LOAN (No. 1).
No. 2 of 1925.
An Act to authorize the Raising and Expending of certain Sums of Money.
[Assented to 29th June, 1925.]
BE it enacted by the King’s Most Excellent Majesty, 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 (No. 1) 1925.
Authority to borrow £2,150,000.
2. The Treasurer may from time to time under the provisions of the Commonwealth Inscribed Stock Act 1911–1918, or under the provisions of any Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the whole the amount of Two million one hundred and fifty thousand pounds.
Purpose for which money may be borrowed.
3. The amount borrowed shall be issued and applied only for the expenses of borrowing and for the purposes of appropriations made or to be made by law.
Issue and application of £2,086,000.
4. There may be issued and applied out of the proceeds of any Loan raised under the authority of any Loan Act, including the present Act, the sum of Two million and eighty-six thousand pounds for the purposes set forth in the Schedule to this Act.
SCHEDULE.
—
UNDER THE CONTROL OF THE HOME AND TERRITORIES DEPARTMENT, THE DEPARTMENT OF WORKS AND RAILWAYS, AND THE HEALTH DEPARTMENT. | £ |
Works, Services, and Acquisition of Land in Federal Capital Territory (All receipts from the Federal Capital Territory to be credited to this vote.) | 86,000 |
UNDER THE CONTROL OF THE POSTMASTER-GENERAL’S DEPARTMENT.
Construction and extension of telegraphs and telephones, also construction of conduits and laying wires underground | 2,000,000 |
Total......... | £2,086,000 |
Overview
The Loan Act (No. 1) 1925 was enacted by the Australian Parliament to authorise the raising and expending of certain sums of money. This Act permitted the Treasurer to borrow up to £2,150,000, a significant sum at the time, to meet specific financial needs. The borrowings were intended to cover the expenses associated with the borrowing process itself and to be allocated for purposes as determined by law, with a particular focus on funding projects outlined in the Schedule, including infrastructure and communication developments. This legislative measure was crucial in providing the necessary financial resources for key national projects during a period of substantial development and expansion.
Scope and Application
The Loan Act (No. 1) 1925 authorises the Treasurer to borrow a sum not exceeding £2,150,000 under the Commonwealth Inscribed Stock Act 1911–1918 or any Act permitting the issuance of Treasury Bills. This borrowed amount is intended solely for expenses related to the borrowing process and for the purposes of appropriations enacted or to be enacted by law. A specified sum of £2,086,000 from the borrowed funds can be issued and applied to particular projects as detailed in the accompanying Schedule, which outlines allocations under the control of various government departments including the Home and Territories Department, the Department of Works and Railways, and the Health Department, as well as the Postmaster-General's Department. This Act applies to the Commonwealth of Australia and its specified departments, with a clear delineation of the funds' application as per the legislative provisions and the attached Schedule. No exclusions or exemptions are explicitly stated within the text, and the Act's authority to borrow and allocate funds is subject to the conditions and limitations set forth in the relevant Acts mentioned.
Key Provisions
The Loan Act (No. 1) 1925 (sections 1–4) provides the authority for the Treasurer to borrow a specific amount of money under the Commonwealth Inscribed Stock Act 1911–1918 or any other Act authorising the issue of Treasury Bills. The Act specifies that the borrowed funds, which amount to £2,150,000, can only be used for expenses related to the borrowing process and for purposes outlined in legal appropriations. The Act also details that out of the proceeds of any loan raised under its authority, £2,086,000 can be issued and applied for specific purposes listed in the Act's Schedule.
The Act imposes several obligations on the Treasurer and relevant departments. Firstly, the Treasurer must ensure that the borrowed funds are used strictly for the purposes outlined in the Act, namely the expenses of borrowing and the appropriations made by law. The departments listed in the Schedule—namely the Home and Territories Department, the Department of Works and Railways, and the Health Department—are also required to manage and allocate the funds as specified. For instance, the Postmaster-General’s Department must use the funds for the construction and extension of telegraphs and telephones, as well as for the construction of conduits and laying wires underground.
Failure to adhere to the provisions set forth in the Loan Act (No. 1) 1925 could result in civil or criminal consequences. Although the specific penalties are not detailed in the Act, breaches of such financial regulations could potentially lead to legal action. The consequences could include fines or other penalties as prescribed by relevant laws, which might vary depending on the nature and severity of the breach. The Act's primary focus is to ensure that the borrowed funds are used for their intended purposes, and any misuse could result in serious ramifications for those involved.