Australia's current account deficit widened by $2.8 billion in the December quarter 2025, reaching a total of $21.1 billion, according to the Australian Bureau of Statistics.
The result marks the second consecutive quarterly fall, primarily driven by a $2.5 billion blowout in the net primary income deficit.
Jonathon Khoo, ABS head of international statistics, noted that stronger dividend payments to overseas investors and a decrease in income from Australian investments abroad pushed the primary income deficit to $21.7 billion.
Consequently, the steady $1.3 billion trade surplus in goods and services—drastically lower than its $41.3 billion peak in 2022—is no longer sufficient to offset these outflows.
Trade activity was characterised by record-high gold prices, with both imports and exports of non-monetary gold hitting historic peaks.
Total imports rose 3.3%, bolstered by a 16.6% rise in telecommunications equipment and a 9.1% increase in transport parts, particularly lithium batteries following federal rebate announcements.
Exports grew 3.2%, supported by Chinese demand for iron ore and a 2.6% rise in travel services as international tourists flocked to major sporting events and concerts.
A surplus of $8.4 billion was recorded, driven by robust foreign demand for Australian debt.
However, this was partially offset by record overseas equity purchases by Australian superannuation funds.
The ABS expects the $0.6 billion fall in net trade to detract 0.1 percentage points from the December quarter GDP growth.