{"id":"financial-agreement-act-1995","name":"Financial Agreement Act 1995","slug":"financial-agreement-act-1995","collection":"act","jurisdiction":"wa","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":30592,"registerId":"wa-financial-agreement-act-1995-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Financial Agreement Act 1995","content":"![Crest]()Western Australia\n\nFinancial Agreement Act 1995\n\nWestern Australia\n\nFinancial Agreement Act 1995\n\nContents\n\n1. Short title 1\n\n2. Commencement 1\n\n3. Term used: 1994 Financial Agreement 1\n\n4. Agreement approved 1\n\n5. Appropriation if required 1\n\nSchedule 1 — 1994 Financial Agreement\n\nNotes\n\nCompilation table 22\n\nDefined terms\n\n  \n\nWestern Australia\n\nFinancial Agreement Act 1995\n\nAn Act to approve an agreement between Western Australia, the Commonwealth, the other States and the Territories.\n\n##### 1. Short title\n\nThis Act may be cited as the *Financial Agreement Act 1995* 1.\n\n##### 2. Commencement\n\nThis Act comes into operation on such day as is fixed by proclamation 1.\n\n##### 3. Term used: 1994 Financial Agreement\n\nIn this Act 1994 Financial Agreement means the agreement approved under section 4 as amended by any subsequent agreement approved by Parliament.\n\n##### 4. Agreement approved\n\nThe agreement, a copy of which is set out in Schedule 1, is approved.\n\n##### 5. Appropriation if required\n\nMoneys for the purpose of carrying out the 1994 Financial Agreement on the part of the State are payable out of the Consolidated Account which is by this section to the necessary extent appropriated accordingly.\n\n[Section 5 amended: No. 77 of 2006 s. 4.]\n\n[**6.** Omitted under the Reprints Act 1984 s. 7(4)(e).]\n\nSchedule 1 — 1994 Financial Agreement\n\n[s. 4]\n\n[Heading amended: No. 19 of 2010 s. 4.]\n\nAGREEMENT made the 25th day of February One thousand nine hundred and ninety four between —\n\nTHE COMMONWEALTH OF AUSTRALIA of the first part;\n\nTHE STATE OF NEW SOUTH WALES of the second part;\n\nTHE STATE OF VICTORIA of the third part;\n\nTHE STATE OF QUEENSLAND of the fourth part;\n\nTHE STATE OF WESTERN AUSTRALIA of the fifth part;\n\nTHE STATE OF SOUTH AUSTRALIA of the sixth part;\n\nTHE STATE OF TASMANIA of the seventh part;\n\nTHE AUSTRALIAN CAPITAL TERRITORY of the eighth part; and\n\nTHE NORTHERN TERRITORY OF AUSTRALIA of the ninth part\n\n(each of the parties of the second, third, fourth, fifth, sixth and seventh parts and, in relation to clause 4, the Australian Capital Territory and the Northern Territory of Australia in respect of which for the time being the Agreement is in force being in this Agreement referred to as a “State” and all of those parties as the context so permits or requires being in this Agreement referred to as “the States”).\n\nWHEREAS:\n\n(A) an Agreement (in this Agreement called “the Original Agreement”) was made the 12th December 1927 between the parties to this Agreement with respect to the public debts of the States;\n\n(B) the provisions of the Original Agreement (which, as varied by the Supplemental Agreements, is in this Agreement called the “Principal Agreement”) have been varied by the following agreements made in pursuance of section 105A of the Constitution of the Commonwealth of Australia —\n\n(i) Agreement made the 1st July 1928, a copy of which is set out in the Schedule to the *Tasmania Sinking Fund Agreement Act 1928*;\n\n(ii) Agreement made the 21st July 1931, a copy of which is set out in the Schedule to the *Debt Conversion Agreement Act 1931*;\n\n(iii) Agreement made the 22nd October 1931, a copy of which is set out in the Schedule to the *Debt Conversion Agreement Act (No. 2) 1931*;\n\n(iv) Agreement made the 3rd July 1934, a copy of which is set out in the Schedule to the *Soldier Settlement Loans (Financial Agreement) Act 193*5;\n\n(v) Agreement made the 15th November 1944, a copy of which is set out in the Schedule to the *Financial Agreement Act 1944*;\n\n(vi) Agreement made the 11th February 1966, a copy of which is set out in the Schedule to the *Financial Agreement Act 1966*; and\n\n(vii) Agreement made the 5th February 1976, a copy of which is set out in the Schedule to the *Financial Agreement Act 1976*,\n\n(which Agreements are in this Agreement referred to as “the Supplemental Agreements”);\n\n(C) the parties, other than those of the eighth and ninth parts, have agreed that in pursuance of section 105A of the Constitution provision as specified in this Agreement different from that in the Principal Agreement should be made as to;\n\n(i) the powers of the Loan Council;\n\n(ii) the restriction on a State from borrowing by the issue of securities in its own name in domestic and overseas markets;\n\n(iii) the requirement on the Commonwealth and on a State for approval of borrowings; and\n\n(iv) the power of the Commonwealth to borrow on behalf of the States; and\n\n(D) all the parties agree that\n\n(i) the Australian Capital Territory and the Northern Territory be represented on the Loan Council;\n\n(ii) the Loan Council have a power to make resolutions only; and\n\n(iii) the Northern Territory and the Commonwealth make into the Debt Retirement Reserve Trust Account the payments that they would otherwise have made under the 1986 Arrangements;\n\nNOW IT IS HEREBY AGREED as follows:\n\n1 (1) This Agreement, other than this clause, shall have no force or effect and shall not be binding upon any party until, in respect of each party, either —\n\n(a) it is signed with the prior authority of the Parliament or, in the case of each Territory, the Legislative Assembly, of that party; or\n\n(b) after having been signed, it is approved by the Parliament or, in the case of each Territory, the Legislative Assembly, of that party.\n\n(2) The Commonwealth will take, as soon as possible, all practicable steps to seek the enactment of legislation relating to:\n\n(a) the cessation of the National Debt Sinking Fund created by the *National Debt Sinking Fund Act 1966*;\n\n(b) the establishment of the Debt Retirement Reserve Trust Account; and\n\n(c) thereupon, the payment from the National Debt Sinking Fund or, in the case of the Northern Territory, the Northern Territory Debt Sinking Fund, into the Debt Retirement Reserve Trust Account, but so that the payment is made to the credit of the accounts established in respect of the relevant States or the Northern Territory, as the case may be, of the moneys then standing to the credit of the accounts in the National Debt Sinking Fund or the Northern Territory Debt Sinking Fund, respectively, including any later amounts which, but for the abolition of the National Debt Sinking Fund or the Northern Territory Debt Sinking Fund, would, when received, have been paid into the National Debt Sinking Fund or the Northern Territory Debt Sinking Fund.