Loan (Unemployment Relief Works) Act (No. 2) 1932

Legislation au C1932A00023 Not in force Act

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LOAN (UNEMPLOYMENT RELIEF WORKS) (No. 2).

 

No. 23 of 1932.

An Act to amend the Loan (Unemployment Relief Works) Act 1932.

[Assented to 28th May, 1932.

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Loan (Unemployment Relief Works) Act (No. 2) 1932.

(2.) The Loan (Unemployment Relief Works) Act 1932 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Loan (Unemployment Relief Works) Acts 1932.

Amendment of long title.

2. The title of the Principal Act is amended by adding at the end thereof the words “, and for other purposes”.

Power of Treasurer to borrow.

3. Section two of the Principal Act is amended by inserting, before the words “The Treasurer”, the words “Subject to this Act,”.

4. After section four of the Principal Act the following sections are inserted:—

Conditions of grant.

“4a. Any grant made to a State in pursuance of this Act shall be made upon the condition that if any part of the amount granted is advanced by the State by way of loan to any person, or to any authority or body of persons constituted or established by or under any law of the Commonwealth or of a State, for expenditure on approved works, any amount of the advance refunded to the State by that person, authority or body of persons shall be repaid by the State to the Commonwealth, together with such amount of interest on the amount advanced as is paid by the person, authority or body of persons to the State.

Payment by Commonwealth of Interest on loans by Commonwealth or State authorities.

“4b.—(1.) Where any authority or body of persons constituted or established by or under any law of the Commonwealth or of any State specified in section four of this Act borrows money on terms approved by the Treasurer for the purposes of expenditure on any approved work in that State, the Commonwealth may pay to the State interest, at a rate not exceeding two per centum per annum, on the amount borrowed by the authority or body of persons.


“(2.) Any payment by the Commonwealth under the last preceding sub-section shall be conditional upon the State providing an equivalent amount of interest on the amount borrowed by the authority or body of persons.

“(3.) Any amount of interest paid by the Commonwealth or provided by the State under this section shall be applied in satisfaction or reduction of the liability of the authority or body of persons in respect of interest on the amount borrowed by it for expenditure on approved works.

“(4.) Where the Commonwealth makes any payment by way of interest under sub-section (1.) of this section to any State, the amount which may be granted to that State under section four of this Act shall be reduced by one-half of the amount upon or in respect of which the interest is so paid.”.

Relief of unemployment in New South Wales.

5. Section five of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “an amount not exceeding” and inserting in their stead the words “, or make available by way of loan, amounts not exceeding in the whole,”;

(b) by omitting from sub-section (1.) the words “in that State”;

(c) by adding at the end of sub-section (1.) the words “in that State”; and

(d) by adding at the end thereof the following sub-section:—

“(8.) Where any authority or body of persons constituted or established by or under any law of the Commonwealth or of the State of New South Wales borrows money on terms approved by the Treasurer for the purposes of expenditure on any approved work in that State, the Commonwealth may pay to or on account of that authority or body of persons interest at a rate not exceeding four per centum per annum.

“(9.) Where the Commonwealth makes any payment by way of interest under the last preceding sub-section, the maximum amount which the Commonwealth may expend under sub-section (1.) of this section shall be reduced by the amount upon which the interest is so paid.”.

6. After section five of the Principal Act the following sections are inserted:—

Reduction of amount which may be borrowed under this Act.

“5a. The maximum amount which, under section two of this Act, the Treasurer is authorized to borrow, shall be reduced by one-half of the amount of any loan upon or in respect of which the Commonwealth pays interest under section four b, and by the amount of any loan upon or in respect of which the Commonwealth pays interest under sub-section (8.) of section five, of this Act.

Appropriation.

“5b. Any payment by the Commonwealth under section four b, or under sub-section (8.) of section five, of this Act shall be made out of the Consolidated Revenue Fund which is, to the necessary extent, hereby appropriated accordingly.”.

Overview

The Loan (Unemployment Relief Works) Act (No. 2) 1932 was enacted to amend the original Loan (Unemployment Relief Works) Act 1932, introduced to address the economic challenges and high unemployment rates during the Great Depression. This Act was passed by the Parliament of Australia, consisting of the King’s Most Excellent Majesty, the Senate, and the House of Representatives, with the objective of providing further financial relief and funding for unemployment relief works in the states, particularly New South Wales. The amendments sought to refine the borrowing and lending mechanisms to ensure that funds are effectively utilised for approved works, with provisions for the Commonwealth to contribute interest payments to state authorities, thus easing the financial burden on these entities and encouraging investment in public works to alleviate unemployment.

Scope and Application

The Loan (Unemployment Relief Works) Act (No. 2) 1932 amends the Loan (Unemployment Relief Works) Act 1932 to introduce modifications aimed at addressing unemployment through infrastructure works. This Act applies to the Commonwealth and the States, particularly focusing on New South Wales, where the unemployment relief works are to be carried out. The Act applies to authorities and bodies of persons established by or under any law of the Commonwealth or of a State, who may borrow money for the purpose of undertaking approved works. The Commonwealth is empowered to make grants to States for these works, with conditions attached to ensure that any repayments or interest on loans are appropriately managed between the Commonwealth, the State, and the borrowing entities. Notably, the Act allows the Commonwealth to pay interest to certain authorities or bodies in New South Wales, up to a specified rate, provided the State matches the interest provided by the Commonwealth. The geographic reach of this Act is national, with a specific focus on New South Wales. The Act does not explicitly state any exclusions or exemptions, but its application is contingent on the terms being approved by the Treasurer and the works being deemed "approved". The Act can extend or restrict its application through subordinate instruments, as it allows for detailed terms and conditions to be set by the Treasurer.

Key Provisions

The Loan (Unemployment Relief Works) (No. 2) Act 1932 primarily serves to amend the original Loan (Unemployment Relief Works) Act 1932. The Act introduces new provisions to manage loans and grants provided to states for unemployment relief works, and it modifies existing provisions to enhance the framework for these financial aids. Section 2 of the Act amends the title of the Principal Act to include an additional purpose, clarifying its scope. Section 3 modifies the power of the Treasurer to borrow funds by adding a condition that the borrowing is subject to the provisions of the Act itself. New sections, 4a and 4b, are inserted to outline the conditions for grants and interest payments, respectively. Section 5 of the Act is amended to allow for the payment of interest by the Commonwealth to authorities or bodies in New South Wales for approved works, with specific conditions and limits on interest rates and payments. Additionally, Section 6 introduces new sections 5a and 5b, which address the reduction of the maximum borrowing limit and the appropriation of funds for interest payments. The obligations imposed by the Act on the parties it governs are primarily financial and procedural. The Commonwealth is obligated to repay any amount advanced by a state with interest, as outlined in Section 4a. The Act also mandates that states must provide equivalent interest on loans made to authorities or bodies for approved works, as per Section 4b. Furthermore, Section 5a imposes a requirement on the Commonwealth to reduce the maximum borrowing limit by specific amounts related to interest payments made under the Act. Authorities and bodies borrowing funds must ensure that the expenditure on approved works complies with the terms approved by the Treasurer, as per the new provisions. The Act also outlines specific offences and penalties for breaches of its provisions, although no explicit penalties are mentioned within the provided text. In general, breaches of financial or procedural obligations could potentially lead to legal consequences, including civil or administrative penalties, depending on the nature and severity of the breach. The Act's provisions are designed to ensure that funds are used appropriately and that financial obligations are met as stipulated, thereby protecting the interests of both the Commonwealth and the states involved in the unemployment relief works.

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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.