Loan
No. 36 of 1971
An Act to authorize the Raising and Expending of Moneys for Defence Purposes.
[Assented to 17 May 1971]
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 1971.
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-one, 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) 1970–71, and in the Schedule to the Appropriation Act (No. 3) 1970–71, under the heading “DEFENCE SERVICES”.
Limitation on expenditure.
5.—(1.) Nothing in this Act, in the Appropriation Act (No. 1) 1970–71 or in the Appropriation Act (No. 3) 1970–71 authorizes the expenditure for a service specified in the Second Schedule to the Appropriation Act (No. 1) 1970–71, or in the Schedule to the Appropriation Act (No. 3) 1970–71, 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) 1970-71 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-one.
Overview
The Loan Act 1971 was enacted to facilitate the borrowing of funds for defence purposes during the financial year ending on the thirtieth day of June 1971. Enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, this legislation authorises the Treasurer to borrow moneys within the financial year, ensuring that such borrowings do not exceed the amount by which the moneys lawfully available for Commonwealth expenditure are likely to be less than the authorised expenditure for that year. The Act mandates that borrowed funds be used solely for the expenses of borrowing and for defence services specified in the relevant appropriation acts. Furthermore, it imposes a limitation on expenditure to ensure that total spending on defence services does not surpass the amounts specified in the Appropriation Acts, thereby maintaining fiscal discipline in defence funding.
Scope and Application
The Loan Act 1971 applies to the Treasurer of the Commonwealth of Australia, who is authorised to borrow moneys within specific financial constraints for the financial year ending 30 June 1971. The funds raised through this borrowing are designated exclusively for expenses related to borrowing and for services specified under the heading “DEFENCE SERVICES” in the Second Schedule to the Appropriation Act (No. 1) 1970–71, and in the Schedule to the Appropriation Act (No. 3) 1970–71. This Act thus places strict controls on the allocation and expenditure of the borrowed funds, ensuring they are used solely for authorised defence services within the stipulated financial year. The Act does not permit expenditure beyond the financial year ending 30 June 1971, except for the specific appropriation under Division No. 560—Advance to the Treasurer. The application of this Act is limited to the Commonwealth of Australia, and there are no stated exclusions or exemptions within the text. The Act does not extend its application through subordinate instruments but provides a clear framework for the authorised borrowing and expenditure for defence purposes.
Key Provisions
The Loan Act 1971 (C1971A00036) provides the legal framework for the borrowing of funds for defence purposes within the financial year ending on the thirtieth day of June 1971. The primary operative sections of this Act are sections 3 and 4. Section 3 grants the Treasurer the authority to borrow moneys during the specified financial year, in compliance with the Commonwealth Inscribed Stock Act 1911–1966 or an Act permitting the issuance of Treasury Bills. This borrowing is restricted to an amount that does not exceed the shortfall between the available funds for Commonwealth expenditure and the authorized defence expenditure for that year. Section 4 specifies that the borrowed funds can only be used for the expenses associated with the borrowing and for the services outlined under the "DEFENCE SERVICES" heading in the Second Schedule to the Appropriation Act (No. 1) 1970–71 and the Schedule to the Appropriation Act (No. 3) 1970–71.
The Act imposes several obligations and requirements on the parties it governs. Firstly, the borrowing of funds must be conducted in accordance with the Commonwealth Inscribed Stock Act 1911–1966 or an Act authorizing the issue of Treasury Bills, as stipulated in section 3. The Treasurer is required to ensure that the borrowed funds do not exceed the calculated shortfall in available funds for Commonwealth expenditure. Additionally, section 4 mandates that the borrowed funds can only be used for the specified purposes of borrowing expenses and defence services. There are also limitations on the expenditure of borrowed funds, such that the total expenditure for defence services must not exceed the amounts specified in the relevant Appropriation Acts, as outlined in section 5(1).
The Loan Act 1971 includes provisions for civil and criminal consequences in the event of a breach of its terms. While the specific offences and penalties are not explicitly detailed within the Act itself, breaches of the Act could potentially lead to legal actions under other relevant legislation. The penalties for such breaches could include fines and imprisonment, as per the general provisions of Australian law for violations of legislative requirements. The exact penalties would depend on the nature and severity of the breach, and would be determined in the context of the applicable laws and regulations.