\n\n2 (1) This Agreement, as varied from time to time, shall be known as “the 1994 Financial Agreement”.\n\n(2) Upon its coming into force, clauses 7, 8, 10, 11 and 13 of this Agreement shall be deemed to have commenced to operate on and from 1 July 1990.\n\n3 (1) In this Agreement, unless the contrary intention appears —\n\n“bondholder”  means holder of any securities but does not include the Commonwealth;\n\n“face value” means —\n\n(a) in relation to securities repayable in Australian currency, the principal amount, excluding any amount payable by way of premium, remaining to be repaid in respect of the securities;\n\n(b) in relation to securities repayable in an overseas currency, the equivalent in Australian currency of the principal amount, excluding any amount payable by way of premium, remaining to be repaid in respect of the securities, converted at the Reserve Bank of Australia selling rate to the Commonwealth Government at the time of conversion or at such rate as is agreed between the Commonwealth and the States;\n\n“gross cost”, in relation to the purchase of securities, means the amount actually paid for the securities, including interest, brokerage and commission;\n\n“holder”, in relation to securities, means owner of the securities according to the manner in which ownership of the securities is determined;\n\n“net public debt”, means:\n\n(a) in relation to a State, the public debt of the State less an amount equal to the sum of the balance standing to the credit of the State —\n\n(A) in relation to the period until the establishment of the Debt Retirement Reserve Trust Account, in the Sinking Fund; and\n\n(B) thereafter, in the Debt Retirement Reserve Trust Account; and\n\n(b) in relation to the Northern Territory, the public debt of that Territory less an amount equal to the sum of the balance standing to the credit of the Territory —\n\n(C) in relation to the period until the establishment of the Debt Retirement Reserve Trust Account, in the Northern Territory Debt Sinking Fund; and\n\n(D) thereafter, in the Debt Retirement Reserve Trust Account;\n\n“Premier” includes, in relation to clause 4, the Chief Minister of —\n\n(a) the Australian Capital Territory; and\n\n(b) the Northern Territory of Australia,\n\nas the case may be;\n\n“public debt” means\n\n(a) in relation to a State, the aggregate of the face value of the securities issued or created by the State or issued or created in respect of the State in accordance with the Principal Agreement that have not been purchased, redeemed or otherwise repaid or in respect of which the State has not otherwise been freed and discharged from liability; and\n\n(b) in relation to the Northern Territory, the aggregate of the face value of the securities issued or created in respect of the Northern Territory in accordance with the 1986 Arrangements that have not been purchased, redeemed or otherwise repaid or in respect of which the Northern Territory has not otherwise been freed and discharged from liability;\n\n“securities” means —\n\n(a) where the context involves a State;\n\nInscribed Stock and Bonds\n\nInstalment Stock\n\nRegistered Stock\n\nFunded Stock\n\nStock payable to bearer\n\nSpecial Bonds\n\nAustralian Savings Bonds\n\nwhich were issued or created by a State and taken over by the Commonwealth under the Principal Agreement or issued or created in respect of a State; and\n\n(b) where the context involves the Northern Territory;\n\nInscribed Stock and Bonds\n\nRegistered Stock\n\nStock payable to bearer\n\nAustralian Savings Bonds\n\nwhich were issued or created in respect of the Northern Territory under the 1986 Arrangements;\n\n“the Commission” means the National Debt Commission continued in existence by the *National Debt Sinking Fund Act 1966*;\n\n“the Loan Council” means the Australian Loan Council continued in existence pursuant to this Agreement;\n\n“the Sinking Fund” means the National Debt Sinking Fund created by the *National Debt Sinking Fund Act 1966*; and\n\n“the 1986 Arrangements” means the Arrangements entered into between the Commonwealth of Australia and the Northern Territory dated the 26th May 1986 under which, among other things, there was created the Northern Territory Debt Sinking Fund within the Commonwealth Trust Fund.\n\n(2) In this Agreement —\n\n(a) a reference to a year is, unless the contrary intention appears, a reference to a financial year commencing on a 1st July;\n\n(b) the expression “in writing” includes any mode of representing or reproducing words and figures in a written form; and\n\n(c) except where inconsistent with the context, words in the singular include the plural and words in the plural include the singular.\n\n4 (1) The Australian Loan Council created under the Principal Agreement is continued in existence hereunder but so that it shall consist of one representative of the Commonwealth who shall be —\n\n(a) the Prime Minister of the Commonwealth; or\n\n(b) a Minister or other person nominated in writing by the Prime Minister,\n\nand one representative of each State who shall be —\n\n(c) the Premier of that State; or\n\n(d) a Minister or other person nominated in writing by the Premier of that State,\n\nprovided that the nomination of the Minister shall be deemed to include another Minister of the Commonwealth or of the State, as the case may be, who is for the time being acting for the Minister nominated and references in this clause to a representative shall be read so as to include a Minister who is so acting.\n\n(2) Any nomination of a substitute representative of the Commonwealth or of a State shall be tabled at the meeting of the Loan Council next succeeding the nomination.\n\n(3) The representative of the Commonwealth on the Loan Council shall hold office during the pleasure of the Prime Minister of the Commonwealth and a representative of a State shall hold office during the pleasure of his or her Premier.\n\n(4) The representative of the Commonwealth shall be the Chairman of the Loan Council.\n\n(5) A decision in which all the representatives for the time being of the Loan Council concur shall be not affected by any vacancy then existing among the representatives.