Financial Emergency Act 1931 (Cth)
FINANCIAL EMERGENCY.
An Act to make necessary Provision for carrying out a Plan agreed on by the Commonwealth and the States for meeting the grave Financial Emergency existing in Australia, re-establishing Financial Stability, and restoring Industrial and General Prosperity.
[Assented to 17th July, 1931.]
WHEREAS at a conference between Ministers of the Commonwealth and Ministers of the States convened in Melbourne on the 25th day of May 1931 to devise measures for meeting the grave financial emergency existing in Australia and thereby averting disastrous consequences, a plan was agreed upon for re-establishing the financial stability of the Commonwealth and States and restoring industrial and general prosperity by means involving a common sacrifice, including amongst other things certain reductions in the expenditure of the Commonwealth and State Governments and the conversion of the internal public debts of the Commonwealth and States on the basis of a reduction of the interest payable: And whereas for carrying out a part of the plan certain legislation by the Commonwealth is necessary:
Be it therefore enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Part I.—Preliminary.
Part I.—Preliminary.
Part II.—Salaries and Wages.
Part III.—Pensions to Officers.
Part IV.—Maternity Allowances.
Part V.—Invalid and Old-age Pensions.
Part VI.—War Pensions.
Part VII.—Judiciary.
Part VIII.—Bounties.
Part IX. —Miscellaneous.
Part II.—Salaries and Wages.
“authority under the Commonwealth” means any authority constituted by the Commonwealth, or by or under any Act, but does not include the Commonwealth Bank of Australia, the Commonwealth Savings Bank of Australia or any corporation any shares in which are held by or on behalf of the Commonwealth;
“by or under any Act” includes by or under any Ordinance of any Territory being part of the Commonwealth and by or under any regulation under an Act or any such Ordinance;
“index-numbers” means the index-numbers published from time to time by the Commonwealth Statistician as indicating the purchasing power of money;
“officers and employees” means—
(
a )officers and employees of the Commonwealth or of any authority under the Commonwealth, and includes—(
b )any persons constituting, or being members of, any such authority and any persons holding official positions whose salaries are paid by the Commonwealth,who are required to devote the whole of their time to the duties of their offices or positions;
“parliamentary office” means any of the following offices, namely, Presiding Officer, Chairman of Committees and Leader of the Opposition in either House of the Parliament;
“salary”, in the case of an officer or employee, means the total remuneration, whether by way of salary, wage, pay, fees or allowance, payable to him in respect of the performance of the duties of the office or position occupied by him or in respect of the work upon which he is employed and, in the case of any officer or employee who, as a regular condition of his employment, is supplied with rations, board or lodging in addition to salary, includes an amount equal to the annual value, as determined by the Minister of the Department to which the officer or employee is attached, of such rations, board or lodging;
“the Committee” means the Committee constituted under this Part.
(
a )where the amount does not exceed One thousand pounds—by twenty per centum of that amount;(
b )where the amount exceeds One thousand pounds but does not exceed Two thousand pounds—by twenty-two and one-half per centum of that amount; and(
c )where the amount exceeds Two thousand pounds—by twenty-five per centum of that amount:
Provided that the allowance as a senator or member which would, but for this Act, have been received annually by any Minister of State shall be reduced by twenty-two and one-half per centum.
(2.) Where the application of this section would
result in the reduction of the allowances, or salary and allowances, of any
senator or member to whom paragraph (
specified in the next preceding paragraph would be reduced; the amount to be deducted from the allowances or salary and allowances of the first-mentioned senator or member shall be reduced to the extent necessary to prevent this result.
Provided that—
(i) the annual salary of any officer or employee which is less than Two hundred and fifty-one pounds shall not be reduced under this section by an amount which is greater than eighteen per centum of that salary; and
(ii) the annual salary of an adult male officer or employee or of a married male officer or employee who is not an adult shall not be reduced under this section below One hundred and eighty-two pounds per annum.
(2.) For the purpose of calculating the amount of reduction to be made under this section in the salary of an officer or employee, his annual salary shall be deemed to be the amount which would have been payable to him at the commencement of this section had there been no decrease in his salary on or subsequent to the first day of July One thousand nine hundred and thirty in consequence of a variation in the index-numbers, and the amount of any such decrease shall be included as part of the reduction to be made in pursuance of this section.
Provided that—
(i) the annual salary of any officer or employee which, after reduction in accordance with section ten of this Act, is less than Two hundred and seventeen pounds, shall not be reduced under this section by an amount which, together with the amount of reduction made in pursuance of that section, is greater than eighteen per centum of the salary of that officer or employee, as ascertained in accordance with sub-section (2.) of that section; and
(ii) the annual salary of an adult male officer or employee or of a married male officer or employee who is not an adult shall not be reduced under this section below One hundred and eighty-two pounds.
