STATUTORY RULES.
1948. No. .
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REGULATION UNDER THE RE-ESTABLISHMENT AND EMPLOYMENT ACT 1945.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the Re-establishment and Employment Act 1945.
Dated this twenty-third day of June, 1948.
W.J McKell
Governor-General.
By His Excellency’s Command,
for and on behalf of the Minister of State for Post-war Reconstruction.
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Amendment of the Re-establishment and Employment (Allowances and Loans) Regulations.†
Regulation 15 of the Re-establishment and Employment (Allowances and Loans) Regulations is repealed and the following regulation inserted in its stead:—
Interest on loans.
“15.—(1.) For the purposes of this regulation—
(a) any reference to ‘ loans under the Australian Soldiers’ Repatriation Regulations’ shall be read as a reference to ‘loans’ within the meaning of regulation 53 of those Regulations; and
(b) ‘training loan’ means any loan, made under Part III. of the Act to a trainee under the Commonwealth Reconstruction Training Scheme, which has become due for repayment to the Commonwealth.
“(2.) For the purpose of ascertaining the rate of interest (if any) payable on a loan, or portion of a loan, made to any one eligible person, whether before or after the commencement of this regulation, the amounts of all loans granted to that person shall be added to the amounts of all loans under Division 3 of Part VI. of the Act in respect of an agricultural occupation, all training loans, all loans under the Australian Soldiers’ Repatriation Regulations and all loans under the Interim Forces Benefits Regulations made or granted to that person and—
(a) where the aggregate amount of the loans does not exceed Fifty pounds, no interest shall be charged;
* Notified in the Commonwealth Gazette on , 1948.
† Statutory Rules 1945, No. 190, as amended by Statutory Rules 1946, No. 181.
1498.—Price 3d. 10/19.4.1048.
(b) where the aggregate amount of the loans exceeds Fifty pounds, but does not exceed Two hundred and fifty pounds, interest at the rate of two per centum per annum shall be charged on the amount by which the aggregate amount exceeds Fifty pounds;
(c) where the aggregate amount of the loans exceeds Two hundred and fifty pounds, but does not include a training loan, or includes a training loan of Two hundred and fifty pounds or less, interest shall be charged at the rate of two per centum per annum on the first Two hundred pounds of the aggregate amount in excess of Fifty pounds and at the rate of three and three-quarters per centum, per annum on so much of the aggregate amount as exceeds Two hundred and fifty pounds; or
(d) where the aggregate amount of the loans exceeds Two hundred and fifty pounds and includes a training loan of more than Two hundred and fifty pounds, interest at the rate of two per centum per annum shall be charged on the amount by which the training loan exceeds Fifty pounds, and interest at the rate of three and three-quarters per centum per annum on the amount by which the aggregate amount exceeds the amount of the training loan.”.
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By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
Overview
The Re-establishment and Employment Act 1945 was enacted to provide financial assistance and support to individuals, particularly ex-servicemen and women, in their transition back into civilian life following World War II. The Act aimed to facilitate their reintegration into the workforce by offering various forms of assistance, including allowances and loans. The Re-establishment and Employment (Allowances and Loans) Regulations, made under the Act, outline the specific provisions for these benefits. The legislation was introduced to address the significant challenges faced by returning service members in securing employment and readjusting to civilian life post-war. Enacted by the Commonwealth Parliament, the policy objective of the Act was to ensure that those who had served their country could be supported in their efforts to re-establish themselves in society and the workforce.
Scope and Application
The Re-establishment and Employment (Allowances and Loans) Regulations, made under the Re-establishment and Employment Act 1945, specifically govern the interest rates applicable to loans provided to eligible individuals, primarily targeting those who have participated in the Commonwealth Reconstruction Training Scheme and have received loans for agricultural occupations or under other specified schemes such as the Australian Soldiers' Repatriation Regulations and Interim Forces Benefits Regulations. The regulation applies to any individual who has received such loans and is required to repay them to the Commonwealth. The geographic reach of this regulation is national, applying throughout Australia as it is a Commonwealth regulation. The regulation sets out a tiered interest rate system based on the aggregate amount of loans held by an individual, with no interest charged on loans up to £50, a 2% interest rate on loans between £51 and £250, and a higher interest rate of 3¾% on loans exceeding £250. The regulation does not specify exclusions or exemptions other than the tiered interest rates. The regulation allows for further specification and amendment through subordinate instruments under the authority of the Re-establishment and Employment Act 1945.
Key Provisions
The key operative sections of this statutory rule (No. 1498) detail amendments to the Re-establishment and Employment (Allowances and Loans) Regulations under the Re-establishment and Employment Act 1945. Specifically, Regulation 15 is repealed and replaced with a new regulation concerning the interest on loans (Regulation 15(1)-(4)). This regulation stipulates the interest rates applicable based on the aggregate amount of loans made to an eligible person, including loans under various schemes and regulations (Regulation 15(2)(a)-(d)). It outlines that no interest is charged if the total loan amount does not exceed Fifty pounds, a two per centum rate applies for amounts between Fifty and Two hundred and fifty pounds, and higher rates apply for loans exceeding Two hundred and fifty pounds, with specific calculations for training loans over this threshold (Regulation 15(2)(a)-(d)).
The Act imposes obligations on both the Commonwealth and the recipients of loans. The Commonwealth must calculate the interest payable based on the aggregate amount of loans granted to an individual, taking into account different types of loans and their respective rates. Recipients of loans must ensure they are aware of the total amount of loans they hold to understand the applicable interest rate and, subsequently, the amount they owe. This regulation necessitates clear record-keeping and accurate calculations to avoid any discrepancies in the interest charged.
Failure to comply with the provisions of this regulation could result in civil consequences for both the Commonwealth and the loan recipients. If the Commonwealth incorrectly calculates and charges interest, it may face claims for overcharged interest or undercharged interest payments from loan recipients. Conversely, loan recipients who fail to repay the correct amount of interest due could face legal action for non-payment. The regulation does not explicitly state penalties for breaches, but the Act likely includes provisions for recovery of incorrect payments or fines for non-compliance, reflecting the seriousness of adhering to prescribed interest rates.