Total profitability of the corporate sector, as measured by
gross operating surplus, has been gradually declining as a share of GDP since the peak reached in 1996, and is now, at 15 per cent, around its decade average.
There was a particularly marked increase in the income attributed to foreign owners of direct equity stakes in Australian firms, which was in contrast to trends in economy - wide measures of profitability, such as
gross operating surplus.
Corporate profitability remains strong, although the growth in profits, as measured by private non-financial
gross operating surplus (GOS), has eased recently after a period of strong growth (Graph 32).
Profits of the private corporate sector, as measured by
gross operating surplus, increased by 2.2 per cent in the March quarter, to be 9 1/2 per cent higher over the year and a relatively high share of GDP (Graph 28).
Strong profitability, low interest rates and a debt burden well below historical peaks have all tended to hold down the interest burden of the corporate sector: as a share of
gross operating surplus, net interest paid by the corporate sector remains well below historical averages.
Profits continued to grow strongly in the March quarter, with
the gross operating surplus of the corporate sector increasing by just under 9 per cent, and by 11 3/4 per cent over the year to the March quarter.