Commonwealth Banks Act 1961

Overview

The Commonwealth Banks Act 1961 was enacted to address a specific financial need for the Commonwealth Development Bank of Australia by increasing its authorised capital by five million pounds. The Act was introduced to amend the existing Commonwealth Banks Act 1959 to facilitate this capital increase, which was to be funded from the Consolidated Revenue Fund of the Commonwealth. The objective of this legislative action was to ensure the Development Bank had the necessary financial resources to support its operations and contribute to national economic development. Enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, this Act came into effect immediately upon receiving Royal Assent.

Scope and Application

The Commonwealth Banks Act 1961 applies to the Commonwealth Development Bank of Australia, specifically altering the capital structure of the bank as outlined in the Commonwealth Banks Act 1959. This amendment introduces an additional sum of Five million pounds to be paid by the Commonwealth to the Development Bank from the Consolidated Revenue Fund. The Act came into operation on the day it received Royal Assent, thereby immediately effectuating the amendment to the existing Act. No specific exclusions, exemptions, or thresholds are stated within the text of the Act itself; however, the scope of its application is limited to the financial restructuring of the Commonwealth Development Bank. The Act does not extend or restrict its application through subordinate instruments, as such provisions are not mentioned in the provided text. The jurisdiction of the Act is national, given its enactment by the Commonwealth of Australia, and its effect on a federally established institution.

Key Provisions

The Commonwealth Banks Act 1961 primarily serves to amend the Commonwealth Banks Act 1959 by increasing the authorised capital of the Commonwealth Development Bank of Australia by an additional five million pounds (sections 1-3). This legislative amendment is designed to support the financial capacity of the Commonwealth Development Bank, thereby enabling it to undertake broader or more substantial financial activities. Specifically, Section 3 of the Act alters Section 75 of the Commonwealth Banks Act 1959, effectively adding a new paragraph that specifies the additional capital contribution by the Commonwealth to the Development Bank. This sum is to be disbursed from the Consolidated Revenue Fund, with the necessary appropriation made accordingly. The Act imposes clear obligations on the Commonwealth to provide the specified sum of five million pounds to the Commonwealth Development Bank, which is to be sourced from the Consolidated Revenue Fund. This financial commitment is intended to bolster the bank's capital base, thereby enhancing its ability to support development projects and financial initiatives within Australia. The Act also ensures that the necessary appropriation is made within the budget framework of the Commonwealth, aligning with financial planning and accountability measures. Should there be any failure to adhere to the financial obligations outlined in the Act, or should there be any mismanagement of the appropriated funds, the consequences could be significant. Although the Act itself does not explicitly detail specific penalties or criminal consequences for non-compliance, any breach of financial obligations under the Act could potentially lead to legal scrutiny or financial penalties under broader legislative frameworks governing public finance and banking in Australia. The severity of these consequences would depend on the nature and extent of the breach, as well as the prevailing legal context at the time of any alleged non-compliance.