Commonwealth Inscribed Stock Amendment Act 2013

Administered by Department of the Treasury

Legislation au C2013A00135 In force Act

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Commonwealth Inscribed Stock Amendment Act 2013

 

No. 135, 2013

 

 

 

 

 

An Act to remove the limit on stock and securities on issue, and for other purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendment of the Commonwealth Inscribed Stock Act 1911

Schedule 2—Amendment of the Charter of Budget Honesty Act 1998

 

 

 

 

Commonwealth Inscribed Stock Amendment Act 2013

No. 135, 2013

 

 

 

An Act to remove the limit on stock and securities on issue, and for other purposes

[Assented to 10 December 2013]

 

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Commonwealth Inscribed Stock Amendment Act 2013.

2  Commencement

  This Act commences on the day this Act receives the Royal Assent.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendment of the Commonwealth Inscribed Stock Act 1911

 

1  Section 5

Repeal the section.

2  Subsection 51JA(2)

Omit “, disregarding stock and securities of the kind mentioned in subsection 5(2),”.

3  After subsection 51JA(2)

Insert:

 (2A) In working out the total face value of stock and securities for the purposes of subsection (2), disregard:

 (a) stock and securities issued in relation to money borrowed under the Loan (Temporary Revenue Deficits) Act 1953; and

 (b) stock and securities loaned by the Treasurer under a securities lending arrangement under section 5BA of the Loans Securities Act 1919, or held by or on behalf of the Treasurer for the purpose of such an arrangement; and

 (c) stock and securities invested under subsection 39(2) of the Financial Management and Accountability Act 1997; and

 (d) stock and securities on issue as at the start of 13 July 2008, other than Treasury Fixed Coupon Bonds.

Note: The time referred to in paragraph (d) is when item 4 of Schedule 1 to the Commonwealth Securities and Investment Legislation Amendment Act 2008 commenced.

4  At the end of section 51JA

Add:

 (5) For the purposes of this section:

 (a) the face value of a Treasury Indexed Bond is taken to be its face value at the time it was issued; and

 (b) the loan of stock or a security is taken to include an arrangement under which it is sold and repurchased.

Schedule 2—Amendment of the Charter of Budget Honesty Act 1998

 

1  At the end of clause 2 of Schedule 1

Add:

Additional statements about Commonwealth stock and securities

 (7) In certain cases where the face value of Commonwealth stock and securities on issue has increased by $50 billion or more since a previous report or statement under the Charter of Budget Honesty, the Treasurer is to table a statement setting out reasons for the increase (see Part 9).

2  Subclause 3(1) of Schedule 1

Insert:

Commonwealth stock and securities means stock and securities on issue under the Commonwealth Inscribed Stock Act 1911 (the CIS Act) or the Loans Securities Act 1919 (disregarding stock and securities of the kind mentioned in subsection 51JA(2A) of the CIS Act).

debt statement, for a report under Part 5 or 7, means a statement that includes:

 (a) the following information about Commonwealth stock and securities on issue, at the time of the report and for the financial year to which the report relates and the following 3 financial years:

 (i) the value of the stock and securities (including their market and face value, and their value as a proportion of gross domestic product);

 (ii) the total expected interest expenses relating to the stock and securities; and

 (b) a breakdown, by maturity and timing of interest payments, of Commonwealth stock and securities on issue at the time of the report.

3  At the end of subclause 12(1) of Schedule 1

Add:

 ; (f) a debt statement.

4  At the end of subclause 16(1) of Schedule 1

Add:

 ; and (c) contain a debt statement.

5  At the end of subclause 24(1) of Schedule 1

Add:

 ; (e) a debt statement.

6  At the end of paragraph 26(a) of Schedule 1

Add:

 (v) the information required by paragraph 24(1)(e); and

7  At the end of Schedule 1

Add:

Part 9—Additional statements about Commonwealth stock and securities

 

33  Additional statements about Commonwealth stock and securities

 (1) This clause applies when the actual face value of Commonwealth stock and securities on issue has increased by $50 billion or more since whichever of the following last occurred:

 (a) a budget economic and fiscal outlook report, a mid‑year economic and fiscal outlook report or a pre‑election economic and fiscal outlook report was publicly released;

 (b) a statement under this clause was tabled.