\n\n(6) A meeting of the Loan Council may at any time be convened by the representative of the Commonwealth, and shall be so convened upon the request of at least four State representatives.\n\n(7) A majority of the representatives of the Loan Council shall constitute a quorum of the Loan Council for the exercise of its powers at any meeting, provided that —\n\n(a) a representative may at any time appoint in writing a deputy to act in his absence, and any deputy so appointed may in the absence of the representative exercise all the powers and functions of the representative and his or her presence shall be deemed the presence of the representative; and\n\n(b) an absent representative who has not appointed a deputy may vote by letter, telegram, or by facsimile and in such case that representative shall be counted as being present in relation only to the questions on which he or she has voted.\n\n(8) The Loan Council may make rules of procedure including rules relating to places, times, and notices of meetings, and conduct of business at meetings, including voting on a resolution and from time to time may alter such rules.\n\n(9) The Loan Council may make resolutions, which are not to operate as they would have operated had clause 3(15) of the original Agreement not been rescinded, in relation to —\n\n(a) borrowings;\n\n(b) raisings; and\n\n(c) other financial arrangements\n\nby the Commonwealth, a State, a local governing body or any entity owned or controlled wholly or as to a major part by any of them, save for any of the foregoing excepted from time to time by the Loan Council.\n\n(10) In this clause the expressions “Prime Minister” and “Premier” include the persons for the time being respectively acting as such.\n\n5 (1) Subject to this clause the Commonwealth will continue to pay to bondholders from time to time interest payable on the Public Debts of the States taken over by the Commonwealth under the Principal Agreement other than debts due by the States to the Commonwealth.\n\n(2) Each State shall continue to pay in each year to the Commonwealth, as it falls due, the whole of the interest on any debt included in the public debt of that State taken over by the Commonwealth under the Principal Agreement, and on any moneys borrowed by the Commonwealth under the Principal Agreement on behalf of that State, then unpaid.\n\n(3) The Northern Territory shall continue to pay in each year to the Commonwealth, as it falls due, the whole of the interest on any moneys borrowed by the Commonwealth on behalf of the Northern Territory under the 1986 Arrangements then unpaid.\n\n(4) The method by which payments shall be made by a State under sub‑clause (2) or the Northern Territory under sub‑clause (3) of this clause shall be arranged from time to time between the Commonwealth and, respectively, that State or the Northern Territory.\n\n(5) The rate of interest payable under sub‑clause (2) of this clause in respect of moneys borrowed by the Commonwealth on behalf of a State shall be the full rate of interest payable by the Commonwealth in respect of the loan by which such moneys were borrowed or such other rate of interest as may be payable by the State to the Commonwealth under any agreement made or to be made between the Commonwealth and that State in respect of such moneys and such interest shall be payable by that State for the full term of that loan.\n\n(6) The rate of interest payable under sub‑clause (3) of this clause in respect of moneys borrowed by the Commonwealth on behalf of the Northern Territory shall be the full rate of interest payable by the Commonwealth in respect of the loan by which such moneys were borrowed or such other rate of interest as may be payable by the Northern Territory to the Commonwealth under any agreement made or to be made between the Commonwealth and the Northern Territory in respect of such moneys and such interest shall be payable by the Northern Territory for the full term of that loan.\n\n6 (1) There shall be a trust account to be called the “Debt Retirement Reserve Trust Account”.\n\n(2) The Commonwealth shall establish and maintain a separate account in the Debt Retirement Reserve Trust Account in respect of each State.\n\n(3) The Commonwealth shall establish and maintain a separate account in the Debt Retirement Reserve Trust Account in respect of the Northern Territory.\n\n(4) There shall be paid by the Commonwealth into each of those accounts in the Debt Retirement Reserve Trust Account established under sub‑clause 6(2):\n\n(a) amounts equal to the amounts received from the State under sub‑clause 7(2); and\n\n(b) amounts being the contributions by the Commonwealth under clause 8.\n\n(5) There shall be paid by the Commonwealth into the accounts in the Debt Retirement Reserve Trust Account established under sub‑clause 6(3):\n\n(a) amounts equal to the amounts received from the Northern Territory under sub‑clause 7(3); and\n\n(b) amounts being the contributions by the Commonwealth under clause 8.\n\n(6) Moneys standing to the credit of an account established in respect of a State in the Debt Retirement Reserve Trust Account shall be applied by the Commonwealth in connection with the purchase, redemption, including redemption on conversion, and repayment of securities of that State. The gross cost, in the case of purchase, or the cost at face value, in the case of redemption or repayment, shall be charged to the account established in respect of that State in the Debt Retirement Reserve Trust Account.\n\n(7) Moneys standing to the credit of the account established in respect of the Northern Territory in the Debt Retirement Reserve Trust Account shall be applied by the Commonwealth in connection with the purchase, redemption, including redemption on conversion, and repayment of securities of the Northern Territory. The gross cost, in the case of purchase, or the cost at face value, in the case of redemption or repayment, shall be charged to the account established in respect of that Territory in the Debt Retirement Reserve Trust Account.\n\n(8) Moneys standing to the credit of an account established in respect of a State in the Debt Retirement Reserve Trust Account will be held within the Commonwealth Public Account established pursuant to paragraph 21(1)(a) of the *Audit Act 1901* or that provision as amended, modified or re‑enacted from time to time. An amount equal to interest earned on that part of the balances in the Commonwealth Public Account attributable to the credit balance in the account established in respect of a State within the Debt Retirement Reserve Trust Account shall be added to the moneys standing to the credit of that account.