LOAN ACT 1974
No. 144 of 1974
An Act to Authorize the Raising and Expending of Moneys for Defence Purposes.
BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:—
Short title.
1. This Act may be cited as the Loan Act 1974.
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 30 June 1975, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911-1973, 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 for expenditure from the Consolidated Revenue Fund in that financial year are likely to be less than the amount of the expenditure authorized to be made from that Fund in that financial year.
Application of moneys borrowed.
4. Moneys borrowed under section 3 shall be applied only for the expenses of borrowing and for services specified under the heading “DEPARTMENT OF DEFENCE” in the Appropriation Act (No. 1) 1974-75 or in an Act passed after the commencement of this Act and appropriating the Consolidated Revenue Fund for the service of the year that commenced on 1 July 1974, being an Act that is expressed to have effect subject to section 5 of this Act.
Limitation of expenditure.
5. (1) Nothing in this Act or in an Act referred to in section 4 shall be taken to authorize the expenditure for a service referred to in section 4 of an amount the expenditure of which would result in the total expenditure for that service under this Act and the Acts referred to in section 4 exceeding the total of the amounts specified in the Acts referred to in section in respect of that service.
(2) Sub-section (1) does not affect the expenditure of the moneys appropriated by the Appropriation Act (No. 1) 1974-75 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 30 June 1975.
Overview
The Loan Act 1974 was enacted to facilitate the borrowing of funds by the Commonwealth government for defence purposes during the specified financial year ending 30 June 1975. The Act was passed by the Queen, the Senate, and the House of Representatives of Australia, and it came into operation on the day it received Royal Assent. The primary objective of this Act is to authorise the Treasurer to borrow moneys, ensuring that the total borrowed does not exceed the deficit between the available funds in the Consolidated Revenue Fund and the authorised defence expenditures for that financial year. The borrowed funds are restricted to covering the costs of borrowing and specific defence-related services, as outlined in the Appropriation Act (No. 1) 1974-75 or any subsequent appropriations Acts. This legislation also includes provisions to limit expenditure, ensuring that defence spending does not surpass the amounts specified in the relevant appropriation Acts, except for funds already appropriated under the initial Act.
Scope and Application
The Loan Act 1974 authorises the Treasurer to borrow moneys to meet the financial requirements of the Commonwealth for defence purposes during the financial year ending on 30 June 1975, subject to the conditions specified in the Act. The funds raised through borrowing must be used exclusively for expenses related to the borrowing itself and for services specified under the Department of Defence in the Appropriation Act (No. 1) 1974-75 or any subsequent Act that appropriates the Consolidated Revenue Fund for the financial year starting 1 July 1974, provided that such appropriation is subject to section 5 of this Act. The Act also includes a limitation on the total expenditure for the specified service to ensure it does not exceed the amounts specified in the relevant appropriation Acts. Furthermore, the Act restricts any expenditure (other than borrowing expenses) to be made after 30 June 1975. The Act applies to the Treasurer and the Department of Defence, focusing narrowly on defence-related financial transactions during the specified financial year. It applies nationally as Commonwealth legislation and does not explicitly mention any exclusions, exemptions, or thresholds within the provided text.
Key Provisions
The Loan Act 1974 (section 3) authorises the Treasurer to borrow moneys during the financial year ending on 30 June 1975, subject to the condition that the total amount borrowed, including any prior borrowings, must not exceed what the Treasurer determines to be the greatest shortfall between the moneys available for expenditure from the Consolidated Revenue Fund and the authorised expenditure for that financial year. This borrowing must comply with either the Commonwealth Inscribed Stock Act 1911-1973 or an Act permitting the issuance of Treasury Bills. The moneys borrowed under this section (section 4) are strictly designated for the expenses associated with the borrowing process and for services listed under the "DEPARTMENT OF DEFENCE" in the Appropriation Act (No. 1) 1974-75 or any subsequent Act that allocates funds to the Consolidated Revenue Fund for the fiscal year beginning 1 July 1974, provided such Act explicitly states it is subject to section 5 of this Act.
The Act (section 5(1)) imposes a limitation on the expenditure for services listed under section 4, prohibiting any spending that would result in the total expenditure for those services exceeding the amounts specified in the relevant appropriation Acts. However, this restriction does not apply to the moneys appropriated under Division No. 590—Advance to the Treasurer in the Appropriation Act (No. 1) 1974-75. Furthermore, the Act (section 5(3)) prohibits any expenditure (other than borrowing expenses) after 30 June 1975.
Breaching the provisions of the Loan Act 1974 can lead to civil or criminal consequences, depending on the nature and severity of the violation. While the Act does not explicitly detail specific offences or penalties, breaches of similar legislative provisions often attract penalties under related statutes. For instance, unauthorised expenditure could potentially be prosecuted under the Public Governance, Performance and Accountability Act 2013, leading to fines or imprisonment, depending on the circumstances and the discretion of the court. The penalties for non-compliance can be severe, highlighting the importance of adherence to the Act's provisions by all involved parties.