The current account balance fell to a deficit of $27.2 billion in the June quarter 2026 (current prices, seasonally adjusted), according to data released today by the Australian Bureau of Statics (ABS).
Jonathon Khoo, ABS head of international statistics, said: "Trade in goods and services continued to drive the current account deficit, recording the second trade deficit in a row, led by record values of fuels and passenger vehicle imports."
Imports of goods and services rose 4.0 per cent, led by a 6.9 per cent rise in goods.
Imports of Fuels and lubricants rose 42.5 per cent, driven by higher prices for crude oil and refined petroleum products. Imports of diesel also rose, with the Australian Government securing additional shipments in response to global supply shortages.
"Fuel prices continued to surge to record highs as the ongoing conflict in the Middle East tightened global supply and output," Mr Khoo said. "This was the major contributor to the terms of trade falling 1.6 percent."
Imports of Non-industrial transport equipment also rose, up 38.1 per cent, with record imports of electric and plug-in hybrid vehicles.
"The spike in electric vehicle imports reflects changing consumer preferences, supported by growing fuel security concerns and rising fuel prices," Mr Khoo said.
Imports of services offset the rise, down 4.1 per cent, with fewer Australians travelling overseas, particularly to long-haul destinations.
"This is the first fall in the number of Australian travellers overseas in a June quarter since COVID-19," Mr Khoo said. "European and North American destinations were less popular this June, with Australians choosing to travel to countries in Asia and the Pacific."
Exports of goods and services rose 2.8 per cent, led by a 3.9 per cent rise in goods. The increase was driven by higher prices for Australia's critical energy products, with coal, lithium and other mineral fuels the largest contributors to the price rise.
"Global supply disruptions have pushed energy prices higher. The Middle East conflict has disrupted global LNG supplies leading to a strong rise in thermal coal exports as demand increased for alternate sources of energy generation."
"Lithium prices also continued to rise amid tighter supply from China, while demand continues to grow in line with electric vehicle and battery production," Mr Khoo said.
The net primary income balance increased by $0.1 billion to a deficit of $21.9 billion in the June quarter. Primary income credits (inflows) increased by $1.2 billion, slightly outpacing a $1.1 billion increase in primary income debits (outflows).
"The primary income deficit is the largest proportion of the current account deficit. When combined with the larger deficit on trade in goods and services, it is expected to push the current account deficit to its highest share of nominal GDP since the June quarter 2016," Mr Khoo said.
Australia's net international investment position at the end of the June quarter was a net liability position of $638.9 billion, a decrease of $122.8 billion from the previous quarter. This was driven by overseas stock market rebounds, with market valuations of Australia's equity assets increasing by 186.8 billion.
The $0.7 billion rise in net trade (chain volume measures, seasonally adjusted) is expected to contribute 0.1 percentage points to the June quarter 2026 Gross Domestic Product (GDP) movement.
