An inverse model is used to determine the circulation and volume transports in the Australian sector of the southern Indian Ocean from observations during WOCE cruise FR 10/94 (Nov/Dec 94).The model is based on conservtion of mass and salt throughout the water column and conservation of silicate and NO between the euphotic zone and the bottom boundary layer. It represents the movement of the major water masses with 16 layers. Layer surfaces are represented by neutral density surfaces $\gamma_n$.Antarctic Intermediate Water is found to move from the Pacific into the Indian Ocean exept in the region south of the SAF associated with the ACC where it mocves from the Indian into the Pacific Ocean. An exchange between those ocean basins of approximately 7 Sv takes place.Circumpolar Deep Water exhibits weak flow which can only be reliable resolved in the upper part (uCDW), where it is predominantely westward.Antarctic Bottom Water enters the South Australian Basin through depressions in the Australian--Antarctic Discordance at 125$^\circ$37$^\prime$E and at 126$^\circ$30$^\prime$E. Around 4 Sv of AABW flows from the Australian--Antarctic Basin into the South Australian Basin and moves northward and westwards into the interior of the Indian Ocean.