Loan Act (No. 2) 1982
No. 107 of 1982
An Act to authorize the borrowing and expending of moneys for defence purposes
[Assented to 5 November 1982]
BE IT ENACTED by the Queen, and 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) 1982.
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 1983, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911, or in accordance with the provisions of an Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the aggregate $1,500,000,000.
Application of moneys borrowed
4. Moneys borrowed under section 3 shall be issued and expended only for-
(a) the expenses of borrowing;
(b) services specified under the heading “DEPARTMENT OF DEFENCE” in—
(i) the Supply Act (No. 1) 1982-83; or
(ii) an Act passed after the commencement of this Act and appropriating the Consolidated Revenue Fund for the service of the year ending 30 June 1983, being an Act that is expressed to have effect subject to this Act; and
(c) services specified under the heading “DEPARTMENT OF DEFENCE SUPPORT” in an Act passed after the commencement of this Act and appropriating the Consolidated Revenue Fund for the service of the year ending 30 June 1983, being an Act that is expressed to have effect subject to this Act.
Appropriation
5. The Loan Fund is appropriated to the extent necessary for the purposes of this Act.
Limitation of expenditure
6. (1) Nothing in this Act or in an Act referred to in section 4 shall be taken to authorize the expenditure for a service referred to in section 4 of an amount the expenditure of which would result in the total expenditure for that service under this Act and the Acts referred to in section 4 exceeding the total of the amounts authorized by the Acts referred to in section 4 to be expended in respect of that service.
(2) Sub-section (1) does not affect the expenditure of moneys appropriated under the heading “ADVANCE TO THE MINISTER FOR FINANCE” in an Act referred to in section 4.
(3) Nothing in this Act shall be taken to authorize expenditure (otherwise than for the expenses of borrowing) after 30 June 1983.
Overview
The Loan Act (No. 2) 1982, enacted by the Queen and the Parliament of the Commonwealth of Australia on 5 November 1982, was introduced to address the need for additional funding for defence purposes during the financial year ending 30 June 1983. Authorising the borrowing of up to $1,500,000,000, the Act allows the Treasurer to issue funds in accordance with existing legislative frameworks, specifically the Commonwealth Inscribed Stock Act 1911 or any Act permitting the issuance of Treasury Bills. The borrowed moneys are strictly allocated to the expenses of borrowing and defence-related services specified under the Supply Act (No. 1) 1982-83 or any subsequent appropriations Acts that reference this Act. This legislation aims to ensure that the borrowed funds are utilised within the specified financial year and strictly for the intended defence purposes.
Scope and Application
The Loan Act (No. 2) 1982 authorises the borrowing and expending of moneys specifically for defence purposes, with the financial year of operation concluding on 30 June 1983. The Act empowers the Treasurer to borrow up to an aggregate of $1,500,000,000 during this period, in accordance with either the Commonwealth Inscribed Stock Act 1911 or an Act that authorises the issuance of Treasury Bills. The borrowed funds are to be used for expenses related to the borrowing process, services specified for the Department of Defence in the Supply Act (No. 1) 1982-83 or in any subsequent appropriation act for the year ending 30 June 1983, and services specified for the Department of Defence Support in any such subsequent appropriation act. This Act does not permit expenditure beyond the specified financial year, except for borrowing expenses, and ensures that the total expenditure for services does not exceed the amounts authorised in the relevant appropriation acts. The Loan Fund is appropriated to meet the requirements of this Act.
Key Provisions
The Loan Act (No. 2) 1982 (sections 3 and 4) authorises the Treasurer to borrow up to $1,500,000,000 during the financial year ending on 30 June 1983, either under the Commonwealth Inscribed Stock Act 1911 or through the issuance of Treasury Bills. The borrowed funds are to be used strictly for the expenses of borrowing, and for services specified under the heading “DEPARTMENT OF DEFENCE” in the Supply Act (No. 1) 1982-83, or in any Act passed after the commencement of this Act that appropriates funds for the year ending 30 June 1983 and is subject to this Act. Additionally, the funds can be used for services specified under the heading “DEPARTMENT OF DEFENCE SUPPORT” in any such Act.
The Act imposes specific obligations on the Treasurer and other relevant parties to ensure that the borrowed funds are used in accordance with the purposes outlined in section 4. The Treasurer must borrow the funds as per the provisions of either the Commonwealth Inscribed Stock Act 1911 or an Act authorizing Treasury Bills, and ensure that the expenditure does not exceed the authorised amounts for the specified services. There is also a strict limitation on expenditure, as outlined in section 6, which prohibits spending beyond the authorised amounts and after the financial year-end of 30 June 1983, except for expenses directly related to the borrowing process.
Failure to comply with the provisions of this Act may result in legal consequences. Although specific offences, penalties, or consequences are not detailed in the text, breaches of the Act could potentially lead to legal actions for misapplication of funds or non-compliance with appropriation laws. The penalties for such breaches could include financial penalties or other legal sanctions, depending on the nature and severity of the breach.