LOAN ACT (No. 2) 1976
No. 7 of 1976
An Act to Authorize the Borrowing of Moneys for the purpose of Supplementing the Consolidated Revenue Fund.
BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1. This Act may be cited as the Loan Act (No. 2) 1976.
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 30 June 1976, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911-1973, 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 from the Consolidated Revenue Fund in that financial year are likely to be less than the amount of the expenditure made and to be made from that Fund in that financial year.
Application of moneys borrowed.
4. An amount equal to each amount borrowed under this Act shall be issued out of the Loan Fund and paid to the credit of the Consolidated Revenue Fund.
Expenses of borrowing.
5. The expenses of borrowing under section 3 may be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.
Overview
The Loan Act (No. 2) 1976 was enacted to address the need for supplementary funding to the Consolidated Revenue Fund for the financial year ending 30 June 1976. This Act was passed by the Queen, in conjunction with the Senate and House of Representatives of the Commonwealth of Australia, to authorise the borrowing of necessary funds to cover any shortfall between the available moneys and the required expenditure for that period. The primary objective of this legislation is to enable the Treasurer to borrow funds up to a specific limit deemed necessary for the financial year, ensuring that the government can meet its financial obligations without disrupting its budget and expenditure plans.
This Act allows the Treasurer to borrow money in accordance with either the Commonwealth Inscribed Stock Act 1911-1973 or an Act authorizing the issue of Treasury Bills, provided that the total borrowed does not exceed the calculated shortfall. The borrowed funds are to be transferred from the Loan Fund to the Consolidated Revenue Fund, with the expenses related to the borrowing process being covered by the Consolidated Revenue Fund. This legislative measure was enacted to ensure financial stability and the smooth operation of government services by providing a legal framework for supplementary borrowing when necessary.
Scope and Application
The Loan Act (No. 2) 1976 authorises the Treasurer to borrow moneys during the financial year ending on 30 June 1976 to supplement the Consolidated Revenue Fund, provided the total borrowed does not exceed what the Treasurer considers to be the greatest amount by which the available moneys for expenditure in that financial year are likely to be less than the expenditure to be made from that Fund in that year. This Act applies to the Treasurer and any actions they take to borrow money in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911-1973 or any Act authorizing the issue of Treasury Bills. The moneys borrowed under this Act are to be issued from the Loan Fund and paid to the credit of the Consolidated Revenue Fund, and any expenses of borrowing may be paid out of the Consolidated Revenue Fund. The Act is geographically applicable to the Commonwealth of Australia and may be extended or restricted through subordinate instruments, although no specific exclusions, exemptions, or thresholds are stated within the text of the Act itself.
Key Provisions
The Loan Act (No. 2) 1976 primarily focuses on authorising the borrowing of moneys to supplement the Consolidated Revenue Fund for a specific financial year. Section 3 of the Act grants the Treasurer the authority to borrow moneys during the financial year ending on 30 June 1976, subject to the conditions that the total borrowed amount, along with any previously borrowed funds under this Act, does not exceed the shortfall in available funds for the year. This borrowing is to be conducted in accordance with the Commonwealth Inscribed Stock Act 1911-1973 or another Act authorising the issue of Treasury Bills.
The Act imposes certain obligations on the parties involved. The Treasurer, under section 3, must ensure that the total borrowed amount does not exceed the anticipated shortfall in the Consolidated Revenue Fund for the financial year. Section 4 mandates that the amount borrowed be issued from the Loan Fund and credited to the Consolidated Revenue Fund, ensuring that the borrowed funds are appropriately allocated and accounted for. Section 5 allows the expenses associated with the borrowing process to be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.
Breach of the provisions of this Act may result in various consequences. While the Act does not explicitly state specific offences or penalties, the failure to comply with the borrowing limits set out in section 3 could potentially lead to financial mismanagement or a deficit in the budget for the financial year. Such non-compliance could attract scrutiny from relevant financial oversight bodies and might necessitate corrective actions to ensure the financial stability of the Commonwealth. The Act's focus is on the procedural correctness and financial prudence in borrowing to support the Consolidated Revenue Fund.