RDP 9109: Estimates of Private Sector Wealth Appendix: A Detailed Calculation of Private Wealth
October 1991
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This section goes through the calculation of private wealth for the June quarter 1989 to highlight the methodology used.
| Dwelling Wealth | ||
|---|---|---|
| No. of dwellings completed | : | 37,450 |
| Residual | : | 2,400 |
| Net change in stock | : | 35,050 |
| Total stock in March 1989 | : | 6,020,240 |
| Total stock in June 1989 | : | 6,055,290 |
| Established dwelling price in capital cities | : | $130,564 |
| Established dwelling price in other areas | : | $90,089 |
| Weighted average established dwelling price (62% capital cities, 38% other areas) | : | $115,184 |
| Value of dwellings = 6,055,290 * $115,184 | = | $697,472 m |
| Consumer Durables | ||
| Stock of household durables in March 1989 (constant prices) | : | $40,442 m |
| Stock of motor vehicles in March 1989 (constant prices) | : | $14,915 m |
| Quarterly depreciation rate for household durables | : | 0.057 |
| Quarterly depreciation rate for motor vehicles | : | 0.065 |
| Constant price expenditure on household durables in June 1989 | : | $2,827 m |
| Constant price expenditure on motor vehicles in June 1989 | : | $1,340 m |
| Price deflator for household durables in June 1989 | : | 1.281 |
| Price deflator for motor vehicles in June 1989 | : | 1.621 |
| Stock of consumer durables in June 1989 at current prices (40,442 * 0.943 + 2,827) * 1.281 + (14,915 * 0.935 + 1,340) * 1.621 |
= | $77,252 m |
| Business Wealth | ||
| Historic cost capital stock for non-dwelling construction (NDC) for Banking, Finance and Property (B, F, P) |
: | $24,574 m |
| Historic cost capital stock for equipment (E) for B, F, P | : | $18,579 m |
| Historic cost capital stock for NDC for Retail and Wholesale (R, W) | : | $7,786 m |
| Historic cost capital stock for E for R, W | : | $19,795 m |
| Historic cost capital stock for NDC for All Other Sectors (except Agriculture) | : | $44,198 m |
| Historic cost capital stock for E for All Other Sectors (except Agriculture) | : | $68,855 m |
| Market value to historic cost capital stock ratio for non-finance, non-mining sample | : | 1.666 |
| Market value to historic cost capital stock ratio for property trust sample | : | 1.41 |
| Book value of stocks (assumes book value = historic cost) | : | $53,557 m |
| Land as a proportion of structure value for B, F, P | : | 32.6% |
| Land as a proportion of structure value for R, W | : | 25.9% |
| Land as a proportion of structure value for All Other Sectors | : | 30.5% |
| Total non-rural business wealth = 24,574.4 * 1.41 * (1/(1–0.326)) + 7,786.2 * 1.666 * (1/(1–0.259)) + 44,198.4 * 1.666 * (1/(1–0.305)) + (18,579.4 + 19,795 + 68,854.6 + 53,557) * 1.666 |
= | $442,734 m |
| No. of farms in Broadacre | : | 78,707 |
| Average farm capital in Broadacre | : | $1,013,150 |
| No. of farms in Dairy | : | 15,682 |
| Average farm capital in Dairy | : | $780,870 |
| No. of farms in Horticulture | : | 4,644 |
| Average farm capital in Horticulture | : | $359,350 |
| Total wealth of sample | : | |
| (78,707 * 1,013,150 + 15,682 * 780,870 + 4,644 * 359,350) | = | $93,656 m |
| Total wealth of sample in June 1988 | : | $69,263 m |
| Growth of wealth | : | 35.2% |
| Rural wealth in June 1989 = 94,150 m × 1.352 | = | $127,291 m |
| Total business wealth | = | $570,025 m |
| Non-official Australian investment abroad | : | $59,917 m |
| less: accounts receivable/prepayments made | : | $4,673 m |
| Australian ownership of foreign assets | = | $55,244 m |
| Non-official foreign investment in Australia | : | $194,994 m |
| less: public sector | : | $27,647 m |
| less: accounts payable/prepayments received | : | $3,888 m |
| Overseas ownership of Australian assets | = | $163,459 m |
| Total domestically owned business wealth | = | $461,810 m |
| Non-Official Holdings of Government Bonds | ||
| Non-official holdings of CGS at face value | : | $33,008 m |
| times: market/face value ratio | : | 0.9 |
| equals: non-official holdings of CGS at market value | : | $29,707 m |
| plus: non-official holdings of Treasury Notes and Australian Savings Bonds | : | $11,733 m |
| plus: non-official holdings of semi and local government securities at market value | : | $18,576 m |
| plus: Other borrowings from residents | : | $23,879 m |
| minus: Overseas holdings of CGS and semi and local government securities at market value | : | $14,567 m |
| Total non-official holdings of government bonds at market value | = | $69,328 m |
| Notes and Coin in Circulation | ||
| Notes and coin in circulation | : | $13,318 m |
| TOTAL PRIVATE NON-HUMAN WEALTH AT MARKET PRICES | : | $1,319.2 b |