(i) the salaries of members of the permanent Naval, Military or Air Forces shall be reduced in such manner as the Minister directs:
Provided that any reduction so determined shall approximate as nearly as practicable to the amounts by which salaries (corresponding in amount to the salaries of members of the Forces) of officers and employees are respectively reduced under the last two preceding sections;
(ii) where the Commonwealth Court of Conciliation and Arbitration has made an award prescribing the rates of pay, salary or wages payable to any class of employee specified in the award and that or any other award of that Court provides for reductions in rates of pay, salary or wages based upon the index-numbers, and for a further reduction in rates of pay, salary or wages at the rate of ten per centum per annum, the salary of any employee of that class to whom the award is applicable shall be adjusted in accordance with the provisions of the award, and no further reduction of the salary of the employee shall be effected under this Act except to such extent, if any, as the Minister, upon the receipt of a recommendation of the Committee, directs
Provided that the salary of an adult male employee, or of a married male employee who is not an adult, shall not be reduced under this sub-paragraph below the equivalent of One hundred and eighty-two pounds per annum unless the Minister so directs; and
(iii) where the salary of an officer or employee is fixed by an award of the Commonwealth Court of Conciliation and Arbitration, and is not adjusted as provided in the last preceding paragraph, or where the salary of an officer or employee is paid at a rate prescribed by any award, determination, order or decision of an industrial tribunal constituted by or under any law of a State or of a Territory being part of the Commonwealth or by an Industrial Agreement or by a determination of the Public Service Arbitrator which provides for adjustment of salary or wages quarterly based on the index-numbers, or where the salary of any officer or employee is paid at a rate less than One hundred and fifty-six pounds per annum and that rate
is not prescribed in any Act or regulation, or in any award of the Commonwealth Court of Conciliation and Arbitration, or in any determination of the Public Service Arbitrator, the salary of the officer or employee shall be reduced by such amount, (if any), and from such date, as the Minister, upon the receipt of a recommendation of the Committee, directs.
(2.) For the purposes of this section the salary of a member of the Naval, Military or Air Force shall, in addition to the remuneration specified in the definition of " salary " contained in section six of this Act, include the value, as assessed by the Minister, of such allowances received by the member, whether in money or in any other form, as the Minister directs.
(2.) The person appointed under the last preceding sub-section shall hold office during pleasure.
(3.) The member of the Commonwealth Public Service Board of Commissioners shall be the Chairman of the Committee.
(4.) The Minister shall refer to the Committee—
(
a )the cases of any classes of officers and employees and of other persons rendering service to the Commonwealth; and(
b ) any other matter,
in relation to which he has power under this Part to give a direction upon the receipt of a recommendation of the Committee.
(5.) The Committee shall inquire into any cases referred to it under the last preceding sub-section, and shall make a report and recommendation to the Minister specifying the reductions (if any) in the salary of remuneration the officers, employees or persons concerned which, in view of the purposes of this Act as expressed in the Preamble thereto, and of the reductions otherwise effected by this Part, it deems just.
(
a )at an hourly rate—the amount of the annual salary of the officer or employee shall, for the purposes of this Part, be ascertained by multiplying the hourly rate by the number of hours constituting a week’s work for the officer or employee, and by multiplying the result so obtained by fifty-two and one-sixth;(
b )at a daily rate based on six days per week—the amount of the annual salary of the officer or employee shall be ascertained by multiplying the daily rate by three hundred and thirteen;(
c )at a daily rate based on seven days per week—the amount of the annual salary shall be ascertained by multiplying the daily rate by three hundred and sixty-five; and(
d )at a weekly rate—the amount of the annual salary of the officer or employee shall be ascertained by multiplying the weekly rate by fifty-two and one-sixth.
(2.) Where by or under any Act provision is made for any payment (to which this Part does not otherwise apply) to any person of any amount in respect of any services rendered by him to the Commonwealth or to any authority under the Commonwealth (not being services under contracts for the conveyance of mails or such other services as are prescribed), the amount shall be reduced to such extent, if any (not exceeding twenty per centum), and from such date, as the Minister, upon the receipt of a recommendation of the committee, directs.
(3.) Where the total amount received by any person in any year by way of payments, fees or allowances to which either of the last two preceding sub-sections applies exceeds One thousand pounds, that amount shall be reduced by such percentage, additional to any percentage by which it is reduced under either of those subsections, as the Minister directs, but so that the total reduction under this section shall not in any case exceed twenty-five per centum.
