Loan
No. 40 of 1968
An Act to amend the Loan Act 1967.
[Assented to 18 June 1968]
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 and citation.
1.—(1.) This Act may be cited as the Loan Act 1968.
(2.) The Loan Act 1967 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Loan Act 1967–1968.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow $360,000,000.
3. Section 3 of the Principal Act is amended by omitting the words “Three hundred million dollars” and inserting in their stead the words “Three hundred and sixty million dollars”.
4. Section 4 of the Principal Act is repealed and the following section inserted in its stead:—
Application of moneys borrowed.
“4. Moneys borrowed under this Act may be issued and applied for the expenses of borrowing and—
(a) as to a sum not exceeding Three hundred million dollars—for the services specified in Part 1 of the Second Schedule to the Appropriation Act (No. 1) 1967-68 under the heading ‘DEFENCE SERVICES’; and
(b) as to a sum not exceeding Sixty million dollars—for the services referred to in the last preceding paragraph and for the services specified in Part 1 of the Schedule to the Appropriation Act (No. 3) 1967-68 under the heading ‘DEFENCE SERVICES’.”.
Limitation of expenditure.
5. Section 5 of the Principal Act is amended by omitting sub-section (1.) and inserting in its stead the following sub-section:—
“(1.) Nothing in this Act, the Appropriation Act (No. 1) 1967-68 or the Appropriation Act (No. 3) 1967-68 authorizes the expenditure for a service specified in Part 1 of the Second Schedule to the Appropriation Act (No. 1) 1967-68 under the heading ‘DEFENCE SERVICES’ or in Part 1 of the Schedule to the Appropriation Act (No. 3) 1967-68 under the heading ‘DEFENCE SERVICES’ of an amount the expenditure of which would result in the total expenditure under those Acts for that service exceeding—
(a) where the service is one that is specified in Part 1 of the Second Schedule to the Appropriation Act (No. 1) 1967-68 and in Part 1 of the Schedule to the Appropriation Act (No. 3) 1967-68—the aggregate of the amounts specified in those Parts in respect of that service; or
(b) in any other case—the amount specified in Part 1 of the Second Schedule to the Appropriation Act (No. 1) 1967-68 or in Part 1 of the Schedule to the Appropriation Act (No. 3) 1967-68 in respect of that service.”.
Overview
The Loan Act 1968 was enacted to amend the Loan Act 1967, providing an additional borrowing capacity of $60,000,000 to support specified defence services. Enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, this Act aimed to address the immediate financial needs of the government for defence expenditures. The primary policy objective was to ensure that the government could meet its defence commitments without exceeding the authorised expenditure limits for defence services as outlined in the Appropriation Acts (No. 1 and No. 3) for the fiscal year 1967-68. This amendment was crucial in maintaining fiscal responsibility while enabling the government to fulfill its defence obligations within the authorised budgetary constraints.
Scope and Application
The Loan Act 1968 amends the Loan Act 1967 to increase the borrowing authority of the Commonwealth from $300 million to $360 million. This Act applies to the Commonwealth of Australia and specifically concerns the borrowing capacity and the allocation of funds for particular services. The increased borrowing authority is to be used for expenses related to borrowing and for specified defence services as outlined in the Appropriation Acts. The Act also imposes a limitation on the expenditure for defence services to ensure that the total expenditure does not exceed the amounts specified in the relevant appropriation acts. The Act is a Commonwealth law and applies across the nation, impacting the financial operations and budgetary allocations for defence services as defined by the Appropriation Acts. The Act does not explicitly mention exclusions, exemptions, or thresholds, but it does refer to the specified appropriations in the Appropriation Acts, which would govern any exceptions.
Key Provisions
The Loan Act 1968 (C1968A00040) amends the Loan Act 1967 (the Principal Act). The main operative sections of the Loan Act 1968 include amendments to the borrowing authority and the application of borrowed funds. Specifically, section 3 increases the borrowing limit from $300 million to $360 million (s. 3). Section 4 revises the application of the borrowed funds, allowing up to $300 million for defence services as specified in the Appropriation Act (No. 1) 1967-68 and up to $60 million for defence services as specified in the Appropriation Act (No. 3) 1967-68 (s. 4).
The Loan Act 1968 imposes certain obligations and requirements on the parties involved. For instance, it mandates that the total expenditure for defence services must not exceed the specified amounts outlined in the relevant appropriation acts (s. 5). This ensures that the funds are used strictly within the authorised limits and for the specified services, thereby maintaining fiscal discipline and accountability.
Failure to comply with the provisions of the Loan Act 1968 may result in civil or criminal consequences. However, the Act does not explicitly detail offences, penalties, or specific consequences for breaches. Practitioners should refer to other relevant legislation and legal precedents to determine the potential civil or criminal liabilities associated with non-compliance. Nonetheless, it is important to adhere to the outlined requirements to avoid any legal repercussions.