Loan Act 1979

Overview

The Loan Act 1979 was enacted to provide the Commonwealth with the authority to borrow and expend moneys specifically for defence purposes. Enacted by the Queen, with the assent of the Senate and House of Representatives of the Commonwealth of Australia, the Act allows the Treasurer to borrow up to $1,800,000,000 during the financial year ending on 30 June 1980, in accordance with either the Commonwealth Inscribed Stock Act 1911 or an Act authorizing the issue of Treasury Bills. The funds raised are to be used solely for the expenses of borrowing and for services specified under the "DEPARTMENT OF DEFENCE" in the Supply Act (No. 1) 1979-80 or any subsequent appropriation acts. This Act ensures that the borrowing is strictly limited to defence expenses and avoids exceeding the authorised amounts for those services, while also prohibiting expenditure beyond the specified financial year.

Scope and Application

The Loan Act 1979 is a Commonwealth statute that authorises the borrowing and expenditure of funds specifically for defence purposes. The Act empowers the Treasurer to borrow up to an aggregate amount of $1,800,000,000 during the financial year ending on 30 June 1980, in compliance with the Commonwealth Inscribed Stock Act 1911 or another Act permitting the issuance of Treasury Bills. The borrowed funds are to be utilised exclusively for the costs associated with borrowing and services outlined under the heading "DEPARTMENT OF DEFENCE" in the Supply Act (No. 1) 1979-80 or any subsequent Act that appropriates funds from the Consolidated Revenue Fund for the fiscal year ending on 30 June 1980, subject to the provisions of section 5 of this Act. It is crucial to note that this Act does not permit the expenditure of funds for any service beyond the total amount authorised by the relevant Acts, except for advances to the Minister for Finance, and prohibits any expenditure (other than borrowing expenses) after 30 June 1980. The Loan Act 1979 applies to the Treasurer and the Department of Defence, focusing on financial transactions related to defence appropriations. Its jurisdictional reach is limited to the Commonwealth level, and it does not extend to state or territory governments. While the Act itself does not explicitly state exclusions, exemptions, or thresholds, the application of the borrowed funds is strictly regulated by other statutory provisions. The Act’s application may be further defined or extended through subordinate instruments, such as regulations or orders, which may provide additional details or clarifications on the implementation and enforcement of the Act’s provisions.

Key Provisions

The Loan Act 1979 primarily grants the Treasurer the authority to borrow funds for specified defence purposes within the financial year ending on 30 June 1980. Under section 3, the Treasurer is authorised to borrow an aggregate amount not exceeding $1,800,000,000, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911 or any Act that authorises the issuance of Treasury Bills. Section 4 specifies that the moneys borrowed under this authority must be applied solely for the expenses of borrowing and for services specified under the heading “DEPARTMENT OF DEFENCE” in the Supply Act (No. 1) 1979-80 or in any subsequent Act appropriating the Consolidated Revenue Fund for the financial year ending on 30 June 1980, subject to section 5 of this Act. The Act imposes several obligations and requirements on the parties it governs. Firstly, the funds borrowed must strictly adhere to the purposes outlined in section 4, which include the expenses of borrowing and specified defence services. Furthermore, section 5(1) imposes a limitation on expenditure, ensuring that the total amount spent on defence services does not exceed the authorised limits set out in the referenced Acts. Sub-section (2) clarifies that this limitation does not apply to moneys appropriated under the heading “ADVANCE TO THE MINISTER FOR FINANCE.” Additionally, section 5(3) mandates that no expenditure (other than for borrowing expenses) is authorised after 30 June 1980. Breaches of the provisions outlined in the Loan Act 1979 may lead to civil or criminal consequences, although specific offences and penalties are not detailed within the Act itself. The Act's focus on financial and administrative controls suggests that non-compliance could result in legal actions for misapplication of funds or failure to adhere to the prescribed expenditure limits. However, the exact nature and extent of penalties for such breaches would likely be determined by the courts or relevant authorities based on the specific circumstances of any alleged non-compliance.