LOAN.
No. 77 of 1958.
An Act to Authorize the Raising and Expending of a certain Sum of Money for Defence Purposes.
[Assented to 10th October, 1958.]
BE it enacted by the Queen’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 1958.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow £110,000,000.
3. The Treasurer may, during the year which commenced on the first day of July, One thousand nine hundred and fifty-eight, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911-1946, or under the provisions of any Act authorizing the issue of Treasury Bills, moneys not exceeding in the whole One hundred and ten million pounds.
Purposes for which moneys borrowed may be applied.
4.—(1.) Moneys borrowed under this Act shall be issued and applied only for the expenses of borrowing and for the defence purposes specified in the Schedule to this Act.
(2.) The moneys issued and applied for a purpose specified in the Schedule to this Act shall not exceed in the whole the amount specified in that Schedule opposite to that purpose.
THE SCHEDULE. Section 4
——
| £ |
Meeting expenditure specified under the heading “XXI.—DEFENCE SERVICES” in Part I. of the Second Schedule to the Appropriation Act 1958-59 | 78,000,000 |
Redemption of Commonwealth securities issued for war purposes ........ | 32,000,000 |
| 110,000,000 |
Overview
The Loan Act 1958 was enacted to provide the Treasurer with the authority to borrow a specific sum of money, up to £110 million, for designated defence purposes within the fiscal year beginning 1 July 1958. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia and received Royal Assent on 10 October 1958. The primary objective of this legislation was to authorise the raising and expending of funds to meet defence-related expenses, including the costs associated with borrowing and the redemption of Commonwealth securities issued for war purposes, as outlined in the Schedule to the Act. These funds were to be strictly applied to the defence purposes specified, ensuring accountability and alignment with national security objectives.
Scope and Application
The Loan Act 1958 applies to the Treasurer, who is authorised to borrow a specified sum for defence-related expenses. The Act applies to the Commonwealth of Australia and comes into effect upon receiving Royal Assent. The borrowing authority is limited to £110,000,000 for the financial year beginning 1 July 1958, to be used strictly for defence purposes as outlined in the Schedule of the Act, which includes meeting defence services expenditure and redeeming Commonwealth securities issued for war purposes. The Act specifies that the borrowed funds cannot exceed the amounts allocated for these purposes in the Schedule. There are no stated exclusions, exemptions, or thresholds in the Act, and its application is not extended or restricted through subordinate instruments.
Key Provisions
The Loan Act 1958 primarily authorises the borrowing of a specific sum of money for defence purposes (sections 3 and 4). Under section 3, the Treasurer is empowered to borrow up to £110,000,000 during the fiscal year beginning on 1 July 1958, either under the Commonwealth Inscribed Stock Act 1911-1946 or through the issuance of Treasury Bills. Section 4 specifies that the borrowed funds can only be used for expenses related to the borrowing process and for defence purposes detailed in the Schedule attached to the Act. Furthermore, section 4(2) mandates that the amount spent on each specified defence purpose must not exceed the corresponding amount listed in the Schedule.
In terms of obligations and requirements, the Act imposes a clear limitation on the use of the borrowed funds. The money must strictly adhere to the purposes outlined in the Schedule, which includes meeting defence services expenditure and the redemption of Commonwealth securities issued for war purposes. The Act also requires that the Treasurer ensures that the borrowing and application of funds are conducted within the confines of the authorised amounts and purposes.
The Act does not explicitly detail offences, penalties, or consequences for breach. However, the strict allocation of funds and purposes suggests that any misuse or unauthorised expenditure could potentially lead to legal scrutiny and accountability. While the Act does not provide specific penalties, breaches of financial management and misuse of public funds in a governmental context typically attract significant consequences, including potential criminal charges and civil actions for recovery of misappropriated funds.