Loan Act (No. 2) 1983

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Loan Act (No. 2) 1983

No. 50 of 1983

 

An Act to authorize the borrowing and expending of moneys for certain purposes

[Assented to 29 September 1983]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Loan Act (No. 2) 1983.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

PART II—BORROWING AND EXPENDING OF MONEYS FOR DEFENCE PURPOSES

Authority to borrow

3. The Treasurer may, from time to time during the financial year ending on 30 June 1984, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911 or an Act authorizing the issue of Treasury Bills, borrow moneys that, together with any moneys previously borrowed under this section, do not exceed the sum of—


(a) the total of the amounts authorized to be expended, after the commencement of this Act and before the end of that financial year, for services specified under the headings “DEPARTMENT OF DEFENCE” and “DEPARTMENT OF DEFENCE SUPPORT” in—

(i) the Supply Act (No. 1) 1983-84; and

(ii) each other Act, whether passed before or after the commencement of this Act, appropriating the Consolidated Revenue Fund for the service of that financial year, being an Act that is expressed to have effect subject to this Act; and

(b) the expenses of borrowing.

Application of moneys borrowed under section 3

4. Moneys borrowed under section 3 may be issued and expended for—

(a) services referred to in paragraph 3 (a); and

(b) the expenses of borrowing, and not otherwise.

PART III—SUPPLEMENTATION OF THE CONSOLIDATED REVENUE FUND

Authority to borrow

5. The Treasurer may, from time to time during the financial year ending on 30 June 1984, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911 or an Act authorizing the issue of Treasury Bills, borrow moneys that, together with any moneys previously borrowed under this section, do not exceed the sum of—

(a) 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 Part, 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 the Consolidated Revenue Fund in that financial year; and

(b) the amount that, at that time, he considers will be the expenses of the borrowing.

Application of moneys borrowed under section 5

6. Moneys borrowed under section 5 may be issued and expended—

(a) in making payments to the credit of the Consolidated Revenue Fund; and

(b) for the expenses of borrowing,

and not otherwise.


PART IV—MISCELLANEOUS

Appropriation

7. The Loan Fund is appropriated to the extent necessary for the purposes of this Act.

Limitation of expenditure

8. (1) Nothing in this Act or in an Act referred to in paragraph 3 (a) shall be taken to authorize the expenditure for a service referred to in that paragraph 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 that paragraph exceeding the total of the amounts authorized by the Acts referred to in that paragraph 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 paragraph 3 (a).

(3) Nothing in this Act shall be taken to authorize expenditure (otherwise than for the expenses of borrowing) after 30 June 1984.

Overview

The Loan Act (No. 2) 1983 was enacted to address the need for additional funding for defence purposes and to supplement the Consolidated Revenue Fund for the financial year ending on 30 June 1984. This legislation was passed by the Queen, with the assent of the Senate and the House of Representatives of the Commonwealth of Australia, to facilitate the borrowing and expending of funds under specific conditions. The primary policy objective of the Act is to ensure that the necessary resources are available for the Department of Defence and its support services, as well as to manage the financial requirements of the Consolidated Revenue Fund effectively. The Act authorises the Treasurer to borrow moneys in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911 or an Act authorising the issue of Treasury Bills, with clear limits and purposes for the borrowed funds. The moneys borrowed for defence purposes can only be used for services specified under the Department of Defence and Department of Defence Support headings in the Supply Act (No. 1) 1983-84 and other relevant appropriation Acts. Similarly, the funds borrowed to supplement the Consolidated Revenue Fund can only be used for payments to the credit of the Fund and the expenses of borrowing. The Act also includes provisions to limit expenditure and ensure that funds are not expended beyond the authorised amounts and after the specified financial year.

Scope and Application

The Loan Act (No. 2) 1983 authorises the borrowing and expending of moneys for specific defence purposes and to supplement the Consolidated Revenue Fund. The Act applies to the Treasurer, who has the authority to borrow moneys under specific conditions for defence-related services and to address potential shortfalls in the Consolidated Revenue Fund. The moneys borrowed for defence purposes can only be used for services specified under the headings “DEPARTMENT OF DEFENCE” and “DEPARTMENT OF DEFENCE SUPPORT” in the Supply Act (No. 1) 1983-84 and other appropriation acts, as well as for the expenses of borrowing. Similarly, the moneys borrowed to supplement the Consolidated Revenue Fund can only be used for making payments to the credit of the Consolidated Revenue Fund and for the expenses of borrowing. The Act has a clear limitation on expenditure, ensuring that the total amount spent for specified services does not exceed the authorised amounts in relevant appropriation acts, with an explicit end date of 30 June 1984 for any expenditure other than borrowing expenses.

Key Provisions

The Loan Act (No. 2) 1983, as it is titled, contains specific provisions related to the borrowing and expending of moneys for defence purposes and for supplementing the Consolidated Revenue Fund. Section 3 authorises the Treasurer to borrow moneys for services specified under the headings “DEPARTMENT OF DEFENCE” and “DEPARTMENT OF DEFENCE SUPPORT” in specific appropriations acts, not exceeding the total authorised amounts for those services. The borrowed funds, as outlined in section 4, can only be used for these services or for the expenses of borrowing. The Act imposes clear obligations on the Treasurer, as the primary authority responsible for borrowing and managing these funds. The Treasurer must ensure that the total amount borrowed does not exceed the authorised limits set out in the Act, and must adhere strictly to the designated purposes for which the funds can be used. This includes using the borrowed moneys solely for services specified under the “DEPARTMENT OF DEFENCE” and “DEPARTMENT OF DEFENCE SUPPORT” headings or for the expenses of borrowing. Breaching the terms of this Act could have serious legal consequences. Section 8(1) specifies that no amount can be expended for a service beyond what is authorised by the appropriations acts. This restriction is critical to ensuring that the borrowed funds are used within the legal and financial framework established by Parliament. Any unauthorised expenditure could be deemed unlawful and could potentially result in financial penalties or other legal repercussions for those responsible. Additionally, no expenditure is permitted after 30 June 1984, except for the expenses of borrowing, thereby setting a clear temporal limit on the use of these funds.

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Area of Law
Finance & Banking Law
Instrument
Act
Concepts
Commencement Provisions
Offence Provisions
Limitation of Expenditure

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.