National Security (Economic Organization) Regulations (Amendment)

Legislation au C1942L00425 Regulations Not in force Legislative Instrument

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STATUTORY RULES.

1942. No. 425.

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 second day of October, 1942.

GOWRIE

Governor-General.

By His Excellency’s Command,

J. B. CHIFLEY

for and on behalf of the Minister of State for Defence.

Amendments of the National Security (Economic Organization) Regulations.†

Parts.

1. Regulation 3 of the National Security (Economic Organization) Regulations is amended by omitting the words “Part II.—Limitation of Profits.”.

Repeal of Part II.

2. Part II. of the National Security (Economic Organization) Regulations is repealed.

3.—(1.) Regulation 6 of the National Security (Economic Organization) Regulations is repealed and the following regulation inserted in its stead:—

Certain land transactions forbidden.

“6.—(1.) Except as provided by this Part, a person shall not, without the consent in writing of the Treasurer—

(a) purchase any land;

(b) take an option for the purchase of any land;

(d) take a transfer or assignment of any lease of land; or

(e) otherwise acquire any land.

* Notified in the Commonwealth Gazette on 5th October, 1942.

† Statutory Rules 1942. No. 76, as amended by Statutory Rules 1942, Nos. 81, 110, 127, 145, 160, 218, 221, 224, 248, 257, 293, 318, 332 and 344.

7109.—Price 3d.

“(2.) Nothing in this regulation shall prevent—

(a) the taking of a lease of land to be used by the lessee where the term of the lease does not exceed three years and is to commence not more than three months after the date of the lease;

(b) the taking of a transfer or assignment of a lease of land to be used by the transferee or assignee where the unexpired portion of the term of the lease does not exceed three years;

(c) the taking of an option for the purchase of any land where the period within which the option may be exercised is limited to one month after the taking of the option;

(d) the acquisition of land by way of gift;

(e) any transaction to which the Commonwealth, a State, an authority of the Commonwealth or a State, or a local authority, or to which any person acting on behalf of the Commonwealth, a State, an authority of the Commonwealth or a State or a local authority, is a party;

(f) the acquisition of land on sale under a writ or warrant of execution issued out of any court; or

(g) any transaction by way of renewal or extension of a lease which was in existence prior to the twentieth day of February, 1942, where the rent under the lease as renewed or extended does not exceed the rent payable under the lease prior to the renewal or extension and the term of the renewal or extension does not exceed three years.

“(3.) An application for the consent of the Treasurer under this regulation shall be in writing.

“(4.) The Treasurer may require any person who is a party to a proposed transaction in respect of which an application is made for the Treasurer’s consent under this regulation to furnish in writing to the Treasurer such particulars of the proposed transaction as the Treasurer requires.

“(5.) In the case of an application for consent to purchase any land (other than country land) the application shall be accompanied by a valuation of the land by an independent approved valuer, unless, in special circumstances, the Treasurer dispenses with such a valuation.

“(6.) Where an application is made for the consent of the Treasurer to any proposed transaction, being the purchase of land, the taking of a lease of land, the taking of a transfer or assignment of a lease of land or any other acquisition of land, the Treasurer may, before giving consent, if a valuation has not been furnished under the last preceding sub-regulation, require to be furnished to him a valuation, by an independent approved valuer, of the subject-matter of the proposed transaction.

“(7.) A valuation under either of the last two preceding sub-regulations—

(a) if the proposed transaction is the purchase of any land—shall specify the amount which would have been a fair and reasonable price for the land as at the tenth day of February, 1942, or, if the valuation is a valuation by the Valuer-General of a State, may be the last valuation of the land made by the Valuer-General; and

(b) in any other case—shall specify the value of the subject-matter of the transaction as at a date specified by the Treasurer.

“(8.) Where the Treasurer is not satisfied with any valuation furnished under sub-regulation (5.) or (6.) of this regulation, he may—

(a) require the valuer to furnish such information concerning the valuation as the Treasurer specifies; and

(b) require to be furnished to him a further valuation by an approved valuer nominated by the Treasurer.

“(9.) Where an applicant for consent to purchase any land on which is erected a dwelling-house has informed the Treasurer that he intends to live in the dwelling-house, the applicant shall not, without the consent in writing of the Treasurer, let the land.

“(10.) Where a transaction prohibited by this regulation has been entered into subject to the consent of the Treasurer thereto being obtained, the transaction shall be deemed not to have been entered into in contravention of this regulation if an application for the consent of the Treasurer is made within three months after the date of the transaction, but the transaction shall not have any effect unless the Treasurer gives his consent thereto.

“(11.) In this regulation—

‘approved valuer’ means—

(a) the Valuer-General of any State; or

(b) any other person who has had not less than ten years’ continuous experience as a valuer immediately prior to the commencement of this regulation and is for the time being approved by the Treasurer as a valuer for the purposes of these Regulations;

‘country land’ means land used for not less than twelve months immediately preceding the date of the application for consent to purchase the land for agricultural, pastoral, horticultural, viticultural, apicultural, dairy farming, poultry farming or other like purposes.”.

(2.) Until the thirty-first day of October, 1942, the Treasurer may accept, for the purposes of regulation 6 of the National Security (Economic Organization) Regulations, as inserted by this regulation, a valuation made by a person who is an approved valuer within the meaning of sub-regulation (5.) of the regulation repealed by this regulation.