\n\n(9) Moneys standing to the credit of the account established in respect of the Northern Territory in the Debt Retirement Reserve Trust Account will be held within the Commonwealth Public Account established pursuant to paragraph 21(1)(a) of the *Audit Act 1901* or that provision as amended, modified or re‑enacted from time to time. An amount equal to interest earned on that part of the balances in the Commonwealth Public Account attributable to the credit balance in the account established in respect of the Northern Territory within the Debt Retirement Reserve Trust Account shall be added to the moneys standing to the credit of that account.\n\n(10) When securities of a State or of the Northern Territory are purchased, redeemed or repaid, the securities shall be deemed to have been cancelled on the date of the purchase, redemption or repayment.\n\n7 (1) Each State shall, in respect of the public debt of the State, pay by equal monthly instalments during each year commencing on 1 July 1990 or in such other amounts as are determined by agreement between the Commonwealth and the relevant State a contribution calculated in respect of that year as provided in this clause.\n\n(2) Each State shall pay the contribution in respect of each year ‑\n\n(a) in respect of the period from 1 July 1990 until the establishment of the Debt Retirement Reserve Trust Account, to the Commission for credit to the account of the State in the Sinking Fund, and\n\n(b) thereafter, to the Commonwealth for credit to the account established in respect of the State in the Debt Retirement Reserve Trust Account\n\nsuch that the contribution, together with —\n\n(c) in the case of the period referred to in paragraph (a),\n\n(i) amounts of interest referred to in sub‑clause 12A(7) of the Principal Agreement, preserved by sub‑clause 16(2), in respect of the relevant year or, where the Debt Retirement Reserve Trust Account has operated for only part of the year, the other part of that year;\n\n(ii) contributions by the Commonwealth pursuant to clause 8 as it relates to the State in respect of the relevant year or, where the Debt Retirement Reserve Trust Account has operated for only part of the year, the other part of that year; and\n\n(iii) the moneys standing to the credit of an account in respect of the State in the Sinking Fund as at the commencement of that year including where the Debt Retirement Reserve Trust Account has operated for only part of the year; and\n\n(d) in the case of the period referred to in paragraph (b),\n\n(i) amounts equal to interest referred to in sub‑clause 6(8) in respect of the relevant year, or where the Debt Retirement Reserve Trust Account has operated for only part of the year, the interest referred to in sub‑clause 6(8) for that part of that year;\n\n(ii) contributions by the Commonwealth pursuant to clause 8 in respect of the relevant year or where the Debt Retirement Reserve Trust Account has operated for only part of the year, the contribution made into the Debt Retirement Reserve Trust Account for that part of the year; and\n\n(iii) the moneys standing at the commencement of the relevant year to the credit of an account in respect of the State in the Debt Retirement Reserve Trust Account,\n\nis equal to the total of those parts of its public debt which falls to be redeemed or is repaid or purchased in that year, or any greater amount which the State elects to have redeemed, repaid or purchased in that year, but so that in any event that contribution shall not be less than an amount equal to 0.85 per centum of the net public debt of the State as at the 30th June immediately preceding the year in which the contribution is payable.\n\n(3) The Northern Territory shall pay a contribution in respect of each year —\n\n(a) in respect of the period from 1 July 1990 until the establishment of the Debt Retirement Reserve Trust Account, to the Commonwealth for credit to the Northern Territory Debt Sinking Fund; and\n\n(b) thereafter, to the Commonwealth for credit to the account established in respect of the Northern Territory in the Debt Retirement Reserve Trust Account\n\nsuch that the contribution, together with —\n\n(c) in the case of the period referred to in paragraph (a),\n\n(i) amounts of interest which would have been payable under the 1986 Arrangements in respect of the relevant year or, where the Debt Retirement Reserve Trust Account has operated for only part of the year, the other part of that year;\n\n(ii) contributions by the Commonwealth pursuant to clause 8 as it relates to the Territory in respect of the relevant year or, where the Debt Retirement Reserve Trust Account has operated for only part of the year, the other part of that year; and\n\n(iii) the moneys standing to the credit of the Northern Territory Debt Sinking Fund as at the commencement of that year including where the Debt Retirement Reserve Trust Account has operated for only part of the year; and\n\n(d) in the case of the period referred to in paragraph (b),\n\n(i) amounts equal to interest referred to in sub‑clause 6(9) in respect of the relevant year or, where the Debt Retirement Reserve Trust Account has operated for only part of the year, the interest referred to in sub‑clause 6(9) for that part of that year;\n\n(ii) contributions by the Commonwealth pursuant to clause 8 in respect of the relevant year or, where the Debt Retirement Reserve Trust Account has operated for only part of the year, the contribution made into the Debt Retirement Reserve Trust Account for that part of the year; and\n\n(iii) the moneys standing at the commencement of the relevant year to the credit of the account in respect of the Northern Territory in the Debt Retirement Reserve Trust Account,\n\nis equal to the total of those parts of its public debt which falls to be redeemed or is repaid or purchased in that year or any greater amount which the Northern Territory elects to have redeemed, repaid or purchased in that year, but so that in any event that contribution shall not be less than an amount equal to 0.85 per centum of the net public debt of the Northern Territory as at the 30th June immediately preceding the year in which the contribution is payable.