Loan (No. 2)
No. 135 of 1968
An Act to authorize the raising and expending of Moneys for Defence Purposes.
[Assented to 9 December 1968]
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) 1968.
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, from time to time during the financial year ending on the thirtieth day of June, One thousand nine hundred and sixty-nine, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911–1966, or in accordance with the provisions of an Act authorizing the issue of Treasury Bills, borrow moneys that, together with any moneys previously borrowed under this section, do not exceed the amount that, at the time of the borrowing, he considers to be the greatest amount by which the moneys lawfully available, apart from this Act, for expenditure by the Commonwealth in that financial year are likely to be less than the amount of the expenditure authorized to be made by the Commonwealth in that financial year.
Appropriation.
4. Moneys borrowed under this Act shall be issued and applied only for the expenses of borrowing and for the purposes of services specified in the Second Schedule to the Appropriation Act (No. 1) 1968–69 under the heading “DEFENCE SERVICES”.
Limitation of expenditure.
5.—(1.) Nothing in this Act or in the Appropriation Act (No. 1) 1968–69 authorizes the expenditure for a service specified in the Second Schedule to the Appropriation Act (No. 1) 1968–69 under the heading “DEFENCE SERVICES” of an amount the expenditure of which would result in the total expenditure under those Acts for that service exceeding the amount so specified 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) 1968–69 under Division No. 560—Advance to the Treasurer.
(3.) Nothing in this Act authorizes expenditure (otherwise than for the expenses of the borrowing of moneys authorized to be borrowed by section 3 of this Act) after the thirtieth day of June, One thousand nine hundred and sixty-nine.
Overview
The Loan Act (No. 2) 1968 was enacted by the Parliament of Australia to provide the Commonwealth Government with the authority to borrow and expend funds for defence purposes. Assented to on 9 December 1968, the Act was designed to enable the Treasurer to borrow money during the specified financial year, ensuring that such borrowings did not exceed the anticipated shortfall between available funds and authorised defence expenditures. This legislative measure was crucial in facilitating the financial management of defence services during a period when additional funding was required to meet the nation's defence obligations. The Act specifies that the borrowed funds must be used solely for borrowing expenses and for services outlined under the Defence Services heading in the Second Schedule of the Appropriation Act (No. 1) 1968–69, thereby ensuring fiscal discipline and adherence to budgetary constraints.
Scope and Application
The Loan Act (No. 2) 1968 authorises the Commonwealth government to borrow and expend moneys for defence purposes within the financial year ending 30 June 1969. The Act applies to the Treasurer, who is empowered to borrow moneys in accordance with the Commonwealth Inscribed Stock Act 1911–1966 or an Act authorizing the issue of Treasury Bills, provided the total borrowed does not exceed the shortfall between available funds and authorised expenditure for that financial year. The borrowed funds must be used for borrowing expenses and defence services as specified in the Second Schedule to the Appropriation Act (No. 1) 1968–69. Expenditure is strictly limited to avoid exceeding the amounts specified for defence services under the Appropriation Act, with exceptions for advances to the Treasurer. Additionally, no expenditure (other than borrowing expenses) is authorised beyond 30 June 1969. The Act itself does not specify exclusions or exemptions, but the scope and application may be further defined by subordinate instruments.
Key Provisions
The Loan Act (No. 2) 1968 is designed to grant the Treasurer the authority to borrow money to meet certain financial needs. Section 3 of the Act allows the Treasurer to borrow moneys during the financial year ending on 30th June 1969, provided that the total amount borrowed, including any previous borrowings under this Act, does not exceed the shortfall between the available funds and the authorised expenditure for that financial year. This borrowing must comply with the provisions of either the Commonwealth Inscribed Stock Act 1911–1966 or an Act that authorises the issuance of Treasury Bills.
The funds borrowed under this Act are strictly designated for two purposes as outlined in Section 4: the expenses associated with the borrowing process itself and the specified defence services detailed in the Second Schedule to the Appropriation Act (No. 1) 1968–69. These defence services are categorised under the heading "DEFENCE SERVICES." It is important to note that the borrowing and expenditure must adhere to the limitations set by Section 5, which ensures that the total expenditure for defence services does not surpass the amount specified in the Appropriation Act (No. 1) 1968–69. However, this limitation does not apply to the funds advanced to the Treasurer under Division No. 560.
The Act imposes certain obligations and requirements on the parties involved. The Treasurer must ensure that any borrowing does not exceed the specified limits and that the funds are used solely for the authorised purposes. Additionally, any expenditure related to defence services must not exceed the amounts outlined in the Appropriation Act (No. 1) 1968–69, except for the funds advanced to the Treasurer. Furthermore, no expenditure is permitted beyond the 30th June 1969 unless it pertains to the borrowing expenses.
Failure to comply with the provisions of this Act can lead to civil and criminal consequences. While the Act does not explicitly state the penalties for breaches, the legal framework of Australian legislation generally provides for fines and imprisonment for serious violations of financial and appropriation laws. The exact penalties would depend on the specific nature of the breach and the relevant provisions of other applicable laws.