Loan
No. 13 of 1966
An Act to Authorize the Raising and Expending of a sum not exceeding One hundred and fifty million dollars for Defence Purposes.
[Assented to 17 May, 1966]
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 1966.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow.
3. The Treasurer may, during the year that commenced on the first day of July, One thousand nine hundred and sixty-five, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911–1963, or under the provisions of any Act authorizing the issue of Treasury Bills, moneys not exceeding in the whole One hundred and fifty million dollars.
Purposes for which moneys borrowed may be applied.
4. Moneys borrowed under this Act shall be issued and applied only for the expenses of borrowing and for the purposes and services expressed in Part I. of the Second Schedule to the Appropriation Act (No. 1) 1965–66 under the heading “XXII.—DEFENCE SERVICES.”.
Limitation of expenditure.
5.—(1.) Nothing in this Act or in the Appropriation Act (No. 1) 1965–66 shall be taken to authorize the expenditure for a purpose or service expressed in Part I. of the Second Schedule to
the Appropriation Act (No. 1) 1965–66 under the heading “XXII.—DEFENCE SERVICES.” of an amount the expenditure of which would result in the total expenditure under the two Acts for that purpose or service exceeding the amount specified in that Part in respect of that purpose or service.
(2.) The last preceding sub-section does not affect the expenditure of the moneys appropriated by the Appropriation Act (No. 1) 1965–66 under Division No. 590.—Advance to the Treasurer.
(3.) Nothing in this Act shall be taken to authorize expenditure (otherwise than for the expenses of borrowing) after the thirtieth day of June, One thousand nine hundred and sixty-six.
Overview
The Loan Act 1966 was enacted to provide the Australian government with the authority to borrow a specified amount of money for defence purposes during the financial year starting on 1 July 1965. This Act was passed by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, and it came into effect on the day of Royal Assent, which was 17 May 1966. The primary objective of this legislation was to enable the Treasurer to borrow up to one hundred and fifty million dollars under the Commonwealth Inscribed Stock Act 1911–1963 or any other Act that allows for the issuance of Treasury Bills. The borrowed funds were to be used strictly for defence services as outlined in the Appropriation Act (No. 1) 1965–66, ensuring that the total expenditure for defence purposes did not exceed the specified amount allocated in that Act. Additionally, the Act placed limitations on expenditure, prohibiting any additional spending beyond the financial year ending on 30 June 1966, except for borrowing expenses.
Scope and Application
The Loan Act 1966 applies to the Commonwealth of Australia and authorises the Treasurer to borrow up to one hundred and fifty million dollars for specific defence purposes. The Act specifies that the borrowing can occur under the provisions of the Commonwealth Inscribed Stock Act 1911–1963 or any Act that allows for the issuance of Treasury Bills. The borrowed funds are strictly limited to covering expenses related to borrowing and the defence services outlined in Part I of the Second Schedule to the Appropriation Act (No. 1) 1965–66 under the heading "Defence Services." This Act also stipulates that any expenditure must not exceed the amounts specified in the Appropriation Act for the respective services and prohibits expenditure beyond 30 June 1966, except for the expenses of borrowing. The Act’s provisions are subject to the limitations and conditions set forth in the Appropriation Act (No. 1) 1965–66.
Key Provisions
The Loan Act 1966 (sections 1–5) primarily authorises the borrowing of funds up to a specified amount for defence purposes. Section 3 allows the Treasurer to borrow moneys not exceeding one hundred and fifty million dollars for the year commencing 1 July 1965. Section 4 dictates that these borrowed funds are to be used solely for expenses related to borrowing and for defence services, as outlined in the Second Schedule to the Appropriation Act (No. 1) 1965–66. The Act also includes a limitation on expenditure, where the total spending on defence services under both the Loan Act and the Appropriation Act must not exceed the specified amount (section 5).
The Loan Act 1966 imposes specific obligations on the parties involved. Section 3 places a duty on the Treasurer to borrow the specified funds within the authorised timeframe and according to the prescribed methods. Section 4 further obliges the Treasurer to ensure that the borrowed funds are strictly used for the stated purposes. Additionally, Section 5 ensures that any expenditure beyond the authorised amount for defence services is prohibited, with an additional restriction on spending beyond 30 June 1966, unless for borrowing expenses.
Failure to comply with the provisions of the Loan Act 1966 may lead to legal consequences. While the Act does not explicitly outline penalties for non-compliance, breaches of such financial and appropriation statutes could result in legal action or other financial penalties as deemed appropriate by the courts. Specifically, exceeding the authorised expenditure limits could lead to financial mismanagement charges, and misapplication of funds could result in criminal charges. The exact penalties would depend on the nature and severity of the breach, as determined in a court of law.