Loan Act 1920

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LOAN.

No. 29 of 1920.

An Act to authorize the Raising and Expending of the sum of Four million two hundred and eighty-six thousand four hundred and ninety pounds for certain purposes.

[Assented to 7th October, 1920.]

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 1920.

Treasurer may borrow £4,286,490.

2. The Treasurer may from time to time, under the provisions of the Commonwealth Inscribed Stock Act 1911–1918, or under the provisions of any Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the whole the amount of Four million two hundred and eighty-six thousand four hundred and ninety pounds.

Purposes for which moneys 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.

—	Amount required in 1920–21. — First Column.	Already available under Appropriations made by previous Acts. — Second Column.	Appropriated under this Act. — Third Column.
Under Control of Prime Minister’s Department.	£	£	£
London Offices.....................................	64,000	3,388	60,612
Subscription to capital of Refinery Company, in accordance with Oil Agreement Act 1920	100,000	..	100,000
Williamstown Shipbuilding Yard—Buildings, plant, and machinery..	2,500	..	2,500
Loan to Westralian Farmers Company Limited, for erection of wheat silos and other appliances	20,000	..	20,000
Total under Control of Prime Minister’s Department............	186,500	3,388	183,112
Under Control of Department of the Treasury.
Construction of Ships (to be paid to Trust Fund Commonwealth Government Ships Account)	3,000,000	..	3,000,000
Under Control of Home and Territories Department.
Loan to Papua for Public Works..........................	20,000	..	20,000
Purchase of Properties and Sites—
Shipbuilding Yard, Maryborough, Queensland	500	..	500
Land, Fairy Meadow, New South Wales.................	5,150	5,150	..
Land in Federal Capital Territory.....................	10,800	10,800	..
Kirribilli House, Sydney...........................	15,000	..	15,000
Land for Defence purposes generally...................	10,000	10,000	..
Land for Naval Defence purposes, Cockburn Sound.........	4,000	4,000	..
Land for Port Stephens Naval Base....................	23,000	14,074	8,926
Tresco Naval Establishment, Sydney...................	1,600	..	1,600
Naval Drill Hall, Launceston........................	2,000	..	2,000
Land for Quarantine purposes.......................	25	25	..
Residence for Medical Officer, Thursday Island............	1,000	..	1,000
Land for Post and Telegraph purposes..................	3,000	3,000	..
Townsville Wireless Site...........................	100	100	..
Total under Control of Home and Territories Department.........	96,175	47,149	49,026
Under Control of Department of Works and Railways.
Williamstown Shipbuilding Yard—Pumping plant	14,787	..	14,787
Federal Capital Territory—Initial Settlement..................	90,000	..	90,000
Federal Capital Territory—Preparatory Works................	60,000	..	60,000
Railway—Completion of Construction Line— Federal Capital Territory	250	250	..
Acetate of Lime Factory—Works and Buildings...............	2,600	..	2,600
Inspection Branch (Arms and Ammunition)— Works and Buildings at Footscray and Maribyrnong	9,942	..	9,942
	177,579	250	177,329
Carried forward.............................	3,282,675	50,537	3,232,138

Schedule—continued.

—	Amount required in 1920–21. — First Column.	Already available under Appropriations made by previous Acts — Second Column	Appropriated under this Act. — Third Column.
	£	£	£
Brought forward...........................	3,282,675	50,537	3,232,138
Under Control of Department of Works and Railways—continued.
Brought forward...........................	177,579	250	177,329
Cordite Factory, Maribyrnong—Building and Engineering Works.	18,925	4,801	14,124
Lithgow Housing Scheme—Erection of cottages —towards cost..	48,791	29,868	18,923
Mobilization Stores—Erection of......................	167,964	..	167,964
General Arsenal—Works and Buildings—towards cost........	27,982	27,982	..
Small Arms Factory—Additional Buildings................	1,500	..	1,500
Research Laboratory, Maribyrnong—Works and Buildings.....	40,500	..	40,500
Naval Bases—Works and Establishments.................	187,000	75,953	111,047
Cockatoo Island Dockyard—Naval, Engineering, and other Works	15,000	15,000	..
Contribution under River Murray Waters Act 1915...........	132,528	27,458	105,070
Kalgoorlie to Port Augusta Railway.....................	100,000	5,652	94,348
Northern Territory Railway—Capital Expenditure...........	2,500	461	2,039
Port Augusta-Oodnadatta Railway......................	6,000	1,505	4,495
Perth General Post Office—towards cost..................	50,000	37,074	12,926
Total under Control of Department of Works and Railways..	976,269	226,004	750,265
Under Control of Department of the Navy.
Cockatoo Island Dockyard—Machinery and Plant, Yard, and Floating Plant	55,000	16,482	38,518
Flinders Naval Depôt—Machinery and Plant...............	14,500	11,543	2,957
Total under Control of Department of the Navy..........	69,500	28,025	41,475
Under Control of Department of Trade and Customs.
New Lighthouses (including upkeep of vessels for construction work) and optical and other apparatus for Lightships	15,000	1,056	13,944
Alterations to Lighthouse Services......................	25,000	146	24,854
Total under Control of Department of Trade and Customs...	40,000	1,202	38,798
Redemption of loans raised by the Government of South Australia on account of the Northern Territory	223,814	..	223,814
Total...............................	4,592,258	305,768	4,286,490

