Sugar Purchase Act 1915

Overview

The Sugar Purchase Act 1915 was enacted to provide a mechanism for the Commonwealth to borrow money from the Commonwealth Bank of Australia, specifically for the purpose of purchasing sugar and paying customs duties on imported sugar. This legislation was enacted by the Parliament of Australia during a time when the federal government needed to secure funding to stabilise sugar supply chains and manage customs obligations associated with sugar importation. The Act authorises the Treasurer to borrow up to a maximum of Five hundred thousand pounds from the Commonwealth Bank, ensuring that this borrowing does not exceed the specified limit. Furthermore, it mandates the establishment of a special account, the Commonwealth Treasurer Sugar Account, to manage these transactions. The policy objective is to facilitate the Commonwealth's financial obligations related to sugar purchase and customs duty payments, thereby supporting the national sugar industry and ensuring fiscal stability.

Scope and Application

The Sugar Purchase Act 1915 applies to the Commonwealth of Australia, specifically authorising the Treasurer to borrow moneys from the Commonwealth Bank of Australia for the purchase of sugar by the Commonwealth and for the payment of customs duty on sugar imported by the Commonwealth. The borrowing is limited to a maximum indebtedness of Five hundred thousand pounds. All moneys advanced by the Commonwealth Bank and all moneys received by the Commonwealth Bank from or on behalf of the Commonwealth are to be entered in a special account in the books of the Bank, known as the "Commonwealth Treasurer Sugar Account." The Act also mandates that interest be payable on the amount by which the total amount standing to the credit of the Commonwealth Public Account and the Commonwealth Departmental Accounts is less than the amount by which the Commonwealth Treasurer Sugar Account is in debit. Should the Treasurer determine that there is no longer a need for the account, it may be closed, with any credit balance transferred to the Consolidated Revenue Fund and any debit balance payable out of the Consolidated Revenue Fund.

Key Provisions

The Sugar Purchase Act 1915 (C1915A00031) allows the Treasurer to borrow money from the Commonwealth Bank of Australia for the specific purpose of purchasing sugar and paying customs duties on sugar imported by the Commonwealth (s 2). Importantly, the total debt incurred by the Commonwealth to the Commonwealth Bank under this Act cannot exceed Five hundred thousand pounds at any time (s 2(1)). After receiving money from the sale of sugar, the Treasurer must deposit these funds into the Commonwealth Bank, to be credited to the Commonwealth Treasurer Sugar Account (s 2(2)). The Act mandates that all transactions related to the borrowing and repayment of funds under this Act are to be recorded in a designated account, known as the “Commonwealth Treasurer Sugar Account” (s 3). This account will reflect all moneys advanced by the Commonwealth Bank and all moneys received by the Commonwealth Bank from or on behalf of the Commonwealth (s 3). Additionally, the Act specifies that interest at a rate of Five pounds per centum per annum is to be charged on the difference between the Commonwealth Treasurer Sugar Account and the total credit in the Commonwealth Public Account and Commonwealth Departmental Accounts, if the former is in debit (s 4). This interest can be deducted from the Commonwealth Treasurer Sugar Account (s 4). The Act further outlines that if the Treasurer determines that there is no longer a need for the Commonwealth Treasurer Sugar Account, the account may be closed (s 5). Upon closure, if there is a credit balance in the account, it is to be transferred to the Consolidated Revenue Fund, and if there is a debit balance, it is to be paid out of the Consolidated Revenue Fund, which is appropriated for this purpose (s 5). The Act does not specify any offences or penalties for breaches, but it does provide a clear framework for the handling of funds related to the purchase and sale of sugar under the Act.