STATUTORY RULES.
1940. No. 40.
REGULATIONS UNDER THE COMMONWEALTH INSCRIBED STOCK ACT 1911-1933.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Commonwealth Inscribed Stock Act 1911-1933.
Dated this Twenty Eighth day of February, 1940.
Governor-General.
By His Excellency’s Command,
For Treasurer.
Amendments of Commonwealth Inscribed Stock Regulations.†
1. After regulation 55 of the Commonwealth Inscribed Stock Regulations the following regulation is inserted:—
“War Savings Certificates.
55a. Treasury Bonds, to be known as War Savings Certificates, may be prepared in accordance with Form 31a.”.
2. After Form 31 in the Appendices, the following form is inserted:—
Form 31a.
Regulation 55A.
Face value is payable on 19 (Being seven years after purchase date.)
Commonwealth of Australia.
WAR SAVINGS CERTIFICATE.
No.
£
Issued under the Commonwealth Inscribed Stock Act 1911-1933.
Transferable By Delivery.
Redemption Values after Date of Purchase | | This Certificate entitles the Bearer to the payment at any Australian Branch of the Commonwealth Bank of Australia of the sum of at the expiration of Seven years after the day of One thousand nine hundred and forty- and such sum is secured on the Consolidated Revenue of the Commonwealth of Australia. Secretary to the Treasury. |
| s. | d. | |
Within 1 year.................... | | | |
At end of 1 year................... | | | |
At end of 2 years.................. | | | |
At end of 3 years.................. | | | |
At end of 4 years.................. | | | |
At end of 5 years.................. | | | |
At end of 6 years.................. | | | |
At maturity (7 years) | | | |
Stamp of Issuing Office.
Signature of Issuing Officer.
* Notified in the Commonwealth Gazette on , 1940.
† Statutory Rules 1927, No. 157, as amended by Statutory Rules 1928, Nos. 29 and 61; 1931, Nos. 17, 102, 129 and 151; 1932, Nos. 71 and 135; 1934, Nos. 8 and 123; 1935, No. 128; 1936, No. 72; and 1938, No. 50.
935.—6/12.2.1940.—Price 3d.
[Back of Form.]
This War Savings Certificate is payable at face value on the date which is exactly seven years after the date of purchase. The amount then payable includes the amount paid for the Certificate and compound interest thereon. Interest will cease at the date of maturity of the Certificate.
This War Savings Certificate is payable to bearer and is transferable by delivery.
The principal sum and the interest secured by the Certificate will be free from Stamp Duty under any law of the Commonwealth or a State, and the interest will be free of Commonwealth and State Income Tax.
The Certificate may be cashed at any time within the period of seven years from the date of purchase. The value of the Certificate for purposes of redemption before maturity is set forth on the face hereof.
No person shall be entitled to purchase or own War Savings Certificates of a greater face value than £250.
Received the sum of [Amount in words and figures.] being the value of this Certificate at this date.
Date Signature
By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
Overview
The Commonwealth Inscribed Stock Regulations 1940, made under the Commonwealth Inscribed Stock Act 1911-1933, were introduced by the Governor-General in Council to address the need for additional financial instruments to support the war effort. The Act enabled the creation of War Savings Certificates, providing a means for the public to invest in government securities to fund the war. These certificates offered a fixed interest rate over seven years, with the principal and interest exempt from stamp duty and income tax, encouraging greater public participation in government financing. The policy objective was to mobilise additional funds efficiently and to engage the public in supporting the nation's war activities.
Scope and Application
The Commonwealth Inscribed Stock Regulations, as amended, govern the issuance and redemption of War Savings Certificates under the Commonwealth Inscribed Stock Act 1911-1933. These regulations apply to individuals and entities who may purchase War Savings Certificates, with a limit of £250 per person per certificate. The legislation establishes the specific form and process for issuing these certificates, which are transferable by delivery and exempt from stamp duty and income tax. The application of these regulations extends nationally, covering all Commonwealth territories. The regulations can be further refined or expanded through additional subordinate instruments, ensuring that the administration of War Savings Certificates remains flexible and responsive to changing circumstances.
Key Provisions
The Commonwealth Inscribed Stock Regulations 1940, made under the Commonwealth Inscribed Stock Act 1911-1933, introduce a new type of Treasury bond called War Savings Certificates. This is detailed in Regulation 55a (paragraph 1) and Form 31a (paragraph 2). Regulation 55a specifies that War Savings Certificates can be issued according to Form 31a, which outlines the conditions of these certificates. According to Form 31a, War Savings Certificates have a face value that is payable seven years after the purchase date. They are transferable by delivery and entitle the bearer to receive the face value plus compound interest at any Australian Branch of the Commonwealth Bank of Australia. The interest ceases at the date of maturity, and the principal and interest are free from Stamp Duty and Income Tax. Purchasers are limited to acquiring War Savings Certificates with a face value not exceeding £250.
The Regulations impose specific obligations on the parties involved. The Treasury is required to prepare War Savings Certificates in accordance with Form 31a, ensuring all details are accurately filled out. Purchasers must adhere to the maximum face value limit of £250 per War Savings Certificate. They must also present the certificate to the Commonwealth Bank of Australia at any branch for redemption at the stipulated seven-year maturity date or earlier within the seven-year period, as per the redemption values outlined on the certificate. The certificates are payable to the bearer, making them transferable by simple delivery.
Any breach of these Regulations could lead to civil or criminal consequences. For instance, individuals or entities that purchase or own War Savings Certificates exceeding the £250 face value limit may face penalties. Although the exact penalties are not specified in the text, it is clear that non-compliance with the stipulated conditions and limits can result in legal action. The precise nature and severity of the penalties would be determined by relevant legal proceedings and the discretion of the court.