(4.) Where by or under any Act the maximum amount of expenditure in respect of any payments, fees or allowances to which subsection (1.) of this section applies is fixed, that amount shall be reduced by twenty per centum.
(5.) Any allowances fixed by or under any Act or by any award, determination, order or decision of an industrial tribunal constituted by or under any Act or State Act, and payable to officers and employees, or to the Chairman or to any member of any Board,
committee or other authority to which this Part does not otherwise apply, shall be reduced by such amount (if any), and from such date, as the Minister, upon the receipt of a recommendation of the Committee, directs, but not exceeding in any case twenty per centum of the amount so fixed:
Provided that, where travelling allowances are fixed by the Governor-General, the amount of the reduction (if any) shall be such as the Governor-General directs, but not exceeding in any case twenty-five per centum of the amount so fixed.
(6.) The preceding provisions of this section shall not apply to—
(
a )the pay and allowances of members of that part of the Defence Force of the Commonwealth which is known as the Citizen Forces; or(
b )allowances (not being allowances in the nature of salary) payable to members of the permanent Naval, Military or Air Forces,
and that pay and those allowances shall be reduced by such amounts (if any), and from such dates, as the Minister directs.
(2.) For
the purposes of this section “prescribed rates or percentages” means such rates
or percentages as are fixed, from time to time, by the Governor-General and
notified in the
(3.) Nothing in this section shall be construed as empowering the Governor-General to fix different rates or percentages in respect of different States or parts of the Commonwealth.
(4.) The Governor-General may arrange with the Governor-in-Council of any State that the taxation, under the law of that State, of the salaries and allowances of any persons whose salaries and allowances are reduced under this Part, to the extent to which such taxation is permitted by or under this section, shall be deducted from
the periodical payments of the salary and allowances of those persons and shall be paid to the State in such manner and at such times as are provided by the arrangement.
(
a )a taxpayer holds any office under the Commonwealth or a State the salary of which—(i) is fixed by law and payable out of the General Revenue of the Commonwealth or the State; and
(ii) is not reduced by the law of the Commonwealth or of the State relating to the financial emergency; and
(
b )the taxpayer has agreed with the Treasurer of the Commonwealth or of the State as the case may be that the taxpayer will, in any year, for the purpose of assisting to relieve the financial stringency of the Commonwealth or the State, as the case may be, and to reduce the expenditure of the Government thereof, accept, instead of the salary so fixed, some smaller sum, and allow the Treasurer to retain the balance in aid of the General Revenue of the Commonwealth or the State,
the following provisions shall apply:—
(1) In the case of any such taxpayer holding office under the Commonwealth, the sum actually paid to the taxpayer in pursuance of any such agreement shall, for the purposes of any Act of the Commonwealth or a State relating to taxation based on income, be deemed to be the salary of the taxpayer derived from that office, and the sum retained by the Treasurer of the Commonwealth shall not be taken into account for the purpose of calculating the taxable income of the taxpayer under any law of the Commonwealth or a State; and
(2) In the case of any such taxpayer holding office under a State, the sum actually paid to the taxpayer in pursuance of any such agreement shall, for the purposes of any Act of the Commonwealth relating to taxation based on income, be deemed to be the salary of the taxpayer derived from that office, and the sum retained by the Treasurer of the State shall not be taken into account for the purpose of calculating the taxable income of the taxpayer under any law of the Commonwealth.
Part III.—Pensions to Officers.
(
a ) section forty-eight a of theJudiciary Act 1903-1927;(
b ) section fourteen b of theCommonwealth Conciliation and Arbitration Act 1904-1930; and(
c ) section eighteen c of theBankruptcy Act 1924-1930, shall be reduced by twenty per centum of the amount which would, but for this section, be payable.
(2.) All payments of pensions or retiring allowances payable by the Commonwealth under section eighty-four of the Constitution to any person who, having been transferred from the public service of a State to the public service of the Commonwealth, is entitled to retire, or has retired, from office on the pension or retiring allowance permitted by the law of the State as if his service with the Commonwealth were a continuation of his service with the State, shall be reduced by such percentages or amounts as are provided, from time to time, by or under any law of the State from the public service of which he was transferred to the public service or the Commonwealth, which would have been applicable to him if his service with the Commonwealth had been a continuation of his service with the State.
“15. Where the salary of a contributor is or has been reduced from one salary group to another salary group, the Board may, upon application by the contributor, reduce the number of units in respect of which he shall contribute to the number appropriate to the salary group to which his salary has been reduced, and any contributions paid by him, prior to such reduction, in respect of units in excess of the reduced number shall be credited as payments for paid-up pension to be actuarially calculated or be refunded to him, as the Board determines.”.
