National Security (Enemy Property) Regulations

Legislation au C1939L00102 Regulations Not in force Legislative Instrument

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STATUTORY RULES.

1939. No. 102.

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REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939.*

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.

Dated this twenty-seventh day of September, 1939.

(SGD.) GOWRIE.

Governor-General.

By His Excellency’s Command,

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

————

National Security (Enemy Property) Regulations.

Citation.

1. These Regulations may be cited as the National Security (Enemy Property) Regulations.

Definitions.

2. In these Regulations, unless the contrary intention appears—

“dividends, interest or share of profits” means any dividends, bonus or interest in respect of any shares, stock, debentures, debenture stock or other obligations of any company, any interest in respect of any loan to a person carrying on business for the purposes of that business, and any profits or share of profits of such a business;

“enemy subject” has the same meaning as in the Trading with the Enemy Act 1939;

“the Controller” means the Controller of Enemy Property appointed in pursuance of these Regulations.

Controller of Enemy Property.

3.—(1.) For the purposes of these Regulations, there shall be a Controller of Enemy Property, who shall be appointed by the Governor-General and hold office during his pleasure.

(2.) The Controller of Enemy Property shall be a corporation sole under that name with perpetual succession and an official seal, and shall be capable of suing and being sued.

Duties of Controller.

4. The Controller shall be charged with the duty of receiving, holding, preserving and dealing with such property as is paid to him or comes into his possession in pursuance of these Regulations.

Accounts of Controller to be subject to audit.

5. The accounts of the Controller shall be subject to audit by the Auditor-General for the Commonwealth.

Moneys to be paid into Trust Account.

6.—(1.) The Controller shall pay any moneys received by him under these Regulations into a Trust Account to be established for that purpose by the Treasurer under the Audit Act 1901-1934.

(2.) Any interest received from the investment of any moneys standing to the credit of the Trust Account shall be paid into that Account.

* Notified in the Commonwealth Gazette on , 1939.

5241.—8/20.9.1939.—Price 3d.

Delegation.

7.—(1.) The Controller may, in relation to any particular matters or class of matters, or to any particular State, Territory or part of the Commonwealth, by writing under his hand, delegate all or any of his powers and functions under these Regulations (except this power of delegation), so that the delegated powers and functions may be exercised by the delegate with respect to the matters or class of matters, or the State, Territory, or part of the Commonwealth, specified in the instrument of delegation.

(2.) Every delegation under this section shall be revocable at will, and no delegation shall prevent the exercise, of any power by the Controller.

Disclosure of property held, &c. on behalf of enemy subjects.

8.—(1.) Where—

(a) any person holds or manages for or on behalf of an enemy subject any real or personal property, including any rights, whether legal or equitable, in or arising out of real or personal property; or

(b) any debt (including a debt in respect of any balance or deposit at any bank) is due, or, if a state of war did not exist, would be due, to an enemy subject,

the person or debtor, as the case may be, shall, within one month after the date of the commencement of these Regulations, or if the property comes into his possession or under his management or control, or the debt becomes due, after that date, then within one month after the time when the property comes into his possession or under his management or control, or the debt becomes due—

(d) furnish the Controller with such particulars in relation thereto as the Controller requires; and

(e) comply with any directions given to him by the Controller in respect of that property.

(2.) Every company which is incorporated in any part of Australia, or which, although not incorporated in any part of Australia, has a share transfer or share registration office in Australia shall, within one month after the commencement of these Regulations, by notice in writing communicate to the Controller full particulars of all shares, stock, debentures and debenture stock and other obligations of the company which are held by or for the benefit of an enemy subject.

(3.) Every member of every firm—

(a) which is an enemy subject;

(b) at least one of the members of which is an enemy subject; or

shall, within one month after the commencement of these Regulations, by notice in writing communicate to the Controller full particulars of any share of profits or interest due from the firm to an enemy subject.

Certain moneys to be paid to Controller.

9.—(1.) Any sum which, if a state of war did not exist, would be payable and paid to or for the benefit of an enemy subject by way of dividends, interest or share of profits, or would be payable and paid in Australia to any enemy subject—

(a) in respect of interest on securities issued by or on behalf of the Government of the Commonwealth, of any State or of any other part of the King’s dominions, on behalf of any foreign Government, or by or on behalf of any corporation or any municipal or other authority whether within or without Australia; or

(b) by way of repayment, in whole or in part, of any such securities, or securities issued by any company, which have become repayable in whole or in part,

shall, if so directed by the Controller, be paid to the Controller and shall be held by him.

(2.) In the case of dividends, interest or share of profits, the payment shall be made by the person by whom it would have been payable. In the case of sums in respect of the repayment of securities issued by a company, the payment shall be made by the company by which they would have been payable. In the case of all other sums, the payment shall be made by the person through whom the payments in Australia are made.

(3.) The payment shall be accompanied by such particulars as are prescribed, or as the Controller requires.

