Loan (Defence)
No. 22 of 1966
An Act to Authorize the Raising and Expending of a certain sum of Money for Defence Purposes.
[Assented to 19 May, 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 (Defence) Act 1966.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Interpretation.
3. For the purposes of this Act, the payment by a person or authority of moneys in discharge of a liability of the Commonwealth shall be taken to be a loan of an amount equal to those moneys by that person or authority to the Commonwealth.
Authority to borrow $US450,000,000
4. Approval is given to the making and carrying out by the Commonwealth of an agreement or agreements for or in relation to the borrowing by the Commonwealth of moneys in the currency of the United States of America, not exceeding in the whole Four hundred and fifty million dollars in that currency, for defence purposes.
Securities.
5. An agreement made in pursuance of this Act may provide for the issue and delivery of promissory notes or other securities by or on behalf of the Commonwealth in respect of any liability of the Commonwealth under such an agreement.
Expenditure of loan moneys.
6. The proceeds of any loan raised under the authority of this Act may be issued and applied for defence purposes.
Appropriation.
7. Any moneys payable by the Commonwealth under an agreement made in pursuance of this Act or under a promissory note or other security under such an agreement, including interest, are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.
Exemption from taxes, &c
8. Where an agreement made in pursuance of this Act provides that—
(a) the agreement or any matter or thing related to the agreement;
(b) a promissory note or other security under the agreement or for the purposes of the agreement; or
(c) a payment made under the agreement or under such a promissory note or other security,
is to be exempt or free from taxes, duties, fees, restrictions, charges or other matters, that agreement, matter, thing, note, security or payment is so exempt or free notwithstanding anything contained in any law of the Commonwealth or of a State or Territory of the Commonwealth.
National Debt Sinking Fund-Act not to apply.
9. The National Debt Sinking Fund Act 1923–1959 does not apply in relation to moneys borrowed under an agreement made in pursuance of this Act.
Overview
The Loan (Defence) Act 1966 was enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia to address a specific financial requirement for defence purposes. This legislation authorised the Commonwealth to borrow up to US$450,000,000 for defence-related activities, a measure necessitated by the need for additional funding to support national security initiatives. The policy objective of this Act was to enable the government to secure the necessary financial resources by allowing the borrowing of funds in US dollars, thereby facilitating the acquisition of defence materials and services that were required at the time. The Act also provided for the issuance of promissory notes or other securities to manage the loan repayments, ensuring that the funds could be utilised effectively for their intended purpose.
Scope and Application
The Loan (Defence) Act 1966 authorises the Commonwealth of Australia to borrow up to $US450,000,000 for defence purposes, specifically in the currency of the United States of America. This Act applies to the Commonwealth, which has the authority to enter into agreements to borrow this sum, issue promissory notes or other securities, and use the proceeds for defence purposes. The Act provides a broad exemption from any taxes, duties, fees, restrictions, charges, or other matters for the agreement, securities, and payments made under it, ensuring that these financial instruments and transactions are not encumbered by other legislative requirements at the Commonwealth or state/territory levels. Additionally, the Act excludes the application of the National Debt Sinking Fund Act 1923–1959 to the loan made under its authority. This legislation has a national jurisdictional reach, applying across the Commonwealth of Australia.
Key Provisions
The Loan (Defence) Act 1966 (sections 1-9) outlines the framework for the Commonwealth to borrow a specified amount for defence purposes. The Act is straightforward in its purpose, allowing the Commonwealth to borrow up to $US450,000,000 in US currency for defence-related expenditures. The Act provides the authority to enter into agreements for this borrowing (section 4) and allows for the issuance of promissory notes or other securities to represent this borrowing (section 5). The funds raised under this Act can only be used for defence purposes (section 6), and any payments, including interest, are to be made from the Consolidated Revenue Fund (section 7). Additionally, the Act ensures that these agreements and related instruments are exempt from various taxes and charges (section 8), and it excludes the application of the National Debt Sinking Fund Act 1923-1959 to the loans made under this Act (section 9).
The Loan (Defence) Act 1966 imposes several obligations on the parties involved. The Commonwealth must ensure that any moneys borrowed under the Act are used strictly for defence purposes (section 6). The Act also requires that any payments made under the agreements, including interest, be sourced from the Consolidated Revenue Fund (section 7). Moreover, any agreements made under the Act must provide for the exemption of the agreement, related instruments, and payments from any taxes, duties, fees, or other charges (section 8). The Act further mandates that the National Debt Sinking Fund Act 1923-1959 does not apply to the loans authorised under this Act (section 9).
The Loan (Defence) Act 1966 does not explicitly state any offences, penalties, or consequences for breach. However, non-compliance with the Act's requirements, such as misusing the borrowed funds for non-defence purposes or failing to make payments from the Consolidated Revenue Fund, could potentially lead to legal repercussions. The consequences for such breaches would likely be determined by other relevant legislation or common law principles, as the Act itself does not specify penalties. Nonetheless, the importance of adhering to the Act's stipulations is underscored by the potential impact on national defence funding and financial obligations.