Stock of Foreign Investment in Australia by Type

The total stock of foreign investment in Australia stood at nearly $1.6 trillion as at June 2007. Portfolio investment made up 63% of total foreign investment in Australia, while direct investment contributed 21%.

Major labour market and business taxation reforms, together with deregulation of industries such as finance, telecommunications and utilities, have helped attract foreign investment to Australia. The growth in Australia's economy and stock market has also lured considerable overseas capital to Australia.

The stock of foreign investment in Australia rose by 19% or $245 billion in the year to June 2007. Over the past five years, the world's investment in Australia has grown by over 80%, with foreign direct investment expanding by 48%.


Stock of Foreign Investment in Australia By Type, 2006 (A$ million) (1)

  Direct investment Portfolio investment Financial derivatives Other investment liabilities Total foreign investment Annual % change
2000-01 215,187 472,640 23,593 120,847 832,267 12.6
2001-02 225,581 474,766 32,096 128,920 861,363 3.5
2002-03 252,561 481,212 45,251 139,544 918,568 6.6
2003-04 274,082 609,272 37,683 140,616 1,061,653 15.6
2004-05 271,698 651,876 42,009 146,254 1,111,837 4.7
2005-06 289,934 820,912 40,999 168,931 1,320,776 18.8
2006-07 334,519 984,285 67,644 182,218 1,568,664 18.8


Footnotes:

1: Financial year data (end of June each year)

Source: ABS Cat. No. 5302.0