Loan (No. 2)
No. 49 of 1966
An Act to Authorize the Raising and Expending of a sum not exceeding Three hundred million dollars for Defence Purposes.
[Assented to 26th October, 1966]
BE it enacted by the Queen’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. 2) 1966.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow.
3. The Treasurer may, not later than the thirtieth day of June, One thousand nine hundred and sixty-seven, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911–1963, or under the provisions of any Act authorizing the issue of Treasury Bills, moneys not exceeding in the whole Three hundred million dollars.
Purposes for which moneys borrowed may be applied.
4.—(1.) Moneys borrowed under this Act shall be issued and applied only for the expenses of borrowing and for the services expressed in Part 1 of the Second Schedule to the Appropriation Act (No. 1) 1966–67 under the heading “DEFENCE SERVICES.”.
(2.) Nothing in the last preceding sub-section authorizes expenditure (not being for the expenses of borrowing) after the thirtieth day of June, One thousand nine hundred and sixty-seven.
Limitation of expenditure.
5.—(1.) Nothing in this Act or in the Appropriation Act (No. 1) 1966–67 authorizes the expenditure for a service expressed in Part 1 of the Second Schedule to the Appropriation Act (No. 1) 1966–67 under the heading “DEFENCE SERVICES.” of an amount the expenditure of which would result in the total expenditure under the two Acts for that service exceeding the amount specified in that Part in respect of that service.
(2.) The last preceding sub-section does not affect the expenditure of the moneys appropriated by the Appropriation Act (No. 1) 1966–67 under Division No. 590.—Advance to the Treasurer.
Overview
The Loan Act (No. 2) 1966 was enacted to address the need for additional funding for defence purposes within the fiscal year 1966–67. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, and received Royal Assent on 26th October, 1966. The primary objective of this legislation was to empower the Treasurer to borrow up to three hundred million dollars to meet the defence-related expenses outlined in the Appropriation Act (No. 1) 1966–67, ensuring that these funds were strictly allocated to the specified defence services and could not be expended beyond the outlined financial constraints. The Act explicitly limits the use of the borrowed funds to defence services and prevents any expenditure that would exceed the amounts specified in the Appropriation Act for those services.
Scope and Application
The Loan Act (No. 2) 1966 pertains to the authority granted to the Treasurer to borrow up to three hundred million dollars for specific defence purposes. This Act applies to the Commonwealth of Australia and specifically authorises the Treasurer to undertake borrowing activities under the Commonwealth Inscribed Stock Act 1911–1963 or any Act pertaining to Treasury Bills, with the borrowing to occur no later than June 30, 1967. The funds obtained through this borrowing are strictly designated for defence-related expenses, as outlined in Part 1 of the Second Schedule to the Appropriation Act (No. 1) 1966–67 under the heading "DEFENCE SERVICES," and must be applied by the end of June 30, 1967. The Act further ensures that no expenditure exceeding the specified amounts in the Appropriation Act (No. 1) 1966–67 for defence services is permitted. Any borrowing or expenditure beyond these parameters would be unauthorised under this legislation.
Key Provisions
The Loan Act (No. 2) 1966 authorises the Treasurer to borrow up to three hundred million dollars for specific purposes related to defence services (section 3). This borrowing must be done within a year, specifically by the thirtieth of June, 1967, under the provisions of the Commonwealth Inscribed Stock Act 1911–1963 or any Act that authorises the issue of Treasury Bills (section 3). The funds raised through this borrowing can only be used for the expenses related to borrowing and for the defence services outlined in Part 1 of the Second Schedule to the Appropriation Act (No. 1) 1966–67 (section 4(1)). It is crucial to note that no other expenditure (other than borrowing expenses) can occur after the thirtieth of June, 1967 (section 4(2)).
Under the Act, the Treasurer is obligated to ensure that the funds borrowed are strictly used for the authorised purposes and within the specified timeframe (section 4). Furthermore, the Act imposes a limitation on the expenditure for defence services, ensuring that the total expenditure does not exceed the amount specified in Part 1 of the Second Schedule to the Appropriation Act (No. 1) 1966–67 (section 5(1)). This limitation is designed to prevent overspending and ensure fiscal responsibility in the use of borrowed funds.
In the event of a breach of the Act, whether it involves unauthorised expenditure or exceeding the specified expenditure limits, there are potential civil and criminal consequences. The precise nature and severity of these consequences would depend on the specific circumstances of the breach, but they could include fines or other penalties as prescribed by law. The Act does not explicitly state maximum penalties within its text, but such details would typically be found in related legislative provisions or legal precedents.