Loan Act 1996

Legislation au C2004A05031 Not in force Act

Legislation content

Loan Act 1996

No. 8, 1996

An Act to authorise the borrowing and spending

of money for certain purposes


Contents

 

Part 1—Preliminary

1

l

Short title....................................................

1

2

Commencement................................................

2

3

Definitions...................................................

2

Part 2—Borrowing and spending of money for defence purposes

3

4

Authority to borrow.............................................

3

5

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

3

Part 3—Supplementation of the Consolidated Revenue Fund

4

6

Authority to borrow.............................................

4

7

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

4

Part 4—Miscellaneous

5

8

Appropriation.................................................

5

9

Limitation of expenditure..........................................

5


Loan Act 1996

No. 8, 1996

 

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

[Assented to 14 June 1996]

The Parliament of Australia enacts:

Part 1—Preliminary

1 Short title

This Act may be cited as the Loan Act 1996.

2 Commencement

This Act commences on the day on which it receives the Royal Assent or on 1 July 1996, whichever is the later.

3 Definitions

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

current financial year means the year ending on 30 June 1997.

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 Supply Act (No. 1) 1996-97; or

(b) the Appropriation Act (No. 1) 1996-97; or

(c) 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 and 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

4 Authority to borrow

(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

5 Application of money borrowed under subsection 4(1)

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

6 Authority to borrow

(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.

7 Application of money borrowed under subsection 6(1)

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

8 Appropriation

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

9 Limitation of expenditure

(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 1997 except for paying the expenses of borrowing.

[Minister’s second reading speech made in—

House of Representatives on 8 May 1996 Senate on 23 May 1996]

Overview

The Loan Act 1996, enacted by the Parliament of Australia, serves to authorise the borrowing and spending of funds for specified purposes, including defence services and the supplementation of the Consolidated Revenue Fund. This legislation was introduced to address the need for clear legal authority to borrow and allocate funds for defence and other specified purposes during the financial year ending 30 June 1997. The primary policy objective articulated in the Act is to ensure that borrowing and spending are strictly limited to the amounts authorised and appropriated under relevant appropriation Acts. The Act provides the Treasurer with the authority to borrow and spend money within these parameters, ensuring fiscal responsibility and adherence to the budgetary constraints set by Parliament.

Scope and Application

The Loan Act 1996 is an Australian Commonwealth Act that specifically authorises the borrowing and spending of money for defence purposes and for the supplementation of the Consolidated Revenue Fund during the financial year ending on 30 June 1997. The Act applies to the Treasurer who is empowered to borrow money to cover specified expenses, with borrowing limited to certain amounts authorised to be spent on defence services and the expenses of borrowing. The borrowed funds can only be used for defence services or the expenses of borrowing, as outlined in the Act. Additionally, the Act allows for the supplementation of the Consolidated Revenue Fund by borrowing money, with the funds to be used for payments to the credit of the Consolidated Revenue Fund and the expenses of borrowing. The Act does not authorise the spending of money after 30 June 1997, except for the expenses of borrowing. There are no stated exclusions or exemptions within the Act, and its application is not extended or restricted through subordinate instruments.

Key Provisions

The Loan Act 1996 (Cth) primarily authorises the borrowing of funds for specific purposes, particularly for defence services and for supplementing the Consolidated Revenue Fund. Section 4 allows the Treasurer to borrow money for defence purposes, provided the total borrowed does not exceed the authorised spending for defence services and the expenses of borrowing (section 4(1)). The money borrowed for defence purposes can only be used for defence services and the expenses of borrowing (section 5). Similarly, section 6 allows the Treasurer to borrow money to supplement the Consolidated Revenue Fund, provided the total borrowed does not exceed the anticipated shortfall in the fund and the expenses of borrowing (section 6(1)). The funds borrowed for this purpose can only be used for payments to the credit of the Consolidated Revenue Fund and the expenses of borrowing (section 7). The Act imposes obligations on the Treasurer to ensure that the borrowing and spending of money is strictly in accordance with the provisions of the Act. For instance, the Treasurer must ensure that money borrowed for defence purposes is only used for defence services and the expenses of borrowing, and not otherwise (section 5). Similarly, money borrowed to supplement the Consolidated Revenue Fund can only be used for payments to the credit of the Fund and the expenses of borrowing, and not otherwise (section 7). Breach of the Act’s provisions may result in legal consequences. Although the Act does not explicitly state penalties for breach, it is important to note that spending money beyond the authorised limits could be considered a misuse of public funds, which could lead to criminal charges. Furthermore, the Act limits expenditure after 30 June 1997 to only paying the expenses of borrowing (section 9(3)), which means that any spending beyond this date could also be considered a breach of the Act. While the Act does not specify the penalties for such breaches, they could potentially include fines and imprisonment under general criminal law provisions for misuse of public funds.

Legal classification tags

Area of Law
Finance & Banking Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement 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.