Overview

The Loan Act 1920 was enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, and received royal assent on 7th October 1920. The Act authorises the borrowing of up to £4,286,490, to be used for various expenses and purposes outlined in the Act, including the construction of buildings and plant, purchase of land and properties, and the funding of shipyards and other infrastructure projects. The moneys borrowed under the Act must be applied only for the purposes set forth in the attached schedule. The policy objective of the Act is to provide the necessary financial resources to support the development and maintenance of essential infrastructure and public works across the nation, thereby facilitating the growth and stability of the young nation. The Act specifies that the borrowed funds are to be allocated to various government departments and entities, including the Prime Minister’s Department, the Department of the Treasury, the Home and Territories Department, the Department of Works and Railways, the Department of the Navy, and the Department of Trade and Customs. Each department is responsible for utilising the funds for specific projects and purposes as outlined in the schedule attached to the Act. The Act thus provides a legal framework for the government to borrow and allocate funds to support the nation’s infrastructure and public works, thereby promoting economic growth and stability.

Scope and Application

The Loan Act 1920 authorises the Treasurer to borrow up to the sum of Four million two hundred and eighty-six thousand four hundred and ninety pounds to cover specific expenditures as outlined in the Act. This borrowed sum is to be applied strictly for the expenses of borrowing and for the purposes delineated in the Act's Schedule, which includes appropriations for various government departments and entities such as the Prime Minister's Department, the Department of the Treasury, the Department of Works and Railways, the Department of the Navy, and the Department of Trade and Customs. The Act applies to the Commonwealth of Australia, ensuring the borrowed funds are allocated to national priorities and infrastructure projects across the country, including the construction and maintenance of public works, shipbuilding yards, defence-related infrastructure, and other government facilities. The Act does not specify any exclusions or exemptions, meaning the borrowing power and allocation of funds are not limited by particular conditions, though the scope of application is confined to the purposes outlined in the Schedule. The Act does not explicitly mention any subordinate instruments that may extend or restrict its application.

Key Provisions

The Loan Act 1920 (sections 2 and 3) authorises the Treasurer to borrow a total of Four million two hundred and eighty-six thousand four hundred and ninety pounds, which must be applied strictly to the expenses of borrowing and the specific purposes outlined in the attached Schedule. This borrowed sum is to be used for various expenditures including the construction of buildings, purchase of land and machinery, and the funding of public works and defence-related projects across different departments. Entities and departments governed by this Act, such as the Department of the Treasury, the Home and Territories Department, and the Department of Works and Railways, among others, must ensure that the funds are allocated and spent in accordance with the detailed budget outlined in the Schedule. Each department must account for the funds under their control, ensuring that the expenditures align with the legislative intent and do not exceed the allocated amounts. Failure to comply with the stipulations of this Act may result in legal repercussions. The Act does not explicitly enumerate offences or penalties for non-compliance. However, breaches of financial management and misuse of public funds typically fall under broader financial and administrative laws, which could result in civil or criminal penalties, including fines and imprisonment, depending on the severity and intent of the breach. The exact penalties would be determined in accordance with the relevant provisions of other applicable legislation.

Area of Law: Finance & Banking Law
Instrument: Act
Concepts: Definitions & Interpretation; Borrowing Powers; Appropriation of Funds; Expenditure Authorization

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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.

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