NATIONAL DEBT SINKING FUND (SPECIAL PAYMENT).
No. 80 of 1951.
An Act to provide for the Payment of a certain Sum of Money into the National Debt Sinking Fund.
[Assented to 11th December, 1951.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, for the purpose of appropriating the grant originated in the House of Representatives, as follows:—
Short title.
1. This Act may be cited as the National Debt Sinking Fund (Special Payment) Act 1951.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Definitions.
3. In this Act—
“the Commission” means the National Debt Commission constituted under the National Debt Sinking Fund Act 1923–1950;
“the Fund” means the National Debt Sinking Fund established under that Act.
Payments to the National Debt Sinking Fund.
4.—(1.) The Treasurer may, during the financial year which commenced on the first day of July, One thousand nine hundred and fifty-one, pay into the Fund, out of the Consolidated Revenue Fund, which is appropriated accordingly, such sums as he determines, not exceeding in the aggregate One hundred and fourteen million five hundred thousand pounds.
(2.) Payments under this section may be made at such times during the financial year as the Treasurer determines.
Application of payments.
5.—(1.) The Commission may apply moneys paid into the Fund under the last preceding section in re-purchasing or redeeming Commonwealth securities.
(2.) Securities so re-purchased or redeemed shall not be re-issued, but shall be cancelled, and the amount of the National Debt of the Commonwealth shall be reduced accordingly.
(3.) Until moneys paid into the Fund under the last preceding section are applied in the manner provided by sub-section (1.) of this section, the Commission may—
(a) purchase Commonwealth securities with those moneys, whether by way of subscription to a loan issued by the Commonwealth or otherwise; or
(b) place those moneys on deposit with a Bank.
(4.) The Commission may sell securities purchased under the last preceding sub-section.
(5.) Sums received by the Commission—
(a) as interest in respect of Commonwealth securities purchased, or in respect of moneys placed on deposit, under sub-section (3.) of this section; or
(b) on the sale or redemption of any such security, or on the repayment of any such deposit,
shall be paid into the Fund and shall be applied by the Commission in the same manner as moneys paid into the Fund under the last preceding section.
Modification of certain provisions of National Debt Sinking Fund Act.
6.—(1.) Sections nine and nine aa of the National Debt Sinking Fund Act 1923–1950 do not apply in relation to moneys paid into the Fund under this Act.
(2.) Moneys received by the Commonwealth in respect of securities purchased by the Commission in pursuance of sub-section (3.) of the last preceding section, being securities purchased by way of subscription to a loan issued by the Commonwealth, shall not be taken into account for the purposes of section ten of the National Debt Sinking Fund Act 1923–1950.
Overview
The National Debt Sinking Fund (Special Payment) Act 1951 was enacted to address the need for a special payment into the National Debt Sinking Fund for the financial year commencing 1 July 1951. This Act was introduced by the Parliament of the Commonwealth of Australia and received Royal Assent on 11 December 1951. The policy objective of the Act is to facilitate the payment of a specific sum into the National Debt Sinking Fund to assist in the management and reduction of the Commonwealth’s national debt. The Act allows the Treasurer to make payments up to a specified aggregate amount into the Fund from the Consolidated Revenue Fund and provides for the application of these payments by the National Debt Commission in the re-purchasing or redeeming of Commonwealth securities, thereby reducing the national debt.
Scope and Application
The National Debt Sinking Fund (Special Payment) Act 1951 applies to the Treasurer of the Commonwealth of Australia, who is authorised to make payments into the National Debt Sinking Fund from the Consolidated Revenue Fund. The Act applies specifically to the financial year commencing on the first day of July, 1951, and authorises the Treasurer to pay sums not exceeding one hundred and fourteen million five hundred thousand pounds into the Fund. The National Debt Commission, as defined in the Act, is responsible for applying these payments in re-purchasing or redeeming Commonwealth securities, which will result in the cancellation of these securities and a corresponding reduction in the Commonwealth's National Debt. The Act also modifies certain provisions of the National Debt Sinking Fund Act 1923–1950 to accommodate these specific payments. The Act applies nationally, as it is a Commonwealth Act, and there are no stated exclusions or exemptions within the text provided. The application of the Act may be extended or restricted through subordinate instruments, although no such instruments are mentioned in the text.
Key Provisions
The National Debt Sinking Fund (Special Payment) Act 1951 (section 4) allows the Treasurer to pay up to £114.5 million into the National Debt Sinking Fund from the Consolidated Revenue Fund during the financial year beginning 1 July 1951. These payments can be made at various times throughout the financial year, as determined by the Treasurer (section 4(2)). The National Debt Commission can use these funds to repurchase or redeem Commonwealth securities, which will then be cancelled, thereby reducing the amount of the National Debt (section 5(1)). Until these funds are applied in this way, the Commission can either purchase Commonwealth securities or place the money on deposit with a bank (section 5(3)). Any interest or proceeds from the sale of these securities or deposits must also be paid into the Fund and applied in the same manner (section 5(5)). Additionally, the Act modifies certain provisions of the National Debt Sinking Fund Act 1923-1950 to ensure that specific sections do not apply to the moneys paid into the Fund under this Act (section 6).
The Act imposes specific obligations on the Treasurer and the National Debt Commission. The Treasurer must ensure that the payments into the Fund are made within the specified financial year and do not exceed the aggregate amount of £114.5 million (section 4). The Commission must use the funds to repurchase or redeem Commonwealth securities and cannot reissue these securities once they are cancelled (section 5(1) and (3)). Additionally, the Commission has the flexibility to purchase Commonwealth securities or place funds on deposit with a bank until the funds are applied for debt reduction (section 5(3)). Any interest earned or proceeds from the sale of these securities or deposits must be reinvested in the Fund (section 5(5)). The Act also requires that certain provisions of the National Debt Sinking Fund Act 1923-1950 do not apply to the funds paid into the Fund under this Act (section 6).
There are no explicit offences, penalties, or consequences mentioned in the Act for breaches of its provisions. However, it is implied that any mismanagement of funds or failure to comply with the obligations outlined could result in financial repercussions for the Commonwealth and potential administrative consequences for the officials involved. The Act's primary focus is on the structured and lawful application of funds to reduce the national debt rather than on punitive measures for non-compliance.