National Security (Capital Issues) Regulations (Amendment)

Legislation au C1941L00150 Regulations Not in force Legislative Instrument

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STATUTORY RULES.

1941. No. 150.

––––––

REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939-1940.*

I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following regulations under the National Security Act 1939-1940.

Dated this fourth day of July, 1941.

GOWRIE

Governor-General.

By His Excellency’s Command,

A. FADDEN

for and on behalf of the Minister of State for Defence Co-ordination.

———

Amendments of the National Security (Capital Issues) Regulations.†

Parts.

1. Regulation 4 of the National Security (Capital Issues) Regulations is amended by inserting after the words “Part IV.—Provisions relating to Deposits.” the words “Part IVa.—Provisions relating to the Sale of Land.”.

2. After regulation 24 of the National Security (Capital Issues) Regulations the following regulation is inserted:—

Certain shares in building societies deemed to be deposits.

“24a. Where any principal money paid in respect of a share in a building society allotted after the thirtieth day of June, 1941, is withdrawn within three years after the date of allotment, that principal money shall be deemed to have been a deposit from the date of the allotment until the date the principal money is withdrawn, and the building society shall not pay to the owner of the share any amount so that the total amount paid in respect of principal, interest, dividends and other sums of a like nature, exceeds the total amount which would have been paid or payable under these Regulations in respect of a deposit equal in amount to the principal amount withdrawn and made for the same period.”.

 

* Notified in the Commonwealth Gazette on 4th July, 1941.

† Statutory Rules 1940, No. 218, as amended by Statutory Rules 1940, Nos. 242 and 291.

3954.—Price 3d


3. After Part IV. of the National Security (Capital Issues) Regulations the following Part is inserted:—

“Part IVa.—Provisions relating to the Sale of Land.

Application of Part.

“28a. In this Part, ‘land to which this Part applies’ means any parcel of land the whole or any portion of which is within—

(a) twenty-five miles from the General Post Office at Sydney or Melbourne;

(b) fifteen miles from the General Post Office at Brisbane, Adelaide, Perth or Hobart or from the principal Post Office at Newcastle; or

(c) any area specified by the Treasurer by order published in the Gazette.

Certain sales of land prohibited except with Treasurer’s consent.

“28b.—(1.) A person shall not, without the consent in writing of the Treasurer, enter into any contract for the sale of land to which this Part applies, where the total purchase money payable (including any moneys owing under any mortgage, charge or encumbrance on the land) exceeds Ten thousand pounds, and—

(a) the purchase money is not payable within one year from the date of the contract; or

(b) the contract gives to the vendor the right to repurchase the land.

“(2.) Where any such contract is entered into subject to the consent of the Treasurer thereto being obtained, the contract shall not be deemed to have been entered into in contravention of these Regulations if an application for the consent of the Treasurer is made within two months after the date of the contract but the contract shall not have any effect unless the Treasurer gives his consent thereto.

Variation of contracts of sale prohibited in certain circumstances except with Treasurer’s consent.

“28c. A person shall not, except with the consent in writing of the Treasurer, enter into any contract for the variation of, or which has the effect of varying, a contract entered into after the commencement of this regulation if the terms of the latter contract, as so varied, would be such that, if they had been contained therein originally, the contract would have been entered into in contravention of these Regulations unless the consent of the Treasurer had been obtained thereto.

Contracts to evade Regulations.

“28d. A person shall not enter into or make any contract or arrangement, whether orally or in writing, for the purpose of, or which has the effect of, in any way, and whether directly or indirectly, defeating, evading or avoiding, or preventing the operation of this Part in any respect.”.

4. Regulation 36 of the National Security (Capital Issues) Regulations is repealed and the following regulation inserted in its stead:—

Power to obtain information.

“36.—(1.) The Treasurer may, by order, require any person (including any officer employed in or in connexion with any department of a Government or by a local authority)—

(a) to furnish to the Treasurer, or to such other person as the Treasurer directs, such information as the Treasurer or that other person requires; and


(b) to attend and give evidence before the Treasurer, or such other person as the Treasurer directs,

with respect to any act, transaction, matter or thing prohibited by these Regulations, or to which any provision of these Regulations applies, and may require him to produce all books, documents and other papers whatever in his custody or under his control relating thereto.

