Loan Act 1995

Legislation au C2004A04901 Not in force Act

Legislation content

Loan Act 1995

No. 48 of 1995

CONTENTS

PART 1—PRELIMINARY

Section

1. Short title

2. Commencement

3. Definitions

PART 2—BORROWING AND SPENDING OF MONEY FOR DEFENCE PURPOSES

4. Authority to borrow

5. Application of money borrowed under subsection 4(1)

PART 3—SUPPLEMENTATION OF THE CONSOLIDATED REVENUE FUND

6. Authority to borrow

7. Application of money borrowed under subsection 6(1)


CONTENTS—continued

Section

PART 4—MISCELLANEOUS

8. Appropriation

9. Limitation of expenditure

Loan Act 1995

No. 48 of 1995

 

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

[Assented to 21 June 1995]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title

1. This Act may be cited as the Loan Act 1995.

Commencement

2. This Act commences on the day on which it receives the Royal Assent or on 1 July 1995, whichever is the later.

Definitions

3.(1) In this Act, unless the contrary intention appears:

"current financial year" means the year ending on 30 June 1996;

"defence service", in relation to the current financial year, means a service specified under the heading "DEPARTMENT OF DEFENCE" in a relevant appropriation Act for the financial year;


"relevant appropriation Act" means:

(a) the Appropriation Act (No. 1) 1995-96; or

(b) an Act, whether passed before or after the commencement of this Act, that appropriates the Consolidated Revenue Fund for the service of the current financial year, being an Act that is expressed to have effect subject to this Act.

(2) For the purposes of the definition of "defence service" in subsection (1), any service specified under the heading "DEPARTMENT OF VETERANS' AFFAIRS" in a relevant appropriation Act is taken not to be a service specified under the heading "DEPARTMENT OF DEFENCE" in that Act.


PART 2—BORROWING AND SPENDING OF MONEY FOR DEFENCE PURPOSES

Authority to borrow

4.(1) The Treasurer may, from time to time during the current financial year, borrow money that, together with any money previously borrowed under this subsection during that financial year, does not exceed the sum of:

(a) the total of the amounts authorised to be spent, after the commencement of this Act and before the end of that financial year, for defence services for that financial year; and

(b) the expenses of borrowing.

(2) Money may be borrowed under subsection (1) in accordance with:

(a) the Commonwealth Inscribed Stock Act 1911; or

(b) the Loans Securities Act 1919; or

(c) an Act authorising the issue of Treasury Bills;

and not otherwise.

Application of money borrowed under subsection 4(1)

5. Money borrowed under subsection 4(1) in the current financial year may be issued and spent for:

(a) defence services for that financial year; and

(b) the expenses of borrowing;

and not otherwise.


PART 3—SUPPLEMENTATION OF THE CONSOLIDATED REVENUE FUND

Authority to borrow

6.(1) The Treasurer may, from time to time during the current financial year, borrow money that, together with any money previously borrowed under this subsection during that financial year, does not exceed the sum of:

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

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

(2) Money may be borrowed under subsection (1) in accordance with:

(a) the Commonwealth Inscribed Stock Act 1911; or

(b) the Loans Securities Act 1919; or

(c) an Act authorising the issue of Treasury Bills; and not otherwise.

Application of money borrowed under subsection 6(1)

7. Money borrowed under subsection 6(1) may be issued and spent:

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

(b) for the expenses of borrowing;

and not otherwise.


PART 4—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 appropriation Act authorises the spending of an amount for a defence service for the current financial year if that amount, together with the total amount already spent for that service under this Act and the relevant appropriation Acts, would exceed the total of the amounts authorised to be spent in respect of that service under the relevant appropriation Acts.

(2) Subsection (1) does not affect the spending of money appropriated under the heading "ADVANCE TO THE MINISTER FOR FINANCE" in a relevant appropriation Act.

(3) Nothing in this Act authorises the spending of money after 30 June 1996 except for paying the expenses of borrowing.

 

[Minister's second reading speech made in—

House of Representatives on 5 June 1995

Senate on 7 June 1995]

Overview

The Loan Act 1995, enacted by the Parliament of Australia, was introduced to provide the legal framework for the Treasurer to borrow and spend money for defence purposes and to supplement the Consolidated Revenue Fund during the 1995-1996 financial year. This legislation was necessary to ensure that funds could be appropriately allocated for defence services and other government expenditures within the specified financial year, while also preventing overspending on defence services beyond the amounts authorised in the relevant appropriation Acts. The Act outlines the authority for borrowing, the application of borrowed funds, and includes a limitation on expenditure to safeguard against exceeding authorised spending limits. The Loan Act 1995 thus serves as a critical tool for managing public finances during a particular fiscal period, ensuring accountability and fiscal discipline.

Scope and Application

The Loan Act 1995 is an Act of the Commonwealth of Australia that authorises the borrowing and spending of money for specific defence purposes and to supplement the Consolidated Revenue Fund. The Act applies to the Treasurer of the Commonwealth, who is empowered to borrow money for defence services and for supplementing the Consolidated Revenue Fund. The borrowing and spending of money is restricted to the current financial year ending on 30 June 1996 and must comply with specified Acts, namely the Commonwealth Inscribed Stock Act 1911, the Loans Securities Act 1919, and any Act that authorises the issue of Treasury Bills. Money borrowed under the Act may only be used for defence services and expenses of borrowing, or for supplementing the Consolidated Revenue Fund and expenses of borrowing, as specified in the Act. The Act also includes provisions that limit the expenditure on defence services to the amounts authorised under relevant appropriation Acts, with exceptions for advances to the Minister for Finance. The Act does not extend to spending money after 30 June 1996 except for paying the expenses of borrowing.

Key Provisions

The Loan Act 1995 (sections 4 and 6) provides the authority for the Treasurer to borrow money for specific purposes during the current financial year, which is defined as ending on 30 June 1996. Section 4 allows the borrowing of funds for defence services, up to a total amount that includes both the authorised spending on defence services and the expenses of borrowing. This money can then be spent only on defence services and the expenses of borrowing, as outlined in section 5. Similarly, section 6 grants the Treasurer the ability to borrow money to supplement the Consolidated Revenue Fund, with the borrowing limit being the deficit in the Fund plus the expenses of borrowing. Section 7 stipulates that the borrowed funds can be used to make payments to the credit of the Consolidated Revenue Fund and to cover the expenses of borrowing. Under the Loan Act 1995, the Treasurer has specific obligations when borrowing money for defence services and for supplementing the Consolidated Revenue Fund. The Act requires the Treasurer to ensure that the total borrowed does not exceed the authorised limits (sections 4(1) and 6(1)). Additionally, the Act imposes a duty on the Treasurer to use the borrowed funds only for the purposes specified, that is, for defence services and the expenses of borrowing, or for supplementing the Consolidated Revenue Fund and the expenses of borrowing (sections 5 and 7). The Loan Act 1995 includes provisions that impose penalties and consequences for non-compliance. Section 9(1) explicitly limits expenditure on defence services to the amounts authorised in relevant appropriation Acts, with any overspending being prohibited. The Act further restricts the spending of money after 30 June 1996 to only the expenses of borrowing. While the Act does not specify penalties for breaches, non-compliance with these provisions could lead to legal consequences under other relevant laws or internal disciplinary actions within the government.

Legal classification tags

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

Interactions

Authorises

All Versions

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.