International Development Association (Special Contribution) Act 1985

Overview

The International Development Association (Special Contribution) Act 1985 was enacted by the Australian Parliament to approve the making of a special contribution by Australia to the International Development Association, an arm of the World Bank. The primary objective of the Act is to facilitate this financial support, which is intended to assist developing countries in their economic and social development efforts. The Act was assented to on 5 April 1985 and came into operation on the same day. Authorised under this Act, the Treasurer can issue promissory notes to the Association for the payment of this special contribution, which is capped at $60,000,000. These notes are non-negotiable, non-interest bearing, and payable at par value on demand, with the payment sourced from the Consolidated Revenue Fund. The Act specifically exempts the special contribution from the application of section 6 of the International Development Association Act 1960, which otherwise governs the issuance of promissory notes for regular contributions. This distinction ensures that the special contribution is treated separately and can be facilitated under the terms and conditions outlined in the 1985 Act. The special contribution is seen as a means to enhance Australia’s role in international development and to support global efforts in poverty reduction and economic stability.

Scope and Application

The International Development Association (Special Contribution) Act 1985 applies to the Commonwealth of Australia and authorises the Treasurer to make a special contribution to the International Development Association (IDA), not exceeding $60,000,000. The Act specifically empowers the Treasurer to issue promissory notes on behalf of Australia to facilitate this contribution. The Act’s application is limited to this particular special contribution to the IDA and does not extend to other types of contributions or associations. There are no stated exclusions or exemptions within the Act itself, though the authority to make further contributions or alter the terms of this contribution may be governed by other legislative or administrative processes. The Act’s reach is confined to the financial transaction specified, with the promissory notes issued being non-negotiable and non-interest bearing, payable on demand at par value. This Act does not rely on subordinate instruments to extend or restrict its application.

Key Provisions

The International Development Association (Special Contribution) Act 1985 (the Act) contains several key provisions that outline the process for Australia to make a special contribution to the International Development Association (IDA). Section 4 of the Act approves the making by Australia of a special contribution to the IDA, with the amount not exceeding $60,000,000. This is the primary operative section, providing the legislative basis for Australia’s financial commitment to the IDA. Section 5 outlines the method of payment, allowing the Treasurer to issue promissory notes on behalf of Australia for the payment of this contribution. These notes are specified to be non-negotiable, non-interest bearing, and payable at par value on demand, differentiating them from typical promissory notes. Furthermore, Section 6 ensures the financial resources for this contribution are sourced from the Consolidated Revenue Fund, ensuring the appropriation of necessary funds. The Act imposes several obligations on the parties involved. The Treasurer is mandated to issue the promissory notes under Section 5, ensuring that the payment method adheres to the specified terms. Additionally, the Act, through Section 6, ensures that the funds required for the contribution are appropriated from the Consolidated Revenue Fund, providing a clear financial pathway for the special contribution. The obligations extend to ensuring that the contribution is made in compliance with the terms set out in the Act, particularly in relation to the approved amount and the method of payment. Breaches of the Act can result in various consequences. While the Act itself does not explicitly detail specific offences, penalties, or civil/criminal consequences for non-compliance, the issuance of promissory notes under Section 5 must adhere to the prescribed format. Failure to comply with these provisions could potentially lead to financial discrepancies or legal challenges regarding the validity of the payment method. However, the Act does not explicitly state maximum penalties or specific consequences for non-compliance, implying that any breaches may be subject to the general legal framework governing financial and administrative actions within the Australian government.