Note: This page contains links to PDF files. For more information, see the web page on Accessing files.

Consenting adults deficits and household debt - Links between Australia's current account deficit, the demand for imported goods and household debt 13 October 2005 © Commonwealth of Australia 2005 ISBN 0 642 71578 5

View the report as a single document - (PDF 804KB)

---

View the report as separate downloadable parts:

Membership of Committee	(PDF 148KB)
Glossary	(PDF 133KB)
Recommendations	(PDF 91KB)
Chapter 1 - Background to the inquiry	(PDF 152KB)
Overview Report Structure Conduct of the inquiry
Chapter 2 - Background to Australia's current account	(PDF 250KB)
What is the current account? Australia's current account     The current account from a trade perspective         Australia's trade balance         Australia's income balance     The current account from a savings/investment perspective How does the CAD impact on net foreign liabilities? How does Australia's current account compare with other countries?
Chapter 3 - Australia's current account – key issues	(PDF 369KB)
Background What has been driving the Current Account Deficit?     What is the outlook for Australia's current account?     Is there a link between offshore borrowing and the current account?     Committee views Is the present level of Australia's net foreign liabilities a problem?     Servicing Australia's foreign liabilities     Committee views Why are exports important?     Committee views What are the links between household debt, imports and the CAD?     Households and the CAD     Imports and the CAD     Households and imports     Committee views What are the risks of a persistently high CAD?     What could improve the CAD?     Are the self-correcting mechanisms working?     Is there a need for policy changes?     Committee views
Chapter 4 - Household debt in Australia	(PDF 274KB)
Introduction The growth of household debt Factors contributing to the rise in household debt Distribution of debt across households Household debt indicators     Household savings ratio     Debt-to-income ratio     Interest-to-income ratio     Household-gearing ratio How are households coping? What are the future risks to households?     Interest rate rises         Recent borrowers and low income earners     Home equity loans and redraw facilities     Investor housing     Marginal borrowers Committee views
Chapter 5 - Lending practices and household debt	(PDF 245KB)
Introduction Lending standards and practices     Committee views Credit and charge cards     Unsolicited credit increases     Disclosure standards     Financial literacy programs     Mandating assessment of ability to repay debt     Positive credit reporting          Background         Argument for positive credit reporting         Argument against positive credit reporting         Senate Legal and Constitutional References Committee Report         Committee views
Government Senators' Comments	(PDF 184KB)
Appendix 1 – Submissions received	(PDF 113KB)
Appendix 2 – Public hearings and witnesses	(PDF 88KB)
Appendix 3 - Relationship between the current account deficit and foreign liabilities	(PDF 200KB)
The Valuation Effect Effect of Revisions on the Size of the Current Account Deficit
Appendix 4 - Concluding remarks of participants in the Round Table Canberra, 15 August 2005	(PDF 154KB)
Appendix 5 - Factors contributing to household debt	(PDF 232KB)
The housing boom Deregulation of the financial system Interest rates and inflation Investor activity in the housing market Income and employment growth Lending policies and practices of finance providers Wealth effects

For further information, contact:

Committee Secretary
Senate Standing Committees on Economics
PO Box 6100
Parliament House
Canberra ACT 2600
Australia

Phone:	+61 2 6277 3540
Fax:	+61 2 6277 5719
Email:	economics.sen@aph.gov.au