Australia's current account balance rose by $0.4 billion in June quarter 2025 (seasonally adjusted, current prices) to a deficit of $13.7 billion, according to figures released today by the Australian Bureau of Statistics (ABS).
Jonathon Khoo, ABS head of international statistics, said: 'The small rise in the current account balance was due to a $1.2 billion increase in the net primary income balance, offset by a $1.2 billion decrease in the goods and services surplus.'
'Growth in Investment inflows on Australian holdings of overseas equity saw the net primary income deficit narrow to its lowest level since September 2021.'
'Strong imports of non-monetary gold and travel services led to a fall in the goods and services surplus.'
Australia's terms of trade fell 1.1 per cent from the March quarter 2025 and was 2.4 per cent lower compared to June quarter 2024. Commodity price falls, particularly for iron ore and coal, drove this fall.
Imports of goods and services rose 0.8 per cent in the quarter, led by a 3.4 per cent rise in services.
Travel services rose 5.0 per cent, with more Australians travelling to long-haul destinations like the UK and Italy for holidays. Travel spots closer to home, like Indonesia, also remained popular.
Imports of goods fell slightly, with falls in Fuels and lubricants and Capital goods n.e.s. This was offset by rises in Non-monetary gold and ADP equipment, such as large data servers and processing units.
Imports of Non-monetary gold reached record levels in the June quarter, following strong exports in March quarter 2025.
Gold prices remained high, while Fuels and lubricants prices dropped to their lowest level since September quarter 2021 due to excess global supply from OPEC+ nations along with falling demand.
Exports of goods fell 0.9 per cent in the June quarter 2025, after rising 2.1 per cent in the March quarter.
The June fall was led by Metal ores and minerals and Coal, coke and briquettes, with lower prices for both driving the decrease.
'Iron ore prices fell amid international trade uncertainty and higher global supply,' Mr Khoo said.
'Coal prices fell for the third consecutive quarter, reflecting weak global demand.'
Export of services was up 3.6 per cent this quarter. There was a 4.9 per cent growth in Travel services, which was driven by a rise in the number of travellers, particularly New Zealanders, coming to Australia to visit friends and relatives.
| Current account balance ($b) | Net goods & services ($b) | Net primary income ($b) | |
|---|---|---|---|
| Jun-20 | 12.7 | 20.6 | -7.3 |
| Sep-20 | 7.5 | 11.5 | -3.4 |
| Dec-20 | 10.7 | 15.7 | -4.3 |
| Mar-21 | 16.2 | 22.8 | -6.1 |
| Jun-21 | 17.0 | 28.9 | -10.5 |
| Sep-21 | 19.5 | 34.6 | -14.4 |
| Dec-21 | 0.4 | 22.1 | -20.9 |
| Mar-22 | 0.8 | 24.2 | -22.7 |
| Jun-22 | 10.0 | 41.2 | -30.5 |
| Sep-22 | -3.8 | 28.3 | -31.9 |
| Dec-22 | 3.0 | 30.8 | -27.4 |
| Mar-23 | 3.5 | 30.6 | -27.0 |
| Jun-23 | -0.9 | 22.2 | -22.9 |
| Sep-23 | -6.9 | 15.7 | -22.1 |
| Dec-23 | -1.7 | 20.4 | -21.8 |
| Mar-24 | -8.4 | 12.8 | -21.2 |
| Jun-24 | -15.1 | 7.5 | -22.5 |
| Sep-24 | -13.7 | 3.5 | -17.1 |
| Dec-24 | -15.6 | 5.5 | -21.0 |
| Mar-25 | -14.1 | 4.3 | -18.0 |
| Jun-25 | -13.7 | 3.1 | -16.8 |
(a) seasonally adjusted estimates at current prices
The net primary income deficit narrowed by $1.2 billion (-$16.8 billion) in the June quarter 2025, driven by a $1.1 billion increase in primary income credits (inflows).
The $1.1 billion rise in inflows was driven by higher profits for Australian direct investment holdings and continued strong returns on Australian portfolio investment holdings of equity.
Primary income debits (outflows) fell $0.1 billion due to weaker profits earned by foreign direct investment in Australia, which was offset by strong dividend payments from Australian depository corporations to overseas portfolio investors.
| Net primary income ($b) | Primary income credits ($b) | Primary income debits ($b) | |
|---|---|---|---|
| Jun-20 | -7.3 | 14.2 | -21.5 |
| Sep-20 | -3.4 | 15.4 | -18.8 |
| Dec-20 | -4.3 | 14.3 | -18.6 |
| Mar-21 | -6.1 | 15.8 | -21.9 |
| Jun-21 | -10.5 | 15.8 | -26.3 |
| Sep-21 | -14.4 | 17.7 | -32.1 |
| Dec-21 | -20.9 | 18.6 | -39.5 |
| Mar-22 | -22.7 | 20.4 | -43.0 |
| Jun-22 | -30.5 | 23.2 | -53.8 |
| Sep-22 | -31.9 | 22.4 | -54.3 |
| Dec-22 | -27.4 | 24.8 | -52.2 |
| Mar-23 | -27.0 | 22.7 | -49.7 |
| Jun-23 | -22.9 | 23.7 | -46.5 |
| Sep-23 | -22.1 | 24.9 | -47.0 |
| Dec-23 | -21.8 | 24.6 | -46.4 |
| Mar-24 | -21.2 | 26.4 | -47.6 |
| Jun-24 | -22.5 | 26.2 | -48.7 |
| Sep-24 | -17.1 | 28.1 | -45.1 |
| Dec-24 | -21.0 | 27.5 | -48.5 |
| Mar-25 | -18.0 | 27.9 | -45.8 |
| Jun-25 | -16.8 | 29.0 | -45.8 |
(a) seasonally adjusted estimates at current prices
The financial account had a surplus of $17.5 billion, driven by net inflows of equity (+$16.1 billion) and net inflows of debt (+$1.4 billion).
'Australia's net international investment liability position had the largest widening in a quarter since March quarter 2022.' Mr Khoo said.
'Volatility in international markets saw international investors increase their demand for Australian equity.'
Australia's net foreign debt liability position rose $22.6 billion to $1.43 trillion, driven by market price increases and net acquisition of debt.
Market price changes in debt liabilities were due to movements in Australian and international bond yields as well as hedging operations caused by volatile exchange rates.
Australia's net foreign equity asset position fell by $3.4 billion to $761.5 billion.
The $0.9 billion rise in net trade (seasonally adjusted, chain volume measure) is expected to add 0.1 percentage points to the June quarter 2025 Gross Domestic Product (GDP) movement.