Part IV.—Maternity Allowances.
(2.) The Principal Act, as amended by this Act, may
be cited as the
(2.) The amendment made by this section shall apply in relation to any claim made in respect of any birth occurring after the commencement of this section.
“(3.) A maternity allowance shall not be payable unless the claimant produces evidence satisfactory to the Commissioner or to a Deputy Commissioner—
(
a )that the total income of the claimant and her husband for the period of twelve months preceding the date of the birth did not exceed Two hundred and sixty pounds; or(
b )in the case of a posthumous or ex-nuptial child—that the total income of the claimant for the period of twelve months preceding the date of the birth did not exceed Two hundred and sixty pounds.
“(4.) For the purposes of this section “income” includes any moneys, valuable consideration or profits earned, derived or received by the claimant or her husband for her or his own use or benefit from any source whatever, whether in or out of the Commonwealth.”.
“6a. Every claim under this Act for a maternity allowance shall be supported by such evidence as to the income of the claimant and of her husband as is prescribed.”.
“7a.—(1.) The Commissioner or a Deputy Commissioner may cause to be made such investigations as appear to him to be desirable in order to ascertain the circumstances of any claimant or her husband and the truth of the statements contained in the claim, and may require any person, whom he believes to be in a position to do so, to furnish to him a confidential report as to the income of the claimant or her husband.
“(2.) Any person who, on being required under this section to furnish a report, fails to furnish the report within a reasonable time, or furnishes a report containing any statement which is untrue in any particular, shall be guilty of an offence.
Penalty: Ten pounds, or imprisonment for one month.”.
“11a. All offences against this Act shall be punishable on summary conviction.”.
Part V.—Invalid and Old-age Pensions.
(2.) The Principal Act, as amended by this Act, may
be cited as the
(
a ) by omitting from paragraph (d ) of the definition of “Income” the word “or” (last occurring); and(
b )by omitting from the definition of “Income” paragraphs (e ), (f ), (g ) and (h ).
(
a )by omitting from sub-section (1.) the words “Fifty-two pounds” (wherever occurring) and inserting in their stead the words “Forty-five pounds ten shillings”; and(
b )by omitting from sub-section (1.) the words “Eighty-four pounds ten shillings “and inserting in their stead the words “Seventy-eight pounds”.
“38aa.—(1.) Where a pensioner acquires any property or income of such value or to such extent that, had he been possessed thereof at the time his claim for pension was determined, he would have been ineligible to receive pension at the rate paid to him, he shall forthwith cease to be entitled to receive pension to the extent of that ineligibility.
“(2.) Where, in consequence of any false statement or representation or otherwise, any amount has been paid by way of pension under this Act which would not have been paid but for the false statement or representation or otherwise, the amount so paid shall be recoverable in any court of competent jurisdiction from the person to whom or on whose account the amount was paid, or from the estate of that person, as a debt due to the Commonwealth.”.
Part VI.—War Pensions.
(2.) The Principal Act, as amended by this Act, may
be cited as the
Parents of members of the Forces;
Children of members of the Forces in receipt of pensions under the Principal Act;
Wives of members of the Forces in receipt of such pensions;
Brothers and sisters of deceased members of the Forces or members who are in receipt of such pensions;
Other persons who are dependants within the meaning of the Principal Act and who are not elsewhere referred to in this sub-section.
(2.) The last preceding sub-section shall not apply—
(
a )to the widowed mother of any deceased unmarried member of the Forces; or(
b )to the widow or children of any deceased member of the Forces,
where the death of the member resulted from an occurrence happening during the period he was such member.
(3.) Notwithstanding anything contained in the Principal Act, the Governor-General may take such action as is necessary to give effect to any recommendation made by the committee constituted in pursuance of section forty-three of this Act, in relation to the cancellation or reduction of the pensions payable under the Principal Act to any class of persons whose pensions are reduced in accordance with the provisions of sub-section (1.) of this section.
(2.) The conditions of appointment of any member of a committee constituted for the purposes of this section and the duration of any such committee shall be as prescribed.
(
a ) by adding, at the end of the definition of “Child”, the words “but does not include any step-son, step-daughter or adopted child who becomes a dependant after the first day of July One thousand nine hundred and thirty-one”; and(
b ) by adding at the end of the definition of “Dependants” the words “,but does not include any wife married, or child born, to a member of the Forces after the first day of October One thousand nine hundred and thirty-one:Provided that any such child born after that date whose father dies from the results of an occurrence happening during the period he was a member of the Forces shall be deemed to be a dependant”.