(4.) Any payment required to be made under this regulation to the Controller shall be made—

(a) in the case of payment of a sum which, if a state of war did not exist, would be payable at the date of the Controller’s direction—within one month after that date; and

(b) in any other case—within one month after the sum, if a state of war did not exist, would have become payable.

(5.) Where, before the commencement of these Regulations, any such sum has been paid into any account with a bank, or has been paid to any other person in trust for an enemy subject, the person by whom the payment was made shall (if so directed by the Controller) within one month after the commencement of these Regulations, by notice in writing, require the bank or person to pay the sum to the Controller, and shall furnish the Controller with such particulars as the Controller requires.

(6.) The bank or other person shall, within one week after the receipt of the notice, comply with the requirement and shall be exempt from all liability for having done so.

Exemption.

10. The Treasurer may, by order, exempt any particular transaction or class of transaction from the application of the whole or any of the provisions of these Regulations.

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

Overview

The National Security (Enemy Property) Regulations 1939 were enacted to provide a legal framework for the administration of enemy property in Australia during times of conflict, specifically in response to the outbreak of World War II. These regulations were introduced by the Australian Government through the Governor-General, in accordance with the National Security Act 1939. The overarching policy objective of these regulations was to ensure that property and financial interests belonging to enemy subjects were managed effectively to prevent any benefit to the enemy and to protect the national security of Australia. The establishment of a Controller of Enemy Property, tasked with the responsibilities of receiving, holding, preserving, and dealing with enemy property, was central to achieving this objective. Under these regulations, various entities and individuals were required to disclose property and financial interests held on behalf of enemy subjects to the Controller within a specified timeframe. This included mandatory reporting of shares, stock, debentures, and other financial obligations held by or for the benefit of enemy subjects. Additionally, certain payments such as dividends, interest, and profits that would otherwise be payable to enemy subjects were to be directed to the Controller. The regulations also provided for the exemption of specific transactions from their purview, enabling flexibility in managing particular cases deemed necessary by the Treasurer. These measures collectively aimed to secure and control enemy property within Australia, thereby mitigating potential risks posed by the enemy during wartime.

Scope and Application

The National Security (Enemy Property) Regulations, made under the National Security Act 1939, pertain to property and financial interests held by enemy subjects during a state of war. These regulations apply to any person or entity holding or managing property or financial interests on behalf of an enemy subject, as well as to companies incorporated in Australia or with offices in Australia that hold securities for the benefit of an enemy subject. The Controller of Enemy Property, appointed by the Governor-General, is responsible for receiving, holding, preserving, and dealing with such property. The Controller can delegate powers and functions, though such delegations are revocable and do not limit the Controller's authority. The regulations mandate that any dividends, interest, or share of profits payable to an enemy subject, as well as any sums in respect of interest on securities or repayment of securities, must be paid to the Controller upon their direction. The Treasurer has the authority to exempt specific transactions or classes of transactions from the regulations through an order. The Controller's accounts are subject to audit by the Auditor-General for the Commonwealth, and all moneys received are to be deposited into a Trust Account established by the Treasurer under the Audit Act 1901-1934.

Key Provisions

The National Security (Enemy Property) Regulations, made under the National Security Act 1939, establish provisions for managing enemy property during times of war. These regulations outline the duties of the Controller of Enemy Property, who is responsible for receiving, holding, preserving, and dealing with property belonging to enemy subjects (section 4). The Controller is appointed by the Governor-General and has the capacity to sue and be sued, functioning as a corporation sole with perpetual succession and an official seal (section 3). The accounts of the Controller are subject to audit by the Auditor-General for the Commonwealth (section 5), and any moneys received are to be deposited into a Trust Account established by the Treasurer under the Audit Act 1901-1934 (section 6). The Regulations impose specific obligations on individuals and entities holding or owing property or money to enemy subjects. Any person or entity managing property for an enemy subject, or owing a debt to an enemy subject, must notify the Controller within one month of the Regulations' commencement or when the property or debt comes into their possession (section 8). Australian-incorporated companies and those with a share transfer or share registration office in Australia must report all shares, stock, debentures, and other obligations held by or for the benefit of an enemy subject to the Controller within one month of the Regulations' commencement (section 8(2)). Members of firms that are enemy subjects, or where at least one member is an enemy subject, or to which money has been lent by an enemy subject, must also report any share of profits or interest due to an enemy subject within one month (section 8(3)). Failure to comply with these obligations can result in civil or criminal consequences. The Regulations specify that sums payable to enemy subjects, such as dividends, interest, share of profits, or repayment of securities, must be directed to the Controller if required. Non-compliance with these directives can lead to penalties, although the specific consequences are not detailed within the provided text. Additionally, the Treasurer has the authority to exempt particular transactions or classes of transactions from the application of the Regulations (section 10), providing some flexibility in enforcement.

Area of Law: National Security Law
Instrument: Legislative Instrument
Concepts: Definitions & Interpretation; Delegation; Reporting & Disclosure Obligations

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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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