National Security (Economic Organization) Regulations (Amendment)

Legislation au C1946L00192 Regulations Not in force Legislative Instrument

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STATUTORY RULES.

1946. No. 192.

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REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939-1946.*

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 1939-1946.

Dated this eighteenth day of December, 1946.

HENRY

Governor-General.

By His Royal Highness’s Command,

J. B. CHIFLEY

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

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

Certain land transactions forbidden.

1. Regulation 6 of the National Security (Economic Organization) Regulations is amended—

(a) by inserting after sub-regulation (8.) the following sub-regulations:—

“(8a.) An applicant for the Treasurer’s consent under this regulation shall set out in his application full and correct particulars (including the amount of the consideration paid or payable) of any option which has been granted to or by the applicant, or to the wife or husband of the applicant, in relation to the land or lease specified in the application.

“(8b.) Where an applicant fails to comply with the last preceding sub-regulation, any consent given under this regulation to the transaction the subject of the application shall be void and of no effect.”;

* Notified in the Commonwealth Gazette on 19th December, 1946.

† 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, 344, 425, 458, 490, 587 and 539; 1943, Nos. 21, 60, 76, 142, 190 and 278; 1944, Nos. 52, 83, 99 and 148; 1945, Nos. 11, 14, 45, 71, 91, 116 and 189; and 1946, Nos. 61, 63 and 184.

7641.—Price 3d.

(b) by inserting after sub-regulation (10.) the following sub-regulation:—

“(10a.) Notwithstanding anything contained in this regulation, the Treasurer shall not refuse to grant his consent under sub-regulation (1.) of this regulation, or make the granting of his consent subject to any condition, except for the purpose of giving effect to a policy of—

(a) preventing or limiting increases in prices of land;

(b) preventing or limiting increases in rates of interest; or

“‘land’ includes every share, interest or right in a tenement or claim under the Mining Act, 1906, of the State of New South Wales, or under that Act as amended at any time.”.

2. After regulation 6a of the National Security (Economic Organization) Regulations the following regulation is inserted:—

Excess consideration may be recovered.

“6ab.—(1.) Where, after the commencement of this regulation, consent has been given under regulation 6 of these Regulations to any transaction or proposed transaction, and the person from whom the land, option or lease is to be or has been purchased, taken or otherwise acquired accepts or has accepted in respect of the transaction or proposed transaction any consideration in excess of the consideration provided for in the terms of the transaction or proposed transaction as so consented to, the person who has paid or given the excess consideration may, notwithstanding that he is or may be concerned in a contravention of these Regulations in relation to the transaction, but subject to the next succeeding sub-regulation, recover the amount or value of the excess consideration as a debt from the person to whom it was so paid or given by action in any court of competent jurisdiction.

(2.) The court in which any such action is brought may, if, in its discretion, it considers that the circumstances of the case so warrant, refuse to give judgment for the plaintiff, or give judgment for the plaintiff in respect of part only of the amount or value of the excess consideration.”.

3. After regulation 10c of the National Security (Economic Organization) Regulations, the following regulation is inserted in Part IV.:—

Definitions.

“10d. In this Part—

‘building society’ means any body registered as a building society or co-operative housing society under the law of any State or Territory of the Commonwealth;

‘co-operative society’ means any body registered under the law of any State or Territory of the Commonwealth as a co-operative society, co-operative company or co-operative association, and includes any body which the Treasurer, by order, declares to be a co-operative society for the purposes of this Part;

‘deposit’ means unsecured loan.”.

Fixing of interest rates.

4. Regulation 11 of the National Security (Economic Organization) Regulations is amended by adding at the end of paragraph (b) of sub-regulation (2.) the words “a building society, a co-operative society or any such declared pastoral company”.

5. After regulation 12 of the National Security (Economic Organization) Regulations the following regulation is inserted:—

Certain shares in building societies deemed to be deposits.

