Loan
No. 31 of 1970
An Act to authorize the Raising and Expending of Moneys for Defence Purposes.
[Assented to 20 June 1970]
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 1970.
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, from time to time during the financial year ending on the thirtieth day of June, One thousand nine hundred and seventy, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911–1966, or in accordance with the provisions of an Act authorizing the issue of Treasury Bills, borrow moneys that, together with any moneys previously borrowed under this section, do not exceed the
amount that, at the time of the borrowing, he considers to be the greatest amount by which the moneys lawfully available, apart from this Act, for expenditure by the Commonwealth in that financial year are likely to be less than the amount of the expenditure authorized to be made by the Commonwealth in that financial year.
Appropriation.
4. Moneys borrowed under this Act shall be issued and applied only for the expenses of borrowing and for the purposes of services specified in the Second Schedule to the Appropriation Act (No. 1) 1969–70, and in the Schedule to the Appropriation Act (No. 3) 1969–70, under the heading “DEFENCE SERVICES”.
Limitation of expenditure.
5.—(1.) Nothing in this Act, in the Appropriation Act (No. 1) 1969–70 or in the Appropriation Act (No. 3) 1969–70 authorizes the expenditure for a service specified in the Second Schedule to the Appropriation Act (No. 1) 1969–70, or in the Schedule to the Appropriation Act (No. 3) 1969–70, 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 the amount, or the total of the amounts, so specified in respect of that service.
(2.) The last preceding sub-section does not affect the expenditure of the moneys appropriated by the Appropriation Act (No. 1) 1969–70 under Division No. 560—Advance to the Treasurer.
(3.) Nothing in this Act authorizes expenditure (otherwise than for the expenses of the borrowing of moneys authorized to be borrowed by section 3 of this Act) after the thirtieth day of June, One thousand nine hundred and seventy.
Overview
The Loan Act 1970 was enacted to facilitate the borrowing of funds for defence purposes during the specified financial year. The Act was assented to on 20 June 1970 and was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The primary objective of this legislation was to ensure that the necessary financial resources were available to cover defence-related expenditures as authorised by the relevant appropriation acts, while also setting clear limits on the overall expenditure to prevent overspending. The Act provides the Treasurer with the authority to borrow moneys within the specified financial year, ensuring that the borrowed funds do not exceed the shortfall between available funds and authorised expenditures for defence services. This legislative framework aims to support the Commonwealth's defence initiatives by providing a structured approach to borrowing and expenditure.
Scope and Application
The Loan Act 1970 applies to the Commonwealth of Australia, specifically empowering the Treasurer to borrow moneys for defence purposes within the financial year ending on the 30th of June, 1970. This Act authorises the borrowing of funds under the conditions stipulated in the Commonwealth Inscribed Stock Act 1911–1966 or an Act that allows for the issuance of Treasury Bills, with the total borrowing not exceeding the amount deemed necessary by the Treasurer at the time of borrowing. The borrowed moneys are to be used for expenses related to the borrowing and for defence services as specified in the Second Schedule to the Appropriation Act (No. 1) 1969–70 and in the Schedule to the Appropriation Act (No. 3) 1969–70. The Act includes provisions to limit expenditure on defence services to the amounts specified in the appropriation acts and prohibits any expenditure after the financial year's end on 30 June 1970, except for the expenses of borrowing. The Act's application may be extended or restricted through subordinate instruments, although specific details on such instruments are not provided in the text.
Key Provisions
The Loan Act 1970 (section 3) authorises the Treasurer to borrow money during the financial year ending on 30 June 1970. This borrowing is subject to the condition that the total amount borrowed, together with any previously borrowed funds under this section, does not exceed the amount by which the Commonwealth's available funds are likely to be less than the authorised expenditure for that financial year. The borrowed funds (section 4) can only be used for the expenses associated with borrowing and for services specified under the heading "Defence Services" in the Second Schedule to the Appropriation Act (No. 1) 1969–70 and the Schedule to the Appropriation Act (No. 3) 1969–70. There are also limitations on expenditure (section 5) such that no service specified in the aforementioned appropriations acts under the "Defence Services" heading can exceed the specified amounts. However, the provision under Division No. 560—Advance to the Treasurer is an exception to this limitation. Additionally, no expenditure (other than for the expenses of borrowing) is authorised after 30 June 1970.
Under the Loan Act 1970, the Treasurer has the obligation to ensure that the borrowing does not exceed the authorised limits and that the borrowed funds are used solely for the specified purposes. The Act imposes a requirement on the Treasurer to adhere to the appropriations outlined in the relevant appropriation acts for Defence Services. The Treasurer must also ensure that the total expenditure for Defence Services does not exceed the specified amounts, barring the exception noted in Division No. 560. Furthermore, the Act mandates that no expenditure beyond the financial year-end date of 30 June 1970 is authorised unless it pertains to the expenses of borrowing.
The Loan Act 1970 does not explicitly state any offences, penalties, or consequences for breach. However, the strict adherence to the specified borrowing limits and the designated use of funds implies that any deviation from these provisions could lead to financial mismanagement and potential legal scrutiny. The absence of explicit penalties in the Act suggests that any breaches might be addressed under general financial oversight and accountability mechanisms, potentially leading to civil or criminal consequences depending on the nature and extent of the breach.