Commonwealth Inscribed Stock Amendment Act 2009

Overview

The Commonwealth Inscribed Stock Amendment Act 2009 was enacted by the Parliament of Australia to provide the Treasurer with the authority to increase the limit on the total face value of stock and securities that may be issued under the Commonwealth Inscribed Stock Act 1911 and the Loans Securities Act 1919 in special circumstances. This Act addresses the need for flexibility in managing the national debt by allowing the Treasurer to respond to extraordinary economic conditions. The policy objective is to ensure that the government can effectively manage its debt issuance when necessary, without the need for immediate legislative changes. The Act allows the Treasurer to make a written declaration if special circumstances justify an increase in the limit, subject to certain conditions such as publication in the Gazette and tabling in Parliament. The increased limit applies to all stock and securities issued on and after the declaration comes into force. This amendment provides a mechanism for the government to address unforeseen financial challenges while maintaining transparency and accountability.

Scope and Application

The Commonwealth Inscribed Stock Amendment Act 2009 amends the Commonwealth Inscribed Stock Act 1911, extending its application to include provisions that allow for an increase in the limit on the total face value of stock and securities that may be on issue under this Act and the Loans Securities Act 1919 in special circumstances. This Act applies to the Commonwealth, particularly the Treasurer, who has the authority to declare an increase in the limit if satisfied that special circumstances warrant such action. The declaration must be published in the Gazette and tabled in each House of Parliament within 15 sitting days. The increased limit applies regardless of when the stock and securities were issued, and the declaration itself is not considered a legislative instrument, nor subject to judicial review under the Administrative Decisions (Judicial Review) Act 1977. The Act is a Commonwealth Act, thus its application is confined within the national jurisdiction of Australia.

Key Provisions

The Commonwealth Inscribed Stock Amendment Act 2009 (the "Act") introduces changes to the Commonwealth Inscribed Stock Act 1911. Specifically, it allows for an increase in the limit on the total face value of stock and securities that can be issued under the Act and the Loans Securities Act 1919. Section 5A of the Act stipulates that the Treasurer may declare an increase if special circumstances warrant it. This declaration must be published in the Gazette and tabled in each House of the Parliament within 15 sitting days of its publication. Upon the declaration's publication in the Gazette, it takes effect immediately. If such a declaration is in force, the limit on the total face value of stock and securities that may be issued is increased by $125 billion. It is important to note that the Treasurer cannot make a new declaration if an existing one is still in effect. Additionally, any increase resulting from this declaration applies from the date of its publication, regardless of when the stock and securities were issued. The Act imposes certain obligations on the Treasurer regarding the issuance of such declarations. The Treasurer must ensure that any declaration made is published in the Gazette and tabled in Parliament as specified. Furthermore, the Act prohibits the Treasurer from making a new declaration if an existing one is still in force. This ensures that there is a clear and transparent process for increasing the issuance limit under special circumstances. Additionally, the Act emphasises that these declarations are not considered legislative instruments and are not subject to judicial review under the Administrative Decisions (Judicial Review) Act 1977. Breaching the conditions set out in the Act can lead to various consequences. Although specific offences and penalties are not detailed within the Act itself, non-compliance with the requirements for publishing and tabling the declaration could potentially lead to legal challenges or administrative penalties. The Act’s provisions are designed to ensure that any increase in the issuance limit is properly authorised and communicated, maintaining transparency and accountability in the issuance of Commonwealth stock and securities.