Traditionally, Australia has enjoyed strong investment from the United States and the United Kingdom, which has been complemented by increasing capital inflows from Asia and Europe. Australia's strong and stable economy and well-managed, profitable companies make it a highly attractive location for foreign investment.

At the end of 2006, the United States accounted for 25.2% of Australia's total foreign investment, while the United Kingdom contributed 24.5%. The United States and the United Kingdom also controlled 23.3% and 17.1%, respectively, of the total foreign direct investment (FDI) in Australia.

FDI reflects a long term investment relationship, where the investor exercises a significant degree of influence in the management of the investment. The stock of FDI in Australia grew by 11% in 2006 and has increased by an annual average of 8% since 2001.

Japan, Hong Kong SAR and Singapore are the major sources of Asian foreign investment in Australia. The European Union accounted for almost one third of Australia’s stock of FDI and total foreign investment at the end of 2006. Besides the United Kingdom, other European countries with significant investment interests in Australia include Switzerland, the Netherlands, Belgium, Germany and France.