TREASURY BILLS.
No. 25 of 1915.
An Act to amend the Treasury Bills Act 1914.
[Assented to 16th August, 1915.]
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.—(1.) This Act may be cited as the Treasury Bills Act 1915.
(2.) The Treasury Bills Act 1914 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Treasury Bills Act 1914-1915.
Amendment of s. 4.
2 Section four of the Principal Act is amended—
(a) by omitting from paragraph (e) the word “quarterly” and inserting the words “at such intervals as are prescribed”; and
(b) by adding at the end of paragraph (f) the words “reserving to the Treasurer the right after a date fixed by the Governor-General before the issue of the Treasury Bill to redeem the Treasury Bill at par upon such notice given in such time and manner as is prescribed.”
3.—(1.) After section eight of the Principal Act, the following section is inserted:—
Borrowing money from Australian Notes Account without issue of Treasury Bills.
“8a.—(1.) Whenever the Treasurer has authority to make out and issue Treasury Bills in accordance with this Act for raising by way of loan any money, the Treasurer may borrow the money or any part thereof from the Australian Notes Account without making out or issuing Treasury Bills for the amount thereof: Provided that nothing in this section shall be construed as authorizing the Treasurer to borrow from the Australian Notes Account any moneys which the Treasurer is by the Australian Notes Act 1910-1914 required to hold for the purposes of the reserve provided for in section nine of that Act.
“(2.) When the Treasurer has borrowed money from the Australian Notes Account in pursuance of sub-section (1.) of this section the indebtedness to the Australian Notes Account shall be treated as a current account, which may be increased in amount by further borrowings from the Australian Notes Account, or may be reduced by any repayments which the Treasurer may at any time make out of the Consolidated Revenue Fund, which is hereby appropriated accordingly.
“(3.) Whenever moneys which have been borrowed for payment into the Consolidated Revenue Fund are repaid to the Australian Notes Account in accordance with the last preceding sub-section, entries may be made—
(a) in the account showing the amount paid into the Consolidated Revenue Fund, and
(b) in the account showing the money raised by way of loan,
writing back the amount of the repayment.
“(4.) The amount of the current account referred to in this section, together with the amount of Treasury Bills made out and issued by the Treasurer, shall not exceed the amount which the Treasurer has for the time being authority to borrow in accordance with this Act.
“(5.) Interest at such rate as the Governor-General directs shall be payable quarterly to the Australian Notes Account on the daily balance of the current account referred to in this section out of the Consolidated Revenue Fund, which is hereby appropriated accordingly.”
(2.) This section shall be deemed to have commenced on the same day as the Treasury Bills Act 1914.
References to Principal Act to be read as including this Act.
4. References in any Act to the Treasury Bills Act 1914 shall be read as references to the Treasury Bills Act 1914, as amended by this Act.
Overview
The Treasury Bills Act 1915 was enacted to amend the Treasury Bills Act 1914, providing flexibility in the issuance and redemption of treasury bills. This Act was introduced to address the need for adjustments in the intervals for issuing treasury bills and the ability to redeem them at par value with prescribed notice. Enacted by the Parliament of the Commonwealth of Australia, its primary objective was to enhance the management of short-term borrowings by the Commonwealth Government, ensuring that the processes are in line with evolving financial requirements and practices. The Act allows the Treasurer to borrow money from the Australian Notes Account without issuing treasury bills, provided it does not exceed the authorised borrowing limit, and appropriates funds for interest payments on such borrowings from the Consolidated Revenue Fund.
Scope and Application
The Treasury Bills Act 1915 amends the Treasury Bills Act 1914 to introduce modifications that affect the issuance and management of Treasury Bills within the Commonwealth of Australia. The Act applies to the Treasurer, who has the authority to issue Treasury Bills for raising funds through loans, and it also pertains to the Australian Notes Account from which the Treasurer can borrow funds under certain conditions. The geographic and jurisdictional reach of this Act is nationwide, as it pertains to the Commonwealth of Australia. The Act does not specify exclusions or exemptions but does stipulate that borrowings from the Australian Notes Account must adhere to certain limits and conditions, including the prohibition of borrowing funds that are required to be held as a reserve under the Australian Notes Act 1910-1914. The Act further provides for the treatment of the indebtedness to the Australian Notes Account as a current account and includes provisions for the repayment of borrowed funds with interest, which is to be paid quarterly.
Key Provisions
The Treasury Bills Act 1915 introduces several key amendments to the Treasury Bills Act 1914, primarily focusing on the issuance and redemption of Treasury Bills, as well as borrowing from the Australian Notes Account. Section 2 amends Section 4 of the Principal Act, altering the intervals at which Treasury Bills can be issued from quarterly to such intervals as are prescribed. Additionally, it reserves the Treasurer's right to redeem Treasury Bills at par, provided notice is given in the manner and timeframe prescribed. Section 3 introduces Section 8a, allowing the Treasurer to borrow money from the Australian Notes Account without issuing Treasury Bills, provided that the Treasurer does not borrow funds required to maintain the reserve under the Australian Notes Act 1910-1914. The borrowing is treated as a current account that can be increased or decreased as needed, and interest is payable to the Australian Notes Account from the Consolidated Revenue Fund.
The Act imposes specific obligations on the Treasurer, including ensuring that the total borrowing from the Australian Notes Account and the issuance of Treasury Bills do not exceed the amount authorised under the Act. It also mandates that entries be made in relevant accounts to reflect repayments and the writing back of amounts. Furthermore, the Act stipulates that any borrowing from the Australian Notes Account must comply with the restrictions under the Australian Notes Act 1910-1914, particularly concerning the maintenance of the required reserve. Failure to adhere to these provisions could result in legal repercussions.
The Treasury Bills Act 1915 does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches of its provisions. However, non-compliance with the Act’s requirements, such as exceeding borrowing limits or failing to maintain the prescribed reserve under the Australian Notes Act 1910-1914, could lead to legal action under the general principles of administrative law or specific statutory provisions. The penalties for such breaches would depend on the specific nature of the non-compliance and the resultant legal proceedings.