STATES LOAN.
No. 17 of 1916.
An Act to authorize the Raising of Moneys to be Loaned to, and the Advancing of Moneys to, certain States.
[Assented to 30th May, 1916.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1. This Act may be cited as the States Loan Act 1916.
Treasurer may borrow £8,940,000.
2. The Treasurer may from time to time borrow in the United Kingdom Eight million nine hundred and forty thousand pounds.
Conditions of loan.
3. The rate of interest, the date of repayment and the form of security issued in respect of borrowings under this Act may be such as are approved by the Governor-General.
Payment of principal and interest.
4. The principal moneys borrowed under this Act shall be repayable and the interest thereon shall be payable out of the Consolidated Revenue Fund which is hereby appropriated for the purpose.
Application of moneys.
5. Moneys borrowed under this Act shall be issued and applied only for the expenses of borrowing and for the purpose of making loans to the States in amounts which shall not in the case of any State exceed in the aggregate the amount shown opposite the name of the State in the following table:—
Victoria.......................... | £1,720,000 |
Queensland....................... | 2,562,000 |
South Australia..................... | 2,062,000 |
Western Australia................... | 2,080,000 |
Tasmania......................... | 516,000 |
| £8,940,000 |
Authority to make Advances to States to amount of £8,940,000.
6.—(1.) Pending the borrowing of the moneys authorized to be borrowed under section two of this Act, the Treasurer may advance to the respective States out of loans made by the Government of the United Kingdom to the Commonwealth to meet the cost of the present war, the sums shown in the next preceding section.
(2.) The Treasurer shall out of moneys borrowed under section two of this Act immediately repay the sums advanced to the States under this section.
Date of commencement.
7. This Act shall be deemed to have come into operation on the twentieth day of December One thousand nine hundred and fifteen.
Regulations.
8. The Governor-General may make Regulations not inconsistent with this Act prescribing all matters which by this Act are required or permitted to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act.
Overview
The States Loan Act 1916 was enacted by the Parliament of the Commonwealth of Australia to address the financial needs of the states during the First World War. Authorising the borrowing of £8,940,000, the Act empowered the Treasurer to borrow funds from the United Kingdom, with specific allocations outlined for each state. It also allowed the Treasurer to advance money to the states from loans made by the Government of the United Kingdom to the Commonwealth to cover war expenses. The Act provided for the repayment of these advances from the borrowed funds. The policy objective of this legislation was to provide financial support to the states to help them manage the economic impact of the war.
Scope and Application
The States Loan Act 1916 provides the legal framework for the Commonwealth to borrow and advance money to the states of Australia for specific purposes during a period of financial need, particularly in the context of the First World War. This Act applies to the Commonwealth Treasurer, who is authorised to borrow £8,940,000 in the United Kingdom and to advance funds to the states of Victoria, Queensland, South Australia, Western Australia, and Tasmania, up to specified limits. The proceeds of this borrowing are to be applied exclusively to the expenses of borrowing and to the making of loans to the states, with repayments and interest to be covered by the Consolidated Revenue Fund. The Act also allows the Governor-General to establish regulations to ensure the effective implementation of its provisions, although these regulations cannot contradict the Act itself. The Act does not specify exclusions or exemptions, and its scope is limited to the financial measures authorised for the relief of the states during the war period.
Key Provisions
The States Loan Act 1916 (section 1) authorises the raising of moneys to be loaned to, and the advancing of moneys to, certain states. The Act allows the Treasurer to borrow up to £8,940,000 in the United Kingdom (section 2). The rate of interest, the date of repayment, and the form of security for these borrowings can be approved by the Governor-General (section 3). The principal and interest on these borrowed funds are to be repaid from the Consolidated Revenue Fund (section 4). The borrowed moneys can only be used for borrowing expenses and for making loans to the specified states, with a maximum amount allocated to each state (section 5).
The Act imposes an obligation on the Treasurer to advance funds to the states, up to the specified amounts, from loans made by the Government of the United Kingdom, until the authorised borrowing is completed (section 6). The Treasurer must then repay these advances using the borrowed funds (section 6). The Act specifies that these provisions are to be carried out according to any regulations made by the Governor-General (section 8).
Failure to comply with the provisions of this Act may result in civil or criminal consequences. However, the Act does not explicitly state the specific offences, penalties, or consequences for non-compliance. The penalties would be determined according to the applicable laws of the time, which could include fines or imprisonment, depending on the nature and severity of the breach. The maximum penalties would depend on the specific breaches and the jurisdiction in which they occur.