Loan (Temporary Revenue Deficits) Act 1953
Act No. 21 of 1953 as amended
This compilation was prepared on 28 February 2005
taking into account amendments up to Act No. 8 of 2005
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
Contents
1 Short Title [see Note 1]
2 Commencement [see Note 1]
4 Authority to borrow money
5 Repayment of Loan
7 Borrowing to be subject to the Financial Agreement
Notes
An Act to make Provision with respect to Temporary Deficits in the Consolidated Revenue Fund
1 Short Title [see Note 1]
This Act may be cited as the Loan (Temporary Revenue Deficits) Act 1953.
2 Commencement [see Note 1]
This Act shall be deemed to have come into operation on the first day of July, One thousand nine hundred and fifty.
4 Authority to borrow money
Whenever the amounts in the Consolidated Revenue Fund are, or are expected by the Treasurer to be, insufficient to meet expenditure from that Fund, the Treasurer may, under the provisions of any Act authorizing the issue of Treasury Bills, borrow moneys not exceeding the amount of the insufficiency or expected insufficiency.
5 Repayment of Loan
Moneys borrowed by virtue of the last preceding section shall be repaid in the financial year in which they were borrowed.
7 Borrowing to be subject to the Financial Agreement
(1) Nothing in this Act authorizes the borrowing of money or the issue of securities otherwise than in accordance with clause six of the Financial Agreement.
(2) In this section, the Financial Agreement has the same meaning as in section four of the Financial Agreement Act 1944.
Notes to the Loan (Temporary Revenue Deficits) Act 1953
Note 1
The Loan (Temporary Revenue Deficits) Act 1953 as shown in this compilation comprises Act No. 21, 1953 amended as indicated in the Tables below.
Table of Acts
Act | Number
and year | Date
of Assent | Date of commencement | Application, saving or transitional provisions |
Loan (Temporary Revenue Deficits) Act 1953 | 21, 1953 | 9 Apr 1953 | 1 July 1950 | |
National Debt Sinking Fund Act 1966 | 65, 1966 | 29 Oct 1966 | 1 July 1966 | — |
Administrative Changes (Consequential Provisions) Act 1978 | 36, 1978 | 12 June 1978 | 12 June 1978 | — |
Audit (Transitional and Miscellaneous) Amendment Act 1997 | 152, 1997 | 24 Oct 1997 | Schedule 2 (item 902): 1 Jan 1998 (see Gazette 1997, No. GN49) (a) | — |
Financial Framework Legislation Amendment Act 2005 | 8, 2005 | 22 Feb 2005 | Schedule 1 (items 13–15): Royal Assent | — |
(a) The Loan (Temporary Revenue Deficits) Act 1953 was amended by Schedule 2 (item 902) only of the Audit (Transitional and Miscellaneous) Amendment Act 1997, subsection 2(2) of which provides as follows:
(2) Schedules 1, 2 and 4 commence on the same day as the Financial Management and Accountability 1997.
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 3.................... | am. No. 36, 1978; No. 152, 1997 |
| rep. No. 8, 2005 |
S. 4.................... | am. No. 8, 2005 |
S. 6.................... | rep. No. 65, 1966 |
Overview
The Loan (Temporary Revenue Deficits) Act 1953 was enacted by the Australian Parliament to address the need for temporary borrowing to cover deficits in the Consolidated Revenue Fund. The Act was designed to provide the Treasurer with the authority to borrow funds when the revenue in the Consolidated Revenue Fund is insufficient to meet expenditure, thereby ensuring that the government can continue to function without interruption. The Act came into operation on 1 July 1950, slightly before its formal enactment on 9 April 1953, indicating the urgency of the need it sought to address. The primary policy objective of the Act is to allow for the timely borrowing of funds to meet unexpected shortfalls in revenue, which must then be repaid within the same financial year to maintain fiscal discipline. The Act has been amended several times to reflect changes in financial management practices and to align with other legislative reforms.
Scope and Application
The Loan (Temporary Revenue Deficits) Act 1953 applies to the Commonwealth of Australia, enabling the Treasurer to borrow moneys not exceeding the amount of a temporary revenue deficit in the Consolidated Revenue Fund. The Act authorises borrowing under the provisions of any Act authorizing the issue of Treasury Bills, with the borrowed moneys to be repaid in the financial year in which they were borrowed. The Act is subject to the Financial Agreement as defined in the Financial Agreement Act 1944, which governs the borrowing of money or the issuance of securities. The Act applies nationally as Commonwealth legislation and has been subject to amendments over time, most recently in 2005, which have altered certain provisions but not the fundamental scope of the Act.
The Loan (Temporary Revenue Deficits) Act 1953 extends its application to cover any temporary deficits in the Consolidated Revenue Fund, allowing the Treasurer to manage short-term financial shortfalls through borrowing. While the Act itself is comprehensive in its authorisation for borrowing under specific conditions, its operation and implementation are further regulated by the Financial Agreement, ensuring that borrowing aligns with broader financial management policies. The Act's application is national, binding across all territories and states within Australia, reflecting its role in the management of the Commonwealth's finances. Through its amendments, the Act has been fine-tuned to accommodate changes in financial practices and regulatory frameworks, maintaining its relevance and effectiveness in addressing temporary revenue deficits.
Key Provisions
The Loan (Temporary Revenue Deficits) Act 1953 (sections 4 and 5) empowers the Treasurer to borrow money from the Consolidated Revenue Fund if the amounts within it are, or are expected to be, insufficient to meet expenditure. This borrowing is limited to the amount necessary to cover the insufficiency or expected insufficiency. The borrowed funds must be repaid in the financial year in which they were borrowed, as stipulated in section 5.
The Act also imposes specific obligations on the entities it governs. For example, section 7 requires that any borrowing under this Act must comply with clause six of the Financial Agreement, as defined in section four of the Financial Agreement Act 1944. This means that the borrowing must adhere to the broader financial management and accountability frameworks established by other legislation, ensuring that it is done in a controlled and compliant manner.
In terms of consequences for non-compliance, the Act does not explicitly detail specific offences or penalties within its text. However, it is implied that any borrowing not in accordance with the Financial Agreement or other relevant legislative provisions could lead to financial mismanagement or accountability issues. While the Act itself does not specify penalties, breaches of financial regulations can often result in both civil and criminal consequences, including fines, penalties, and potential prosecution, depending on the severity and intent behind the breach. The exact penalties would be determined by the courts based on the specific circumstances and applicable laws.