The Current Account Revisited Debits Imports of goods Imports of services Factor Incomes Interest paid to foreign firms Profits of foreign firms in Australia Dividends Undistributed profits Payments to offshore employees Transfers: Non commercial current transfers Workers remittances to overseas people or Australians Foreign aid As the name suggest it is used to collect together two types f money flows ie. 1. Capital transfers; this is the transfer of savings, in deals which are mot commercial (not done for profit). a. This could include immigrants bringing savings into Australia and emigrants taking savings out of Australia. b. Debt forgiveness, the cancellation of debts owed to or by foreigners. c. Movements of government savings offshore (into foreign reserves) or onshore. d. Acquisitions by Australians or disposal of non produced non financial assets eg. Works of art produced by foreigners bought or sold by Australians from or to offshore. 2.
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