\n\n8 (1) The Commonwealth shall, in respect of the public debt of each State and of the Northern Territory, pay for credit to the account of the State in the National Debt Sinking Fund and that Territory in the Northern Territory Debt Sinking Fund by equal monthly instalments during each year commencing 1 July 1990 or in such other amounts as are determined by agreement between the Commonwealth and the relevant State or the Commonwealth and the Northern Territory, as the case may be, a contribution calculated in respect of that year as provided in this clause.\n\n(2) The Commonwealth shall pay a contribution in respect of each of those years in relation to the public debt of a State and in relation to the public debt of the Northern Territory that is equivalent to 0.28 per centum of the net public debt of the State or the Northern Territory, as the case may be, at the 30th June immediately preceding the year in which the contribution is payable.\n\n(3) On and from the establishment of the Debt Retirement Reserve Trust Account the contribution payable by the Commonwealth under this clause in respect of the States and the Northern Territory shall be paid into that Account.\n\n9 The contributions payable after the establishment of the Debt Retirement Reserve Trust Account by the Northern Territory under sub‑clause 7(3) shall be:\n\n(a) in respect of so much of the year ending on 30 June next following the establishment of the Debt Retirement Reserve Trust Account; and\n\n(b) in respect of each succeeding year,\n\nof equal monthly instalments during the period referred to in paragraph (a) or during the year referred to in paragraph (b) or of such other amounts as are determined by agreement between the Commonwealth and the Northern Territory.\n\n10 The Commonwealth shall reimburse, in such amounts and at such times as agreed between the Commonwealth and the State, each State for the excess, as assessed by agreement between the Commonwealth and the State, of the amount of the costs to the State incurred from 1 July 1990 in respect of the redemption, repayment and purchase, by the Commonwealth of the securities from that date over the amount of the costs that would have been so incurred under the Principal Agreement.\n\n11 The Commonwealth shall reimburse, in such amounts and at such times as agreed between the Commonwealth and the Northern Territory, that Territory for the excess, as assessed by agreement between the Commonwealth and that Territory, of the amount of the costs to that Territory incurred from 1 July 1990 in respect of the redemption, repayment and purchase, by the Commonwealth of the securities from that date over the amount of the costs that would have been so incurred under the 1986 Arrangements.\n\n12 (1) Each State and the Northern Territory shall repay to the Commonwealth all expenses incurred or payments made by the Commonwealth in the performance of this Agreement in relation to the State and the Northern Territory, including the following expenses and payments: —\n\n(a) Loan floatation charges;\n\n(b) Management charges;\n\n(c) Stamp duties on transfer of securities;\n\n(d) Commission on payment of interest;\n\n(e) Expenses incurred in the conversion, renewal, redemption or consolidation of loans; and\n\n(f) Exchange on transference of moneys.\n\n(2) Unless it is otherwise agreed between the Commonwealth and a State, the Commonwealth will not do anything in connection with a loan of that State existing on the 30th June, 1927, or raised thereafter pursuant to the Principal Agreement, which, if done by that State, would be a breach of any now existing agreement by that State with any Bank.\n\n(3) A certificate by the Auditor‑General of the Commonwealth stating the amount to be repaid by a State to the Commonwealth and the matter in respect of which the repayment is to be made shall, in the event of a dispute, be conclusive as to the amount and matter stated.\n\n13 Each State agrees with the Commonwealth that it will by the faithful performance of its obligations under this Agreement indemnify the Commonwealth against all liabilities whatsoever in respect of the public debt of that State (other than the liabilities of the Commonwealth under this Agreement to pay interest and to make sinking fund contributions or, after its establishment, contributions to the Debt Retirement Reserve Trust Account), not falling payable under the Principal Agreement prior to the 1 July 1990 in respect of which this Agreement provides that sinking fund contributions or, after its establishment, contributions to the Debt Retirement Reserve Trust Account shall be made.\n\n14 The Northern Territory agrees with the Commonwealth that it will by the faithful performance of its obligations under this Agreement indemnify the Commonwealth against all liabilities whatsoever in respect of all loans of that Territory for which this Agreement provides that, after its establishment, contributions to the Debt Retirement Reserve Trust Account shall be made.\n\n15 Separate accounts shall be kept by the Commonwealth for each State and, so far as relevant, for the Northern Territory in respect of Debt, Interest, and Sinking Funds or, after its establishment, contributions for the purposes of the Debt Retirement Reserve Trust Account.\n\n16 (1) This Agreement rescinds the Principal Agreement, except as provided by this clause, but with effect from the date on which this Agreement, other than Clauses 7, 8, 10, 11 and 13, comes into effect.\n\n(2) Sub‑clauses 12A(1), (2) and (4) to (12), inclusive, of the Principal Agreement continue to operate until the date on which the Debt Retirement Reserve Trust Account is established and, for the purposes of their continued operation, references in sub‑clause 12A(9) of the Principal Agreement to clauses 12B and 12C are taken to be references to clauses 7 and 8, respectively, of this Agreement.\n\n(3) This Agreement rescinds, with effect from the date referred to in subclause (1), the provisions of the 1986 Arrangements in relation to debt outstanding as at 1 July 1990, being debt arising from securities the subject of those Arrangements issued or created in respect of the Northern Territory by the Commonwealth.\n\nIN WITNESS WHEREOF this agreement has been signed for and on behalf of the parties respectively as at the day and year first above written.\n\n| SIGNED by the Honourable PAUL JOHN KEATING, Prime Minister of the Commonwealth of Australia, in the presence of<br>Dr. Michael Keating<br>............................................................ | Paul J. Keating<br>............................................................ |\n| --- | --- |\n\n| SIGNED by the Honourable JOHN JOSEPH FAHEY, Premier of the State of New South Wales, in the presence of<br>Mr. Roger Wilkins<br>............................................................ | John Fahey<br>............................................................ |\n| --- | --- |\n\n| SIGNED by the Honourable JEFFREY GIBB KENNETT, Premier of the State of Victoria, in the presence of<br>Mr. Ken Baxter<br>............................................................ | J. G. Kennett<br>............................................................ |\n| --- | --- |\n\n| SIGNED by the Honourable WAYNE KEITH GOSS, Premier of the State of Queensland, in the presence of<br>Mr. Kevin Rudd<br>............................................................ | W. K. Goss<br>............................................................ |\n| --- | --- |\n\n| SIGNED by the Honourable RICHARD FAIRFAX COURT, Premier of the State of Western Australia, in the presence of<br>Mr. Don Saunders<br>............................................................ | Richard Court<br>............................................................ |\n| --- | --- |\n\n| SIGNED by the Honourable DEAN CRAIG BROWN, Premier of the State of South Australia, in the presence of<br>Mr. Michael Schilling<br>............................................................ | Dean Brown<br>............................................................ |\n| --- | --- |\n\n| SIGNED by the Honourable RAYMOND JOHN GROOM, Premier of the State of Tasmania, in the presence of<br>Dr. Dan Norton<br>............................................................ | R. J. Groom<br>............................................................ |\n| --- | --- |\n\n| SIGNED by ROSEMARY FOLLETT, Chief Minister of the Australian Capital Territory, in the presence of<br>Dr. David Rosalky<br>............................................................ | Rosemary Follett<br>............................................................ |\n| --- | --- |\n\n| SIGNED by the Honourable MARSHALL BRUCE PERRON, Chief Minister of the Northern Territory, in the presence of<br>Dr. Neil Conn<br>............................................................ | M. B. Perron<br>............................................................ |\n| --- | --- |\n\n\n![dline]()\n\nNotes\n\n1 This is a compilation of the *Financial Agreement Act 1995* and includes the amendments made by the other written laws referred to in the following table. The table also contains information about any reprint.\n\nCompilation table\n\n| **Short title** | **Number and year** | **Assent** | **Commencement** |\n| --- | --- | --- | --- |\n| *Financial Agreement Act 1995* | 2 of 1995 | 10 May 1995 | s. 1 and 2: 10 May 1995;   Act other than s. 1 and 2: 1 May 1995 (see section 2 and *Gazette* 30 May 1995 p. 2095) |\n| **Reprint of the *Financial Agreement Act 1995* as at 3 Mar 2000** | | | |\n| *Financial Legislation Amendment and Repeal Act 2006* s. 4 | 77 of 2006 | 21 Dec 2006 | 1 Feb 2007 (see s. 2(1) and *Gazette* 19 Jan 2007 p. 137) |\n| *Standardisation of Formatting Act 2010* s. 4 | 19 of 2010 | 28 Jun 2010 | 11 Sep 2010 (see s. 2(b) and *Gazette* 10 Sep 2010 p. 4341) |\n| **Reprint 2: The *Financial Agreement Act 1995* as at 5 Sep 2014** (includes amendments listed above) | | | |\n\n\nDefined terms\n\n*[This is a list of terms defined and the provisions where they are defined. The list is not part of the law.]*\n\n**Defined term Provision(s)**\n\n1994 Financial Agreement 3\n","sortOrder":0}],"analysis":{"summary":{"complexity_score":1,"scope_assessment":{"changed":false,"description":"Scope cannot be assessed as the legislative text was not available for review. No comparison between original intent and current provisions is possible."},"complexity_factors":["No legislative text was retrievable — the source URL returned an error page rather than the Act's content","Cannot assess complexity without reviewing provisions, definitions, schedules, or operative clauses","Score of 1 reflects absence of analysable content, not simplicity of the underlying Act"],"plain_english_summary":"## ⚠️ Content Unavailable\n\nThe text of the **Financial Agreement Act 1995 (WA)** could not be retrieved. The page hosting this Western Australian legislation has been moved or is temporarily unavailable due to system upgrades on the Parliamentary Counsel's Office website.\n\n**What we do know:**\n- This is a **Western Australian** (state-level) Act\n- It was enacted in **1995**\n- Based on its title, it likely governs some form of financial agreement — potentially relating to Commonwealth-State financial arrangements, or financial agreements between parties under family or property law\n\n**What you should do:**\n- Visit the [Western Australian Legislation website](https://www.legislation.wa.gov.au) and search directly for \"Financial Agreement Act 1995\"\n- Contact the Parliamentary Counsel's Office helpdesk if you cannot locate it\n\n*No substantive legal analysis can be provided without access to the actual legislative text.*"},"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"Yes. The 1994 Agreement substantially changes the scope of the older 1927 Principal Agreement. It introduces a new centralised mechanism (the Debt Retirement Reserve Trust Account) for managing State and Territory debt (cl.6), sets fixed contribution formulas and minimum rates for States and the Northern Territory (cl.7–9, cl.8(2)), updates the Loan Council's structure and confines its legal action to \"resolutions\" (cl.4(9)), and rescinds the Principal Agreement while preserving selected provisions (cl.16). It also explicitly brings the Territories into Loan Council representation and into the account arrangements (Preamble and cl.4). Mechanically, that is a clear expansion and modernisation of federal–state debt management compared with the original 1927 arrangements: control over certain debt issuance and retirement functions is moved into Commonwealth‑administered structures and new recurring financial obligations on States/NT are imposed (cl.5–9, cl.12–14)."