Stolen firearms represent a very real source of weapons for diversion into the illegitimate firearms market and hence, potential use in criminal activities. This report represents the first in the National Firearms Theft Monitoring Program (NFTMP) series, and builds on earlier AIC research on firearms theft. This report describes firearms thefts reported to police between 1 July 2005 and 30 June 2006 - 634 incidents, with a total of 1,445 firearms stolen. These results mark another decline in the number of firearms stolen yearly in Australia, down from an estimated 5,000 firearms in the period immediately prior to the implementation of the National Firearms Agreement, and a more modest drop from the 1,470 firearms reported stolen in 2004-05. Most of the firearms reported stolen were registered, and the majority of firearms owners held appropriate licenses for their firearms. Nonetheless, one-third of firearms owners continue to store their firearms in unapproved receptacles or do not secure them at all. A recent increase in the prosecution of non-compliant owners may result in future improvements in firearm storage.