Loan Act 1977
Act No. 109 of 1977 as amended
[Note: This Act was repealed by Act No. 30 of 2006 on 7 April 2006]
This compilation was prepared on 11 October 2000
taking into account amendments up to Act No. 36 of 1978
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra
Contents
1 Short title [see Note 1]...........................
2 Commencement [see Note 1].......................
3 Authority to borrow.............................
4 Application of moneys borrowed.....................
5 Limitation of expenditure..........................
Notes
An Act to authorize the borrowing and expending of moneys for defence purposes
1 Short title [see Note 1]
This Act may be cited as the Loan Act 1977.
2 Commencement [see Note 1]
This Act shall come into operation on the day on which it receives the Royal Assent.
3 Authority to borrow
The Treasurer may, from time to time during the financial year ending on 30 June 1978, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911, or in accordance with the provisions of an Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the aggregate $1,400,000,000.
4 Application of moneys borrowed
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 Supply Act (No. 1) 1977—78 or in an Act passed after the commencement of this Act and appropriating the Consolidated Revenue Fund for the service of the year ending on 30 June 1978, being an Act that is expressed to have effect subject to section 5 of this Act.
5 Limitation of expenditure
(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 authorized by the Acts referred to in section 4 to be expended in respect of that service.
(2) Subsection (1) does not affect the expenditure of moneys appropriated under the heading “ADVANCE TO THE MINISTER FOR FINANCE”.
(3) Nothing in this Act shall be taken to authorize expenditure (otherwise than for the expenses of borrowing) after 30 June 1978.
Notes to the Loan Act 1977
Note 1
The Loan Act 1977 as shown in this compilation comprises Act No. 109, 1977 amended as indicated in the Tables below.
Table of Acts
Act | Number
and year | Date
of Assent | Date of commencement | Application, saving or transitional provisions |
Loan Act 1977 | 109, 1977 | 27 Oct 1977 | 27 Oct 1977 | |
Loan Amendment Act 1978 | 27, 1978 | 7 June 1978 | 7 June 1978 | — |
Administrative Changes (Consequential Provisions) Act 1978 | 36, 1978 | 12 June 1978 | 12 June 1978 | S. 8 |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 3.................... | am. No. 27, 1978 |
S. 5.................... | am. No. 36, 1978 |
Overview
The Loan Act 1977, enacted by the Parliament of Australia, was designed to address the need for authorised borrowing and expenditure for defence purposes during the financial year ending on 30 June 1978. The Act specifically empowers the Treasurer to borrow moneys up to a specified aggregate limit of $1,400,000,000, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911 or any Act authorising the issue of Treasury Bills. The funds borrowed under this Act are to be applied strictly to the expenses of borrowing and specified services under the heading "DEPARTMENT OF DEFENCE" in the Supply Act (No. 1) 1977–78 or any subsequent Act appropriating the Consolidated Revenue Fund for the service of the year ending on 30 June 1978. Additionally, the Act includes provisions to limit expenditure, ensuring that the total expenditure for a particular service does not exceed the authorised amounts set by relevant Acts. The Act was repealed by Act No. 30 of 2006 on 7 April 2006.
Scope and Application
The Loan Act 1977, as amended, provided the legal framework for the Commonwealth government to borrow and expend funds for defence purposes. This Act applies to the Treasurer who is authorised to borrow moneys not exceeding in the aggregate $1,400,000,000 during the financial year ending on 30 June 1978. The borrowed funds could only be used for expenses related to the borrowing process and for services specified under the heading "DEPARTMENT OF DEFENCE" in the Supply Act (No. 1) 1977–78 or in any subsequent appropriation acts for the year ending on 30 June 1978, subject to section 5 of this Act. The Act also includes a limitation on expenditure to ensure that the total expenditure for a service does not exceed the amounts authorised by the relevant appropriation acts. Additionally, it prohibits any expenditure (other than for borrowing expenses) after 30 June 1978. This Act was repealed by Act No. 30 of 2006 on 7 April 2006.
Key Provisions
The Loan Act 1977, Act No. 109 of 1977, as amended, provides the legal framework for the Treasurer to borrow funds for specific purposes. Section 3 of the Act authorizes the Treasurer to borrow moneys, up to an aggregate limit of $1,400,000,000, during the financial year ending on 30 June 1978. This borrowing must be done in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911 or an Act authorizing the issue of Treasury Bills. Section 4 stipulates that the borrowed moneys can only be used for expenses related to the borrowing process and for services specified under the heading “DEPARTMENT OF DEFENCE” in the Supply Act (No. 1) 1977–78 or any subsequent Act that appropriates funds for the year ending on 30 June 1978, subject to the limitations set out in section 5.
The Act imposes several obligations on the parties involved. The Treasurer must ensure that the borrowed funds are used strictly for the purposes outlined in section 4, which includes the expenses of borrowing and specified defence-related services. The Act also mandates that the expenditure for these services should not exceed the amounts authorized by relevant Acts, as outlined in section 5(1). Furthermore, section 5(3) restricts the expenditure of any borrowed funds, other than those related to borrowing expenses, after 30 June 1978. This ensures that the borrowed funds are utilized within the designated financial year and for the approved services.
Breaches of the provisions outlined in the Loan Act 1977 can lead to various legal consequences. While the Act itself does not explicitly state penalties for non-compliance, the misuse of funds or unauthorized expenditure could potentially lead to legal action under other relevant legislation. Additionally, misuse of public funds may result in administrative or disciplinary actions against the individuals involved, as well as potential financial repercussions for the responsible parties. It is essential for those governed by the Act to adhere to its provisions to avoid any legal or financial consequences.