Foreign Investment: In 2004 foreign direct investment totaled US$57 billion, only slightly less than China’s US$60 billion. This unusual achievement was attributable in part to investor interest in Australia’s mineral resources. However, Australia also attracted foreign investment because of the country’s transparent and law-abiding government institutions and strong services sector. As of year-end 2004, cumulative foreign investment in Australia totaled US$888.6 billion versus Australian investment abroad of US$460.8 billion.
Foreign Aid: In the 12 months ending in mid-2005, Australia contributed US$1.6 billion of official development assistance (ODA), representing about 0.25 percent of gross domestic product (GDP), slightly higher than the donor average. Typically, the largest recipient of ODA is Papua New Guinea, a severely underdeveloped country that receives one-fifth of the total amount. However, in January 2005 Australia announced a US$770 million tsunami aid package—divided equally into grants and loans—for Indonesia. The twin goals of the ODA program are poverty reduction and regional stability, which the government holds to be closely related. The primary aid categories are governance (20 percent), education (16 percent), health (13 percent), infrastructure (13 percent), and other (24 percent).
Currency and Exchange Rate: Australia’s currency is the Australian dollar (AUD). The exchange rate as of September 1, 2005, was US$1=AUD1.33. The Australian dollar, which has floated since 1983, is the world’s seventh most traded currency.
Fiscal Year: Australia’s fiscal year runs from July 1 to June 30.