Certain share transactions forbidden.

4. Regulation 7 of the National Security (Economic Organization) Regulations is amended by omitting from paragraph (b) of sub-regulation (2.) the words “, by the liquidator of a company in liquidation”.

5. Regulation 8 of the National Security (Economic Organization) Regulations is repealed and the following regulation inserted in its stead:—

Certain transactions not affected.

“8. Nothing in this Part shall prevent—

(a) any transaction to give effect to a contract or agreement in writing entered into prior to the twentieth day of February, 1942;

(b) the exercise of any option in writing given before that date;

(i) by way of mortgage or sub-mortgage;

(ii) by way of discharge of a mortgage or sub-mortgage;

(iii) by way of transfer or assignment of a mortgage to a guarantor who, in pursuance of the terms of his guarantee, has repaid the whole or part of the moneys due under the mortgage;

(d) the vesting in the personal representative of a deceased person, in his capacity as such, of any property or any interest in any property;

(e) any transaction which vests any property, or any interest in property, in any trustee of the estate of a deceased person, in a trustee in bankruptcy, or in any new trustee under any instrument, in his capacity as trustee;

(f) any transaction which is without consideration in money or money’s worth and the purpose of which is to vest any property, or any interest in property, in any person beneficially entitled thereto under or by virtue of any will or intestacy; or

(g) the execution of any deed of assignment under Part XI. of the Bankruptcy Act 1924-1933 or of any deed of arrangement under Part XII. of that Act.”.

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

Overview

The Statutory Rules of 1942, No. 425, known as the Regulations under the National Security Act 1939-1940, were enacted by the Governor-General on behalf of the Federal Executive Council to address the economic security concerns arising from the Second World War. The National Security Act 1939-1940 provided the framework for these regulations, which aimed to control and manage economic activities that could potentially undermine national security. The policy objective was to regulate land and share transactions to prevent speculative activities and ensure that such transactions did not compromise the nation's economic stability during the war period. The regulations introduced stringent controls on land purchases and leases, requiring written consent from the Treasurer for most transactions, and also restricted certain share transactions to maintain economic order and security. These regulations were pivotal in establishing a regulatory framework that safeguarded the nation's economic interests amidst the exigencies of war, ensuring that economic activities aligned with national security imperatives.

Scope and Application

The Statutory Rules 1942, No. 425, made under the National Security Act 1939-1940, introduce significant amendments to the National Security (Economic Organization) Regulations. These regulations apply to all persons and entities within the Commonwealth of Australia, affecting their ability to engage in specific land and share transactions without the prior written consent of the Treasurer. The regulations specifically target the acquisition of land, including purchases, options, leases, transfers, and assignments, and certain share transactions, with notable exceptions such as short-term leases, limited options, and transactions involving governmental or local authorities. The regulations also provide for the valuation of land and shares by approved valuers and set out detailed procedures for applications to the Treasurer. Additionally, these regulations apply nationally, impacting various industries by restricting their ability to engage in certain economic activities deemed sensitive during the national security context of the period. Exclusions and exemptions are outlined, such as transactions that predate a specific date, ensuring the regulations do not overly burden ongoing business operations.

Key Provisions

The key provisions of these regulations revolve around the prohibition and regulation of land and share transactions under the National Security (Economic Organization) Regulations. Section 3 of the Regulations inserts a new Regulation 6, which broadly prohibits the purchase, option, lease, transfer, assignment, or acquisition of any land without the written consent of the Treasurer, except under specific conditions. These conditions include short-term leases, short-term purchase options, certain lease transfers, gifts, transactions involving government entities, land sales under court orders, and lease renewals under certain conditions. The consent process involves written applications, potentially requiring valuations by approved valuers, and specific conditions apply to residential purchases. Similarly, Section 4 amends Regulation 7 to remove certain exceptions for share transactions by liquidators, while Section 5 replaces Regulation 8 to clarify that certain transactions, such as those under pre-existing contracts, mortgage-related transactions, property vesting in personal representatives or trustees, and certain non-monetary transactions, are not affected by these Regulations. The Regulations impose specific obligations on individuals and entities involved in land and share transactions. Firstly, they must obtain written consent from the Treasurer for most land transactions, accompanied by a valuation if required. Secondly, for share transactions, the amended Regulation 7 limits certain actions by liquidators. Thirdly, the Regulations require parties to provide detailed information to the Treasurer upon request, including further valuations if necessary. Additionally, the Regulations dictate specific conditions under which land transactions may proceed, such as the requirement for personal residential purchasers to seek consent to let the land. These obligations are designed to ensure that transactions are scrutinized and approved under the national security framework. Breach of these Regulations can result in significant legal consequences. Although the specific penalties are not detailed within these Regulations, general provisions under the National Security Act 1939-1940 may apply, including potential fines and imprisonment. The severity of penalties would depend on the nature and intent of the breach, as well as any harm caused by non-compliance. Unauthorized transactions could be deemed void unless and until the Treasurer grants consent, thereby preventing the effective transfer of property rights. The overarching aim is to maintain national security by controlling economic activities that could otherwise pose risks.

Area of Law: National Security Law
Instrument: Regulation
Concepts: Offence Provisions; Regulatory Standards; Enforcement Powers

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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.

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