“12a. Where any principal money paid in respect of a share in a building society is withdrawn within five 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, in respect of a deposit equal in amount to the principal amount withdrawn and made for the same period, under the National Security (Capital Issues) Regulations as in force from time to time during that period, or under any order made under these Regulations.”.

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

Overview

The Regulations under the National Security Act 1939-1946, made by the Governor-General in 1946, aim to address economic organisation issues during a period of national security concern. Enacted by the Federal Executive Council, these regulations modify the National Security (Economic Organization) Regulations to ensure transparency and control over certain land transactions, particularly in relation to the disclosure of options and consideration amounts, while also providing mechanisms for recovering excess consideration. The policy objectives include preventing or limiting price increases of land and rates of interest, as well as restricting borrowing for land investments. The regulations also introduce definitions and provisions for interest rate fixing and the classification of certain shares in building societies as deposits, thereby reinforcing the control over financial transactions and investments.

Scope and Application

These Regulations under the National Security Act 1939-1946 apply to transactions involving land, including options, leases, and shares in tenements or claims under the Mining Act 1906 of New South Wales. The Regulations affect natural persons and legal entities seeking consent from the Treasurer for certain land transactions, as well as building societies and co-operative societies registered under state or territory laws. They are applicable throughout the Commonwealth of Australia, reflecting the national scope of the National Security Act 1939-1946. The Regulations extend the application of the Act through subordinate instruments, which include amendments to existing regulations and the introduction of new ones. There are no stated exclusions, but the Treasurer's discretion is limited to specific economic policies such as preventing or limiting increases in land prices, rates of interest, and restrictions on borrowing for land investment. The Regulations also provide a mechanism for recovering excess consideration paid in land transactions and include definitions for terms such as 'building society' and 'co-operative society'.

Key Provisions

The legislative instrument primarily amends the National Security (Economic Organization) Regulations by introducing several key provisions. Regulation 6 is amended to include new sub-regulations (8a) and (8b). Sub-regulation (8a) mandates that applicants for the Treasurer’s consent must provide full and correct particulars of any options related to the land or lease in their application, including the amount of consideration paid or payable. Sub-regulation (8b) specifies that failure to comply with this requirement will render any consent given under this regulation void and of no effect. Furthermore, sub-regulation (10a) stipulates that the Treasurer may not refuse to grant consent, or impose conditions on it, except for specific purposes such as preventing or limiting price increases of land, rates of interest, or restricting borrowing for land investment. The definition of ‘land’ in sub-regulation (11) is also expanded to include shares, interests, or rights in mining tenements or claims under the Mining Act, 1906, of New South Wales. These amendments impose several obligations on applicants seeking consent for land transactions. They must provide comprehensive details about any options related to the land or lease, ensuring accuracy and completeness. Failure to do so will result in the nullification of any consent granted. Additionally, the Treasurer is restricted in his ability to impose conditions on consent unless it aligns with specific economic policies aimed at preventing or limiting price increases and controlling borrowing for land investments. The legislative instrument introduces potential penalties for breaches of these provisions. Specifically, under regulation 6ab, where consent has been granted for a transaction and an excess consideration has been accepted, the party that paid the excess can seek to recover it in court. However, the court has discretion to refuse judgment for the plaintiff or to grant judgment for only part of the excess consideration if it deems it warranted by the circumstances. This creates a mechanism for recovering excess payments while allowing courts to exercise discretion in exceptional cases. Moreover, the instrument also sets out consequences for non-compliance with the new definitions and provisions. For instance, if a building society or a co-operative society fails to adhere to the regulations concerning deposits and interest rates, they may face legal repercussions. Similarly, if the Treasurer imposes conditions on consent outside the specified purposes, such actions may be deemed invalid. The precise penalties for such breaches are not detailed in the instrument, but they typically involve legal action and potential fines or other sanctions under the relevant laws governing financial transactions and economic regulation.

Area of Law: National Security Law
Instrument: Legislative Instrument
Concepts: Definitions & Interpretation; Regulatory Standards; Enforcement Powers; Licensing & Registration; Prohibited Conduct

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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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