Loan Act 1985

Legislation au C2004A03167 Not in force Act

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Loan Act 1985

No. 128 of 1985

TABLE OF PROVISIONS

PART I—PRELIMINARY

Section

1. Short title

2. Commencement

3. Interpretation

PART II—BORROWING AND EXPENDING OF MONEY FOR DEFENCE PURPOSES

4. Authority to borrow

5. Application of money borrowed under section 4

PART III—SUPPLEMENTATION OF THE CONSOLIDATED REVENUE FUND

6. Authority to borrow

7. Application of money borrowed under section 6

PART IV—MISCELLANEOUS

8. Appropriation

9. Limitation of expenditure


Loan Act 1985

No. 128 of 1985

 

 

An Act to authorise the borrowing and expending of money for certain purposes

[Assented to 28 October 1985]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Loan Act 1985.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Interpretation

3. In this Act, unless the contrary intention appears—

“prescribed year” means the financial year ending on 30 June 1986;

“relevant Act”, in relation to the prescribed year, means—

(a) the Supply Act (No. 1) 1985-86; or


(b) an Act, whether passed before or after the commencement of this Act, appropriating the Consolidated Revenue Fund for the service of the prescribed year ending on 30 June 1986, being an Act that is expressed to have effect subject to this Act;

“relevant service”, in relation to the prescribed year, means a service specified under the heading “DEPARTMENT OF DEFENCE” in a relevant Act for the prescribed year.

PART II—BORROWING AND EXPENDING OF MONEY FOR DEFENCE PURPOSES

Authority to borrow

4. The Treasurer may, from time to time during the prescribed year, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911 or an Act authorising the issue of Treasury Bills, borrow money that, together with any money previously borrowed under this section during the prescribed year, does not exceed the sum of—

(a) the total of the amounts authorised to be expended after the commencement of this Act and before the end of the prescribed year, for relevant services for the prescribed year; and

(b) the expenses of borrowing.

Application of money borrowed under section 4

5. Money borrowed under section 4 in the prescribed year may be issued and expended for—

(a) relevant services for the prescribed year; and

(b) the expenses of borrowing, and not otherwise.

PART III—SUPPLEMENTATION OF THE CONSOLIDATED REVENUE FUND

Authority to borrow

6. The Treasurer may, from time to time during the prescribed year, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911 or an Act authorising the issue of Treasury Bills, borrow money that, together with any money previously borrowed under this section during the prescribed year, does not exceed the sum of—

(a) the amount that, at the time of the borrowing, the Treasurer considers to be the greatest amount by which the money lawfully available, apart from this Part, for expenditure from the Consolidated Revenue Fund in the prescribed year is likely to be less than the amount of the expenditure made, and to be made, from the Consolidated Revenue Fund in the prescribed year; and

(b) the amount that, at that time, the Treasurer considers will be the expenses of the borrowing.


Application of money borrowed under section 6

7. Money borrowed under section 6 may be issued and expended—

(a) in making payments to the credit of the Consolidated Revenue Fund; and

(b) for the expenses of borrowing, and not otherwise.

PART IV—MISCELLANEOUS

Appropriation

8. The Loan Fund is appropriated to the extent necessary for the purposes of this Act.

Limitation of expenditure

9. (1) Nothing in this Act, or in a relevant Act for the prescribed year, shall be taken to authorise the expenditure for a relevant service for the prescribed year of an amount the expenditure of which would result in the total expenditure for that service under this Act and the relevant Acts for the prescribed year exceeding the total of the amounts authorised by the relevant Acts for the prescribed year to be expended in respect of that service.

(2) Sub-section (1) does not affect the expenditure of money appropriated under the heading “ADVANCE TO THE MINISTER FOR FINANCE” in a relevant Act for the prescribed year.

 

 

[Minister’s second reading speech made in—

House of Representatives on 11 September 1985

Senate on 14 October 1985]

Overview

The Loan Act 1985, enacted by the Commonwealth Parliament, was established to address the need for financial flexibility and stability in the funding of defence-related services and the supplementation of the Consolidated Revenue Fund. The Act empowers the Treasurer to borrow and expend money specifically for defence purposes and to supplement the Consolidated Revenue Fund within certain limits. This was done to ensure that the government could meet its obligations efficiently without exceeding authorised expenditure limits, thereby maintaining fiscal discipline. The Act’s primary objective is to provide the necessary legal framework for the Treasurer to manage financial resources effectively for the specified purposes.

Scope and Application

The Loan Act 1985 is an Australian Commonwealth Act that authorises the borrowing and expending of money for specific purposes during the financial year ending on 30 June 1986. The Act applies to the Treasurer, who is empowered to borrow money in accordance with the Commonwealth Inscribed Stock Act 1911 or an Act authorising the issue of Treasury Bills. The borrowed funds are intended for specific services and purposes, including defence and the supplementation of the Consolidated Revenue Fund. The borrowing is limited to the amounts authorised for relevant services and the expenses of borrowing, with strict limitations on expenditure to ensure that the total does not exceed the authorised amounts. The Act applies nationally as a Commonwealth Act and may be supplemented by subordinate instruments that further define borrowing and expenditure limits and conditions.

Key Provisions

The Loan Act 1985 outlines the framework for the borrowing and expending of money for defence purposes and the supplementation of the Consolidated Revenue Fund. Section 4 of the Act authorises the Treasurer to borrow money during the financial year ending on 30 June 1986, provided that the total borrowed does not exceed the authorised amounts for relevant services and the expenses of borrowing. This money can only be used for the services specified under the heading “DEPARTMENT OF DEFENCE” in a relevant Act for the prescribed year, as well as the expenses related to the borrowing itself (section 5). Similarly, section 6 allows the Treasurer to borrow money to supplement the Consolidated Revenue Fund, again with a cap on the total borrowings and the expenses of borrowing, and this money can only be used for payments to the credit of the Consolidated Revenue Fund and the expenses of borrowing (section 7). The Act imposes certain obligations on the Treasurer and other parties involved. The Treasurer must ensure that the total amount borrowed does not exceed the authorised limits and that the borrowed funds are used strictly for the specified purposes. Any money borrowed under this Act must be issued and expended in accordance with the Act's provisions (sections 4, 5, 6, and 7). The Act also imposes a limitation on expenditure, stipulating that the total expenditure for a relevant service must not exceed the authorised amounts in the relevant Acts (section 9). There are no explicit offences, penalties, or civil/criminal consequences mentioned in the Act for breaches of its provisions. However, the Act does provide a framework for ensuring that borrowed funds are used appropriately and within authorised limits. Any unauthorised expenditure or misuse of funds could potentially lead to financial mismanagement or other legal consequences, although these are not detailed within the Act itself. The Act's primary focus is on establishing the authority and scope for borrowing and spending for specified purposes within the financial constraints outlined.

Legal classification tags

Area of Law
Finance & Banking Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Limitation of expenditure

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.