FINANCIAL EMERGENCY.
No. 35 of 1932.
An Act to amend the Financial Emergency Acts 1931 and for other purposes.
[Assented to 3rd October, 1932.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1. (1.) This Act may be cited as the Financial Emergency Act 1932
(2.) The Financial Emergency Acts 1931 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Financial Emergency Act 1931-1932.
(4.) The Maternity Allowance Act 1912-1927, as amended by the Principal Act as amended by this Act, may be cited as the Maternity Allowance Act 1912-1932.
(5.) The Invalid and Old-age Pensions Act 1908-1928, as amended by the Principal Act as amended by this Act, may be cited as the Invalid and Old-age Pensions Act 1908-1932.
Commencement.
2. The several sections of this Act, other than sections one and two (which shall commence on the date on which this Act receives the Royal assent), shall commence on such dates as are respectively fixed by Proclamation.
Definitions.
3. Section six of the Principal Act is amended by omitting the definition of “parliamentary office”.
Reduction of sum payable under Ministers of State Act 1917.
4. Section seven of the Principal Act is amended by omitting the words “Eleven thousand eight hundred and fifty-seven pounds ten shillings” and inserting in their stead the words “Ten thousand seven hundred and ten pounds”.
5. Section nine of the Principal Act is repealed, and the following section inserted in its stead:—
Reduction of Parliamentary salaries and allowances.
“9. Notwithstanding anything contained in any Act, the allowances or salaries and allowances which would, but for this Act, have been received annually by any senator or member of the House of Representatives shall be reduced as follows:—
(a) the allowance as a senator or member of the House of Representatives—by twenty-five per centum;
(b) the salary as President of the Senate or Speaker of the House of Representatives—by thirty per centum;
(c) the salary as a Chairman of Committees in either House of the Parliament—by twenty-seven and one-half per centum; and
(d) the allowance as Leader of the Opposition in either House of the Parliament—by twenty-five per centum.”.
General reduction of salaries and wages.
6. Section ten of the Principal Act is amended—
(a) by omitting from paragraph (i) of the proviso to sub-section (1.) the word “and” (second occurring); and
(b) by omitting paragraph (ii) of the proviso to sub-section (1.).
Percentage reduction of salary and wages.
7. Section eleven of the Principal Act is amended—
(a) by omitting from paragraph (i) of the proviso the word “and” (second occurring);…
Overview
The Financial Emergency Act 1932 was enacted by the Parliament of the Commonwealth of Australia to amend the Financial Emergency Acts 1931 and address economic challenges arising from the financial crisis of the early 1930s. This Act aimed to implement financial austerity measures and address the economic instability of the time. One of the key objectives of the Act was to reduce public expenditure by cutting salaries and allowances of public officials and employees, including members of Parliament, public servants, and military personnel. Additionally, it sought to amend the conditions and amounts of pensions and allowances provided under various Acts, such as the Maternity Allowance Act 1912-1932 and the Invalid and Old-age Pensions Act 1908-1932, to reflect the reduced economic circumstances and ensure fiscal responsibility.
Scope and Application
The Financial Emergency Act 1932 applies to the Commonwealth of Australia and amends the Financial Emergency Acts 1931 to address the economic crisis of the period. The Act impacts a broad range of persons and entities, including Members of Parliament, public service employees, pensioners, and claimants for maternity allowance. It reduces salaries, allowances, and pensions, and imposes certain conditions and restrictions on pensioners and claimants to ensure that pensions are granted only to those in genuine need. The Act also includes provisions for the automatic adjustment of salaries based on the cost of living and mandates reporting and notification requirements for pensioners and claimants regarding their financial circumstances and property holdings. Notably, the Act extends its application through subordinate instruments and regulations, which may further define and refine the application of the Act’s provisions. There are specific exclusions and exemptions, such as the potential for certain transfers of property to be considered reasonable gifts, and certain personal effects being exempted from realization to satisfy pension-related charges.
Key Provisions
- The Financial Emergency Act 1932 (the "Act") amends the Financial Emergency Acts 1931 (the "Principal Act") to implement a range of measures in response to the economic crisis of the early 1930s. Key provisions of the Act include reductions in payments and allowances, amendments to the definition of "income" for pension eligibility, and requirements for pensioners and claimants to report property and income. The Act also introduces penalties for non-compliance with these reporting requirements and mandates deductions from pensioner estates upon death to recover pension payments. Additionally, the Act modifies the Wine Export Bounty Act 1930-1931 to limit the amount payable from the Consolidated Revenue Fund and introduces a temporary suspension of gold bounty payments based on gold price thresholds.
- The Act imposes specific obligations on various parties, including requirements for pensioners and claimants to report their property and income to the Commissioner. Failure to comply with these reporting obligations can result in criminal penalties and disqualification from receiving a pension. The Act also provides the Commissioner with the authority to cancel pensions and recover overpayments from the estates of deceased pensioners. Furthermore, relatives of pensioners may be required to contribute to the cost of the pension and can be ordered to do so by a court if they fail to voluntarily contribute.
- Breaches of the Act's provisions carry significant consequences. Pensioners and claimants who fail to report property or income may be liable to penalties of up to £50 and imprisonment for up to one month. Non-compliance with undertakings not to transfer property without consent can result in penalties of up to £100. Additionally, the Act mandates the recovery of pension payments from the estates of deceased pensioners, with certain personal effects and property exempted from this recovery. Failure to comply with court orders for relatives to contribute to pension costs can result in fines of up to £50 or imprisonment for up to three months.
- In summary, the Financial Emergency Act 1932 introduces a series of measures aimed at addressing the economic challenges of the time, including reductions in various payments and allowances, amendments to pension eligibility criteria, and stringent reporting and recovery requirements for pensioners and claimants. The Act imposes significant obligations on these individuals and their relatives, with serious penalties for non-compliance, including criminal sanctions and financial liabilities.
- Area of Law
- Finance & Banking Law
- Taxation Law
- Instrument
- Act
- Concepts
- Commencement Provisions
- Definitions & Interpretation
- Repeal & Amendment
- Offence Provisions
- Reporting & Disclosure Obligations
- Regulatory Standards