},"complexity_factors":["Schedule contains a 1994 Agreement with multiple substantive clauses (at least 16 numbered clauses) plus preamble and signatures, increasing length beyond the Act's short body.","12 defined terms explicitly set out in clause 3 (e.g. \"bondholder\", \"face value\", \"net public debt\", \"securities\", \"the Loan Council\", \"the Sinking Fund\").","Frequent cross‑references to an external \"Principal Agreement\" (the 1927 Agreement and supplemental agreements) and to the 1986 Arrangements, creating interdependence with earlier instruments.","Temporal and transitional complexity: clauses operate differently pre‑ and post‑establishment of the Debt Retirement Reserve Trust Account (see cl.2, cl.6, cl.7(2)(a)/(b)), and some clauses are deemed to have retrospective operation from 1 July 1990 (cl.2(2)).","Nested conditional payment rules and formulas (different payees and calculation bases before/after the Trust Account, cl.7–9; Commonwealth vs State contributions cl.7–8).","Multiple forms of discretion and administrative rules: Loan Council rules/procedures (cl.4(8)–(9)), agreement between Commonwealth and each State/NT for certain details (cl.5(4), cl.7(1)), and Auditor‑General certificates deemed conclusive in disputes (cl.12(3)).","Rescission with exceptions: cl.16 rescinds the Principal Agreement except for enumerated continuations (creates layered exceptions).","Interfaces with Commonwealth financial law and budget processes (holding moneys in Commonwealth Public Account under Audit Act, cl.6(8)–(9)) and with State appropriation mechanics (s.5 of the Act)."],"plain_english_summary":"**What this law does (mechanics first)**\n\n- The Financial Agreement Act 1995 (WA) approves and brings into force a multi‑party debt management agreement known as the \"1994 Financial Agreement\". The Agreement itself is set out in Schedule 1 to the Act and is the operative document for how the Commonwealth, the States and the Territories manage certain public debts (see Schedule cl.1 and cl.4). The Act also authorises appropriation from Western Australia's Consolidated Account to meet WA's share of the obligations under that Agreement if payment is required (s.5).\n\n- The 1994 Financial Agreement (the Agreement) replaces many provisions of the older \"Principal Agreement\" (the 1927 Agreement and its supplements) and sets out: who sits on the Australian Loan Council and how it operates (cl.4); how interest on State and Territory public debt is paid (cl.5); creation and operation of a Debt Retirement Reserve Trust Account (cl.6); annual contributions by States and the Northern Territory to retire debt (cl.7–9); Commonwealth contributions (cl.8); reimbursement and cost‑sharing arrangements (cl.10–12); indemnities to the Commonwealth (cl.13–14); and accounting requirements (cl.15). Clause 16 rescinds the Principal Agreement except for specified continuing provisions.\n\n**Who it affects**\n\n- The Commonwealth government, each State (including Western Australia under this Act) and the Northern Territory and Australian Capital Territory in the specific areas set out (Schedule preamble and cl.4).\n- State and Territory treasuries and central agencies that manage public borrowing, debt servicing and sinking‑fund style accounts (cl.6, cl.15).\n- Bondholders of the securities taken over under the older Principal Agreement: the Commonwealth continues to pay interest to those bondholders (cl.5(1)).\n- Private financial intermediaries and markets to the extent States' direct issuance and debt management practices are constrained by the Agreement (see Preamble C(ii) and cl.4(9)).\n\n**Why it matters (official purpose and tested practical effects)**\n\n- The stated purpose (in the Agreement's WHEREAS clauses) is to update arrangements under section 105A of the Constitution about the Loan Council's powers, limits on States issuing securities in their own name, approval requirements for borrowings, and the Commonwealth's power to borrow on behalf of States (Preamble C).\n\n- Concrete legal changes: the Agreement (a) continues the Loan Council but narrows its legal output to \"resolutions\" rather than binding unilateral orders (cl.4(9)); (b) creates a Debt Retirement Reserve Trust Account and separate per‑State/Territory accounts to be used for buying, redeeming or repaying that jurisdiction's securities (cl.6); (c) prescribes minimum annual contributions for States and the Northern Territory (not less than 0.85% of net public debt) and a Commonwealth contribution (0.28% of net public debt) (cl.7(2), cl.8(2)); (d) requires monthly instalment schedules unless otherwise agreed (cl.7(1), cl.8(1)); and (e) requires States and the Northern Territory to reimburse the Commonwealth for various expenses and to indemnify it against liabilities arising from that public debt (cl.12, cl.13–14).\n\n- Costs and who pays: States and the Northern Territory must make recurring contributions to retire debt and reimburse or bear transaction costs (cl.7, cl.12). The Commonwealth makes separate contributions and initially holds and manages the Debt Retirement Reserve Trust Account (cl.6, cl.8). Bondholders continue to receive interest paid by the Commonwealth under the arrangement (cl.5(1)).\n\n- Incentives, trade‑offs and practical effects:\n  - Centralisation: debt retirement and redemption activities are coordinated through Commonwealth‑held accounts and subject to Commonwealth procedures (cl.6, cl.15). That reduces unilateral State control over some debt operations and channels repayments through Commonwealth mechanisms.\n  - Fiscal burden on States/NT: the fixed minimum contribution formula (0.85% floor) and obligation to meet transaction costs (cl.7(2), cl.12) create predictable but continuing fiscal outflows for sub‑national budgets.\n  - Market interaction: by restricting States' ability to borrow in their own name (Preamble C(ii)) and having the Commonwealth act on their behalf for some borrowings, the Agreement changes how State debt is represented to markets — potentially reducing individual States' direct market presence and concentrating issuance or liability recognition at Commonwealth level (see Preamble C and cl.5–6, cl.16).\n  - Administrative/compliance cost: monthly instalments, separate accounting for each State/NT account, and the requirement for Commonwealth Auditor‑General certificates to be conclusive in disputes (cl.7(1), cl.15, cl.12(3)) increase recordkeeping and intergovernmental reconciliation tasks.\n  - Concentrated vs diffuse effects: benefits to bondholders (continuing interest payments by Commonwealth) are concentrated, while costs are spread across State budgets and taxpayers—States bear the recurring contribution and cost obligations (cl.5–9, cl.12–13).\n\n**Decision‑making and discretion**\n\n- The Commonwealth representative chairs the Loan Council and has power to convene meetings; decisions require a majority quorum and can be made by resolution (cl.4(1)–(9)). Loan Council rules and scope of matters it may resolve on (borrowings, raisings, other financial arrangements) are within its control, subject to the Agreement (cl.4(8)–(9)).