Loan Act 1992

Overview

The Loan Act 1992, enacted by the Parliament of Australia and assented to on 17 October 1992, addresses the need for authorised borrowing and expenditure for specific purposes within the financial year ending 30 June 1993. This Act provides the Treasurer with the authority to borrow and expend funds for defence services and to supplement the Consolidated Revenue Fund, ensuring that financial obligations are met in accordance with relevant appropriation Acts. The policy objective is to facilitate the management of government finances by enabling the Treasurer to borrow and allocate funds within specified limits and purposes, thereby supporting the implementation of approved expenditures without exceeding authorised amounts.

Scope and Application

The Loan Act 1992 is a Commonwealth Act that primarily authorises the borrowing and expending of money for defence purposes and to supplement the Consolidated Revenue Fund during the financial year ending on 30 June 1993. The Act applies to the Treasurer, who is authorised to borrow funds under specific conditions for defence services and to cover any shortfall in the Consolidated Revenue Fund. The borrowed money can only be used for the purposes specified within the Act, including defence services and the expenses of borrowing, and cannot be used for any other purpose. The Act also includes a limitation on expenditure to ensure that it does not exceed the total amounts authorised by relevant appropriation Acts for defence services. The Act's application is confined to the financial year 1992-1993, and any expenditure beyond this period is prohibited unless it pertains to the expenses of borrowing. The Act’s scope is limited to the financial year in question, and it does not extend beyond this timeframe unless specified otherwise by subordinate instruments.

Key Provisions

The Loan Act 1992 primarily outlines the authority for borrowing and expending money for defence purposes and supplementing the Consolidated Revenue Fund for the financial year ending on 30 June 1993. According to section 4(1), the Treasurer is authorised to borrow money during this financial year, provided that the total borrowed, along with any money previously borrowed under this Act, does not exceed the sum of the total amounts authorised to be expended for defence services for that financial year, plus the expenses of borrowing. The borrowed funds, as stated in section 5, are to be issued and expended solely for defence services for the financial year and the expenses of borrowing. Similarly, section 6(1) authorises the Treasurer to borrow money during the same financial year, provided the total borrowed does not exceed the sum of the amount the Treasurer considers necessary to cover the deficit in the Consolidated Revenue Fund for that financial year and the expenses of borrowing. Section 7 specifies that money borrowed under section 6(1) may be issued and expended for making payments to the credit of the Consolidated Revenue Fund and for the expenses of borrowing. The Loan Act 1992 imposes specific obligations on the parties involved. The Treasurer, as the key individual responsible, is mandated to ensure that any borrowing under sections 4 and 6 does not exceed the specified limits. This involves careful calculation and consideration of the authorised expenditure for defence services and the deficit in the Consolidated Revenue Fund, respectively. The Act also requires that the borrowed funds are used strictly for the purposes outlined in sections 5 and 7, ensuring accountability and adherence to the financial limits set forth. Breaching the provisions of the Loan Act 1992 can lead to significant consequences. Section 9(1) explicitly states that expenditure for a defence service for the financial year must not exceed the total authorised by the relevant appropriation Acts. Any such over-expenditure could result in legal ramifications, although the Act does not detail specific penalties or consequences for such breaches. Additionally, section 9(3) stipulates that no expenditure is authorised after 30 June 1993, except for the payment of expenses of borrowing. Failure to comply with this could also lead to legal consequences, although again, the specific penalties are not outlined in the Act.