Commonwealth Inscribed Stock Amendment Act 1979

Administered by Department of the Treasury

Legislation au C2004A02105 In force Act

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No. 95 of 1979

An Act to amend the Commonwealth Inscribed Stock 1911.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Commonwealth Inscribed Stock Amendment Act 1979.

(2) The Commonwealth Inscribed Stock Act 1911 is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Power to create stock

3. Section 4 of the Principal Act is amended—

(a) by omitting paragraphs (a) and (aa) and substituting the following paragraphs:

“(a) raising money by way of loan;

“(aa) converting any loan—

(i) raised by the Commonwealth; or

(ii) raised by a State in accordance with the provisions of the Financial Agreement,

into any other loan so raised; and”; and

(b) by adding at the end thereof the following sub-section:

“(2) Stock created pursuant to paragraph (1)(a) shall not be issued or sold unless—

(a) authority to borrow the moneys to be raised by the issue or sale is granted by an Act; or

(b) the issue or sale is for the purpose of carrying out an obligation of the Commonwealth under the Financial Agreement.”.

4. Section 7 of the Principal Act is repealed and the following section substituted:

Terms and conditions of issue

“7. The manner in which, the prices at which and the terms and conditions (including terms and conditions as to redemption and interest) on which stock may be issued and sold shall be as directed by the Governor-General.”.

Repeal

5. (1) Sections 8, 9 and 10 of the Principal Act are repealed.

(2) Notwithstanding the repeal of sections 8, 9 and 10 of the Principal Act, those sections continue to apply in relation to stock issued before the commencement of this Act.

Power to make out and issue Treasury Bonds

6. Section 51a of the Principal Act is amended—

(a) by omitting “and issue”;

(b) by omitting paragraph (a) and substituting the following paragraph:

“(a) raising money by way of loan; and

“(2) Treasury Bonds, Debentures or other securities made out pursuant to paragraph (1)(a) shall not be issued or sold unless authority to borrow the money to be raised by the issue or sale is granted by an Act.”.

7. Section 51b of the Principal Act is repealed and the following section substituted:

Sale of Treasury Bonds

“51b. The manner in which, the prices at which and the terms and conditions (including terms and conditions as to redemption and interest) on which Treasury Bonds, Debentures and other prescribed securities may be issued and sold shall be as directed by the Governor-General.”.

8. After Part Va of the Principal Act the following Part is inserted:

“PART Vb—DELEGATIONS AND AUTHORIZATIONS

Delegation by Governor-General and authorization by Treasurer

“51h. (1) The Governor-General may, either generally or as otherwise provided by the instrument of delegation, by writing under his hand, delegate to the Treasurer all or any of his powers under sections 7 and 51b.

“(2) The Treasurer may, either generally or as otherwise provided in the instrument of authorization, by writing under his hand, authorize—

(a) a specified person;

(b) a person for the time being holding or performing the duties of a specified office in the Australian Public Service; or

to exercise a power that has been delegated to the Treasurer under sub-section (1).

“(3) Any act or thing done—

(a) by the Treasurer in the exercise of a power delegated to him under sub-section (1); or

(b) by a person in the exercise of a power pursuant to an authorization by the Treasurer under sub-section (2),

has the same force and effect as if it had been done by the Governor-General.

“(4) A delegation under sub-section (1) does not prevent the exercise of a power by the Governor-General.

“(5) The giving of an authorization under sub-section (2) does not prevent the exercise of a power by the Treasurer.

Directions by Governor-General and Treasurer

“51j. Where the Governor-General has delegated a power to the Treasurer under section 51h—

(a) the Governor-General may give directions to the Treasurer with respect to the exercise of that power; and

(b) if the Treasurer has under sub-section 51h (2) authorized another person to exercise that power, the Treasurer—

(i) shall, if the Governor-General gives a direction to the Treasurer under paragraph (a) with respect to the exercise of that power, give a corresponding direction to the other person; and

(ii) may, subject to any direction given to the Treasurer under paragraph (a), give directions to the other person with respect to the exercise of that power.”.

9. Section 53 of the Principal Act is repealed and the following section substituted:

Audit

“53. (1) The Auditor-General shall inspect and audit the accounts and records of Registries established under section 14 and shall forthwith draw the attention of the Treasurer to any irregularity disclosed by the inspection and audit that is, in the opinion of the Auditor-General, of sufficient importance to justify his so doing.

“(2) The Auditor-General may, at his discretion, dispense with all or any part of the detailed inspection and audit of any accounts or records referred to in sub-section (1).

“(3) The Auditor-General shall, at least once in each year, report to the Treasurer the results of the inspection and audit carried out under sub-section (1).