 (2) The Treasurer is to table in each House of the Parliament, within 3 sittings days of that House after the increase referred to in subclause (1), a statement setting out the reasons for the increase, including the extent to which any of the following contributed to the increase:

 (a) lower than expected revenue;

 (b) higher than expected spending;

 (c) capital purchases;

 (d) grants to State and Territory governments for infrastructure.

8  Application—statements under clause 33 of the Charter of Budget Honesty

Clause 33 of Schedule 1 to the Charter of Budget Honesty Act 1998 applies in relation to a report referred to in paragraph (1)(a) of that clause that is publicly released on or after the commencement of this item.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 13 November 2013

Senate on 14 November 2013]

 

(202/13)

 

Overview

The Commonwealth Inscribed Stock Amendment Act 2013 was enacted by the Parliament of Australia to address the limitation on the amount of stock and securities that can be issued by the Commonwealth under the Commonwealth Inscribed Stock Act 1911. This Act removes the existing cap on the issuance of stock and securities, thereby providing greater flexibility in managing the Commonwealth's financial obligations and investments. The objective of the Act is to streamline the issuance process and improve the Commonwealth's capacity to meet its financial commitments effectively. The Act amends the Commonwealth Inscribed Stock Act 1911 to eliminate the cap on the issuance of stock and securities, while also making corresponding changes to the Charter of Budget Honesty Act 1998 to ensure that updated information on Commonwealth stock and securities is provided to Parliament. This legislative change is intended to enhance transparency and accountability in the management of the Commonwealth's financial instruments.

Scope and Application

The Commonwealth Inscribed Stock Amendment Act 2013 aims to amend the Commonwealth Inscribed Stock Act 1911 and the Charter of Budget Honesty Act 1998 to remove the limit on the issuance of Commonwealth stock and securities and to require the Treasurer to provide additional statements when the face value of Commonwealth stock and securities on issue increases significantly. The Act applies to the Commonwealth and its officers, as well as to entities involved in the issuance and management of stock and securities, including the Treasurer. The Act has a national reach as it is a Commonwealth Act. The Act does not specify any exclusions or exemptions. The application of the Act can be extended or restricted through subordinate instruments, such as regulations, made under the amended Acts. The Act requires the Treasurer to table a statement setting out reasons for the increase when the face value of Commonwealth stock and securities on issue has increased by $50 billion or more since the last budget economic and fiscal outlook report, mid-year economic and fiscal outlook report, pre-election economic and fiscal outlook report or a statement under this Act was tabled.

Key Provisions

The Commonwealth Inscribed Stock Amendment Act 2013 (sections 1 and 2) amends the Commonwealth Inscribed Stock Act 1911 and the Charter of Budget Honesty Act 1998. The Act removes the limit on stock and securities on issue by repealing section 5 of the Commonwealth Inscribed Stock Act 1911 and modifying subsection 51JA(2). It also introduces new provisions concerning the disclosure of additional information about Commonwealth stock and securities in certain circumstances. The Act commences on the day it receives Royal Assent (section 2). The Act imposes specific obligations on the parties governed by it. Under the Commonwealth Inscribed Stock Act 1911, the Treasurer must disregard certain types of stock and securities when calculating the total face value of stock and securities for the purposes of subsection 51JA(2). These include stock and securities issued under the Loan (Temporary Revenue Deficits) Act 1953, those loaned by the Treasurer under a securities lending arrangement, those held by or on behalf of the Treasurer for such arrangements, and those invested under the Financial Management and Accountability Act 1997 (Schedule 1, item 2). Furthermore, the Act requires the Treasurer to table a statement in Parliament if the face value of Commonwealth stock and securities on issue has increased by $50 billion or more since a previous report or statement under the Charter of Budget Honesty Act 1998 (Schedule 2, clause 33). Breach of the obligations under this Act may have various civil or criminal consequences, although the Act itself does not specify penalties. Under the Charter of Budget Honesty Act 1998, failure to table a statement when required by clause 33 could result in a breach of parliamentary reporting obligations, potentially leading to legal scrutiny or disciplinary actions against the Treasurer. However, the specific penalties for such breaches would be determined by other relevant laws or regulations.

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Commencement Provisions
Repeal & Amendment
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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.