(
a )by omitting from the proviso to sub-section (1.) the words “,but in such cases arrears of pension shall not be granted for any period exceeding six months”; and(
b )by adding at the end thereof the following sub-section:—“(3.) Notwithstanding anything contained in this Act, no pension shall, after the commencement of this sub-section, be payable under this Act in respect of any period prior to the date upon which a claim for payment of pension is made in accordance with this Act.”.
“27a. Where a claim for pension has been rejected and upon subsequent application or appeal to the Commission a pension is granted to the claimant, the pension shall not be payable in respect of any period prior to the period of three months immediately preceding the date of the application or appeal upon which the pension was granted.
“27b.—(1.) Where a pension has been cancelled and the pensioner, upon an application for re-instatement of his pension, is again granted a pension, payment of the pension so granted shall not be made in respect of any period prior to the date of the application for re-instatement.
“(2.) Where a pension has been voluntarily relinquished either wholly or in part and the pensioner applies for the restoration of the pension or part thereof so relinquished, the pension or part thereof shall, subject to this Act, be restored, but the restoration shall not operate in respect of any period prior to the date of the application.”.
(
a ) by inserting, after the word “increase”, the word “,reduce”; and(
b ) by omitting the words “assessment of” (second occurring).
Part VII.—Judiciary.
Part VIII.—Bounties.
Provided that this sub-section shall not apply to any bounty payable, but not paid, before the commencement of this section.
(2.) The amount of bounty which shall be paid and distributed in accordance with the Act in respect of the year ending on the thirty-first day of December One thousand nine hundred and thirty-one shall be calculated as follows:—
(
a ) In respect of fine gold produced during the half-year ending on the thirtieth day of June One thousand nine hundred and thirty-one, bounty shall be calculated on the basis of One pound Australian currency for each ounce of fine gold produced during that period in excess of half of the average number of ounces; and(
b ) In respect of fine gold produced during the half-year ending on the thirty-first day of December One thousand nine hundred and thirty-one, bounty shall, subject to this section, be calculated on the basis of Ten shillingsAustralian currency for each ounce of fine gold produced during that period in excess of half of the average number of ounces.
(3.) In respect of fine gold produced during the year commencing on the first day of January One thousand nine hundred and thirty-two and during any subsequent calendar year, the bounty which shall be paid and distributed in accordance with the Act shall, subject to this section, be calculated on the basis of Ten shillings Australian currency for each ounce of fine gold produced during that year in excess of the average number of ounces.
(4.) The bounty calculated under paragraph (
(5.) For the purposes of this section—
(
a )“average number of ounces” means the average number, ascertained in accordance with the Act, of ounces of fine gold produced annually during the years One thousand nine hundred and twenty-eight, One thousand nine hundred and twenty-nine and One thousand nine hundred and thirty;(
b )“rate of exchange” means the rate of exchange for telegraphic transfers from Australia to London;(
c )“the Act” means theGold Bounty Act 1930;(
d )the provisions of the Act shall apply for the purposes of ascertaining the number of ounces of fine gold produced during any period;
(
e )the average rate of exchange during any period shall be such as is certified in writing to the Treasurer by the Governor of the Commonwealth Bank of Australia.
Part IX.—Miscellaneous.
(
a ) a payment in respect of a period the whole of which had accrued prior to the commencement of that section; or(
b ) a payment the reduction of which is authorized to be made from such date as the Minister directs),
and is made after the date fixed for the commencement of that section, it shall be subject to reduction to the extent to which it would have been so subject if the whole of the period in respect of which it is made had accrued after the commencement of that section.
(2.) Where any payment, the reduction of which is authorized by any section contained in Part II. of this Act, is not of a periodical nature, (not being a payment the reduction of which is authorized to be made from such date as the Minister directs), and is made after the date fixed for the commencement of that section, it shall, in so far as it relates to services performed on or after that date, be subject to reduction in accordance with that section.
SCHEDULES.
—
THE FIRST SCHEDULE.
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Method of Ascertaining Deductions Effected Under Section 11 of this Act.
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Ascertain |
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Where the application of the method specified in this Schedule would result in the reduction of the salary of an officer or employee below the amount to which the salary of an officer or employee at the upper limit of a lower salary group specified in the first column of this Schedule would be reduced, the amount to be deducted from the salary of the first-mentioned officer or employee shall be reduced to the extent necessary to prevent this result.
For the purposes of this Schedule “salary” means salary or allowance after reduction in accordance with section ten of this Act.
THE SECOND SCHEDULE.
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0
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