LOAN.
No. 22 of 1912.
An Act to authorize the raising and expending of the sum of Five hundred and twenty-nine thousand five hundred and twenty-six pounds for the acquisition for Commonwealth purposes of property in Perth, Western Australia, and expenses incidental thereto, and to redeem loans raised by the Government of South Australia on account of the Northern Territory and the Port Augusta Railway.
[Assented to 24th December, 1912.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1. This Act may be cited as the Loan Act 1912.
Treasurer may borrow £529,526.
2. The Treasurer may from time to time under the provisions of the Commonwealth Inscribed Stock Act 1911 borrow moneys not exceeding in the whole the amount of Five hundred and twenty-nine thousand five hundred and twenty-six pounds.
Purposes for which money may be expended.
3. The amount borrowed shall be issued and applied only for the expenses of borrowing and for the purposes set forth in the Schedule to this Act.
SCHEDULE.
1. For the acquisition for Commonwealth purposes of property in Perth, Western Australia and expenses incidental thereto | £153,000 |
2. To redeem loans raised by the Government of South Australia on account of the Northern Territory | 71,945 |
3. To redeem loans raised by the Government of South Australia on account of the Port Augusta Railway | 304,581 |
| £529,526 |
Overview
The Loan Act 1912 was enacted by the Australian Parliament to authorize the Commonwealth government to borrow a specific sum of £529,526 for designated purposes. This legislation aimed to address financial requirements for acquiring property in Perth, Western Australia, as well as to redeem loans previously raised by the Government of South Australia related to the Northern Territory and the Port Augusta Railway. The Act explicitly outlines the borrowing limit and the intended use of the funds, ensuring accountability and transparency in the financial transactions of the Commonwealth.
The policy objective behind the Loan Act 1912 was to enable the Australian government to secure necessary funds for strategic acquisitions and debt obligations, thereby facilitating the development and administration of the nation. By setting a clear framework for borrowing and spending, the Act provided a structured approach to managing public finances during a period of significant infrastructural and territorial expansion.
Scope and Application
The Loan Act 1912 authorises the Commonwealth Treasurer to borrow a specified sum of money not exceeding Five hundred and twenty-nine thousand five hundred and twenty-six pounds. This borrowing is subject to the terms of the Commonwealth Inscribed Stock Act 1911. The funds obtained through this borrowing are intended to be used solely for the purposes outlined in the accompanying Schedule, including the acquisition of property in Perth for Commonwealth purposes, as well as the redemption of certain loans raised by the Government of South Australia. The Act applies specifically to the Treasurer of the Commonwealth and the outlined financial transactions related to the borrowing and subsequent expenditure. The jurisdictional reach of this Act is confined to Commonwealth purposes and does not extend beyond the prescribed geographical or financial limits. The Act does not include any stated exclusions, exemptions, or thresholds beyond what is specified in the primary text and accompanying Schedule.
Key Provisions
The Loan Act 1912 (section 1) provides the legal framework for the Commonwealth to borrow a specific amount for particular purposes. Under this Act, the Treasurer is authorised to borrow up to £529,526 under the Commonwealth Inscribed Stock Act 1911 (section 2). This borrowed sum is intended for specified uses as outlined in the Schedule, including the acquisition of property in Perth, Western Australia, and the redemption of loans raised by the Government of South Australia concerning the Northern Territory and the Port Augusta Railway (section 3). The Schedule details the allocation of funds, with £153,000 for Perth property acquisition, £71,945 for Northern Territory loans, and £304,581 for Port Augusta Railway loans.
The Act imposes specific obligations on the parties involved. The Treasurer, as the primary actor, must ensure that the borrowing is carried out under the provisions of the Commonwealth Inscribed Stock Act 1911 and that the funds are strictly used for the purposes outlined in the Schedule (section 2 and 3). This means that the funds cannot be diverted to other uses without amendment to the Act or the Schedule. The borrowed amount must be applied exclusively for the acquisition of property in Perth, Western Australia, and for the redemption of the specified loans from the Government of South Australia.
Failure to adhere to the provisions of the Loan Act 1912 can result in significant legal consequences. While the Act does not explicitly state penalties for non-compliance, breaches of the financial and administrative requirements could lead to civil or criminal actions under related laws. The unauthorised use of funds could potentially be prosecuted under provisions of the Public Governance, Performance and Accountability Act 2013 or other relevant legislation, with penalties including fines and imprisonment, depending on the severity of the breach. Additionally, the Commonwealth could face financial penalties or legal actions from entities affected by the misuse of funds.