“(4) The Auditor-General or a person authorized by him is entitled at all reasonable times to full and free access to all accounts and records of the Registries established under section 14.

“(5) The Auditor-General or a person authorized by him may make copies of, or take extracts from, any such accounts or records.

“(6) The Auditor-General or a person authorized by him may require any person to furnish him with such information in the possession of the person, or to which the person has access, as the Auditor-General or authorized person considers necessary for the purposes of the functions of the Auditor-General under this section, and the person shall comply with the requirement.

“(7) A person who contravenes sub-section (6) is guilty of an offence and is punishable, upon conviction, by a fine not exceeding $200.”.

Overview

The Commonwealth Inscribed Stock Amendment Act 1979, enacted by the Parliament of Australia, amends the Commonwealth Inscribed Stock Act 1911 to address issues surrounding the creation, issuance, and management of Commonwealth inscribed stock and Treasury bonds. This amendment was necessitated by the need to modernise the legislative framework governing the Commonwealth’s financial instruments, ensuring they align with contemporary fiscal practices and obligations under the Financial Agreement. The primary policy objective of this Act is to refine the mechanisms by which the Commonwealth raises and manages its debt, while enhancing accountability and oversight through clearer delegation and auditing provisions. The Act specifically updates the conditions under which stock and Treasury bonds can be issued, mandates that such issuances must be authorised by an Act or for the purpose of fulfilling obligations under the Financial Agreement, and establishes clearer directives for the Governor-General and the Treasurer regarding the issuance of financial instruments. Additionally, the Act introduces provisions for delegation of powers and authorises the Treasurer to delegate certain powers to specified individuals or offices, subject to oversight and direction from the Governor-General.

Scope and Application

The Commonwealth Inscribed Stock Amendment Act 1979 amends the Commonwealth Inscribed Stock Act 1911, applying to the Commonwealth and its financial operations within Australia. It specifically pertains to the creation and issuance of stock and other financial instruments to raise or convert loans. This Act provides the legal framework for the issuance of stock and other securities, subject to certain conditions and authorisations, and applies to entities such as the Treasurer and the Governor-General, who have roles in issuing and authorising these financial instruments. The Act also allows for the delegation of powers from the Governor-General to the Treasurer and further to other specified individuals within the Australian Public Service or the Reserve Bank Service, thereby extending its reach to these individuals in their official capacities. The Act applies nationally across Australia as it is a Commonwealth Act. There are no stated exclusions or exemptions within the text of the Act itself, though the specifics of its application may be further defined through subordinate instruments or regulations.

Key Provisions

The Commonwealth Inscribed Stock Amendment Act 1979 (C2004A02105) makes several key changes to the Commonwealth Inscribed Stock Act 1911. The main operative sections (sections 3, 4, 6, 7, and 8) amend the purposes for which stock can be created and issued, as well as the terms and conditions under which it can be done. Specifically, Section 3 amends the purposes for creating stock, limiting it to raising money by way of loan or converting loans raised by the Commonwealth or a State in accordance with the Financial Agreement. Section 4 specifies that stock can only be issued or sold if authorised by an Act or to meet an obligation under the Financial Agreement. Sections 6 and 7 replace the repealed sections 51a and 51b of the Principal Act, altering the issuance of Treasury Bonds, Debentures, and other securities. Section 8 inserts new provisions regarding delegations and authorisations for the issuance of stock, allowing the Governor-General to delegate powers to the Treasurer and the Treasurer to further delegate these powers to specified persons. The Act imposes specific obligations and requirements on the parties involved. For instance, the Governor-General must direct the manner, prices, and terms under which stock and Treasury Bonds are issued (sections 7 and 51b). The Treasurer can exercise these powers, either directly or through authorised persons, and must comply with any directions from the Governor-General (section 51h). The Auditor-General is tasked with inspecting and auditing the accounts and records of the Registries and reporting any irregularities to the Treasurer (section 53). These provisions ensure a structured and authorised process for the issuance and management of Commonwealth stock and securities. There are specific penalties and consequences for breaches of the Act. For example, Section 53(7) states that any person who fails to comply with a requirement of the Auditor-General to furnish information is guilty of an offence and can be fined up to $200. Although the Act does not detail other potential offences or penalties extensively, the outlined fines and reporting requirements suggest a framework aimed at ensuring compliance and accountability in the issuance and management of Commonwealth stock.

Area of Law: Finance & Banking Law
Instrument: Act
Concepts: Commencement Provisions; Delegated & Subordinate Legislation; Repeal & Amendment; Reporting & Disclosure Obligations

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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