
| 2024 | A$4.70 tn | −A$443 bn | — | A$625 bn | A$102 bn | A$61.3 bn | A$5.04 tn |
| 2025 | A$5.04 tn | −A$291 bn | — | A$461 bn | −A$56.6 bn | A$52.9 bn | A$5.21 tn |
| All Australian investment abroad | |||||||
| 2021 | A$3.07 tn | A$30.3 bn | — | A$203 bn | A$71.4 bn | A$24.6 bn | A$3.40 tn |
| 2022 | A$3.40 tn | −A$83.3 bn | — | A$353 bn | A$76.5 bn | −A$11.2 bn | A$3.73 tn |
| 2023 | A$3.73 tn | −A$335 bn | — | A$440 bn | −A$13.5 bn | A$72.9 bn | A$3.89 tn |
| 2024 | A$3.89 tn | −A$507 bn | — | A$778 bn | A$153 bn | A$67.4 bn | A$4.39 tn |
| 2025 | A$4.39 tn | −A$385 bn | — | A$568 bn | −A$117 bn | A$46.7 bn | A$4.50 tn |
A$. 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 foreign liabilities
- Net foreign debt
- Net foreign equity
Source: ABS, International Investment Position (quarterly), December quarter each year. Positive = net liability.
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.
Independent explainer by FDIstats from ABS statistics; not a government publication. Latest data: June quarter 2026.