Qantas Airways Limited (Loan Guarantee) Act 1985

Administered by Department of the Treasury

Legislation au C2004A03153 In force Act

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Qantas Airways Limited (Loan Guarantee) Act 1985

 

No. 114 of 1985

 

 

 

 

 

An Act relating to the provision of certain equipment for Qantas Airways Limited

 

 

 

Contents

1  Short title

2  Commencement

3  Provision of credit deemed to be a borrowing

4  Guarantee of certain loans

5  Conditions of guarantees

6  Delegation

 

 

 

Qantas Airways Limited (Loan Guarantee) Act 1985

No. 114 of 1985

 

 

 

An Act relating to the provision of certain equipment for Qantas Airways Limited

[Assented to 21 October 1985]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Qantas Airways Limited (Loan Guarantee) Act 1985.

2  Commencement

  This Act shall come into operation on the day on which it receives the Royal Assent.

3  Provision of credit deemed to be a borrowing

  For the purposes of this Act, the provision of credit shall be deemed to be a borrowing to the extent of the amount of that credit.

4  Guarantee of certain loans

 (1) The Treasurer may, on behalf of the Commonwealth, and subject to the conditions required by this Act, guarantee:

 (a) the repayment by Qantas Airways Limited of amounts borrowed by it not exceeding in the aggregate the sum of the expenditure that the Treasurer is satisfied:

 (i) will be, or has been, incurred in connection with the purchase by it of a Boeing 747-300 Extended Upper Deck aircraft and related spare parts and equipment; and

 (ii) will be, or has been, met out of money owned or borrowed by it; and

 (b) the payment of interest (including any interest on that interest) on amounts so borrowed.

 (2) A guarantee or guarantees shall not be given under subsection (1) in respect of moneys borrowed in the currency of the United States of America, or in any other currency, exceeding in the aggregate $115,000,000 in the currency of the United States of America.

 (3) The power of the Treasurer to give a guarantee under this section includes:

 (a) a power to agree, on behalf of the Commonwealth, that proceedings under the guarantee may be taken in a court of a country other than Australia; and

 (b) a power to waive, on behalf of the Commonwealth, the immunity of the Commonwealth from suit in a court of a country other than Australia in relation to any proceedings that may be taken under the guarantee in such a court.

 (4) For the purposes of subsection (2), the amount of a borrowing in a currency other than the currency of the United States of America shall be taken to be the amount in the currency of the United States of America that was equivalent to the first-mentioned amount at the date of the borrowing, as ascertained by the Reserve Bank of Australia.

5  Conditions of guarantees

  For the purpose of the protection of the financial interests of the Commonwealth, the Treasurer shall not give a guarantee under section 4 unless:

 (a) the moneys are borrowed on terms and conditions that the Treasurer is satisfied are reasonable;

 (b) appropriate security to the satisfaction of the Treasurer is, or is to be, given to the Commonwealth over property of Qantas Airways Limited, being property 85% of the value of the interest of Qantas Airways Limited in which, immediately before the giving of security to the Commonwealth, equals or exceeds the amount borrowed;

 (c) undertakings to the satisfaction of the Treasurer are given that the property of Qantas Airways Limited over which security is, or is to be, taken in accordance with paragraph (b):

 (i) will be insured and kept insured against all risks against which it is customary to insure and to the full insurable value of that property; and

 (ii) will not be sold or made the subject of a mortgage or charge having priority over the security to the Commonwealth in respect of the guarantee; and

 (d) such other conditions as the Treasurer thinks necessary are fulfilled.

6  Delegation

 (1) The Treasurer may, either generally or as otherwise provided by the instrument of delegation, by writing, delegate to another Minister or to an officer of the Department of the Treasury all or any of the powers or functions of the Treasurer under this Act, other than this power of delegation.

 (2) A power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of this Act, be deemed to have been exercised or performed by the Treasurer.

 (3) A delegate is, in the exercise or performance of a power or function so delegated, subject to the directions of the Treasurer.

