Qantas Airways Limited (Loan Guarantee) Act 1988

Administered by Department of the Treasury

Legislation au C2004A03677 In force Act

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Qantas Airways Limited (Loan Guarantee) Act 1988

 

No. 84 of 1988

 

 

 

 

 

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

 

 

 

Contents

1  Short title

2  Commencement

3  Interpretation

4  Guarantee of certain loans

5  Conditions of guarantees

6  Delegation

 

 

 

Qantas Airways Limited (Loan Guarantee) Act 1988

No. 84 of 1988

 

 

 

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

[Assented to 31 October 1988]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Qantas Airways Limited (Loan Guarantee) Act 1988.

2  Commencement

  This Act commences on the day on which it receives the Royal Assent.

3  Interpretation

 (1) In this Act:

borrow includes borrow, or otherwise raise money, by dealing in securities.

 (2) For the purposes of this Act, the obtaining of credit shall be taken to be a borrowing of an amount equal to the value of the credit obtained.

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 payment by Qantas Airways Limited of amounts that Qantas Airways Limited is liable to pay with respect to so much of the money borrowed by it as does not exceed the total expenditure that, to the satisfaction of the Treasurer:

 (i) will be, or has been, incurred by Qantas Airways Limited in connection with the purchase by it of 3 Boeing 767-300 Extended Range 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 money so borrowed.

 (2) A guarantee or guarantees shall not be given under subsection (1) in respect of money borrowed in the currency of the United States of America, or in any other currency, exceeding in the aggregate $235,000,000 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 money is 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 amounts 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, by signed instrument, delegate to an officer of the Department of the Treasury all or any of the powers or functions of the Treasurer under this Act.

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

 

 

 

 

Overview

The Qantas Airways Limited (Loan Guarantee) Act 1988 was enacted by the Parliament of Australia to address the financial needs of Qantas Airways Limited in acquiring specific equipment. This legislation allows the Treasurer to guarantee certain loans up to a specified amount to ensure that Qantas Airways Limited can acquire three Boeing 767-300 Extended Range aircraft and related spare parts and equipment. The guarantee is subject to certain conditions, including the borrowing terms, security over Qantas Airways Limited's property, insurance coverage, and any additional conditions the Treasurer deems necessary to protect the Commonwealth's financial interests. The Act also includes provisions for the delegation of the Treasurer’s powers to an officer of the Department of the Treasury.

Scope and Application

The Qantas Airways Limited (Loan Guarantee) Act 1988 provides a legal framework for the Australian Treasurer to guarantee certain loans made to Qantas Airways Limited for the purchase of specific aircraft and related equipment. The Act applies to the Commonwealth government through the Treasurer, who has the authority to guarantee payments by Qantas Airways Limited for the purchase of three Boeing 767-300 Extended Range aircraft and associated spare parts and equipment, subject to certain conditions. The geographic reach of this Act is national, as it pertains to the Commonwealth of Australia and its financial interests. The Act explicitly limits the guarantee to borrowings not exceeding $235,000,000 in the currency of the United States of America, and it does not extend to borrowings in currencies other than the United States dollar unless converted to an equivalent amount in US dollars. The Treasurer's power to guarantee these loans is subject to conditions that protect the Commonwealth's financial interests, including the satisfaction of reasonable borrowing terms, provision of appropriate security, and specific undertakings regarding insurance and property disposition. The Act also allows for the delegation of the Treasurer’s powers to an officer of the Department of the Treasury.

Key Provisions

The Qantas Airways Limited (Loan Guarantee) Act 1988 (section 4) provides that the Treasurer may guarantee payments by Qantas Airways Limited on certain loans, specifically those related to the purchase of three Boeing 767-300 Extended Range aircraft and associated spare parts and equipment. However, the guarantee does not extend to loans exceeding $235,000,000 in United States currency. The Act also allows the Treasurer to agree to proceedings related to the guarantee being taken in a foreign court and to waive the Commonwealth's immunity from suit in such courts (section 4(3)). The Act imposes several obligations on the parties involved. The Treasurer must ensure that any guarantee is provided under specific conditions, including that the borrowed funds are used for their intended purpose, that appropriate security is provided to the Commonwealth, and that the borrowed funds are insured against all customary risks (section 5(a)-(c)). Additionally, the Treasurer may impose other conditions deemed necessary to protect the Commonwealth's financial interests. Furthermore, the Treasurer has the authority to delegate certain powers or functions to an officer of the Department of the Treasury (section 6). Failure to comply with the provisions of this Act may lead to various consequences. While the Act does not explicitly detail specific offences or penalties, breaches of the terms and conditions outlined could potentially lead to legal actions being taken by the Commonwealth to recover any losses incurred. The Act does not specify maximum penalties but implies that the Commonwealth may seek redress through appropriate legal means if the guarantees or conditions are not met.

Legal classification tags

Area of Law
Commercial Law
Instrument
Act
Concepts
Definitions & Interpretation
Guarantee of certain loans
Conditions of guarantees
Delegation
Extraterritorial Application

Interactions

Authorises

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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.