Loan Act 1980
No. 120 of 1980
An Act to authorize the borrowing and expending of moneys for defence purposes
[Assented to 13 September 1980]
BE IT ENACTED by the Queen, and 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 1980.
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 1981, 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 $900,000,000.
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 Supply Act (No. 1) 1980-81 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 1981, 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 authorized by the Acts referred to in section 4 to be expended in respect of that service.
(2) Sub-section (1) does not affect the expenditure of moneys appropriated under the heading “ADVANCE TO THE MINISTER FOR FINANCE” in an Act referred to in section 4.
(3) Nothing in this Act shall be taken to authorize expenditure (otherwise than for the expenses of borrowing) after 30 June 1981.
Overview
The Loan Act 1980, assented to on 13 September 1980, was enacted by the Queen, in accordance with the Senate and the House of Representatives of the Commonwealth of Australia. This legislation was introduced to address the need for authorised borrowing and expenditure of funds for specific defence purposes. The Act empowers the Treasurer to borrow up to a specified amount during the financial year ending on 30 June 1981, in compliance with the Commonwealth Inscribed Stock Act 1911 or a relevant Act on Treasury Bills. The borrowed funds are strictly designated for the expenses of borrowing and services under the heading “DEPARTMENT OF DEFENCE” in the Supply Act (No. 1) 1980-81 or a subsequent Act that allocates the Consolidated Revenue Fund for the financial year ending on 30 June 1981, with the condition that it conforms to section 5 of this Act. The Act also imposes a limitation on expenditure to ensure that the total does not exceed the authorised amounts, with an exception for advances to the Minister for Finance, and prohibits any expenditure other than borrowing expenses after 30 June 1981.
Scope and Application
The Loan Act 1980 authorises the borrowing and expending of moneys for defence purposes within the Commonwealth of Australia. It applies to the Treasurer who has the authority to borrow up to an aggregate amount of $900,000,000 during the financial year ending 30 June 1981, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911 or an Act authorizing the issue of Treasury Bills. The borrowed funds are restricted to expenses of borrowing and services specified under the heading “DEPARTMENT OF DEFENCE” in the Supply Act (No. 1) 1980-81 or a subsequent appropriation Act. The Act includes a limitation on expenditure to ensure that the total amount spent on the specified service does not exceed the amounts authorised by the relevant Acts, with an exception for moneys appropriated under the heading “ADVANCE TO THE MINISTER FOR FINANCE” in an Act referred to in section 4. Additionally, the Act prohibits expenditure (other than for borrowing expenses) after 30 June 1981. The scope of this Act is confined to the financial year ending 30 June 1981, and it does not extend beyond this period unless otherwise specified through subordinate instruments.
Key Provisions
The Loan Act 1980 (sections 3 and 4) empowers the Treasurer to borrow up to $900,000,000 during the financial year ending on 30 June 1981. This borrowing is to be made in accordance with either the Commonwealth Inscribed Stock Act 1911 or an Act authorising the issue of Treasury Bills. The funds raised from this borrowing are to be specifically allocated towards the expenses related to borrowing and services listed under the "DEPARTMENT OF DEFENCE" in the Supply Act (No. 1) 1980-81 or any subsequent Act that appropriates funds for the year ending on 30 June 1981 and is subject to section 5 of the Loan Act 1980.
Under the Loan Act 1980, the primary obligation for the Treasurer is to ensure that the borrowed funds are used strictly for the purposes outlined in section 4, which includes the expenses of borrowing and defence-related services as specified. Furthermore, section 5(1) imposes a limitation on the total expenditure for the specified services, ensuring that it does not exceed the authorised amounts set by relevant Acts. However, section 5(2) makes an exception for expenditures under the "ADVANCE TO THE MINISTER FOR FINANCE" in any Act referenced in section 4. Additionally, section 5(3) explicitly prohibits any expenditure (excluding borrowing expenses) after the financial year-end of 30 June 1981.
In terms of breaches of the Loan Act 1980, there are no explicit offences, penalties, or civil/criminal consequences outlined within the text. However, the act implicitly ensures compliance by setting strict limitations and purposes for the borrowed funds, with a clear prohibition on expenditures beyond the authorised amounts or after the stipulated financial year-end. Non-compliance with these provisions could potentially lead to legal scrutiny or repercussions under broader financial oversight mechanisms within Australian law.