 (4) A delegation under this section does not prevent the exercise of a power or the performance of a function by the Treasurer.

 

 

 

 

 

Overview

The Qantas Airways Limited (Loan Guarantee) Act 1985 was enacted to facilitate the provision of financial support to Qantas Airways Limited for the acquisition of a Boeing 747-300 Extended Upper Deck aircraft and related spare parts and equipment. This legislation was introduced to address the financial needs of Qantas Airways Limited in acquiring significant assets, ensuring that the Commonwealth could provide necessary financial backing within specified limits and conditions. The Act was enacted by the Parliament of Australia, aiming to balance the financial interests of the Commonwealth while enabling Qantas Airways Limited to acquire essential equipment to enhance its operations. The overarching policy objective of the Act is to safeguard the Commonwealth's financial interests by imposing specific conditions on the guarantee of loans, ensuring that Qantas Airways Limited meets certain criteria regarding the terms of borrowing, security, and insurance before the Commonwealth provides its guarantee.

Scope and Application

The Qantas Airways Limited (Loan Guarantee) Act 1985 applies specifically to the Commonwealth's guarantee of certain loans made to Qantas Airways Limited for the purpose of purchasing a Boeing 747-300 Extended Upper Deck aircraft and related spare parts and equipment. The Act enables the Treasurer to guarantee the repayment of these loans, subject to certain conditions, ensuring that the financial interests of the Commonwealth are protected. The Act applies to the Commonwealth of Australia and extends its jurisdictional reach through the delegation of powers to other Ministers or officers of the Department of the Treasury. It is noteworthy that the Act excludes any loans exceeding $115,000,000 in the currency of the United States of America. Furthermore, the Act allows for proceedings under the guarantee to be taken in a court outside of Australia and permits the waiver of the Commonwealth's immunity from suit in such courts.

Key Provisions

The Qantas Airways Limited (Loan Guarantee) Act 1985 primarily concerns the provision of financial guarantees to Qantas Airways Limited for the purchase of a Boeing 747-300 Extended Upper Deck aircraft and related spare parts and equipment (sections 1 to 6). The Act stipulates that the provision of credit will be deemed a borrowing (section 3), and authorises the Treasurer to guarantee the repayment of such borrowings, up to a limit of $115,000,000 in the currency of the United States of America (section 4). This guarantee extends to the repayment of any interest on the borrowed amounts. However, the guarantee is subject to specific conditions to protect the Commonwealth’s financial interests, such as the borrowing being on reasonable terms, the provision of appropriate security, and certain insurance and property management undertakings (section 5). The Treasurer is also empowered to delegate some of their functions under this Act to other Ministers or officers, though this delegation does not affect the Treasurer's own authority (section 6). Under this Act, the primary obligations fall upon the Treasurer, who must ensure that any guarantee provided is conditional upon several protective measures. These include reasonable borrowing terms, adequate security over Qantas Airways Limited’s property, and specific insurance and property management commitments (section 5). The Treasurer must also ensure that the guarantee does not exceed the specified monetary limit and is not used for borrowings denominated in the currency of the United States of America or any other currency beyond this limit (section 4). Furthermore, the Treasurer has the authority to delegate certain functions to other officials, subject to their directions and oversight (section 6). Breaches of the conditions set forth in the Act may lead to civil or criminal consequences, although the Act itself does not explicitly outline specific penalties for non-compliance. The maximum financial penalty for breaches could potentially be inferred from other related laws or statutory instruments, but the Act does not specify any maximum penalties directly. The primary focus of the Act is on ensuring that the Commonwealth’s financial interests are safeguarded through the guarantee mechanism, rather than detailing punitive measures for non-compliance.

Legal classification tags

Area of Law
Finance & Banking Law
Instrument
Act
Concepts
Commencement Provisions
Definitions & Interpretation
Offence Provisions
Conditions of guarantees
Delegation

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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.