Document ID: chunk:federal_register_of_legislation:F2017L00724:body:0:p22
Version: federal_register_of_legislation:F2017L00724
Segment Type: other
Provision Reference: 
Character Range: 68026–71204

develops the intention to remain in the country after completion of studies, they are counted as a resident of that country.

The residence of a financial instrument is determined by the residence of the issuer rather than the domicile of the financial instrument itself. For example, holdings of bonds issued by a non-resident into the Australian Market would be recorded as non-resident asset. Conversely, holdings of bonds issued internationally by an Australian resident would be recorded as a resident asset by an Australian registrable superannuation entity.

Non-resident         Represents any individual, enterprise or other organisation ordinarily domiciled in a country other than Australia.

                     Includes: foreign branches and foreign subsidiaries of Australian enterprises.

                     Excludes: Australian-based branches and subsidiaries of foreign businesses.

Australian resident  Represents any individual, enterprise or other organisation ordinarily domiciled in Australia's economic territory.

                     Includes: Australian registered branches and incorporated subsidiaries of foreign enterprises.

Domicile type

Represents the jurisdiction in which a financial instrument is constituted. For ABS purposes, debt liabilities are classified as either Australian domicile or international domicile. For debt securities, this refers to whether a debt security is issued in Australia or abroad. For deposits, it refers to the residence of the institution accepting the deposit. For loans, it refers to the residence of the institution providing the loan.

Therefore, deposits taken by Australian institutions are classified as debt – Australia domicile, and loan liabilities to the rest of the world as debt – international domicile.

The domicile of a financial instrument does not determine residency. Kangaroo bonds are domiciled in Australia but the issuer is a non-resident. Therefore, holdings of Kangaroo bonds are considered a claim against a non-resident.

Australian domicile      Represents investments issued in Australia.

International domicile   Represents investments issued outside Australia.

Ownership

Two types of ownership are distinguished in national accounting, legal ownership and economic ownership. The legal owner of assets and liabilities is the institutional unit entitled in law and sustainable under the law to claim the benefits embodied in the value of the assets and liabilities. The economic owner of products is the institutional unit entitled to claim the benefits associated with the use of assets or liabilities in question in the course of an economic activity by virtue of accepting the associated risks.

Every product has both a legal owner and an economic owner, though in many cases they are the same. Where they are not, the legal owner has handed responsibility for the risk involved in using the assets or liabilities in an economic activity to the economic owner along with associated benefits. In return, the legal owner accepts another package of risks and benefits from the economic owner. In general within the SNA, when the expression "ownership" or "owner"