\n\n- The Commonwealth retains discretion in establishing and maintaining the Debt Retirement Reserve Trust Account and holding the moneys within the Commonwealth Public Account (cl.6(1)–(9)). The Agreement also contemplates negotiation between the Commonwealth and each State/NT on practical arrangements such as timing and methods of payments (cl.5(4), cl.7(2) and cl.8(1)).\n\n**Implementation risks and opportunity costs**\n\n- The Agreement requires Commonwealth implementing legislation to abolish the National Debt Sinking Fund and establish the Debt Retirement Reserve Trust Account and effect transfers (cl.1(2)). Delay or variation in that implementing legislation changes when many of the Agreement's cash‑flow rules become operative.\n\n- By centralising some debt functions at Commonwealth level, States give up some direct control over issuance and market relationships; the opportunity cost is reduced State autonomy in exchange for centralised administration and (presumably) more coordinated national debt management (Preamble C and cl.6–9).\n\n**Where to look in the text for key mechanics**\n\n- Loan Council composition and powers: cl.4.\n- Commonwealth payment of bond interest and State/NT obligations to pay interest: cl.5.\n- Debt Retirement Reserve Trust Account rules and application of funds: cl.6.\n- State and NT contribution formulas and timing: cl.7–9.\n- Commonwealth contribution rates: cl.8(2).\n- Reimbursement and indemnity obligations: cl.10–14.\n- Accounts and recordkeeping: cl.15.\n- Rescission of the old Principal Agreement and transitional provisions: cl.16.\n\nIn short: the Act legally adopts a 1994 intergovernmental agreement that centralises and modernises how certain State and Territory public debts are held, serviced and retired by creating a Commonwealth‑held Debt Retirement Reserve Trust Account, setting contribution formulas and timetables, and altering Loan Council composition and legal effect. The measurable consequences are predictable recurring payments from States/NT, Commonwealth contributions and centralised account management, combined with specific reimbursement and indemnity duties on States and the Territory (see Schedule clauses 5–13, 6–9, 12–14)."},"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"The legislation remains focused on its original purpose of approving and implementing the 1994 Financial Agreement regarding intergovernmental debt management. While the Act references historical agreements dating back to 1927, this is necessary context for the 1994 Agreement's operation rather than scope creep. The amendments noted (2006, 2010) appear to be technical or formatting changes rather than substantive expansions of scope."},"complexity_factors":["Extensive cross-referencing to multiple historical agreements dating back to 1927 (Original Agreement, Principal Agreement, Supplemental Agreements, 1986 Arrangements)","Nested conditional logic for calculating contributions — different formulas apply depending on whether the Debt Retirement Reserve Trust Account has been established or not, and different rules for States versus Northern Territory","Multiple defined terms (10+ defined in clause 3 alone) with technical financial meanings ('net public debt', 'face value', 'gross cost', 'securities')","Dual operation periods — clauses operate differently before and after the establishment of the Debt Retirement Reserve Trust Account, creating parallel calculation regimes","Rescission and continuation provisions — clause 16 partially rescinds the Principal Agreement while preserving specific sub-clauses, creating a complex transitional framework","Intergovernmental nature — the Act incorporates by reference a multi-party agreement between 9 different governments, each with different obligations","Mathematical formulas for contribution calculations involving percentages (0.85%, 0.28%) and conditional adjustments based on timing","Appropriation mechanism tied to the Consolidated Account with conditional 'if required' language"],"plain_english_summary":"This Western Australian law approves a 1994 financial deal between the Commonwealth, all States, and the Territories about how government debts are managed.\n\n**What it does:**\n- **Approves the 1994 Financial Agreement** — a complex arrangement that updates how Australia's federal and state governments handle public debt, borrowing, and debt repayment.\n- **Changes the Loan Council** — the body that coordinates government borrowing now makes recommendations (resolutions) rather than having direct control, and includes representatives from the ACT and Northern Territory for the first time.\n- **Replaces old debt funds** — abolishes the old National Debt Sinking Fund and creates a new \"Debt Retirement Reserve Trust Account\" where money is set aside to pay off government debts.\n- **Sets up payment rules** — requires States and the Northern Territory to make regular contributions (at least 0.85% of their net debt annually) into the new trust account to gradually pay down their debts. The Commonwealth also contributes (0.28% of net debt).\n- **Continues Commonwealth management of state debts** — the Commonwealth keeps handling interest payments to bondholders (people who lent money to the government) on behalf of the States, and States reimburse the Commonwealth for these costs.\n\n**Who it affects:**\n- **State and Territory governments** — they must follow the new borrowing and debt repayment rules.\n- **Taxpayers** — the system affects how public debt is managed and repaid over time.\n- **Investors/bondholders** — people who own government bonds (loans to government) are paid interest through this system.\n\n**Why it matters:**\nThis law modernised Australia's federal financial relations in 1994. It gave States more flexibility in borrowing while ensuring debts are still paid down responsibly through the new trust account system. It also updated the Loan Council's role to reflect modern financial management practices."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/financial-agreement-act-1995","history":"/api/acts/financial-agreement-act-1995/history","analysis":"/api/acts/financial-agreement-act-1995/analysis","conflicts":"/api/acts/financial-agreement-act-1995/conflicts","importantCases":"/api/acts/financial-agreement-act-1995/important-cases","documents":"/api/acts/financial-agreement-act-1995/documents"}}