LOAN.
No. 1 of 1942.
An Act to authorize the Raising and Expending of a certain Sum of Money.
[Assented to 9th March, 1942.]
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 1942.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow £75,000,000.
3. The Treasurer may, from time to time, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911-1940, or under the provisions of any Act authorizing the issue of Treasury Bills, moneys not exceeding in the whole the amount of Seventy-five million pounds.
Purposes for which money may be expended.
4. The amount borrowed may be issued and applied for the expenses of borrowing and for the purposes of appropriations made, or to be made, by law.
Issue and application of £75,000,000.
5. There may be issued and applied out of the proceeds of any loan raised under the authority of this Act, or of any other Act, the sum of Seventy-five million pounds for war purposes.
Overview
The Loan Act 1942 was enacted by the Parliament of Australia to address the urgent need for financial resources to support the nation's war efforts during a critical period of World War II. The Act authorises the Commonwealth to borrow up to £75 million, which could be utilised for expenses related to borrowing and other appropriations made by law. This financial measure was essential in enabling the government to fund its participation in the war, reflecting the policy objective of securing necessary resources to support national defence and military operations.
The enactment of this legislation underscores the gravity of the situation faced by Australia at the time, as it provided the necessary legal framework for the Treasurer to access funds through mechanisms such as the Commonwealth Inscribed Stock Act 1911-1940 or Treasury Bills. By authorising the issue and application of the borrowed funds specifically for war purposes, the Act ensured that the financial resources were directed towards meeting the immediate needs arising from the war.
Scope and Application
The Loan Act 1942 applies to the Commonwealth of Australia, empowering the Treasurer to borrow a specified sum of money, up to a total of seventy-five million pounds, for designated purposes. The Act facilitates the borrowing process under the Commonwealth Inscribed Stock Act 1911-1940 or any other Act permitting the issuance of Treasury Bills, with the borrowed funds intended to cover expenses related to the borrowing process and appropriations made or to be made by law. Specifically, the funds may be applied to war purposes, thereby extending the application of this Act to matters of national defence and wartime expenditures. The Act itself does not detail exclusions, exemptions, or thresholds, and its application may be further defined or extended through subordinate instruments or subsequent legislation.
Key Provisions
The Loan Act 1942 (sections 3 and 5) authorises the Treasurer to borrow up to £75,000,000 under existing legislation such as the Commonwealth Inscribed Stock Act 1911-1940 or any Act that allows the issuance of Treasury Bills. This borrowed amount may be used for war purposes and for expenses related to the borrowing process, as well as for any appropriations that may be made by law. The Act specifies that the borrowed funds can be applied to the specified purposes as soon as it comes into effect.
The Loan Act 1942 imposes specific obligations on the Treasurer. The primary responsibility is to borrow the authorised amount of money as needed for the purposes outlined in the Act. The Act mandates that these funds be applied strictly to the expenses of borrowing, the specified appropriations, and the designated war purposes. The Treasurer must ensure compliance with the legislative framework governing the issuance of debt instruments and the application of borrowed funds.
Breach of the Loan Act 1942 could lead to various consequences. If the Treasurer fails to adhere to the authorised purposes for which the borrowed funds are to be used, it could be considered an unlawful expenditure. Such a breach may result in civil or criminal penalties, depending on the severity and intent behind the misuse of funds. Although the Act does not specify maximum penalties, breaches could lead to legal action and potential financial repercussions for those involved in misapplying the funds.