This paper is about Australia balance of payment. It can be divided into four parts. In the first part, I will briefly describe the economic settings of Australia from four aspects: GDP growth rate, inflation rate unemployment rate and balance of payment. Then in the second part, I will give my explanations about the deficits of Australia current account. Then in part three, I will concentrate on the current policies from both macro and micro aspects, and give my personal view of the appropriateness of the current policies. In final part, I will give my prediction of the balance of payment and the recommendations the future policies.