“(2.) The Treasurer may require the information or evidence to be given on oath or affirmation and either orally or in writing and for that purpose the Treasurer or person before whom the evidence is given may administer an oath.

“(3.) A person shall not—

(a) refuse or fail to comply with any requirement made in pursuance of sub-regulation (1.) or (2.) of this regulation; or

(b) with intent to evade the provisions of these Regulations, destroy, mutilate, deface, secrete or remove any book, document or other paper.”.

 

By Authority: L.F. Johnston, Commonwealth Government Printer, Canberra.

Overview

The National Security Act 1939-1940 was enacted by the Commonwealth of Australia to address national security concerns during the Second World War, providing the government with the necessary tools to manage and control financial and economic activities that could impact national security. The Act was intended to safeguard the nation's economic stability and prevent actions that could be detrimental to the war effort. The regulations under this Act, including Statutory Rules 1941 No. 150, were made by the Governor-General in accordance with the advice of the Federal Executive Council. The policy objective of these regulations is to ensure that financial transactions, including those involving capital issues, deposits, and land sales, are closely monitored and controlled to prevent any activities that could undermine national security. This legislative instrument highlights the government's intent to maintain strict oversight over significant financial transactions during a period of national crisis.

Scope and Application

The regulations under the National Security Act 1939-1940 apply to persons, entities, and transactions within the Commonwealth of Australia. These regulations are specifically designed to control and monitor activities that could potentially affect national security, particularly in relation to capital issues and the sale of land. They apply to individuals, businesses, and other entities engaged in transactions involving capital issues and land sales within designated geographical areas. The regulations also extend to officers employed by government departments or local authorities. Notably, the scope of these regulations can be expanded by the Treasurer through orders published in the Gazette, allowing for the specification of additional areas where the provisions of the regulations apply. While the regulations broadly cover relevant activities, they do not apply to transactions that are explicitly excluded or exempted under other provisions of the National Security Act or related legislation. Additionally, the regulations can be further detailed and enforced through subordinate instruments issued by the Treasurer, thereby providing flexibility in addressing emerging security concerns.

Key Provisions

The primary operative sections of these regulations (C1941L00150) under the National Security Act 1939-1940 are primarily concerned with amendments to the National Security (Capital Issues) Regulations. Firstly, Regulation 4 is amended to include a new Part IVa which covers provisions relating to the sale of land (section 2). This amendment introduces new rules for the sale of land within specified proximity to major cities or areas designated by the Treasurer (section 28a). Additionally, Regulation 24 is amended to include a new subsection 24a, which stipulates that principal money paid for shares in a building society allotted after June 30, 1941, is deemed a deposit if withdrawn within three years, and the total payments must not exceed what would have been paid for a corresponding deposit (section 2). Furthermore, a new regulation, 24a, is inserted to enforce these provisions. These regulations impose several obligations and requirements on the parties involved. Firstly, they prohibit entering into any contract for the sale of land within specified proximity to major cities or designated areas, where the purchase price exceeds ten thousand pounds, unless the contract does not allow for deferred payment or repurchase by the vendor, and the consent of the Treasurer is obtained (section 28b). Contracts for varying such sales must also obtain the Treasurer's consent unless the new terms would contravene the regulations (section 28c). Additionally, contracts intended to evade these regulations are expressly prohibited (section 28d). Compliance with these provisions is mandatory, and failure to adhere to these rules can lead to significant legal repercussions. Breaches of these regulations can result in both civil and criminal consequences. Section 28d explicitly states that entering into or making any contract or arrangement to evade these regulations is prohibited. Non-compliance with the requirement to provide information or evidence as ordered by the Treasurer, as stipulated in section 36, is also explicitly prohibited. Although the specific penalties are not detailed within the text of these regulations, such breaches could lead to enforcement actions under the broader National Security Act 1939-1940, potentially including fines and other sanctions. The maximum penalties for such offences would typically be determined by the courts based on the severity of the breach and applicable laws.

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